Mr. Speaker, it is always an honour to rise in the House to speak, especially on an important topic close to my heart, that being trade negotiations and free trade in Canada.
I just want to start by reminding members of the House what exactly we are doing here today. There has been some discussion that we are talking about accession, or letting the U.K. into the TPP. I am going to call it the TPP. I think we can drop the charade from the previous prime minister, who forced an unwieldy name on us. By letting the U.K. into the TPP, what we are doing here today, as Parliament, is deciding whether to change Canadian law to allow the United Kingdom preferential access to the Canadian market. This is something Parliament must do. The government can negotiate and agree to things in international law, but it is Parliament that ultimately has the authority and the ability to make the decision whether or not to change Canadian domestic law.
On this point, I share my concerns with my colleagues from the Bloc. With the government, there has been a lack of transparency in these negotiations, a lack of transparency in, in fact, all of the negotiations related to trade that the government is currently engaging in. I think more would be better. Normally, I would be getting up in the House to congratulate any government that wants to increase trade around the world. I am certainly a believer in that, but there is really not much to thank Canada for. Instead, we should be thanking the United Kingdom because it really is the United Kingdom and its hard work in negotiating an entrance into the Trans-Pacific Partnership that got us here.
Unfortunately, very little can be said about Canada's involvement in the U.K.'s ascension in joining this regional trading agreement. In my view, the U.K. is joining this in spite of Canada, rather than because of anything Canada has done. Indeed, as I will discuss a little more shortly, it has been obvious to most trade observers that Canada has been entirely uninterested in securing a new deal with the United Kingdom. In my view, this is part of a developing broader pattern with the government of an entirely unimaginative trade strategy.
As my hon. colleague the member for Wellington—Halton Hills North just mentioned, rather than seeking an ambitious new deal with the United Kingdom, which is an important and critical trading partner for Canada, Canada walked away from negotiations with the United Kingdom. Under the trade continuity agreement, we had extended the United Kingdom similar access to what it had when it was a member of the European Union. Of course, it was not a surprise to anyone that it left. Brexit was not a surprise. It left, and we negotiated what was called the TCA. We had that for some time, and we still have it now. We will have to decide what to do with that.
The TCA was in place to give the government time to move on to negotiate toward a more complete bilateral agreement with the United Kingdom, but the government walked away from that. This was an opportunity, truly a once in a generation opportunity, to redefine our trade with the United Kingdom. It is not every day that one of the largest economies in the world sets out to actively and positively rearrange its trading relationships, but the U.K. was doing that. Canada knew this. Everyone knew this. In fact, the United Kingdom has been on a tear, negotiating new trade agreements around the world, but we missed that opportunity, and now, we are paying the price.
The counterfactual here is that we would have had a more dynamic trading relationship with the United Kingdom. This would be great today. We could have had a brand new bilateral deal with the United Kingdom for years. In this current environment, where we need more friends and more trade, that would have been a benefit to Canada.
My colleagues across the way, the Liberals, have described this as some sort of expanded agreement. This is not an expanded agreement. This is actually a worse agreement than we had, or will have, under CETA, or the European union agreement, where we previously had trade with the United Kingdom. This is worse than if we had just come to an agreement to maintain that access.
CETA is more liberalizing than the TPP. CETA is deeper in terms of tariff elimination, deeper in terms of services and investment liberalization, and deeper when it comes to regulatory co-operation. CETA has better and faster tariff elimination. CETA has more quota for many of our agricultural products. CETA has dedicated provisions to respect veterinary, sanitary and phytosanitary issues. CETA has broader coverage for subnational government procurement. CETA has stronger pharmaceutical IP protections. CETA has stronger and more enforceable labour protections. By most, if not all, important measures, CETA is a better deal for Canada than the TPP.
Even if we had held on to the terms of the European trade agreement, we would have been better off. However, unfortunately, the government walked away from that better deal, and now, we are left with this. As I said, this is part of a broader pattern of an unimaginative trade policy from the government.
The Prime Minister, just yesterday, attempted to rhyme off his so-called accomplishments with respect to trade, but it was quite a pitiful list, if I may say. There is a potential AI agreement with the U.A.E., a potential for an agreement or co-operation with Germany on some minerals and some sort of what the Liberals describe as an “action plan” with Mexico. I read through the action plan in search of some action, but I could not find anything. Instead, I found a lot of flowery language about co-operation, relationships, shared commitments, but no action. There are no binding commitments, no dispute resolution and no enforcement. All of these agreements, which are not much of an agreement, are piecemeal understandings that, for the most part, are completely unenforceable.
When I used to work in treaty drafting in my legal career, we would include this type of language when we did not want to commit to anything. We called it “hortatory language”. For example, we would say, “We shall endeavour to do something sometime, maybe in the future, if we get around to it.” That is how we would write it, and that is what the government is agreeing to. This is a Liberal trade strategy full of hortatory language. There is a lot of language and a lot of talk, but no action and no enforcement. That inaction has been harmful in securing a deal with the United Kingdom and has caused harm to Canadian businesses. I will give members one example.
As part of the trade continuity agreement with the United Kingdom, we had agreed to extend country of origin quotas to certain goods. Typically under free trade agreements, goods must originate within the meeting of that agreement, and there are various kinds of rules of origin that are applied to goods, including what are called “product specific rules”. Sometimes those rules are very hard to meet, and there are practical impediments to satisfying them. Therefore, sometimes countries provide quotas to each other to allow certain quantities of these goods to enter each other's markets duty free, even though they do not otherwise qualify. Canada and the U.K. did this through the trade continuity agreement. We provided, and the U.K. provided to Canada, country of origin quotas for certain products, including sugar products, chocolates, fish, fish food, seafood, textiles, apparel and some vehicles.
In the case of the U.K., these quotas were not meant to last forever. They were meant as a transition period until such time as Canada and the U.K. could reach a new agreement. Of course, as I said before, Canada walked away from that agreement. What happened to these country of original quotas? Well, they expired, and they expired over 18 months ago. Since then, Canadian companies have been exporting goods under these quotas. They had been accessing the U.K. market for free, and now they are paying duties on those goods. I will give members one concrete example.
A marquee Canadian company, Canada Goose, is one of the few companies in Canada that still has an integrated manufacturing base in the apparel sector in Canada. Last year, Canada Goose generated $75 million in revenue in the U.K., but due to the expiry of the country of origin quotas because the government walked away from a deal, Canada Goose paid $10 million in duties to the U.K. government. That is projected to be $15 million this year. That is a significant burden to growth for a marquee Canadian company in a foreign market. Canada Goose employs 3,000 Canadians.
In my view, these losses are a direct result of the government's failure to secure a deal in a reasonable amount of time. However, it need not have been this way. The continuity agreement specifically provided that, after the expiry of the quotas, “the Parties shall discuss and decide whether the period should be extended. If they agree, the application of the annual quotas set out in this Annex may be extended by decision of the Canada-UK Joint Committee.” This means that the Liberals could have negotiated a win. They could have negotiated more access for Canadian companies, but they did not, because they walked away.
In conclusion, I want to point out some things that the government can do. One huge issue that we have raised in the House is with respect to the ban by the United Kingdom on beef treated with certain types of hormones, which is safe to eat in Canada and other parts of the world, including in North America, but banned by the United Kingdom. Of course, a WTO panel, many years ago, found that this was inconsistent with the U.K.'s obligations, and that lasted until the conclusion of the CETA. Under the Liberals, we had additional quota access for hormone-treated beef. Of course, we walked away from that when the Liberals walked away from the agreement. To my knowledge, as of this afternoon, the government has made no indication of what it will do about that ban on Canadian beef and pork going into the United Kingdom.
This is, again, another example of the government's unimaginative trade strategy. It is merely along for the ride here. Canada needs to get off the ride, stand up for our industries, stand up for our farmers, stand up for the Canadian economy and negotiate a win.
