Madam Speaker, I am pleased to speak in favour of Bill C-19. This is an important piece of legislation and marks a major advancement in the quest to reduce barriers to trade within Canada and to open up the domestic market to the freer flow of goods and services.
Bill C-19 is the result of a long process of consultation which has included many Canadians: people who are concerned aboutthe economic future of Canada; people who want to expandthe scope for employment and wealth creation for the benefit of allCanadians.
In the years since 1867 the Canadian economy has grown and evolved in ways never imagined by the original Fathers of Confederation. The federal government still has constitutional responsibility for trade and commerce but over time individual provinces have assumed prominent roles which have influenced economic growth and have set regulations for the conduct of trade and commerce at their levels. As a result of this, a variety of ad hoc measures have been introduced over the years.
We now have a system of federal, provincial and territorial trading arrangements and regulations which often conflict, which sometimes discriminate, and which can put Canadian businesses at a competitive disadvantage. Such barriers can cause the inefficient use of our economic resources and can limit the ability of our industries to take advantage of economies of scale and to maintain competitive market positions.
There are many examples of such impediments to trade in Canada. There are different professional and occupational standards in different jurisdictions which can work to limit the mobility of labour between provinces. Some provincial liquor boards have followed selective listing policies which have the effect of discriminating against products from outside their jurisdictions. There are different transportation regulations covering safety codes, inspection arrangements and vehicle standards which make it difficult for truckers to operate in different provincial markets.
Many local governments and other entities that have spent taxpayers' dollars practise procurement policies which give preference to local companies so that the ability to offer competitive sources of supply can be determined by geography and not by traditional marketplace measures such as price and quality.
Some jurisdictions seek to attract new investment by offering special incentive programs for industry development which can distort normal risk-reward equations in the investment marketplace. Regulations governing construction procedures and building standards can differ from one jurisdiction to the next and cause difficulties for construction companies and labour alike.
These are just some examples of barriers and impediments that can impact negatively on our ability to do business openly and freely in Canada. There are many many more. Thus we have in Canada a patchwork of regulations, standards and other barriers to interprovincial trade which have grown around us and which have become an unacceptable feature of the domestic marketplace.
The business community has been aware of the negative impact of this situation for some time. Our government as well as other governments have heard from many representatives of the private sector who have assessed the problems in the domestic trading environment and who have been pressuring us to make necessary changes to open up the system.
These people and many others, including colleagues at the provincial and territorial levels, have recognized that a new trading regime has to be established, one based on more open interprovincial trade, one that will not impede the movement of people and investment within the country and one that will give us a mechanism to allow for co-operative approaches to the resolution of domestic trade disputes.
The agreement on internal trade, which was negotiated by the committee of ministers responsible for internal trade and signed in July 1994 by the Prime Minister and all the other first ministers of this country, gives us the framework to create such a new regime. Bill C-19 puts in place the legislative changes that need to be made at the federal level in order that the agreement can be implemented and the process of change can continue.
With these changes, we will ensure that the framework for a new regime will be in place and that we can continue the work to remove barriers to interprovincial trade in goods and services as well as to reduce impediments to the movement of workers and capital between provinces. We will establish the forum for the resolution of individual trade disputes without resorting to the courts.
By passing this bill, the House will show leadership to other Canadians and will confirm the intent of the federal government to make the changes necessary to create a new trading regime within Canada, one that reflects the political and economic realities of the day.
As I mentioned earlier, the process leading up to this bill has been a long one. It has involved many people and it has considered many issues and perspectives, both national and regional.
Federal, provincial and territorial governments at both the ministerial and official levels have been extensively involved. It is important to note that political parties of all stripes and regional perspectives have been involved in the process. So have many sectors of the private sector, including business, labour and consumer organizations.
A notable aspect of the process has been the spirit of co-operation which has consistently characterized the negotiations. There has been a high degree of goodwill from all parties. There is a shared recognition that the domestic trading environment must be improved and that it is up to governments to meet this need head on.
The agreement represents a major step toward the shared objective of improving the domestic trading environment and eliminating the barriers to trade, investment and labour mobility. It gives us general rules that prevent governments from erecting new trade barriers and which require the reduction of existing ones in areas covered under the agreement. As well, it gives specific obligations in 10 economic sectors, streamlining of regulations and standards, a formal dispute resolution mechanism and a commitment to liberalize trade further through continuing negotiations.
This last point is important because the bill before the House does not signal the end of the process. It signals our support for a continuation of the process of domestic trade policy renewal and our commitment to make it work for all Canadians.
The committee of ministers of internal trade, which achieved the current agreement, is now constituted as a permanent body to carry on the work of domestic trade policy renewal. A secretariat has been set up to provide administrative and technical support to ministers and negotiators in this work.
A key aspect of the agreement, indeed, a key aspect of any trading agreement, is the method by which disputes that may arise under the agreement are to are to be resolved. While international trading agreements have useful lessons for us in Canada, none of their precedents was directly suitable. To meet the special needs of the Canadian situation, an approach was needed that would accommodate the federal-provincial system of power sharing. A dispute settling mechanism was needed that would deal with both general level compliance complaints, those based on the principles of free trade, as well as specific complaints from consumers and private business interests, those complaints that cannot be resolved by governments themselves.
The challenge was to find solutions that would accommodate the desires of the provincial governments to retain the flexibility necessary to pursue their legitimate political and economic objectives under existing constitutional power sharing arrangements while at the same time providing a dispute settlement mechanism that would offer open access and cost efficient resolution without resorting to court action and enforceable implementation. This was the challenge and the agreement has given us a new model for handling trade disputes, a made in Canada model.
The agreement on internal trade sets out the framework for the new dispute resolution mechanism that is unique to the Canadian situation of federal and provincial power sharing and that provides for open access to the settlement process. The approach being followed commits all parties to the use of conciliation to address problems that may arise from the provisions of the agreement, including issues arising from the application of its principles, its rules and its individual sectoral agreements.
Issues are to be resolved in the first instance on a government to government basis. In the case of an issue or problem of concern to a private individual or business that governments cannot or will not deal with and where the private interest is not satisfied, the complaint can be raised directly with a dispute resolution panel.
This is an important feature. It means that individuals as well as governments can bring forward issues for consideration.
In other words, a private party that feels harmed by an alleged unfair trade practice or policy can bring his concerns forward whether or not the government under whose jurisdiction a question has arisen agrees that there is a reviewable question.
A defining principle of the internal trade agreement and of the dispute settlement process is an emphasis on open co-operation to solve problems. Disputing parties will be encouraged to make every attempt to arrive at a solution through consultation and conciliation.
If consultation fails, governments or governments on behalf of individuals or individuals directly can ask to have a matter raised before a panel. The panel will consider the facts and, if appropriate, make recommendations for changed policies or behaviour.
The underlying objective of the process is to promote changes in inconsistent behaviour and policies through recommendations and not by applying penalties or awarding damages. Concerns have been raised in some quarters that the federal government will be set up as the policeman of interprovincial trade under the provisions of Bill C-19. During committee hearings a few points of concern were raised on the language of the act with respect to the powers of the federal government under the act. These sections have been clarified and the bill that we now have for third reading reflects these changes.
It is simply not true that the federal government is seeking to act as a policeman nor will the federal government have the power to act unilaterally on matters concerning internal trade because of Bill C-19. The ministerial level committee on internal trade is the main body responsible for the implementation and operation of the agreement, including the resolution of disputes.
All governments which are party to the agreement, that is the federal, provincial and territorial governments, are members of that committee. At this time the committee is co-chaired by the Hon. James Downey, Minister of Industry for the Government of Manitoba and the federal Minister of Industry. They are co-chairs. They share the job. The office of the secretariat has been set up in Winnipeg and Mr. André Dimitrijevic, a former associate deputy minister of federal-provincial relations in Saskatchewan has been appointed as the head of the secretariat. His office will be responsible for administering the dispute resolution mechanism.
A number of working groups have been or will be formed to assess and report annually on the effects of the agreement on each province and territory. These working groups will continue to monitor the domestic trading environment and will make recommendations as appropriate.
This is a broad based agreement. It includes a broad based dispute settlement process. It includes the federal, provincial and territorial governments and it responds to the very real concerns which have been brought forward by representatives of all parts of Canadian society.
The agreement represents a significant milestone in the evolution of Canadian economic development. It represents an important step in the process of creating a more open and competitive market. It is a flexible agreement and it provides the framework to deal with special situations or changing priorities.
At their annual meeting last year, the provincial premiers reaffirmed their commitment to the objective of reducing and eliminating barriers to the free movement of persons, goods, services and investment among the provinces and territories. The premiers want to continue the process of trade renewal and so does this government. Internal trade remains an important priority, as was most recently reaffirmed in the speech from the throne.
The passage of Bill C-19 will provide the foundation for a more competitive domestic marketplace. It will complement the work of the Prime Minister and other first ministers who have been actively involved with the highly successful Team Canada approach, seeking to broaden the market for Canadian goods and services in export markets. We are part of a global economy and we have to compete in the competitive international environment.
Internal barriers to trade inhibit our ability to compete internationally. We may not be able to control every factor in the international marketplace, but we can act on the problems that arise within our borders.
Bill C-19 does that. In the spirit of co-operation which has brought us this far in dealing with the matter of improving the environment for doing business within Canada, I am pleased to have the opportunity to express my support for this legislation. I urge other members of the House to support it as well.
