Mr. Speaker, I have the honour to rise today to speak to Bill C-30, the Canada-European Union comprehensive economic and trade agreement implementation act.
This is not the first international agreement that we have considered. In the past, we examined NAFTA, an agreement between Canada, the United States, and Mexico. One part of NAFTA still sticks in our memories today, years later, and that is the infamous chapter 11, which allows companies to sue a government.
Governments that want to legislate on environmental, health, and worker safety issues can be taken to court by companies that are unhappy with these laws, even though every government has the responsibility of protecting its citizens.
When NAFTA was signed, I was still a university student, and I clearly remember talk of the free trade area of the Americas, or FTAA, which resulted in many protests. I remember that, at that time, there was a protest in Montreal. People there even tore down fences because they were so opposed to an even broader free trade agreement that did not respect the right of governments to legislate.
What is happening with the Canada-European union comprehensive economic and trade agreement is unbelievable. This should be an easy deal to reach since Canada and Europe are so similar. It should not be so hard to reach a deal. We should not be having so many problems.
However, once again, this deal is being negotiated behind closed doors with very little public consultation. Once again, there are also many flawed provisions, including those that will allow companies to sue governments that are seeking to protect the environment, health, and worker safety.
If we tried to explain this to people who are unfamiliar with these types of provisions, they would not believe us, and yet it is true. As a result, as I was saying, it is unbelievable because Canada and Europe should be able to easily reach agreements. We should be able to reach a deal without too much difficulty, and yet we are being faced with these types of problems.
Another problem is the fact that Canada has what is called the supply management system. It is extremely important for producers in my region and other areas of Quebec and Canada, particularly dairy, cheese, poultry, and egg producers. These sectors have a supply management system that does not rely on government subsidies.
People sometimes say that supply management is expensive. That is absolutely not the case, because it does not cost people a cent. The government does not subsidize either producers or processors. The supply managements system ensures a balance. Unfortunately, this agreement opens up the market to cheese. Basically, 17,000 more tonnes of cheese will come into the country, and that will have a direct impact on citizens as well as dairy and cheese producers. I will say more about this shortly.
I would also like to talk about the notorious investor-state provision that makes it possible for an investor to take legal action against a state. I can already picture how surprised people will be about that; I can hear them tell me that there is no way and it is just not possible. It is, though. In recent years, there have been 39 cases, and Canada came out on top in just three of them. In the rest of the cases, Canada had to pay billions in damages and interest to foreign investors. Why? Because we, as a government, decided to protect health and the environment and ensure better working conditions.
We should be proud of that, but instead we are taken to court. It costs us billions of dollars that we can no longer invest in the shift towards green energy or give to our dairy and cheese producers who are going to suffer during this transition. Indeed, some 17,000 tonnes of cheese is going to enter Canadian markets.
Let me give a concrete example. The people of Drummond know very well what I am talking about. I want to talk about shale gas. I have been working very hard on the shale gas file for many years now. Something terrible happened. An American company, Lone Pine Resources, sued the Government of Canada. That company wants to do hydraulic fracking. Without going into too much detail, I can say that that practice is extremely polluting, dangerous, worrisome, and unsafe, and the science has not yet shown that Canada can afford it.
There is a moratorium on the practice in Quebec, specifically for the St. Lawrence Valley. In the Drummond region, we are very happy about that moratorium, since permits had been granted for fracking in my region, Drummond. Tens of thousands of citizens spoke out to prevent it from happening.
Under NAFTA's famous chapter 11, this company sued the Government of Canada for $250 million. Unfortunately, if we look at how other suits against the Government of Canada played out, we are going to lose this one too. That is money that could have been invested in health, in protecting the environment, or in supporting our dairy farmers and cheese makers, for example, during a transition period like the one we are about to enter into.
One of the reasons I am extremely upset is that the negotiations have resulted in this kind of thing, which we see in so many international agreements. It is embarrassing and shameful that governments can be sued for wanting to protect their citizens.
The other problem affects our dairy farmers and cheese makers. For a little over a year now, I have been touring the dairy farms back home in Drummond. In fact, I had the opportunity to see my colleague from Saint-Hyacinthe—Bagot, who came to meet our dairy farmers and cheese makers. They told her that they are quite concerned about the agreement between Canada and Europe. They were concerned even before the arrival of the Liberal government, when the Conservatives were in power.
At least the Conservative government promised $4.3 billion in compensation. Right now, all the Liberals are promising is $350 million. This is just another embarrassing moment for the Liberals on top of the diafiltered milk issue. It is shameful because they could have resolved that problem in no time at all.
It is really quite simple. It is a matter of applying the same definition at the border and the processing facilities. What is considered milk at the border should be considered milk at the processing plant. What is not considered milk at the border, the issue we are currently dealing with, should not be considered milk at the processing plant either. This issue could have been resolved during the government's first 100 days in office. Dairy producers in the greater Drummond area and across Quebec and Canada are suffering as a result of this situation. It is extremely serious because they are losing millions of dollars a year. A dairy producer in Drummond can lose between $10,000 and $15,000 a year because this situation has not been resolved, even though it would have been a relatively easy fix.
I began visiting the cheese factories in my riding: Fromagerie St-Guillaume, Fromagerie Lemaire, and Agropur's Fromagerie de Notre-Dame-du-Bon-Conseil. They are saying that, right now, the government is not doing enough to compensate dairy and cheese producers. They are extremely concerned. They want something to be done to improve the situation. That is why we cannot give the government carte blanche on this agreement. We want an agreement with Europe, but we want a good agreement.