Mr. Speaker, I am pleased to rise to speak to Bill C-31, the Canada-Ukraine free trade agreement implementation act.
Our Conservative Party supports Bill C-31, as do most parties in this House.
CUFTA was successfully negotiated and concluded on July 14, 2015, by our previous Conservative government. As the Right Honourable Stephen Harper stated, “The Ukrainian people want a western future, a future of prosperity.”
I look back to this summer when we had a number of Ukrainian interns on the Hill working for many members of Parliament from all different sides of the House. We could see in their eyes and in their souls that they were looking for a future for their country. They were here to learn about democracy from us. They came to our offices and we shared stories and developed a trust and respect between the members of Parliament and these interns. My intern Mariia was an inspiration and the model of a young Ukrainian youth looking to the future. I was so proud of them. I met with the whole group of 30-something one night and bought them pizza. We sat and had pizza, pop, and maybe the odd beer. We had great discussions and developed relationships. It made me so proud of my heritage. I am from Ukraine. My grandparents are Ukrainian on both sides. I am wearing a Ukrainian tie today. I see that some of my colleagues across the floor are wearing Ukrainian dress. I appreciate and thank them for that.
CUFTA is consistent with the previous Conservative government's economic action plan 2015, which committed to jobs, growth, and long-term prosperity. This bill supports the Conservative Party's pro-trade plan, which aims to diversify trade and enable companies to benefit from new opportunities.
Once in force, this agreement would eliminate 99.9% of the tariffs on current imports from the Ukraine to Canada, and 86% of Ukrainian tariffs on Canadian products, including such things as industrial goods, wood products, and fish and seafood products. This would benefit both Canadian and Ukrainian exporters and consumers.
Between 2011 and 2013, my part of the country, western Canada, on average exported about $80 million annually to Ukraine. Some of the top exports from western Canada included frozen hake, bituminous coal, reservoir tanks and similar containers, parts of boring or sinking machines for drilling, air compressors and other similar equipment, seeders and planters, and that which I think is most important, frozen pork. Why do I think frozen pork is so important? It is a staple food that Ukrainians like. I grew up with pork, probably more so than beef. On any given day, if you offer me a steak or a barbecued pork chop, I will leave the steak and take the pork. I see my heritage must still be with me.
Upon entry into force of the agreement, Ukraine will immediately eliminate tariffs on 75% of the tariff lines for industrial products, with a further 24.8% to become duty-free over seven years, making it 100% duty free in seven years.
According to Canadian government officials, the total back-and-forth trade between Canada and Ukraine averaged $350 million between 2011 and 2013, and slowed drastically during 2014, as Ukraine was dealing with a political upheaval and armed conflict in southern and eastern parts of the country.
The provisions of the agreement on free trade between Ukraine and Canada provide the deepening of trade and economic co-operation, including trade in industrial and agricultural goods, intellectual property protection, and regulation of public procurement.
The free trade agreement does not impact Canada's ability to maintain its existing supply management policy, as Canadian over-quota tariffs for supply management goods, being dairy, poultry and eggs, are excluded from the tariff concessions.
Total bilateral merchandise trade between Canada and the Ukraine averaged $289 million between 2011 and 2015. In 2015, it expanded by almost 20% as a result of the implementation of this trade.
Canada's GDP will increase by $29.2 million under CUFTA and the Ukraine's GDP will expand by $18.6 million.
As a result of this agreement, Canada's exports to the Ukraine will increase by $41.2 million. Canada's export gains will be broad-based, with exports of pork, machinery and equipment, transport equipment, other manufactured products, motor vehicles, parts, as well as chemical products leading the way.
The Ukrainian market offers many opportunities for Canadians, Canadian businesses, and investors in areas such as aerospace, agricultural equipment, information and communication technology, agriculture and agrifood, fish and seafood, and mining equipment.
The agriculture and agrifood sector employed over 530,000 people in 2014 in Canada and accounted for close to 3% of Canada's GDP. Canada is the world's fifth largest exporter of agriculture and agrifood products. Our agriculture exports to the Ukraine averaged almost $30 million between 2011 and 2013 each year.
The majority of Ukrainians who came to Canada in the late 1800s and early 1900s settled in western Canada and became farmers. They farmed the area and opened up the land. They homesteaded. It was not only Ukrainians. Germans, Italians, Dutch, and many others helped to open up Canada and make it such a prosperous agricultural nation.
Today, there are approximately 1.3 million Ukrainian descendants, the second largest population of Ukrainians in the world other than Ukraine itself. Many members said in the House that we would need to be friends but we are almost closer than friends in a lot of cases. We are family. When we talk about 1.3 million Canadians with ties to the Ukraine, we are talking families.
In 2015 alone, bilateral trade between Canada and Ukraine increased 14%. That shows that we have been growing every year since this agreement was first looked at.
Canadian exports include pharmaceuticals, fish and seafood, and coking coal. It is important to know that we both export and import coal.
It is also important to note that the Canada-Ukraine free trade agreement will generate opportunities for Canadians and Ukrainians. It will create new job opportunities. Ukrainian immigrants came here to prosper and open up this great land of ours. Now more than ever it is time for Canadians to help Ukraine prosper and grow.
I remember many times hearing my grandfather talk about what it was like in the Ukraine and why he left. He left because there was no chance to succeed. He heard there were opportunities in Canada and he came here. I am proud to say that from the descendants of my great-grandparents there are close to 1,000 of us from two people. That says a lot in just a little over a century.
We had great opportunities. The Ukraine has struggled over the last few years but it is on the right road to democracy. It is looking for our help in trade and we must help. Young Ukrainian entrepreneurs working with young Canadian entrepreneurs can grow each other's economies.
Our Conservative Party supports Bill C-31, the Canada-Ukraine free trade agreement implementation act, that was successfully negotiated by the previous government and supported by the current government and most members of the House.
