Mr. Speaker, it is a pleasure to rise today and speak in favour of Bill C-30 and the comprehensive economic and trade agreement between Canada and the European Union.
Canada is a trading nation. A trade agreement with the European Union is good business for Canada. The European Union market opens incredible opportunities for Canadian businesses. The EU is the world's second largest economy and is Canada's second largest trading partner after the United States. It is also the world's second largest importing market for goods.
CETA is a comprehensive trade agreement that would cover virtually all sectors and aspects of Canada-EU trade. Once implemented, approximately 98% of EU tariff lines on Canadian goods would be duty-free.
Canadian service providers would benefit from greater access to the EU, the world's largest importer of services.
CETA would also provide investors with greater stability, transparency, and protection for investments in the EU while significantly expanding Canadian access to EU government procurement contracts.
To make a specific case for CETA, I would like to reflect on the advantages of CETA to my community of Oakville. Oakville is home to many advanced manufacturing companies, which form a dynamic cluster of businesses supporting innovation and growth. Our manufacturing standouts include Ford Motor Company of Canada, UTC Aerospace Systems, GE Water & Process Technologies, and Dana Incorporated, an auto parts manufacturer.
With respect to the aerospace industry, CETA would offer tariff elimination, opening of government contracts, and regulatory co-operation.
With respect to automotive parts, given the integrated nature of Canada's automotive supply chain, it is important that there are rules of origin that accommodate significant levels of foreign value-added. CETA would allow Canadian passenger vehicles that meet a minimum percentage of domestic content to qualify for duty-free exchange.
For other manufacturers, the EU represents an unprecedented opportunity for Canadian businesses. Pre-Brexit, with its $22-trillion economy and more than 500 million consumers, the EU is the world's largest integrated market. The potential value of access to the EU is quantified in a 2008 study, which estimated that CETA could lead to a $12-billion increase to Canadian GDP and an increase in bilateral trade of over 20%.
A growing cluster of financial and professional service companies are taking advantage of Oakville's workforce capabilities to drive innovation and build sector leadership. In Oakville, there are 13,000 highly skilled and experienced knowledge workers. Also, Oakville is home to Sheridan College, one of the world's leading animation centres.
Oakville has the people, the partners, and the business knowledge to bring new technology to the world. For ICT workers, professionals, and businesses, CETA allows for tariff elimination, regulatory co-operation, temporary entry permits, and access to government procurement contracts.
CETA also has provisions for recognition of professional certifications, including legal, accounting, and architectural designations.
Ford Canada, located in my riding of Oakville, is very supportive of CETA. The EU market represents a significant global market for vehicles. In 2015, total vehicle sales in the EU countries were 15.5 million vehicles, ranking the EU as the third largest vehicle market in the world behind number one China, with over 24 million units sold and number two, the U.S., with over 17 million sales.
Access to this large new vehicle market for Canadian produced vehicles would help diversity and grow Canadian exports of vehicles and our auto parts. Dianne Craig the president and CEO of Ford Motor Company of Canada, states that, “Ford is a global company built on free trade. ...Ford has supported trade deals with trading partners that result in the opportunity to increase the two-way flow of trade.” That is what CETA does.
In 2016, Ford of Canada began exporting the Ford Edge, built in Oakville, to the EU. This includes building vehicles in Canada with right-hand drive and diesel engines designed for that market. Canada's decision to sign CETA contributed to Ford's decision to expand production of the Ford Edge in Oakville for export to the EU market.
Caroline Hughes, director of government relations at Ford states, “...we support a manufacturing-driven trade strategy that starts with the belief that Canadian manufacturing truly matters and that Canadian manufacturing can compete on a level playing field against the best competition from around the world.”
The Canadian Chamber of Commerce has spoken out quite clearly in favour of this agreement.
Locally, the Oakville Chamber of Commerce has supported the ratification of CETA. John Sawyer, president of the Oakville Chamber of Commerce recently stated that:
CETA is an important agreement that would benefit Oakville businesses by reducing trade barriers with the world's large economy. It will offer more opportunities for exporters and lower prices for consumers.
I do need to say that several people and groups in Oakville have raised concerns with me. They say that some of our recent free trade agreements have surrendered the state's ability to regulate and to act in public interest in favour of multinational corporations' interests. This has been the result of complex investor-state conflict resolution processes.
I want to reassure residents of Oakville that CETA represents a significant break with the past, at two different levels.
First, it would include an explicit reference to the right of governments to regulate in the public interest. CETA makes clear from the outset that the EU and Canada preserve their right to regulate and to achieve legitimate policy objectives, such as public health, safety, environment, public morals, social or consumer protection, and the promotion and protection of cultural diversity.
There is a clear instruction to the tribunal for the interpretation of investment provisions.
Second, CETA would create an independent investment court system, consisting of a permanent tribunal. Dispute settlement proceedings would be conducted in a transparent and impartial manner.
Contrary to the traditional investment dispute settlement agreements, the tribunal would be composed of 15 members nominated by the European Union and Canada, and not by the arbitrators nominated by the investor and the defending state.
It is also explicitly foreseen that governments could change their laws, including in a way that would affect investors' expectations of profit and that the application of law would not not constitute a breach of investment protection standards.
It is worth repeating that CETA would explicitly safeguard health, safety, and environmental protections and that nothing in CETA would prevent governments from providing preferences to aboriginal peoples or from adopting measures to protect or promote Canadian culture.
As vice-president of the Canada-European Parliamentary Association, I have recently had the opportunity to speak about the advantages of CETA to our European parliamentary counterparts at meetings in Canada and in Europe.
There was general agreement that there were advantages for European countries to participate in this trade agreement, just as there are advantages for Canada.
I was part of panel that met with business owners in Bratislava, Slovakia, who were very excited about the opportunities opened up by the trade agreement with Canada.
I also have had the opportunity to tour auto parts manufacturing plants in Europe and to see a Volkswagen assembly plant creating VW Touaregs, Porsche Cayennes, and other luxury SUVs, many of which are destined for my community of Oakville. Just as Oakville currently exports the Ford Edge to Europe, we are importing European automobiles to Canada. This trade already exists. CETA would simplify the rules and make the products more affordable to consumers in both jurisdictions.
Like many communities across Canada, Oakville depends upon free trade and open global trade to maintain our high standard of living. This is a modern agreement, and an extremely positive one for the Canadian economy, which relies upon open markets and trade.
I have relatives in Germany, Poland, and Sweden. Many Canadians, like me, have family and friends who live in the European Union. This is a good trade relationship for people; this is a good trade agreement for Oakville and my town's businesses; and this is a good trade deal for Canada.
I hope every member of Parliament gets behind CETA and supports Bill C-30.