Marwan Tabbara

[Canada-United States-Mexico Agreement Implementation Act, January 30th, 2020]

Mr. Speaker, I want to thank my constituents of Kitchener South—Hespeler for electing me to this place. I also want to thank everyone who volunteered on the campaign, everyone who worked in the constituency office and the strangers who offered me water when I was campaigning. I could not be here without them and all their hard work.

Canada is among the top automotive producing countries of the world. The motor vehicle manufacturing industry directly employs nearly 137,000 Canadians and indirectly employs nearly 420,000 people in sales and market services. The majority of the vehicles produced in Canada are exported, and over 90% of our automotive exports are sent to the United States.

Given the importance of our automotive trading relationship with the United States, a key government objective throughout the negotiations of the new NAFTA was to ensure the agreement continued to provide the industry with stability and opportunities for growth. This included maintaining duty-free access to the United States and Mexico, ensuring the rules of origins met the needs of the Canadian producers and securing an exemption from potential U.S. section 232 tariffs on automotive goods.

I want to take some time to talk a little about my riding. I am from Kitchener South—Hespeler. Toyota Motor Manufacturing is within my riding. Not too far down the 401 is another Toyota manufacturing plant, in Woodstock. Between the two plants, they employ 8,000 employees. Just a couple of years back, in 2018, there was a $110-million investment allotted to Toyota through the strategic innovation fund. This helped to support 8,000 jobs, to create 450 new jobs, and will create another 1,000 new co-ops.

Also, in April 2019, Toyota announced it would be building the new Lexus NX and NX hybrid in Cambridge as of 2022. This is the first line of Lexus SUVs that will be built outside of Japan. It is great to see that it will be in my hometown riding of Kitchener South—Hespeler.

The rules of origin are the criteria used to determine whether a good has undergone enough production in the North American region to receive preferential tariff treatment. These rules ensure that the benefits of the agreement go to the North American workers and producers. The final outcome on rules of origin meets Canada's objective and has broad support from all segments of the automotive industry.

However, it was far from clear during the early stages of the negotiations if we would be able to achieve an acceptable outcome. Initially, a series of proposals were put forward that Canada believed would have undermined North American integration in the sector and done lasting damage to automakers and parts producers in Canada and indeed the United States and Mexico. Canada was especially opposed to the proposals that would require every Canadian vehicle exported to the United States to include 50% U.S. content. Canada's position was unequivocal on this point. There were no circumstances under which the proposal would be accepted.

In response, Canada put forward a counter-proposal designed to encourage production and sourcing in North America. These ideas were instrumental in reaching an agreement on new rules of origin, which will incentivize the use of North American-produced materials and support the long-term competitiveness of the North American automotive industry.

In order to benefit from the preferential tariff treatment under the new agreement, automobiles must meet a number of requirements: 75% originating content for the finished automobile and core auto parts like engines, transmissions and bodies; 70% of the steel and aluminum purchased by automakers qualify as originating; and 40% labour value content.

The 70% aluminum and steel requirements did not exist under the original NAFTA. This requirement will apply to all vehicles traded among the Canada-United States-Mexico agreement when the new agreement enters into force. Certain elements of the requirements were expanded upon as a result of the December 10, 2019, amendments to the agreement. After seven years, the steel purchased will have to undergo more manufacturing in North America in order to fulfill the 70% requirement.

In addition, after 10 years the parties will evaluate whether the aluminum requirement needs to be further strengthened in a similar way.

The labour value content provision means that 40% of the value of the vehicle must be from a plant where the workers earn an average wage of $16 U.S. an hour or more. Wages in automobile assembly facilities and parts production plants located in Canada exceed this threshold, which will help improve Canadian automotive manufacturing competitiveness.

Throughout the negotiations, consultations were held with Canadian producers of both vehicles and parts, industry associations and the union that represents Canadian auto workers. All of the proposals put forward by Canada were based on extensive consultations, and the final outcome has the support of Canadian stakeholders.

Regrettably, overshadowing these negotiations were threats by the United States to impose tariffs of up to 25% on automobiles and auto parts imported to the United States. These threats were real, as section 232 of the United States Trade Expansion Act, 1962, provides the means to impose restrictions on those imports that are deemed to pose a threat to U.S. national security.

The notion that Canadian autos and auto parts could pose a threat to U.S. national security was inconceivable. Canada strongly rejected this notion at all levels. As well, our negotiating team and the media mentioned that it was absurd that Canada was a national security threat to the United States.

At the same time, it was clear that the prospects of a tariff as high as 25% on Canadian automobiles and auto parts would be a significant challenge for Canada-U.S. trade relations and the Canadian economy. As a result, Canada was steadfast in its position that an exemption from section 232 measures on automobiles and auto parts was necessary as part of the negotiations. This exemption was secured through a binding side letter to the new agreement that took effect November 30, 2018.

Should the United States impose section 232 tariffs, the side letter guarantees an exemption from such tariffs for 2.6 million Canadian automobiles annually. It also guarantees an exemption of $32.4 billion worth of Canadian auto parts exported to the United States annually. In addition, the side letter guarantees that Canadian light trucks, such as pickup trucks, are fully exempt from any section 232 tariffs and do not count against the annual exemption of 2.6 million automobiles.

These levels are significantly higher than Canada's exports of automobiles and auto parts to the United States, thereby providing significant room for growth in Canadian production and export of vehicles and parts, even in the event of U.S. section 232 tariffs on these goods.

As a part of the negotiations, Canada also secured a commitment from the United States to provide at least a 60-day exemption to Canada for any future measure under section 232, including for automobiles and auto parts. This side letter also took effect November 30, 2018.

In closing, I will reiterate the importance of Canada's automotive industry to Canada's economy. The sector is heavily integrated within a broader North American economy, and its ability to trade freely in North America is imperative to its success. This is why we worked tirelessly towards achieving outcomes in the new NAFTA in support of this sector. As a result, the future prospects of the Canadian automotive sector are very bright.

The industry is competitive and innovative, the quality of our workforce is second to none, and Canada has preferential market access to the United States, Mexico, Europe and key markets in Asia, together with 14 free trade agreements covering 51 countries that connect us to 1.5 billion consumers worldwide. Canada is the only G7 nation with trade agreements with all other G7 nations. The Canada-United States-Mexico Agreement is central to Canada's trade with the world, and the automotive sector is central to this agreement.

The new NAFTA maintains tariff-free trade, strengthens the rules of origin and removes the threat of new and prohibitive section 232 measures. It also provides Canadian industry with the stability and market access certainty it needs to grow and continue to provide high-quality, well-paying jobs for tens of thousands of Canadians.

I want to mention that I am very much in support of the bill and I hope other members in the chamber are supportive of it. On average, the Canadian auto sector manufactures one car every 30 seconds, supports over 500,000 jobs and contributes $18 billion annually to our economy.

[Canada-United States-Mexico Agreement Implementation Act, January 30th, 2020]

Madam Speaker, auto rules of origin were avoided in her speech. I would like to remind her that I have Toyota Motor Manufacturing in my riding. When I spoke with the organization, it mentioned this was a great deal for Canada. Many of its Toyota vehicles are exported to the United States, and we wanted to ensure we had a great deal.

With respect to exports, one of the things the United States administration was very focused on was that 50% would be U.S. content. We fought vigorously and said that at no cost would we have this and we strictly opposed the United States for it.

Also, originating content was at 62%. We bumped that up to 75%. Now auto workers, particularly in Mexico, have to make over $16 an hour. Therefore, could she comment on how the auto rules of origin were avoided?

[Canada-United States-Mexico Agreement Implementation Act, June 19th, 2019]

Mr. Speaker, our region is known for its high-tech sector, as well as for education, insurance and advanced manufacturing. We use a lot of high-tech technologies to advance some of the technology in our vehicles. That is why Toyota is investing in technology.

The federal government invested $110 million in Toyota. This will build more RAV4 vehicles. Toyota cannot sell enough of these cars. They have been selling like crazy. Every time I meet with Toyota officials, they tell me they cannot keep pace with the demand. It is a very popular model, not only across the country but exported to markets in the United States. That is why this deal is great for the auto industry. It is great for Canada, and I am supporting this deal.

[Canada-United States-Mexico Agreement Implementation Act, June 19th, 2019]

Mr. Speaker, when we were negotiating, we wanted to ensure that we protected jobs and Canadian culture, and we did that with this agreement. We fought really hard and it took many months to ensure that we got a great deal for Canadians, and Canadians should be proud.

Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, said this:

The Chamber congratulates Minister Freeland and Canada's negotiating team for delivering an agreement that remains trilateral and that will continue to deliver prosperity for Canada, and for doing so under extraordinarily challenging conditions.

[Canada-United States-Mexico Agreement Implementation Act, June 19th, 2019]

Mr. Speaker, there have been many negotiations and we had a strong team of negotiators. They have illustrated that the price of prescription drugs would not be increased. This would actually have a positive benefit, because we would have more access to markets.

The statement that the hon. member just made is inaccurate. The cost of prescription drugs would not increase under this new NAFTA.

[Canada-United States-Mexico Agreement Implementation Act, June 19th, 2019]

Mr. Speaker, I am pleased to rise in the House today.

I support Bill C-100.

Not that long ago, our workers and our businesses were in a state of economic insecurity. The U.S. president had demanded a renegotiation of NAFTA, which has guided our shared North American economy for 25 years. In response to that challenge, our government rose to the task. We met it head on, and it brings me great pleasure to say that we have been successful.

We are now in a place where we have secured our access to the U.S. market and have secured stability for Canadians. We have projected the economic relationship that Canada, Mexico and the United States have built together. It is hard to overestimate the importance of this economic relationship to Canadians.

In 2017, trade between our countries exceeded $1 trillion, more than a threefold increase since 1994, when NAFTA was born. The North American free trade zone is the biggest economic region in the world, encompassing a $22-trillion regional market of more than 480 million consumers. Additionally, with CETA and the CPTPP, we have now secured markets of a combined total of 1.5 billion consumers. Not only have our renegotiations secured our access to this market, but the new NAFTA will reinforce the strong economic ties and support economic opportunities.

Our achievements have brought back predictability and stability to the economic relationships between Canada, the U.S. and Mexico. This modern trilateral agreement turns the page and focuses on what makes our economic relationship so successful: stability, economic integration and rules that work for our businesses and our workers.

From the start of the negotiations, Canada had three primary objectives. The first was to preserve important NAFTA provisions and market access to the U.S. and Mexico. The second was to modernize and improve the agreement where possible. The third was to reinforce the security and stability of our market access into the U.S. and Mexico for Canadian businesses.

We have achieved those objectives.

First and foremost, the new agreement would preserve Canada's market access into the United States and Mexico, securing our most important trading partnership. Canada's preferential access to these markets is vital to the continuing prosperity of Canadian workers whose livelihoods rely on trade.

As two of Canada's largest trading partners, it was a priority for our government to ensure that modernizing NAFTA would not allow for any disruption of North American integrated supply chain. We understand how vital this is to Canadian companies and to exporters.

As an annual average, from 2015 to 2017, Canada exported more than 355 billion dollars' worth of goods to the United States, Canada's top export market. For the same time period, Canada exported an annual average of 12.4 billion dollars' worth of goods to Mexico, Canada's fifth-largest export market.

The CUSMA ensures continued preferential access to these key export destinations. The new NAFTA preserves our market access. This means that duty free access for all non-agricultural goods from NAFTA will be maintained. For agricultural goods, Canadian exports will also continue to benefit from duty-free access for nearly 89% of U.S. agriculture tariff lines and 91% of Mexican tariff lines.

This is a big deal for Canadian exporters and a big deal for Canadian farmers.

Maintaining these tariff outcomes provide Canadians with an advantage over those countries without a preferential trade agreement with the United States and Mexico. It also ensures predictability and continued secure market access for Canadian exporters to our largest trading partner.

Other key elements of NAFTA are also preserved, including chapter 19 and state-to-state dispute settlement, the cultural exception and temporary entry for business persons. The new agreement also creates new opportunities for Canadians. It opens new market access opportunities in the U.S. market and improves existing market access.

It has new customs and trade facilitation measures that will reduce red tape and make it easier for companies to move goods across our border, including by eliminating paper process and providing a single portal for trade to submit most important documents electronically. This will make it fast and efficient, while keeping up with a fast-paced industry in the 21st century.

The agreement includes a new stand-alone chapter on rules of origin and origin procedures for textiles and apparel goods that will support Canada's textile and apparel sector.

The new NAFTA enhances regulatory transparency and predictability, which will provide added assurance for exporters that their goods will make it to market and not be delayed by unjustified or unclear measures at the border.

The new NAFTA also ensures Canada's agricultural and processed food exports can rely on sanitary measures that are risk-based and that increase predictability of market access, so products make it to market in a reasonable amount of time.

In addition, the section 232 side letter on autos and auto parts provides added security and stability for Canadian automotive and parts companies that export to the U.S. market and will reaffirm Canada's attractiveness as an investment destination for automotive and parts manufacturers.

I want to speak a little about the auto sector now.

In the new NAFTA agreement, we made key changes. One was that the parts for automakers used to be at 62.5% of North American parts. The new NAFTA agreement will raise it to 75% by 2023. This will increase North American parts made and will ensure that we increase and stabilize the auto sector.

Another addition to this new NAFTA deal on auto is that wages are at least $16 an hour, which will help keep jobs in Canada, instead of what we have seen with jobs going to Mexico. This increase in wages and stability in wages will ensure we keep jobs here.

I want to talk about Toyota in my riding. Canada will now produce the Lexus NX crossover and it will selling the RX sport utility in 2022. Up until now, these two vehicles have only been made in Japan. This will be the first time these two lines will be made in Canada. We are securing jobs, particularly in and around my region of Kitchener South—Hespeler.

I also want to mention that the federal government last year invested $110 million to support 8,000 jobs in southwestern Ontario. That will help create an additional 450 new jobs in the auto sector.

This is a progressive agreement that meets the needs of the 21st century, including bringing obligations on labour and environment directly into the agreement and subjecting them to dispute settlement.

The new NAFTA preserves key elements of the North American trading relationship, allowing for our continued regional prosperity and stability. It reinforces the strong economic ties among Canada, Mexico and the United States, while also recognizing the importance of progressive and inclusive trade, including key outcomes in areas such as labour and environment. This modernized agreement is good for Canadian workers and Canadian businesses.

We have faced up to the largest challenge in U.S.-Canada relations in decades and we have achievements and outcomes that benefits us all. This is a great achievement for Canada. This is a great trade agreement. It modernizes it in the 21st century. I am happy to support it.

[Kitchener South—Hespeler, June 19th, 2019]

Mr. Speaker, over the past three and a half years, our government's policies have been very beneficial for my riding of Kitchener South—Hespeler.

The Canada child benefit has supported more than 20,000 children, who have received a total of $246 million in tax-free benefits. Our middle-class tax cut saved 2,800 of my constituents an average of $1,000. Our housing plan funded the building and repairing of 1,440 homes and subsidized 2,240 units. Our doubling of funding for the Canada summer jobs program provided jobs for 658 people. We lowered the small business tax from 11% to 9%, saving an average of $7,500 for small business owners. When we doubled the gas tax transfer, Kitchener and Cambridge gained more than $11 million. That was on top of the $118 million for infrastructure funding that went into transit, water facilities and roads.

I am looking forward to returning here in November to continue the hard work for Canadians.

[Business of Supply, June 18th, 2019]

Mr. Speaker, the hon. member mentioned that there will be zero emissions in 2050. I know that the Waterloo region has taken some steps in order to get to zero emissions. We have had the construction of a building.

Can the member elaborate on what our region is doing? We are an innovative region and we are committed to zero emissions as well. Can he comment on that?

[Science, June 14th, 2019]

Mr. Speaker, earlier this week, the member for Milton was forced to delete a tweet that suggested that there is no link between climate change and extreme weather patterns, completely disregarding science that shows that climate change is real. This was so predictable, considering the 10 years of Harper Conservative cuts and the muzzling of scientists, resulting in scientists protesting the death of evidence on Parliament Hill.

Can the Parliamentary Secretary to the Minister of Science and Sport please explain the importance of science and evidence-based decision-making?

[Immigration, Refugees and Citizenship, June 13th, 2019]

Mr. Speaker, last month, the OECD ranked Canada number one in the world in attracting entrepreneurs, thanks to policies such as the Atlantic immigration pilot, the global skills strategy and the rural and northern immigration pilot. We know that we have historic low unemployment rates and have added over a million new jobs to the Canadian economy in less than four years.

Can the parliamentary secretary update this House on how Canada can maintain its competitive edge?