Mr. Speaker, it is a great pleasure to rise in the House today in support of legislation to implement the Canada-Ukraine free trade agreement.
In the review of the Canada-Ukraine free trade agreement today, many members have underscored the friendship between our two countries and the importance of support to Ukraine in light of Russia's illegal annexation of Crimea and the ongoing Russian-backed insurgency in eastern Ukraine. As we witness renewed violence in the conflict, our hearts are with the people of Ukraine.
In spite of these challenges, Ukraine has made significant strides in its anti-corruption and reform efforts. We would like to emphasize the need to encourage the momentum toward securing Ukraine's future as a stable, democratic, and prosperous country.
The Government of Canada remains determined to deepen our bilateral ties with Ukraine to this end, including through this landmark agreement. A free trade agreement is a very valuable instrument to enhance our commercial ties and nurture a more stable, predictable trading relationship for sustainable economic growth.
The Canada-Ukraine free trade agreement is a high-quality agreement that, once implemented, would create new commercial opportunities for Canadian and Ukrainian businesses alike. This agreement would result in preferential market access for virtually all Canada-Ukraine trade. It would facilitate enhanced co-operation, improve our ability to resolve trade irritants, increase transparency in regulatory matters, and reduce transaction costs for businesses.
The Canada-Ukraine free trade agreement addresses non-tariff barriers and would help to ensure that technical regulations relating to food safety and animal and plant health and life are not used in a discriminatory way. These provisions would help to ensure that companies can take advantage of market access and not be hindered by unjustifiable or discriminatory rules.
The Canada-Ukraine free trade agreement would contribute to the protection and enhancement of intellectual property rights, which would help to foster competitiveness, innovation, and creativity, and to combat infringements and to establish a consultative mechanism providing a way to aid in bilateral resolutions.
This agreement includes provisions on competition policy, monopolies, and state enterprises to ensure that the benefits of trade liberalization are not undermined by anti-competitive business conduct, such as collusion among competitors, or by market distortion from monopolies or state enterprises.
This would create a fair and predictable environment for Canadian businesses. This agreement addresses the needs of the 21st century economy. Provisions on e-commerce would help to facilitate e-trade by ensuring that Canadian and Ukrainian businesses and consumers would not face customs duties on electronically transmitted digital products.
Also, the agreement includes comprehensive and progressive provisions in the areas of labour, environment, transparency, and anti-corruption, as well as protections for the government's right to regulate in the public interest.
Canadians can be very proud of how this agreement would contribute to building sustainable economic growth in Ukraine. I am equally proud of the opportunities it promises to deliver to Canada and to Canadian businesses in a progressive and inclusive manner.
A key outcome of this agreement is the new market access that it would provide for goods produced and manufactured in Canada. Once the agreement is fully implemented, 99% of Canada's exports would be eligible to enter Ukraine duty free. This would put Canadian exporters on a level footing with European companies, which are already benefiting from the European free trade agreement with Ukraine.
Once implemented, the high-quality provisions of the Canada-Ukraine free trade agreement would create opportunities across Canada and across our industrial, fish and seafood, agriculture, and agrifood sectors. These sectors are all areas where Canada offers something important to the world, and they are integral to our economy in small and large communities right across the country.
Our exports of industrial products currently face tariffs of up to 25% in Ukraine. The majority of these tariffs would be eliminated the day the agreement enters into force. Examples of goods that stand to benefit include iron, steel, industrial machinery, plastic products, cosmetics, and fish and seafood. With regard to fish and seafood, for example, the sector employs 76,000 Canadians. Exports to Ukraine in this sector face tariffs as high as 20%, which would be eliminated when the agreement takes effect.
The agreement would also create opportunities for Canada's agriculture and agrifood sector. According to Agriculture and Agri-Food Canada, in 2014 Canada was the fifth-largest agricultural exporter in the world, and the agriculture and agrifood industry employed 2.2 million Canadians. Canadian exports to Ukraine in this sector faced tariffs, however, of up to 30%, the majority of which would be eliminated upon entry into force of the free trade agreement, and nearly all of the remaining ones would be eliminated within seven years. Key Canadian agricultural products that stand to benefit from this duty-free access include beef, pulses, grains, canola oil, processed foods, oilseeds, and animal feed. It is important to note that nothing in this agreement would weaken our supply-management approach for dairy, poultry, and eggs.
Western Canada already has a significant export relationship with Ukraine, which averaged almost $93 million per year over the last five years. The tariff eliminations and reductions we have secured would expand this relationship. Canadian pork exporters, for example, would be able to take advantage of unlimited duty-free access on fresh and chilled pork. Canadian exporters would also benefit from a large duty-free tariff rate quota for frozen pork and certain pork products, which currently face tariffs of up to 15%. The tariff rate quota would create meaningful new opportunities for Canadian farmers as it would exceed current Canadian exports of pork by a significant amount. It would also allow them to compete on a level playing field with competitors from across the European Union. Canadian wine producers and pulse exporters would also benefit from full tariff elimination. This would open up new opportunities for these important industries.
Canadian companies from central Canada already export to Ukraine, and exported an average of $69 million per year over the last five years. The Canada–Ukraine free trade agreement would provide new opportunities for the exporters of central Canada. For example, Ukraine would eliminate its 5% tariff immediately on maple syrup, which would provide new opportunities for the Canadian maple industry. Manufacturers in central Canada would be able to take advantage of new opportunities provided by the elimination of tariffs in this sector. The majority of these tariffs would be eliminated as soon as the agreement is implemented, which means early benefits.
Canadian exporters in Atlantic Canada already export an average of $11 million annually. Exporters from this region would also benefit, in particular as a result of the elimination of Ukrainian tariffs on fish and seafood.
Creating new commercial opportunities like these is crucial to Canada's economic success because, if done properly, our government believes that trade can raise living standards, create more jobs, increase prosperity, and help to strengthen the middle class. Canada is a trading nation, and we need access to international markets to thrive. In Canada, one in six jobs is related to exports. In 2014, there were more than 33,000 Canadian goods-exporting companies, most of which are small and medium-sized enterprises. These companies understand the necessity of trade and the opportunities for trade that are generated by free trade agreements like the one we are discussing and supporting today. That is why implementing and expanding Canada's free trade agreements globally is a priority for this government.
The Canada–Ukraine free trade agreement is a tangible expression of our belief and experience that open, rules-based trade is a driver of economic opportunity and growth. By eliminating essentially all tariffs on currently traded goods between our two countries, Canada's exports would become more competitive in the Ukrainian market, a market that is very promising. Though Canada and Ukraine's bilateral merchandise trade was relatively modest in the years immediately following Ukraine's independence, our countries sought to encourage bilateral trade to complement the strong and extensive people-to-people linkages that tie our nations together. In 2015, despite ongoing challenges in Ukraine, bilateral trade between Canada and Ukraine increased to almost $300 million. Economic analysis undertaken by Global Affairs Canada projects that, once fully implemented, the Canada–Ukraine free trade agreement would result in an increase of 19% in bilateral merchandise trade between our two countries over bilateral trade in 2014.
This government also recognizes the need to provide support to companies that are seeking to utilize the provisions of a new free trade agreement. In order for the benefits of free trade agreements to be fully realized, businesses need to be aware of the agreements and how we can help. This is especially important for Canada, as many of our exporters are small and medium-sized enterprises that may not have the resources to remain informed about business developments such as this.
In order to ensure that Canadian companies have the information they need to take advantage of this free trade agreement when it comes into force, the government will lead communications and outreach initiatives with business. The government will also coordinate and conduct information seminars for business audiences, organized with provincial, territorial, and private-sector partners. In addition, Canadian trade commissioners will be ready and able to assist companies seeking to expand into the Ukrainian market and will be able to advise their clients about the provisions of this free trade agreement and the opportunities.
We also know that Canadian stakeholders support this agreement. We have heard that support from provincial and territorial government representatives, Canadian companies and industry associations, and groups such as the Ukrainian Canadian Congress and the Canada-Ukraine Chamber of Commerce.
Some Canadian stakeholders, such as the Canadian Pork Council, the Canadian Agri-Food Trade Alliance, Alberta Pork, Spirits Canada, and the Canadian Meat Council have publicly also announced their support for this initiative.
We also saw more than 400 businesses attend the Canada-Ukraine Business Forum in Toronto in June of last year. The objective of this forum was to provide information on the Canada-Ukraine free trade agreement.
This level of participation gives a clear indication of the strong support that exists for this agreement in Canada and in Ukrainian business communities. The importance of our relationship with Ukraine, the benefits that the Canada-Ukraine free trade agreement would bring, and the level of stakeholder support all indicate that this is an initiative we should move toward without delay.
Therefore, I urge all hon. members of the House to support Bill C-31, moving us closer to the realization of the economic benefits of the agreement and setting forth a clear demonstration of our ongoing commitment to deepening our partnership and our relationship with Ukraine.
