44th Parl. 1st Sess.
October 23, 2023 11:00AM
Mr. Speaker, I want to thank my hon. colleague and all members in the House. At a time when Canada chose to unequivocally support Ukraine, there was a tariff-free ability for them to export into Canada, including the supply-managed sector. I know what a commitment that took for Canadians to permit that to take place, and that really did show the support that Canadians have and that my hon. colleague had, for Ukraine. Of course, in this agreement, it is clear, just like in our other trade agreements, that the supply-managed sectors are not, and are excluded from this agreement, just as they have been with others.
I believe that this is a very important and progressive agreement and a good agreement. It has provisions for investment protections. There is a chapter that deals with binding dispute settlements. Therefore, this is very much the modern agreement that we have negotiated with Ukraine, and it would facilitate what Canadians want to do, which is to participate in that reconstruction in due course.
174 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Mr. Speaker, Conservatives have a very long, storied and proud tradition of supporting free trade. We only have to look back to the negotiations of the original Canada-United States free trade agreement, which was, of course, something Conservatives were in favour of and that Liberals campaigned very hard against. I was a young lad back then, but I remember a commercial from the Liberal Party on this, talking about free trade. It said that there was only one more line that we had to remove, and then it erased the border between Canada and the United States. That was a long time ago, but I just want to talk briefly about how strongly Conservatives support free trade. We believe in free trade between free nations as an integral part of improving the prosperity of all people.
We were also the people who started the negotiations on CETA. The CETA deal is a Conservative deal that was started by Prime Minister Harper as part of our aggressive trade expansion. The same thing with the CPTPP, which was a Conservative initiative. Conservatives are very supportive of free trade.
This original free trade agreement between Canada and Ukraine was originated by a Conservative government under Prime Minister Harper. The member for Abbotsford, from the Conservative Party, was the lead negotiator on that. He will speak to this, and we will have some wonderful insights on this agreement.
When we talk about the importance of the Canada-Ukraine relationship, we have to talk about the 1.3 million Canadians of Ukrainian origin who live here in Canada. Many of them were integral in the development of western Canada. They are an incredible and important part of the social fabric of Canada, and their contributions to Canada cannot go unnoticed. As a result of that, in part, we have very strong people-to-people ties between Canada and Ukraine. Of course, we are strong supporters of Ukraine during the illegal invasion being prosecuted by Russia.
With respect to this agreement in particular, this modernization would build on the 2017 agreement, which updated or added 11 new chapters to the free trade agreement. The updated chapters included rules of origin and procedures, government procurement, competition policy, monopolies and state enterprises, electronic commerce, digital trade, labour, the environment, transparency, anti-corruption and responsible business conduct.
There is also a significant number of new chapters, 11 new chapters, in this trade agreement, and I will talk a little more about that later in my remarks. However, these are on investment; cross-border trade and services; temporary entry for business people; development and administration of measures; financial services; services and investment, non-conforming measures; telecommunications; trade and gender; trade and small and medium-sized enterprises; trade and indigenous peoples; and good regulatory practices. This is a substantial change from the original agreement that was signed in 2017.
On that, I would echo some of the comments made by the NDP, which is that this agreement is actually substantial. It is a very large trade agreement. Of course, we have to take our time to make sure we study free trade agreements in detail and thoroughly. However, it does seem as though the government is trying to rush this forward, and I am not sure that is necessarily the way Parliament should look at things. We should do our jobs as parliamentarians.
I would like to talk about the original trade agreement. In 2022, Canada's total merchandise trade with Ukraine was $420 million, $150 million in exports and $270 million in imports. The way the original agreement was designed, as it was negotiated by the Conservative government, was that this would be, in a sense, a bit of an asymmetrical agreement.
It was set up such that Ukraine would have a little more advantage in the early stages of the agreement, with the anticipation that there would be a final agreement in which more things would be added. Originally, this was primarily a merchandise agreement. We can see now that a lot of chapters have been added on the services side. I suspect that as a result of that, we will see the trade balance perhaps narrow between Canada and Ukraine, but in general increase the trade between the two countries.
After the ratification of the original agreement, exports to Ukraine, other than coal, grew about 28% between 2016 and 2019, which reinforces the view that trade, especially free trade, is good for both countries. We saw a significant increase in the two-way trade between two countries as a result of the free trade agreements, which goes back to why Conservatives absolutely and unequivocally support free trade agreements.
Interestingly enough, the top three exports to Ukraine were motor vehicles and parts, fish and seafood, and pharmaceutical products. The top imports from Ukraine were animal and vegetable fats, oils, iron and steel, and electrical machinery and equipment. Canadian businesses certainly have an opportunity to expand their trade with Ukraine.
I have undertaken to consult with industry with respect to this. I have spoken with agricultural companies, agricultural industries, etc. The challenge of course is the very condensed time frame, and I should explain this.
What we have before Parliament is the enabling legislation to implement the free trade agreement, but that is probably not what we are debating today. We are not actually going to look at and debate whether “subsection 42.1(1.1) of the act is amended by adding the following paragraph after (a).” I suspect that is not what we will debate here today.
The implementation legislation is how we implement the changes to relevant statutes and other things to implement the actual free trade agreement. This implementation bill's enabling legislation does not seem to have much in it that any of us will spend a lot of time debating in this chamber, although I could be wrong, as some members do enjoy debating those kinds of things.
The member for Sherwood Park—Fort Saskatchewan might enjoy going through and deciding whether “paragraphs (b) and (c) of the definition Ukraine in subsection 2(1) of the act are replaced by the following” is a good or significant change, but that is not what I will talk about today.
What we can talk about are the general principles of supporting free trade and the free trade agreement itself. In that is some of the difficulty that was expressed by the NDP member. He said he had not had the time to discuss this legislation with his caucus and colleagues, which takes me back to discussions with stakeholders.
As part of looking at whether this will be a trade agreement that benefits Canada, we want to talk to stakeholders to see whether they view some of the changes to this free trade agreement as being good or bad. In particular, in the agricultural sector, we are going to be talk about things like sanitary and phytosanitary measures. We are going to look at whether the quotas that will be allowed, the products that are coming in without tariff, are appropriate. This could be in the beef sector, the pork sector or in a whole bunch of agricultural sectors.
Those consultations are ongoing right now. I have reached out to the industries that would be affected by that to find out where they stand on it.
When I attended law school, we had professors very clearly say that the devil was often in the details. I am not 100% sure that Parliament should just pass things without any scrutiny whatsoever. We have learned that when other trade agreements were put forward by the Liberal government and passed rapidly, we ended up with some challenges.
If we look at, for example, free trade with the European Union, we have all kinds of challenges now with the sanitary and phytosanitary measures surrounding beef and pork. It is a particular issue right now in our negotiations with the U.K. It is almost impossible for Canadian beef or pork producers to export into the United Kingdom. They also have great difficulty exporting into the European Union. Why? It is because there are sanitary and phytosanitary measures preventing those exports from taking place. We would think that after this amount of time that these things would be resolved. However, for both things, there are very complicated dispute resolution procedures in place to try to resolve issues of sanitary and phytosanitary measures.
Sanitary and phytosanitary measures are important. They are put in place to ensure the health of people consuming the products. They are also protections put in place to protect biodiversity, to ensure things are not contained within certain products that could harm biodiversity. These measures are important, but sometimes these sanitary and phytosanitary measures are used as non-tariff barriers, or NTBs. NTBs have become sort of the new way to frustrate free trade. As we look around the world, we see that NTBs are growing in number and there are challenges in resolving those free trade agreements.
I took the time to look at the section in this free trade agreement on sanitary and phytosanitary measures. I am pleased to see that this section sets out that they will be resolved within the rules set out by the World Trade Organization. That is quite a difference from the measures that have been put in place for the resolution of sanitary and phytosanitary measures within CETA, which the U.K. benefits from in the transitional agreement. Trying to resolve those issues through that process has proven to be, if not incredibly complicated, almost impossible. It is good to see that is in this agreement.
If we look at the opportunities for Canada, one of the things I raised in my question to the minister was that the agreement talked about the phase-out of coal. However, in Europe, we have seen the rise in the use of coal by a number of countries as a result of them trying to stop buying Russian gas. As we all know, the purchase of Russian gas is providing revenues and profits to Russia so it can use those monies to fund its illegal war in Ukraine.
Many European countries have asked Canada to export more LNG, and the United States has actually taken that up. It has built a number of LNG export facilities over the last number of years to take advantage of the demand for LNG, including that demand in Europe. Unfortunately, Canada has not taken advantage of that and, in fact, has lost all kinds of opportunities.
However, when talk about transition, we do not transition from coal to a solar panel. Those kinds of transitions generally do not work. We do not transition from coal to a wind turbine and solar. Those things do not work. Both of these things provide intermittent power. Intermittent power makes maintenance of the electric grid more expensive and it is unreliable when there are surges in demand. We need a strong baseload of electricity generation.
I hope that when I have the time to go through this agreement in full, I will see this addresses a great area of potential opportunity for Canada and Ukraine with respect to electricity generation. We have amazing expertise in the production of nuclear reactors, as does Ukraine. Canada has all kinds of uranium that it can export. I really hope there will be some things in the agreement that talk about furthering this kind of development and partnership. It would be both good for Ukraine and good for Canada.
However, transitioning from coal would be beneficial to the world. When we look at energy transitions, we know they do not happen rapidly. In fact, they take a long time. All we have to do is think about how coal was discovered 200 to 250 years ago. We have had gas, natural gas and nuclear for a much shorter period of time, but they have not completely displaced coal even though the power density for both gas and nuclear is far more dense than for coal. Therefore, it makes sense to transition to these things.
This is the challenge in suggesting we transition from coal to solar or wind, because the actual energy density is so much smaller. An electricity plant that would use LNG or nuclear would take up 20 acres, but to get a similar amount of energy from wind or solar, we would be looking at 10 to 100 times that amount of land. The suggestion that we can make those transitions quickly from coal to wind and solar is not feasible and it does not make sense. We should be exploring the opportunities that Canada has with LNG and nuclear.
The Conservative Party is 100% behind supporting Ukraine, supporting trade and free trade. Free trade between free nations is something we support 100%. I look forward to going through this agreement and to the debate on this agreement in the House.
2173 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Mr. Speaker, I am thankful for the opportunity to speak to this implementation bill for the modernization of the Ukraine free trade agreement.
I always welcome opportunities to talk about trade. It is one of my passions, which is why I was somewhat disappointed by the disparaging remarks made by my colleague from Winnipeg North regarding the previous Conservative government's record on trade, especially Stephen Harper's focus on trade as the linchpin of Canada's economic strategy.
During the Harper years, the government set an unprecedented pace for negotiating trade agreements. When the Conservative government was first elected back in 2006, Canada had trade agreements with five countries: the United States, Mexico, Chile, Costa Rica and Israel. By the time we were finished some nine years later, we had free trade agreements with 47 additional countries, an astounding number. That included the Canada-Europe free trade agreement. It included the TPP, which morphed, of course, into the CPTPP. It also included South Korea, which was a very difficult negotiation but was successfully concluded.
One of the agreements that former prime minister Stephen Harper really wanted to get done was between Canada and Ukraine. Even back in 2010, Ukraine was facing difficult challenges. It had a very weak economy and was struggling in trying to deal with Russia. The Prime Minister at the time, Stephen Harper, said the government was going to negotiate a trade agreement with Ukraine that would be unique in that the outcome would be asymmetrical. What that meant is that the benefits flowing each way were not necessarily going to be equal or balanced, at least at the beginning. The phasing in of market access and the elimination of tariff barriers would be done on a differentiated basis so that the outcome was not a quid pro quo in the perfect sense of the term. The Conservatives did that because we wanted to give Ukraine a leg up and help Ukraine re-establish itself as economically viable and strong.
I should indicate that I will be splitting my time with the member for Sherwood Park—Fort Saskatchewan.
When the former Conservative government negotiated the trade agreement, the negotiations started in 2010 and were concluded in 2015. We left office in 2015. These agreements sometimes take a number of years to come into force, so the agreement came into force in 2017 and has served Ukraine well. Our trade with that country has increased. It was not completely unexpected that when Russia invaded Ukraine in February 2022, trade flows declined. In fact, the current government and Ukraine stopped negotiating for a while because of the invasion by Russia into Ukraine.
Fortunately, cooler heads prevailed and made sense out of the fact that Ukraine still needed to move forward economically and put in place the economic structures that would allow it to be successful. Negotiations were then recommenced in 2022, and here we are, a year later, in a position to pass the implementing legislation.
The purpose of modernizing this free trade agreement is that the free trade environment around the world, the playing field, is evolving rapidly. Some things are happening that are not necessarily good. For example, the world is becoming more protectionist. We are putting up more and more tariff and non-tariff barriers.
The United States, under Donald Trump, turned inward. In fact, members may recall that it was former president Donald Trump who pulled the U.S. out of the TPP negotiations. Why? I do not know. He was running for office. I suppose he saw it as politically beneficial.
The whole premise for the TPP was to take advantage of what is called comparative advantage. Every country has its own strengths and weaknesses when it comes to manufacturing goods and delivering services. If we can take the strengths of each country and cobble them together into a coherent trade strategy, we can ensure that the outcome for partner countries is optimal.
Unfortunately, the United States has pulled out, and since that time, it has really turned inward. It is not negotiating free trade agreements. When we go to the World Trade Organization, we notice that large countries, such as Brazil, China, South Africa and India, often block consensus on trade liberalization.
This causes us to reconsider how we engage with the world and open up new opportunities for Canadian companies to do business abroad and expand exports. That is why this agreement with Ukraine, which was negotiated under the former Conservative government led by Stephen Harper, is now being modernized. Many of these factors that were not in play back when we first negotiated this agreement now call for us to update the agreement and modernize it.
For example, there are 11 new chapters included in this agreement. There is a chapter on cross-border trade in services. There is a chapter on investment, which is very important. There is a chapter on temporary entry for business purposes, to facilitate the travel of business people back and forth between our countries. Financial services are covered, as is telecommunications. There is a chapter on small and medium-sized enterprises.
There is also a chapter on digital trade, because digital trade has evolved so quickly that it has left a lot of our trade agreements behind. One of the reasons that our free trade agreement with the United States was updated is that we had no chapter on digital services. People are doing business online now. Amazon has become an obscenely profitable company. Why? It is because of online purchasing, which is digital trade. There is a separate chapter on that.
There is a new chapter on how labour and workers will be treated, and the high standards that both countries want to set. There is also a chapter on the environment.
The bottom line is this: We as Canadians need to step up and stand in the gap for Ukraine. Canada has a large Ukrainian diaspora that expects us to partner with Ukraine in its time of need. That is what this agreement does. That is what the original trade agreement did.
In my home city of Abbotsford, many Ukrainians have fled their home country and made their home, or at least their temporary home, in Abbotsford. We now have something called the Ukrainian village, which is reinforcing why it is so important for all of us to work together with our Ukrainian diaspora and with the people of Ukraine to put in place a trade agreement and structure under which the Ukrainian economy can be lifted back up. Both of our countries can benefit from that.
1106 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, we have stood with Ukraine since the start of Russia's illegal invasion and will stand strong when Ukraine is once again free. The introduction of Bill C-57, an act to implement the 2023 free trade agreement between Canada and Ukraine, is an important milestone in the implementation of the modernized Canada-Ukraine free trade agreement. As the first trade agreement Ukraine has signed since the onset of Russia's illegal war, this modernization would result in a comprehensive and progressive agreement ensuring that everyone feels the benefit of trade. Canada is a trading nation and trade accounts for about 65% of the GDP.
Canada is currently the only G7 country to have free trade agreements in force with all other G7 countries. Canada currently has 15 free trade agreements with 51 different countries and covers 61% of the world's GDP. Together, these agreements cover 1.5 billion consumers worldwide.
I have to give a shout-out to our farmers. Though small in number, our farmers in the agri-food sector are the most aggressive in leveraging every free trade agreement we have signed so far. Canada is the fifth-largest exporter of agri-food and seafood in the world and exports to nearly 200 countries. In 2022, Canada exported nearly $92.8 billion in agriculture and food products, including raw materials, agricultural materials, fish and seafood, and processed foods. I wish other sectors in Canada where we have resource advantage would follow our agriculture sector in exporting all across the world. For example, the steel and aluminum sector could look beyond the North American market and export to Europe and to the Indo-Pacific region.
Despite challenges, Canadian trade reached record highs again in 2022. Canada's goods and and services exports increased by 31.2% to reach $940.4 billion in 2022 and the imports advanced 20.5% to reach $936.2 billion.
Even with Russia's illegal and unjustified invasion of Ukraine last year, which caused a horrific humanitarian crisis and sent shock waves around the world, global trade has remained resilient. Global economic growth advanced by 3.5% in 2022, following the 6.3% rebound witnessed in 2021. Canada continues to uphold and promote rules-based trade, providing confidence and predictability for our businesses.
Free trade agreements represent about 80% of Canada's imports and 90% of Canada's exports in 2018. Free trade agreements are essential for several reasons. They promote economic growth by expanding markets and increasing access to a wider consumer base. These agreements reduce tariffs and trade barriers, encouraging the flow of goods and services across borders. This fosters competition and innovation, driving down costs for consumers and enhancing product quality. Moreover, free trade agreements create a framework for resolving trade disputes, ensuring stability and predictability in international trade relations. They also strengthen diplomatic ties between nations, promoting co-operation and peace. In a globalized world, free trade agreements are crucial for spurring economic development, job creation and overall prosperity. Free trade agreements are effective at lowering trade barriers and overall cost of trade.
The original Canada-Ukraine Free Trade Agreement entered into force in August 2017. Upon entry into force, Canada eliminated duties on 99.9% of the imports from Ukraine. Similarly, Ukraine immediately eliminated tariffs on approximately 86% of imports from Canada with the balance of tariff concessions to be implemented over seven years. This will align with the proposed date for the modernized CUFTA's entry into force.
While comprehensive from a trade-in-goods perspective, the 2017 CUFTA did not include services, investment and many other areas. It instead included a clause committing the parties to review and explore expanding the agreement within two years of its entry into force.
On September 22, 2023, we signed the modernized Canada-Ukraine free trade agreement. This would support long-term security, stability and economic development in Ukraine while also ensuring high-quality market access for Canadian businesses participating in Ukraine’s economic recovery. This would create good, middle-class jobs in both of our countries.
The modernized CUFTA would maintain the preferential market access gained in the original FTA for all current Canadian merchandise exports to Ukraine. It would mark a new era in Canada and Ukraine’s economic relationship and be fundamental to the participation of Canadian businesses in Ukraine’s economic reconstruction and recovery from Russia’s illegal and unjustified invasion. The modernized agreement also includes dedicated new chapters on trade in services, investment, temporary entry, telecommunication, financial services, and inclusive trade, and updated chapters on labour, environment, transparency and anti-corruption, among other areas.
The agreement would facilitate enhanced co-operation, improve the ability of parties to resolve trade irritants, promote openness and inclusivity, increase transparency in regulatory matters and help reduce transaction costs for businesses. CUFTA would commit Canada and Ukraine to respecting and promoting internationally recognized labour rights and principles and to effectively enforcing their labour and environment laws.
For the first time in either country's history, the FTA also includes a new dedicated chapter on trade and indigenous peoples, in addition to new chapters on trade and small and medium-sized enterprises and trade and gender. These elements are designed to increase opportunities for traditionally marginalized groups in trade to participate in and benefit from the agreement. When in force, the modernized CUFTA would not only continue to provide preferential market access for merchandise trade but would also establish ambitious new market access terms for services, trade and investment.
Amid the ongoing conflict in Ukraine and the economic devastation it is enduring, a free trade agreement is of paramount importance. Such an agreement can provide a lifeline to Ukraine's economy by opening up new markets, reducing trade barriers and fostering economic growth. It would enable Ukrainian businesses to diversify and expand their exports, reducing reliance on domestic markets that may be severely impacted by the war. Moreover, the free trade agreement would bring in financial aid and investments that are crucial for rebuilding infrastructure and industries. In these challenging times, agreements like this can play a pivotal role in Ukraine's recovery and long-term stability.
I want to emphasize the significance for Canada and other western democracies of nurturing and strengthening relations with Ukraine. Ukraine, with its rich history and resilience, has been a pivotal player in recent geopolitical events. It is crucial for us to maintain economic relations and strategically prepare for post-war co-operation and the economic rebuilding of Ukraine. Our relationship with Ukraine holds immense importance due to shared democratic values and principles. Ukraine has made remarkable progress in its democratic journey since gaining independence in 1991.
By fostering economic ties, Canada can provide critical support for Ukraine's democratic institutions, helping them to thrive and promote stability in the region. Economic relations are the backbone of any thriving nation, and in this context, free trade agreements are indispensable. These agreements can pave the way for increased economic opportunity and prosperity for both Ukraine and its trading partners. They stimulate job growth, foster innovation and boost the economic well-being of both parties involved.
Post-war co-operation is equally vital. Ukraine has endured considerable challenges, particularly in the aftermath of the conflict in the eastern regions. We must plan ahead for the reconstruction and revitalization—
1228 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I appreciate the member's speech but just because he gets up and says it does not mean it is true.
In fact, by giving the United Kingdom accession to the CPTPP, an agreement that was negotiated by the Harper government, signed off, barely, almost failed, as a result of the Liberal Prime Minister, they are going to deteriorate this agreement by bringing in non-science, non-tariff trade barrier implements into the CPTPP from CETA because of this, by putting the United Kingdom into this agreement without addressing these issues first.
The CPTPP works because it is science-based. Yes, the Liberals also signed CETA, which has been probably the worst trade agreement we have had as a result of their playing with the end result, same with CUSMA.
Under Harper, we signed trade agreements that worked for Canada. Under this government, they are failing Canada.
149 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- menumenu
- notificationsnotifications
- home
- mailmail
- searchsearch
