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Member of Parliament

Kevin Vuong

  • Member of Parliament
  • Member of Parliament
  • Independent
  • Spadina—Fort York
  • Ontario
  • Voting Attendance: 62%
  • Expenses Last Quarter: $144,966.01

  • Government Page
Context: House Hansard - 251 - Nov/20/23
Mr. Kevin Vuong (Spadina—Fort York, Ind.)
  • Nov/20/23 4:34:19 p.m.
  • Watch
  • Re: Bill C-57 
Madam Speaker, I am pleased to rise today and speak to Bill C-57, the free trade agreement between Canada and Ukraine. The bill would modernize CUFTA and build on the original 2017 agreement with the inclusion of 11 new chapters and provisions. I believe that Canada should continue looking for ways to use our economic strength to support the Ukrainian people, including the exportation of Canadian liquefied natural gas to break European dependence on natural gas supplied to those countries by Russia. I also believe that members of this House should always work to ensure that trade agreements entered into by Canada remain in the best interest of Canada and of all Canadians. This is why Bill C-57 should be closely examined and why engagement should occur with Canadians and stakeholders to get that very important feedback. We must also be aware that, through this Canada-Ukraine FTA, Canada is continuing its support for our Ukrainian allies, including through trade. I commend the Conservatives for having successfully negotiated the current Canada-Ukraine Free Trade Agreement and for unanimously voting for it. I am also a strong supporter of free trade and of Ukraine. On the latter point, this is why I personally believe that Canada should indeed have a free trade agreement with Ukraine. The current CUFTA was negotiated in 2017, and it will also remain in effect if, for some reason, the new agreement is not ratified. Regardless, Canada's commitment to a strong and independent Ukraine is a constant. Ukrainian people have suffered greatly through Russia's unwarranted aggression, and the people of Ukraine need all the assistance Canada can offer. Canada's history with Ukraine displays a close relationship. On December 2, 1991, Canada became the first western country to recognize Ukraine's independence from the Soviet Union. Recently, Canada also undertook Operation Unifier, the Canadian Armed Forces mission to bolster the capabilities of the armed forces of Ukraine through the provision of critical military training. As I said at the outset, the new CUFTA reflects the 2017 agreement, with 11 new chapters and provisions that focus on trade in services, including financial investment, cross-border trade in services, temporary entry for business persons, financial services, telecommunications, SMEs, digital trade and labour. Bill C-57 also includes elements of the government's new progressive trade and the first-ever sections on indigenous peoples. There is also a substantial new chapter on the environment. The original 2017 agreement eliminated tariffs on 86% of Canada's merchandise exports to Ukraine. CUFTA has a built-in review clause, article 19.2, that commits to review the agreement within two years of its entry into force. The intention is to expand the agreement to new areas, such as investment in trade in services. In July 2019, the Government of Canada and the Government of Ukraine agreed to modernize the CUFTA. Subsequently, in January of last year, Canada and Ukraine announced the launch of modernization negotiations, which were suspended as a result of the Russian invasion of Ukraine in February 2022. Those negotiations resumed in June 2022. On October 17, the modernized CUFTA was introduced for ratification by the government. Let us take a step back and really look at the magnitude. In 2022, Canada's total merchandise trade with Ukraine was $420 million, with $150 million in exports and $270 million in imports. When the original CUFTA was ratified, non-coal exports to Ukraine actually grew by 28.5%, when looking at the period between 2016 and 2019. The top three exports to Ukraine were motor vehicles and parts, fish and seafood, and pharmaceutical products. Canada's top imports from Ukraine were animal and vegetable fats and oils, iron and steel, electrical machinery and equipment. For reference, Canada's 10th merchandise export market was Belgium, at $4.9 billion, and Canada's 10th merchandise importer was Brazil, at $7.5 billion. Therefore, this trade deal is very small relative to Canada's total trade, but that does not diminish its importance, particularly given the ongoing conflict. There are two parts to adopting a trade agreement: a text of the agreement and the enabling legislation. Bill C-57 would implement the Canada-Ukraine free trade agreement as agreed to between the two parties on September 22. Among other things, the bill sets out rules of interpretation and further “specifies that no recourse is to be taken on the basis of sections 9 to 15 or any order made under those sections, or on the basis of the provisions of that Agreement, without the consent of the Attorney General of Canada”. Bill C-57 would approve the agreement and provide for the payment by Canada of its share of the expenditures associated with the operation of the agreement's institutional and administrative aspects. The bill would also provide the Governor in Council with the power to make orders in accordance with that agreement. It would amend certain acts to give effect to Canada's obligations under that agreement and would repeal the 2017 agreement. The new CUFTA would update the following chapters: rules of origin, government procurement, competition policy, monopolies and state enterprises, digital trade, labour, environment, transparency and anti-corruption. These are all things that are very important to Canadians. However, for the first time in a Canadian FTA, the environment chapter would include provisions recognizing the importance of mutually supportive trade and climate change policies. Also, for the first time ever, a Canadian FTA would include a chapter on trade and indigenous peoples. It would also replace the 1994 FIPA in the investment chapter. What are the financial implications for Canada of this renegotiated CUFTA? We know that Canada currently has a $150-million trade deficit with Ukraine. However, when the Harper Conservative government originally negotiated this FTA, it was designed to be an asymmetrical agreement whereby Ukraine would initially gain the most benefit. The inclusion of more services trade in the updated CUFTA and other changes should balance our bilateral trade, which would be a good thing for Canadians. The enabling legislation would include some costs in implementing the agreement and the cost of dispute panels; however, those costs are standard and do not amount to large sums. In conclusion, I am pleased to provide my support for Bill C-57. I believe that the new agreement would preserve Canada's interests in such agreements, and I believe that the renegotiated CUFTA would continue the objective of helping Ukraine, its people, its struggle to repel Russian aggression and its efforts to defend democracy.
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