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Madam Speaker, I do believe there are great opportunities with a free trade agreement with Ukraine, whether that is with agriculture, manufacturing or cybersecurity. Certainly, we could learn some valuable lessons from our NATO allies and what is going on in Ukraine.
However, forgive me if I just have some hesitancy to trust the Liberals on what new chapters and what new details are going to be in this trade agreement, unless we have the time to review it.
That is my only caution to the Liberal government. Do not rush this through. Give parliamentarians and our stakeholders an opportunity to thoroughly review this agreement, to make sure it benefits both parties. The devil is in the details.
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Madam Speaker, this is probably the biggest impact we could have had on Ukraine, barring anything else with agriculture or free trade. When two of our important allies, two of the most important economies in the world, come to Canada asking for Canadian LNG so that they can stop funding Putin's war machine, our Prime Minister turns his back and says that he is sorry, that there is no business case for that.
What has happened? They are still funding Putin's war machine and then they have gone to sign LNG agreements with Qatar, which certainly does not have the environmental standards, the humans rights standards or the labour standards that Canadian energy would have.
We could have shown that we have a critical role to play on the global stage, and we failed because of this Prime Minister.
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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.
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Madam Speaker, today I rise to speak to Bill C-57. I will be splitting my time with the hon. member for Selkirk—Interlake—Eastman.
With more than a million Canadians who have Ukrainian heritage, I think it is important not only that we have shown our support for Ukraine in the past, but also, certainly, with what is going on with Russia's illegal invasion of Ukraine, that we show it now and into the future. Ukrainian immigrants, more than 100 years ago, literally broke ground and planted the roots for Canada's thriving and vibrant agriculture industry in western Canada, so the connections are deep.
However, when it comes to this agreement in particular, I want to emphasize the importance of due diligence and details. The Liberals have tabled a 600-page trade document that is now being rushed through the House of Commons with little opportunity for stakeholders or parliamentarians to review its intricacies. What chapters have been added? What new implements have been suggested? What are the consequences of those new chapters and new policies? When it comes to the Liberal government and its history with trade agreements, the devil is in the details.
To back up a bit, the Canada-Ukraine Free Trade Agreement began under the Harper Conservative government. It came into force in August 2017. It eliminated tariffs on 86% of Canadian products and exports to Ukraine. However, the modernization of this agreement is important, and I want to emphasize the fact that we want to see the details and take time to review the wording of the new update. The reason I want to be so adamant about that is just simply that, as I said, unfortunately the Liberal government has a history of failures when it comes negotiating or renegotiating trade agreements. We can go back to the very early days of the Liberal government when we renegotiated NAFTA or the Canada-U.S.-Mexico Trade Agreement, CUSMA. It was clear that the Liberals' goal was to simply get a deal done, tick a box and have a photo-op.
The Prime Minister and the Deputy Prime Minister sacrificed a number of critical Canadian industries with trade discrepancies that Canadian industries are still dealing with. Perhaps nowhere were those implications more profound than within Canadian agriculture. The CUSMA agreement impacted a number of agriculture industries, including dairy, where Canada relinquished its ability to export a number of important dairy products, like protein concentrate and skim milk powder. We also added additional access for American products into Canada.
The most glaring error, though perhaps it was not an error but was done on purpose, is the fact that the Liberal government relinquished Canada's trade sovereignty in signing the new CUSMA agreement. That is right. If Canada wants to sign a new trade agreement with any non-market country, we have to get permission or approval from the United States. No G7 country had relinquished that kind of authority to a trading partner. That had never happened, but it is exactly what happened with the Liberals' agreement with CUSMA. Our manufacturers and industry are still dealing with the implications of this agreement, with higher tariffs on aluminum and softwood lumber, which still have not been resolved years later.
There are clearly some important reasons Canadian manufacturers and Canadian industry do not trust the Liberal government when it comes to trade agreements and that it will base those agreements and negotiations on sound economics and the importance of fair trade. It seems, historically, that the Liberals have been basing their trade negotiations on Liberal ideology and virtue signalling. That is not the way trade negotiations should be going.
As recently as last year, the Liberals implemented a Ukraine goods remission order so Ukrainian products, like chicken for example, would be getting quota-free and tariff-free access into Canada. They signed this remission agreement with zero consultation with the stakeholders that would be impacted: Chicken Farmers of Canada, Egg Farmers of Canada and Canadian Poultry and Egg Processors Council. None of them knew this remission order was being signed. The Liberals signed this at a time when avian flu outbreaks around the world, and certainly here in Canada, were devastating the industry. We had these groups at the agriculture committee letting Finance Canada and Global Affairs know about the impacts of the agreement and saying to please not renew the remission order when it came due last spring.
The Liberal government ignored all that stakeholder consultation at committee and renewed that remission order anyway last spring. This has put our biosecurity and our food security at risk as, again, outbreaks of avian influenza were happening around the world and certainly around Ukraine as well.
Last year, we looked at the Liberal-NDP government's decision to impose a 35% tariff on fertilizer coming from Russia and Belarus. Again, there was zero consultation with Canadian producers, especially those farmers in Ontario and eastern Canada who rely almost totally on that fertilizer.
Now, I understand what the government was trying to do: It was trying to punish Putin for his illegal invasion of Ukraine, but Putin was not paying those tariffs. Canadian farmers paid more than $34 million in tariffs just to get the fertilizer into Canada to plant their crops this spring. No other G7 country put such a tariff on fertilizer. None of our allies, including the United States, did this. They understood the importance of their farmers being competitive and the impact the tariff would have on commodity prices, not only here at home but also around the world.
Again, despite every stakeholder telling the government to lift that tariff to ensure that we are competitive and that we have access to affordable fertilizer, the Liberals have ignored them. In fact, when we asked the government on many occasions why it implemented this tariff when none of our G7 allies did, the answer was, “I didn't even know we bought fertilizer from Russia and Belarus”. This just shows why there is such frustration from our stakeholders and our industry. When it comes to the Liberals negotiating trade agreements, they are not consulting. They are plowing ahead with these agreements without doing their due diligence. As much as we support a free trade agreement with Ukraine, we want to make sure that we have the time to review the details within this agreement.
Most recently, the Liberal-NDP government has fast-tracked the United Kingdom to join the trans-Pacific partnership, the CPTPP, again without consulting with Canadian ranchers and pork producers. They desperately wanted some major gaps within the trade agreement with CETA and Canada to be addressed for the U.K. to have accession to the CPTPP.
The numbers are stark. Last year, the United Kingdom imported about 4,000 tonnes of beef, worth $33 million, into Canada. Do members know how much beef Canada exported into the United Kingdom? It was zero; it was not so much as a burger or a steak. Canada's pork industry is facing a very similar trajectory, as the United Kingdom has put in non-tariff trade barriers to block Canadian imports. Not once has the Liberal government stood up to defend Canadian producers.
Free trade must be fair trade, and we are asking the Liberal government to do a side letter, a bilateral, with the U.K. to address this trade discrepancy. It has yet to do that. This is a massive gap, and Canadian producers are the ones paying the price for the Liberal government getting photo ops and ticking a box when it comes to its agenda, without thinking about the consequences for Canadian industries, manufacturers and producers. One thing is very clear after eight years under the Prime Minister: He is failing Canadian agriculture and our industries on the global stage, and our valuable industries are paying the price.
The Conservative Party supports free trade, and we are very proud of the 40 free trade agreements we signed under Prime Minister Harper. However, those agreements benefited Canadian industry and Canadian workers; they did not come at the expense of our hard-working producers.
We want to clearly and carefully review this trade deal and consult Canadian stakeholders to ensure that we reach a free trade agreement with Ukraine. It should be a free and fair trade agreement, not just ticking a box, that will preserve and enhance Canadian industries, including Canadian agriculture, and not follow the same failed policies and failed direction that the Prime Minister has become very famous for.
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- Jun/16/22 7:04:14 p.m.
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Madam Chair, I want to say at the beginning of my intervention that I am encouraged by the words of the minister that the Liberal government now understands the importance of things like fertilizer and gene editing and seed technology and the role they will play in the future for food security, because I would think we are in the midst of a food security crisis. This is not something that will happen; this is something that is happening right now. I would hope the minister understands the critical geopolitical role that Canadian agriculture can play, not only here at home but around the world.
To put this in perspective, Ukraine is the breadbasket of much of Europe, Asia and Africa. The uncertainty that is going around with this conflict is certainly have a significant impact on the price of these commodities, and not only in Europe. We were very naive if we thought we were not going to be impacted here at home as well.
We had the honour of having the Ukrainian minister of the economy at committee the other day, and I want to mention a quote from him. He said that Ukraine is seeing a catastrophe on top of a catastrophe, with a global impact seen since World War II, and that farmers have dropped their breadbaskets to stand in breadlines. That is very apropos and puts some perspective on how serious this situation is.
We also had the Ukrainian agriculture minister at committee. She said that Russian soldiers have occupied 23% of Ukraine. They are stealing grain, destroying critical infrastructure and blockading Ukraine's ports. This will seriously impact Ukraine's ability to export whatever harvest of commodities it may be able to achieve this spring and again next year. As the minister said, this will lead to social unrest, famine and, very likely, conflicts around the world, especially around the Horn of Africa. How we respond here in Canada to this tragedy and this food insecurity crisis is critical.
I am going to go in a different vein than the minister did, because I think Canadian agriculture has a key role to play in addressing this food insecurity crisis. I was speaking to Canadian farmers across the country over the last few weeks and months as this started to unfold, and every single one of those farmers has said it is our moral obligation to step up and do everything we possibly can to address this food shortage crisis. They want to be there to help their allies and their friends in Ukraine. Certainly for us in western Canada especially, our agriculture sector was developed and the ground was broken by Ukrainian immigrants who came to Canada more than 100 years ago. We are in their debt.
However, for Canadian farmers to be able to do that, to reach that potential and to reach out and help to address this food shortage, they have to have the tools they need to be successful. Farmers certainly understand that there are many variables outside of their control, but there are some things they rely on from the federal government perspective to have certainty. These things include competitive regulatory and tax regimes, an efficient and reliable supply chain, bankable and efficient business risk management programs and access to global markets. I would argue that unfortunately the government is failing agriculture on all of these pillars right now, which is certainly handcuffing our ability to reach our full potential, to increase our yields to not only meet our commitments, not only here at home but around the world, and increase our ability to step up in times of crisis, as we are seeing right now.
One example of that is the federal carbon tax that the government has imposed on Canadian farmers. We heard at committee today from the Grain Farmers of Ontario about Bill C-8, which is what the Liberals have said is the carbon rebate program to farmers. The message that we are getting from the Liberals all the time is that the carbon tax is revenue-neutral, that whatever a Canadian is paying into that carbon tax, they are getting back. However, we heard in testimony today from the Ontario grain farmers that they are getting back between 13% and 15% of what they pay in the carbon tax. That is a long way from being revenue-neutral. In fact, I would say that it is misleading Canadians when the government says this program is revenue-neutral. It is far from that. The impact is that it is hurting Canadian farmers in their ability to innovate, invest and grow their business and certainly to grow their yields.
The CFIB pretty much ratified those numbers from the Ontario grain farmers, saying that what the farmer is going to be paying in a carbon tax is going to go from $14,000 on average to $45,000 on average as a result of the increase on April. According to Finance Canada today, the average farmer gets back $800 a year. The farmers are putting in $45,000 and getting $800 back. Again, that is nowhere near revenue-neutral.
This program is devastating and unnecessary to Canadian farmers, especially when we have put forward a much better solution in Bill C-234, which would exempt farm fuels from the carbon tax, especially natural gas and propane for heating barns and drying grain. This would allow farmers to reinvest that money in the things they need to improve their operations.
The Food and Agriculture Organization has said that the linkage between energy prices, such as the carbon tax, and fertilizers has put the agriculture sector at significant risk. Renowned agriculture trade expert Robert Saik has said we must be making decisions based on science, not ideology, to ensure the sustainability and health of the agriculture sector.
The World Food Programme has said that 800 million people are facing food insecurity around the world. As a result of the conflict with Russia and its illegal invasion of Ukraine, they are expecting another 13 million people to be at risk of food insecurity. That shows us how serious this situation is and how important it is for Canadian farmers to be competitive and able to reach their potential.
To put that in perspective, the United States has not put a carbon tax on its agriculture sector. The United States is our biggest trading partner but also our biggest competitor on the global stage. In fact, the United States is also not punishing its farmers with a tariff on fertilizer. Canada is the only G7 country in the world that is charging a tariff on fertilizer.
We have asked the Liberal government to exempt the tariff on fertilizer purchased from Russia before March 2 to ensure that Canadian farmers are not carrying that burden, and I want to be really clear here: Vladimir Putin is not paying that tariff. The Russian military is not paying that tariff. Only Canadian farmers are paying that tariff. Now we have seen the numbers, and that tariff is going to cost Canadian farmers, especially in eastern Canada, about $150 million a year.
That is $150 million taken directly out of the pockets of Canadian farmers and going to the Liberal government's coffers. Not only is that a financial hit, but as a result of that we are going to see farmers using less fertilizer. The consequence is that we will have smaller yields. We already had a 40% decrease in yields last year because of weather issues. Depending on the weather, if we see that yield decrease further or not return back to our normal, it is going to have a significant impact. We are going to see food prices increase, not only around the world but here at home as well, and it will impact our ability to try to address food insecurity issues around the world. This only punishes Canadian farmers. It does not punish Vladimir Putin.
We also heard from the Ukrainian minister of agriculture that Ukraine needs seeds, machinery, fuel and temporary storage facilities for its grain and commodities. What it needs is for Canadian agriculture to be firing on all cylinders to make sure we can step up and help when it is needed. However, at this time of a global food security crisis, again when we need Canadian agriculture to be punching above its weight, the Liberals have decided to put burdensome red tape, regulations and taxes on Canadian farmers.
Another example is front-of-package labelling, which is a $2-billion bureaucratic burden on the industry. Not only will that impact Canadian beef, pork and veal farmers, but it will also impact our processors, manufacturers and consumers. We are talking about the food insecurity crisis and the impact it would have on people around the world, in Europe and the Horn of Africa, but food insecurity is also an issue here at home. If we cannot take care of our own, how are we expected to step up and take care of others in their time of need?
This is also sending a very frightening message to our trading partners. Why should they be importing Canadian beef and pork when we are admitting to the world that we feel our products are unhealthy?
In conclusion, in a time of crisis, instead of treating Canadian agriculture with disdain or as a carbon tax cash cow, the Liberals need to see modern Canadian agriculture and our farm families as a way out, as a way to step, as a key geopolitical tool in the fight against totalitarianism and the likes of Vladimir Putin.
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