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Decentralized Democracy

Hon. Ed Fast

  • Member of Parliament
  • Conservative
  • Abbotsford
  • British Columbia
  • Voting Attendance: 66%
  • Expenses Last Quarter: $146,571.88

  • Government Page
  • Oct/23/23 3:58:52 p.m.
  • Watch
  • Re: Bill C-57 
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.
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