:
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 , 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.
:
Mr. Speaker, it is a pleasure to rise to address this very important discussion about the Canada-Ukraine free trade agreement that, of course, we in the Conservative Party are very pleased to be supporting and I think not unfairly take a fair bit of credit for it being here today.
It also gives me an opportunity to speak more broadly about the Canada-Ukraine relationship and the importance of ongoing co-operation, and indeed some of the areas where we believe the government needs to do better when it comes to supporting our ally, Ukraine.
People watching this debate will hear members from all parties speak about the importance of that relationship and the critical contribution that the Ukrainian communities here in Canada have made to our country, but also about the ongoing opportunities for mutually beneficial exchanges, economically and on other fronts. We will hear those sentiments from all members of this House.
There are some important ways in which the government is not putting its money where its mouth is when it comes to co-operation with Ukraine, so I appreciate the opportunity to draw the attention of members of the House to those issues as well as certainly celebrating the important step forward that this marks.
If members will indulge me for a minute, I would like to make a few comments about my own constituency, because we have a very large and very active Ukrainian Canadian community in my own constituency of .
I might get in trouble with some other members of my caucus if I said we are number one in terms of reflecting Ukrainian culture in Canada, but certainly we are up there. We have the Ukrainian Cultural Heritage Village, which is an outdoor interpretive centre that provides visitors with an opportunity to learn about and understand the experience of early Ukrainian pioneers to western Canada, many of whom came at a time when multiculturalism was not recognized or appreciated in the same way that it is today. They were brave in coming to a new country, stepped out, and contributed so much to the rich, multicultural fabric of western Canada in particular, but also of our entire country.
My constituency is home to many eminent Ukrainian Canadians, including former Alberta premier Ed Stelmach, who continues to be very active and a great citizen of our community.
I personally had the opportunity to visit Ukraine in August 2016. I was there for the 25th anniversary of independence. Of course, we are celebrating this year the 150th anniversary of our country, but very much the founding of Canada is an event in our history, not an event of personal memory. Being in Ukraine and living through, in a sense, observing the emotions and the joy that people there have in their independence and how recent that experience was, how most people remember a time before independence, really hits home the importance of that national pride and how much Ukrainians have struggled in order to achieve their independence.
Ukraine and Canada are very similar. We have a great deal in common in terms of our values, our history, our diversity, our commitment to democracy. The one thing that makes us very different is that Ukraine is in a much tougher neighbourhood, and that has created all kinds of challenges, histories of occupation, ongoing occupation in eastern Ukraine, and yet the resilience of the Ukrainian people in the midst of all sorts of challenges is really inspiring for me.
We had the opportunity to hear from people about events as recent as the Maidan where young people, people of all ages risked their lives to stand for democracy, to stand up for the kinds of values that they wanted their country to embody. It is inspiring for me as a democratic politician here to see people in other countries willing to risk, willing to give their lives in order to stand up for the values they believe in.
Many of us here stand up for our values in different ways, but fortunately we are not in a position where we have to risk our lives to do so. The opportunity to interface with people who are in that situation really pushes me, and I think for other members who have not had an opportunity to have those conversations, prods them to value the things that we hold dear and to be willing to stand up and fight for them.
We have an important relationship with Ukraine. It is a relationship of shared values, it is a relationship of shared history, and that relationship is particularly evident in my constituency and the many people in my constituency who trace their origins to Ukraine.
In the history of the recent changes in Ukraine, the Maidan, the democratic movement for change that took place two years ago, the touchstone for that discussion was a trade debate. It was about the desire of the Putin regime to prevent Ukraine from having closer trading relationships with Europe.
As we move forward with this bill to implement closer trading relationships between Canada and Ukraine, it is worth thinking about in that context. These kinds of trading relations between Ukraine and countries, democracies with similar values, are very important for Ukraine as a country that is solidifying its position and its commitment to the kinds of values that we share, the kind of trade as well as security co-operation. This is important for Ukraine to continue to develop and be reflective of those values.
We speak in general about the benefits of trade and maybe I will get time to speak more broadly about the economic benefits of trade, but there is a strategic dimension to trade as well. Trade provides us with an opportunity to deepen our partnership, deepen the people-to-people connections that exist between countries with similar values.
If I can draw a parallel to another trade discussion, I think the debate around the trans-Pacific partnership was quite similar insofar as it was an agreement between like-minded democracies, generally speaking, in the Asia-Pacific area, which were trying to set the terms of trade in a way that reflected their values without allowing a situation where the terms of trade in that region were set by China. One could speak of the economic benefits of the trans-Pacific partnership, but there was also a critical strategic value that was not recognized often enough in the context of our discussion.
Similarly, we can speak about trade with Ukraine, trade and other forms of co-operation between Canada, Europe, and other countries with Ukraine as helping to ensure that Ukraine is not economically vulnerable to the kind of extortion that the Putin regime has at times tried to exert on other countries. There is a strategic importance to this deal in terms of ensuring that Ukraine is able to continue to stand for the kinds of values that we regard as important and certainly that reflects the desire that I saw in the Ukrainian people when I was there last year.
Continuing in that vein, I would like to talk about the things I think the government needs to do better on when it comes to supporting Ukraine. There are a number of policy areas and I suspect there are members of the government who agree with me on these issues and want to see the cabinet respond. We have had a change in terms of some of the cabinet positions involved in Foreign Affairs, so I hope that we will see some changes in these areas.
The government talks about the importance of our friendship with Ukraine, but it also has talked about wanting to have closer relations with Russia. We need to make sure that the relationships with the partnerships that we establish internationally are indeed reflective of our values, and that we are not making unacceptable compromises in that respect.
One of the issues that is critical here is the issue of human rights inside Russia. It is interesting for me that for many people in the Ukrainian community, a key priority is Canada being involved in the fight for improved human rights inside Russia. We can look around and see that any time a nation becomes a threat to the human rights of its own people, the government that is exacting human rights abuses against its own people will also be a threat to international peace and security. There is a continuity between the abuses of basic human rights that happen inside Russia and the abuses of human rights that are the result of Russian actions in Syria, in occupied parts of Ukraine, and in other countries.
Many people have been horrified by what the Russian government has undertaken inside Syria, but similar actions were undertaken in Chechnya and elsewhere. There is a continuity between the internal policies and the external policies. That is why it is so important for the Ukrainian community, as well as for the Russian community, that Canada take a strong position in support of the Magnitsky sanctions. Magnitsky sanctions are sanctions that target individual human rights abusers. They are named after Sergei Magnitsky, who was a Russian lawyer who was murdered. The goal of these sanctions is to individually and directly sanction people involved in human rights abuses in a way that would limit their ability to travel to undertake economic activity in other countries.
Canada can be a leader in this respect. It is important for our partnership with Ukraine, and for our commitment to our values more generally, that we have a government that stands for the Magnitsky sanctions, which is something our party supports. If I am not mistaken, it is something the government supported when it was in opposition. It is something we need to move forward on. I hope to see on that point some clear signals from the new , because this is important in standing up for our values in that region of the world.
More directly, and I have already raised this during our debate in questions and comments, we need to strengthen our military co-operation with Ukraine. Ukraine is in the middle of a foreign occupation. The Putin regime has occupied Crimea and parts of eastern Ukraine.
Even some of the language that is often used around this is somewhat misleading, the language of “separatists”, or perhaps “Russian-backed separatists”. In reality, what I was told repeatedly by Ukrainians I talked to is that this is not a case of local people who are upset at the Ukrainian government. This is an issue of people sent over the border by the Russian government and not identifying themselves, at least initially, as Russian soldiers but who are clearly agents of the Russian state.
The co-operation in response to that occupation is important. On some aspects of this, there is agreement from the government. Our position is that Canada needs to do as much as we can to support Ukraine.
Under the last government, we were providing vital satellite images to Ukraine that were useful for their military activities. Canada had the resources. We were collecting these satellite images, and we were sharing that information with Ukraine. It made sense for us to do so.
Ukraine is an economic partner of Canada. It is also a key ally, so let us share that satellite imagery with Ukraine in a way that helps it succeed in its fight against, let us call them what they are, Russian-backed terrorists who are occupying Ukraine.
I want to emphasize in the strongest possible terms upgrading our military co-operation in terms of the use and sharing of those satellite images. It is of critical importance to me, to my constituents, to the opposition, and I suspect, to at least some members of the government.
We need to hear clearly from the government with respect to renewing Canada's ongoing training mission. That is obviously another issue. Clarity from the government going forward about what is going to be done is important. Any ongoing support we could provide would be valuable. I know that the contribution of Canadians has been greatly appreciated. We can make a positive difference. It is noticed and it is appreciated by Ukrainians.
One of the things we could do in terms of our ongoing co-operation with Ukraine is reinstate international initiatives around communal harmony. One of the activities undertaken by the office of religious freedom, which existed in the previous government and has since been cancelled, was supporting programs supporting communal harmony in Ukraine. Members may not be aware of the religious dimension of the occupation, but there has been a great deal of persecution of different religious communities in Russian-occupied parts of eastern Ukraine. That has been a key dimension of the repression of human rights that has taken place there.
Canada's engagement on this front, on initiatives on communal harmony, is very helpful to Ukraine. I know that the government has cancelled the office of religious freedom and has touted the alternative office it has created, but we have not actually seen the restoration of the direct involvement in key projects around the world that were making a difference in these areas. I think the model that existed was working. At the very least, let us look at reinstating some of that involvement Canada had in Ukraine, because it was positive, it was helpful, and it was certainly making a valuable difference.
Those are some key areas where we can do more. I know that members, again, across all parties, are committed to the idea of a partnership with Ukraine, but there needs to be the putting of real mettle behind that sentiment. Standing up for human rights issues inside Russia, as well as throughout the region, would mean Canada implementing its own Magnitsky act, strengthening our military co-operation with Ukraine, providing some clarity around the renewal of that training mission, restoring the sharing of satellite images, and finally, reinstating these communal harmony types of activities. I see these types of initiatives as being very positive for Ukraine.
In the remaining time I have, I will make a few comments with respect to some of the economic aspects of this agreement and the impact it will have.
As other members have mentioned before, when this agreement comes into force, we know that Canada and Ukraine will immediately eliminate duties on very close to 100%, 99.9%, and 86% of respective current imports, thereby benefiting Ukrainian and Canadian exporters and consumers. This will provide real, substantial, concrete benefits for Canada and Ukraine.
Yes, there is the friendship connection and the strategic dimension, but there are also real economic gains that will come from this partnership. Canada's GDP is expected to grow by $29.2 million under this agreement, and Ukraine's GDP would expand by $18.6 million.
There are opportunities for more expanded trade over time between Canada and Ukraine, as like-minded allies, countries with shared values, and a great deal of shared experience.
The economic benefits that come from this will be significant as well. Estimates are that Canada's exports to Ukraine would increase by $41.2 million. Canada's export gains would be broad-based, with exports of pork, machinery and equipment, transport equipment, other manufactured products, cars and parts, and chemical products being some of the key sectors affected.
There are also major potential benefits in the area of agriculture. We see those benefits, in particular, for western Canada. Our current exports from western Canada to Ukraine averaged close to $80 million between 2011 and 2013, and we certainly have every reason to believe that we are going to see some increases there as well.
Let us be clear. We know that trade produces economic benefits. We have seen the benefits across the trade deals Canada has signed throughout its history, usually signed under Conservative governments, or at least in this case, with the process started under Conservative governments.
We saw in the early debates we had on free trade with the United States many naysayers. Many people said it would be the end of our sovereignty, but look at the incredible economic benefits that have flowed from free trade with the United States.
This is another trade deal that complements so many trade deals that were signed, finalized, or at least initiated under the previous government. We just voted on a bill on the Canada-EU free trade agreement. We are seeing the moving forward of trade deals that were undertaken under the previous government.
I hope we will also see from the new government some new initiatives around trade deals, the proactive negotiation of new trade deals, as well as the continuing of trade deals that were begun under the previous government. Especially in the kind of climate we are seeing internationally, and with the debates we are having around trade, it is important that we have a government that believes in the open economy and stands up for it.
With that in mind, I am pleased to be supporting this trade deal, and I look forward to continuing to encourage the government to do more to promote our positive relationship with Ukraine.
:
Mr. Speaker, I withdraw my comment as well.
As I was saying, it is the idea that a rising tide will lift all boats, but in fact the opposite is true. Unfortunately with trade agreements, history has shown us that the benefits of trade are not evenly distributed among all participants in the economy.
While corporate profits are soaring, wage growth in Canada since the 1970s has been stagnant. Household debt persists at record high levels while our younger generation struggles to find meaningful employment in an economy that no longer provides the stability and prosperity associated with full-time jobs that include benefits and pensions.
Looking at NAFTA, while it led to job creation in some sectors, it also devastated our manufacturing and textile sector. Let us not try to paint over that fact. Furthermore, having labour and environment in side agreements in NAFTA did not raise the standards in Mexico to the same standards as here in Canada. Again, I am pleased to see that the Canada-Ukraine agreement, which we are debating today, does not treat labour and environment with the same disregard as NAFTA did.
When we look at Ukraine, we see that the country has made a lot of progress since 2014 when it was in the grips of a civil war that killed over 9,000 Ukrainians and displaced around 1.5 million people. However, just this past week, we read about conflict breaking out again in eastern Ukraine. Thirty-five people were killed after what has been described in the media as extensive and indiscriminate shelling. There is a war going on, and it is destroying families and communities. Children have lost their parents.
I spoke earlier about how a country's human rights record is not a static thing. It changes over time. We know that in Ukraine there is still a lot of uncertainty and continued conflict. The fact is Ukraine is still at an early stage in its transition to a market economy. It has a history of political instability. It has a weak constitutional framework. It is viewed as having a weak business environment for these and many other reasons.
Canada is currently looking at whether to add Ukraine to our Automatic Firearms Country Control List. There were consultations over a year and a half ago, but the government has been mum on whether Ukraine will be added to the list or not. If it is added to the list, Canadian companies could be allowed to export certain prohibited firearms and weapons to Ukraine. Given the ongoing civil war in eastern Ukraine, I would be very concerned about Canadian weapons ending up in the wrong hands.
It is not just about today, but about tomorrow, and 10 and 20 years from now. We are hopeful that peace and stability will prevail. In the meantime, a very practical way that Canada can know with greater certainty that increased exports of Canadian goods would not negatively impact Ukraine's human rights is by requiring an annual independent review of the impact of CUFTA on human rights in both our countries. As a member of the Standing Committee on International Trade, I proposed this as a possible amendment to this legislation. My colleagues felt the inclusion of such a review would be seen as “an unnecessary criticism of Ukraine”.
As I said at committee, I think when we have relationships with other countries, there are sometimes difficult things that have to be addressed, and this is one of them. Human Rights Watch has noted concerns over steps by the Ukraine government to restrict freedom of information and the freedom of the media. Free trade agreements should not be a reason not to talk about differences or broach difficult subjects respectfully. In fact, as a Canadian citizen, I would expect that my government would be having these conversations as part of trade negotiations. These were the concerns I attempted to lay out before the committee.
I also attempted to have the committee hit a pause button for a moment on Bill so that we could hear from some witnesses on this legislation. Unfortunately, the committee chose not to study the bill or hear from any witnesses beyond department officials. Without commenting on the merits of this legislation, I would like to note my deep concern with this approach.
As parliamentarians and as committee members, it is our job to study the legislation that comes before us and not just rubber-stamp it. Even if witnesses support the agreement, it is incredibly helpful to hear their testimony and to have an opportunity to ask questions and learn about the issues.
For example, when the committee studied CETA, albeit briefly, even stakeholder groups that supported the agreement talked about concerns with how the agreement would be implemented and how Canadian businesses needed support with accessing potential new markets. They made recommendations that they wanted us to carry forward to the government.
I would urge my colleagues on all sides of the House to not be afraid of asking questions and listening to Canadians, even on topics where we assume there will be overwhelming agreement.
In the 's latest mandate letter to the , he said:
If we are to tackle the real challenges we face as a country - from a struggling middle class to the threat of climate change - Canadians need to have faith in their government's honesty and willingness to listen.
I would like to take a little more time to discuss some of the feedback our committee has received over the past year on how specifically the government can better help Canadian businesses access international markets. There are important points that are relevant to our consideration of the Canada-Ukraine free trade agreement.
From the perspective of Canadian small and medium-size businesses, the signing of a new agreement is just the beginning. Having a new agreement will not magically translate into increased trade flows. Supporting markets is a big challenge. I am pleased to see this is part of the new minister's mandate letter.
Specifically, he is instructed to develop and implement a new trade and investment strategy to support Canadian businesses exporting to international markets and help Canadian jurisdictions attract global investment. In particular, I would like to see the minister's efforts really focus on supporting Canadian SMEs, not just the large companies which have more means to pursue new markets. Around 90% of Canadian SMEs do not export their goods or services. This would include micro businesses as well.
In my riding of Essex, a lot of businesses cannot even connect yet to high speed Internet. It is difficult to think of how they will connect to potential new markets in Asia, Europe, including Ukraine, if they do not even have a quality Internet connection.
We have talked a lot at the trade committee about the important role of Global Affairs Canada and what it must play in terms of engaging Canadian businesses, listening to what the non-tariff barriers are and working in close collaboration to address these issues.
I am pleased that the Canada-Ukraine Chamber of Commerce has been actively working to connect Ukrainian and Canadian businesses. There is also a role for the Canadian Trade Commissioner Service to play, and of course Export Development Canada.
I want to hear a lot more from the government on what its trade and investment strategy will include. I think too often these conversations are brushed to the side. They come as more of an afterthought after the agreement is signed.
I would also like to speak to a few more specific areas covered by the Canada-Ukraine free trade agreement.
At second reading and at committee, I raised the issue of steel. As we know, the issue of steel dumping is one of great concern for us in Canada. It impacts my riding of Essex, as well as Hamilton, Sault Ste. Marie, Regina, and many other Canadian communities. Therefore, when I saw that CUFTA would reduce tariffs on the trade of steel between our two countries, I wondered how this might impact the global steel trade and the challenges of overcapacity and dumping. It is something on which to keep an eye.
In the meantime, I would like to once again urge the government to take action on improving and strengthening Canada's trade remedy system. Canada needs to do a better job of protecting our steel industry. That means enforcing the rules and doing a better job when other countries like China are breaking the rules. Standing up for Canada's steel industry is about standing up for Canadian jobs.
The trade committee has committed to a brief study of dumping. I hope we can make room for this soon. It will be important to hear from Canadian producers and workers on how the broken trade remedy system is hurting our industry. The finance committee has already done a study of the trade remedy system, so the solutions are there. Now it is time for action.
By and large, Canada's steel sector will not stand to lose in CUFTA. In fact there are not really any losing sectors in this agreement, which is rare.
In CETA, Canada made some big concessions around pharmaceutical, intellectual property rights, and around dairy and our maritime industry. These concessions will mean a higher cost of medicine for Canadians, and they will mean our dairy sector will lose millions and our maritime sector will lose thousands of jobs.
I was surprised that Canada did not take a second look at what we gave up in CETA after the U.K. voted to leave the EU. After all, the U.K. makes up about half of Canada's market in the EU.
In TPP, Canada would be forced to make many of the same concessions. We also know TPP would hurt our auto sector. In fact, TPP is estimated to cost Canada 58,000 jobs.
Both CETA and TPP include harmful investor-state provisions that erode Canada's sovereignty. These provisions make it harder for Canada to enact and enforce environmental rules, and they can also make it harder for Canada to introduce a national pharmacare plan. Even in the TPP, a special carve out was required to allow countries to preserve their ability to regulate cigarette packaging.
The problem with mega deals like TPP and CETA is that they ask countries to make a lot of concessions in areas that extend far beyond the traditional realms of trade. For example, the TPP includes a clause barring every other TPP member state from ever adopting Canada's notice and notice system for copyright rules. Our system is widely considered to strike a fair balance that respects the rights of users to share and collaborate, while ensuring that artists are fairly compensated for their work.
Perhaps the case could be made that trade-offs required by multilateral deals are worth it, if a government is willing to take proper steps to mitigate the negative effects. These trade deals can increase inequality if proper action isn't taken to make sure they do not. In this regard, bilateral trade deals tend to require countries to make far fewer concessions. They are easier to negotiate, and they are easier to ratify and implement. This is the kind of trade that the New Democrats tend to support, trade that reduces tariffs and boosts exports.
I would also point out that CUFTA is the second trade agreement the New Democrats have supported in this parliamentary session. We also supported the trade facilitation agreement.
My colleagues in the Liberal and Conservative Parties like to spread misinformation that the NDP is somehow anti-trade because we point out the flaws in the agreements, like NAFTA and the TPP.
We do not think a trade and investment agreement is appropriate with countries that have deeply concerning records on human rights. We want to see Canada do business with good partners of strategic importance. We want to see trade deals that do not harm the interests of everyday Canadians.
I would challenge my colleagues to participate in these debates about the merits of trade and investment deals on a case-by-case basis, instead of relying on blanket statements that all trade and investment is good therefore no study or critical analysis of an agreement is needed.
On the question before us today, I have studied the Canada-Ukraine free trade agreement closely. Like other trade agreements the New Democrats have supported, on balance this agreement does serve Canada's interests.
I would like to extend my appreciation to Mr. Marvin Hildebrand, chief negotiator of CUFTA, and his team for their hard work on this file. I do not doubt that our trade negotiators always have Canada's best interests in mind.
I am pleased that all parties in the House have extended their unanimous support for Bill . Let us not forget that it is time to ensure that this and every trade deal works for Canadians and creates market access and benefits for Canadians that we expect.