:
Madam Speaker, I rise today with pride and conviction to speak in support of Bill , legislation that will bring into force the Canada-Indonesia comprehensive economic partnership agreement. This is a consequential moment for Canada, a moment to choose engagement over hesitation, diversification over dependence, and action over rhetoric. It is a moment to demonstrate that Canada understands the economic realities of the 21st century and is prepared to act decisively in response to them.
The global economy is changing, not gradually, but structurally. Growth is no longer concentrated on a small number of advanced economies. It is shifting towards the Indo-Pacific, towards emerging markets and towards economies with expanding middle classes, increasing infrastructure investments and growing demand for food, energy, manufactured goods and services.
Canada cannot afford to be passive in this environment. That is why our new government is leaning forward. We are all in for Canada. Our economy, our workers and our communities require foresight and deliberate action. Bill represents exactly that, a strategic decision to ensure Canadian businesses and workers are positioned to compete in the markets that will define future growth.
Indonesia is central to that story. With a population exceeding 275 million potential consumers, Indonesia is the fourth-most populous country in the world and one of the largest economies in Southeast Asia. It is a country undergoing rapid urbanization, industrialization and income growth. Its middle class is expanding by millions every single year. Demand is rising for food, raw materials, infrastructure inputs, clean technology and professional services, areas where Canada has both capacity and global credibility.
Today, trade between Canada and Indonesia is roughly $6.7 billion in goods and services annually, yet despite that volume, Canadian exporters continue to face tariffs that put them at a disadvantage compared to competitors who are already enjoying preferential access. That is precisely what Bill changes. Under this agreement, Indonesia will eliminate or reduce tariffs on nearly 86% of tariff lines, covering almost all current Canadian exports. These are not symbolic reductions. They are commercially meaningful changes that affect pricing, competitiveness and long-term investment decisions. Let me be clear about what that means. In agriculture, Indonesian tariffs on Canadian products such as wheat, barley, pulses and oil seeds will be reduced or eliminated entirely.
Indonesia is one of the world's largest importers of wheat and Canadian grain, which is valued for its quality and reliability. Eliminating tariffs ensures that Canadian farmers compete on product excellence. That matters to producers in Saskatchewan, Alberta and Manitoba, but it also matters to rail workers, port operators, processors and exporters across Ontario, Quebec and Atlantic Canada who are part of that supply chain.
In agri-food and processed foods, tariff reductions improve access for value-added products that support jobs not only on farms but in processing plants, logistics hubs and other value-add services. These are jobs that sustain rural communities and urban communities alike, including communities like Brampton East, while strengthening food security at home and abroad.
In fish and seafood, Indonesia currently applies tariffs of up to 15% on products such as lobster, salmon, scallops and crab. Under this agreement, those tariffs will be eliminated and phased out. For fish harvesters and processors in Newfoundland and Labrador, Nova Scotia, P.E.I., British Columbia and Quebec, this translates directly into improved margins, stronger export volumes and greater stability in seasonal employment.
In forestry and wood products, tariff reductions will enhance competitiveness for Canadian softwood, pulp and paper products used in Indonesia's expanding construction and packaging sectors. These benefits will flow directly to forestry communities in British Columbia, Quebec, Ontario and New Brunswick.
In manufacturing, this agreement will reduce tariffs on industrial goods such as machinery, automotive parts, aerospace components, chemicals and fabricated metals. For manufacturers in southern Ontario, Quebec, Alberta and Manitoba, this means the ability to bid into projects and supply chains in Southeast Asia without pricing themselves out of contention.
In clean technology and environmental services, the agreement supports Canadian firms working in renewable energy, emissions reductions, water treatment and sustainable infrastructure. As Indonesia invests billions in energy transition and climate resilience, Canadian companies gain predictable, rules-based access to the market.
This agreement is particularly important for small and medium-sized businesses. Large multinational firms can absorb tariffs, but small businesses often cannot. For them, even a 5% duty can be the difference between entering a market or staying out of it. Eliminating tariffs reduces upfront risks, improves cash flows and allows smaller Canadian firms to plan multi-year export strategies and hire new staff to turn plans into production. This is what trade diversification looks like in practice. This is why it matters now more than ever.
The new government has committed to doubling Canada's non-U.S. exports over the next decade. Bill is a concrete step toward that goal. Trade is not a simple concept. Trade is people. It is skilled tradespeople seeing consistent demand. It is plant workers and technicians benefiting from expanded production. It is port workers, inspectors and transportation professionals handling growing volumes of Canadian goods. These are resilient, productive jobs that anchor communities.
Canada's primary producers are a vital part of this story, and the message we have received is clear: They support this agreement. Cereals Canada has called the conclusion of this agreement a significant milestone and praised the government's commitment to expanding market access and creating new opportunities for Canadian exporters. That support resonates in provinces like Saskatchewan, Alberta and Manitoba, where grain production supports farm families, transport workers, exporters and related industries. It also strengthens supply chains that reach Ontario, Quebec and Atlantic Canada, connecting communities through stable jobs and increased economic activity.
By securing markets in Indonesia, Canadian farmers gain predictability, allowing them to plan for multi-year harvests, invest in sustainable farming practices and contribute to food security both domestically and globally. It also reinforces Canada's reputation as a dependable supplier of high-quality, ethically produced agriculture products. The Wheat Growers Association has described this agreement as a win for western Canadian farmers, noting Indonesia's growing demand for high-quality grain and the importance of market diversification in protecting livelihoods and strengthening resilience.
These lessons extend far beyond agriculture. They illustrate how strategic trade agreements benefit the broader economy, from manufacturing to services and from urban to rural Canada. When farmers thrive, communities thrive. When exporters grow, supply chains grow. When trade expands, opportunity expands.
In the protein and manufacturing sectors, the Canadian Meat Council and the Canadian Pork Council have described this agreement as a landmark opportunity to expand Canada's presence in the Indo-Pacific. It is clear that when we act decisively, the benefits ripple across sectors, regions and communities, and it positions Canadian processors and manufacturers to invest confidently, knowing that the rules of trade are clear, predictable and fair.
I want to speak directly to this chamber. I believe profoundly in this agreement. I believe in the leadership of the in advancing Canada's role on the global stage. I believe in this government's conviction that Canada must engage, diversify and lead to secure long-term prosperity, and I believe in Canadians: the entrepreneurs, the farmers, the workers and innovators who turn opportunity into results.
However, colleagues across the aisle do not have to take my word for it. The value of this agreement is being affirmed by the Canadians who would put it to work every single day. The exporters, producers, processors, manufacturers, small businesses and workers are ready, prepared and asking Parliament to act. Choosing not to act is a decision. Delaying is a decision. Hesitation is a decision, and in a fast-moving global economy, those decisions carry consequences. Other countries are moving quickly to secure access in fast-growing markets, and Canada must move too.
Bill would ensure that Canadian workers can compete on a level playing field, it would ensure Canadian businesses are positioned for long-term success, and it would ensure that Canada remains a reliable, rules-based partner. This agreement is not just a document; it is a bridge connecting Canadian ambition with global demand, and we are not stopping with Indonesia.
We are deepening engagement across the Indo-Pacific. We are building new partnerships. We are opening new markets. We are securing Canada's place in the fastest-growing region of the global economy, because leadership means acting, because prosperity means building and because Canada's future will not be shaped by standing still; it will be shaped by stepping forward. Bill is a statement of confidence in Canada, confidence in our workers, confidence in our businesses and confidence in our future.
We are all in for Canada.
:
Madam Speaker, I want to begin, of course, by acknowledging we are on the traditional territory of the Algonquin Anishinabe people.
I did have a question for the that I was unable to ask, but perhaps I can work it into my speech.
I am sure many of the people watching today's debate in the Canadian House of Commons will be from Indonesia, interested in what Canadian parliamentarians think about their country and this trade agreement. Therefore, I want to start by expressing deep condolences to the people of Indonesia who, just last weekend, experienced an extreme weather event, likely due to climate change. The extreme rainfall event caused landslides. At this point, those landslides in West Java have killed at least 20 people, and there are dozens still missing. We are aware of the difficult time being faced right now by local governments and communities, including naval officials who are still stuck due to the landslides. It is a horrific event.
That brings me to the question I was going to ask the . I think I will start by prefacing my speech with this question. We have before us a bill that would appear to be an opportunity for the House of Commons to either agree and ratify a treaty or not. As a matter of law, this treaty likely was considered by both Canada and Indonesia to have come into force when the and the leadership in Indonesia signed the agreement back in September 2025. I think this is somewhat pro forma, which is troubling.
In Canada, which a lot of Canadians would not know, each government, each executive, the and cabinet, has a choice. They can choose to bring a treaty to Parliament for a debate and a vote, or it can be passed solely in cabinet by Governor in Council. In this case, the comprehensive economic partnership agreement between Canada and Indonesia was signed before it ever came to Parliament. We are now debating and considering an act to implement the comprehensive economic partnership agreement. It is kind of a hybrid here.
In the past, we have had many treaties where a prime minister has decided it is so important that we are going to debate it on the floor of the House of Commons and let Parliament vote on it. Let me contrast two with which I am very familiar. One was the time former prime minister Jean Chrétien felt that it was really important for Canada's Parliament, as a whole, to debate and vote on the Kyoto protocol back in 1997, the first of many legally binding climate negotiations that were concluded. Another example was when former prime minister Stephen Harper decided the Canadian Parliament did not need to debate or vote on a very dangerous agreement, which, in the end, was concluded by only a vote in cabinet, by an order in council.
That relates to what I am going to continue to speak about here today. It was the Canada-China Foreign Investment Protection and Promotion Agreement, or FIPA, which never was debated in Parliament but was only carried through the Governor in Council. It allows for, to this day, secret hearings if the People's Republic of China objects to any change in a regulation or rule by a local government, provincial government or whatever. We can then be sued for whatever amount by the politburo of the People's Republic of China because so many of their enterprises are state-owned. In any case, the FIPA with China never came before Parliament.
Each federal government has the option of concluding any treaty with a foreign power either through cabinet alone or through bringing it to Parliament for a vote. In this case, I am afraid that this is probably already a legally binding treaty with Indonesia before we discussed it here, and this is the implementation act to bring it forward.
It is very much the case that the Green Party agrees with the goals of the current government, that we need trade diversification. However, we would prefer far more effort to ensure that those agreements we make are with strong democracies that share our values. I can now quote her in this place because she is no longer a member, but former deputy prime minister Chrystia Freeland put it this way: “Democracies should depend on democracies, not dictators.” Even in times when we need more trade agreements, more trade diversification and less reliance on the United States, no question, we should look at, excuse the expression, whom we are climbing into bed with on these issues.
I am concerned about the fact that while it is true Indonesia is a democracy, it may be a democracy in name only. According to the Economist Intelligence Unit, it has, for years, marked Indonesia down as a flawed democracy. There are many issues, such as were already raised by my friend and colleague from the Bloc Québécois, around human rights within Indonesia and with the fraying of that relationship within a real democracy where the people really decide what the policies are and really control their government. There are many democracies around the world where people may think that may not be the case. In any case, Indonesia still, on paper, is a democracy.
However, when we look at this agreement, and I do want to focus on one specific area and one specific company, we have had a lot of trade with Indonesia already. I question whether it has been to our benefit and whether we should not have reviewed some of these trade arrangements more closely. I speak, of course, of the fact, which is astonishing for most Canadians, that the largest of our pulp and paper enterprises across Canada is a company that is basically controlled in Indonesia. It is called Paper Excellence. It started by buying Northern Pulp in Pictou County, Nova Scotia, and over the years, it then absorbed Domtar, Resolute and Catalyst. It controls a vast amount of Canadian forest, and it runs pulp and paper mills across Canada.
By this agreement, we would now be giving the same thing I mentioned earlier in the foreign investment promotion and protection agreement, which would mean that the Government of Indonesia can complain and go to arbitration if we change our rules or laws and it affects their investments. This is a very strange situation.
The Standing Committee on Natural Resources subpoenaed the leadership of Paper Excellence to come before the committee to explain what it was doing with our pulp and paper industry and with our vast area of forest that it now controls. The entire corporation is controlled by one Indonesian billionaire, Mr. Wijaya, who refused to come before the committee and sent some representatives. The company, on paper, is registered in Vancouver, but again, there is no transparency. It is not listed on any stock exchange. It is the sole property of one individual billionaire.
By this agreement, which I think is already signed and in law, we have now given investment protection and the ability to go to an investor-state dispute resolution to complain if a Canadian province decides that it was a mistake to let an Indonesian multinational buy up Domtar, Resolute, Catalyst or Northern Pulp and now wishes to protect our forests, protect our forest workers and put in place more protections. I did hear the 's answer that this agreement does maintain that we are going to seek sustainable development, promote the environment and promote fair labour standards, but we are dealing with a country where those things are rather unknown. It is not clear to me how, in passing Bill , we will get to where we want to go.
In terms of the promised new day and how much this is going to deliver for Canadians, the estimate is that this will increase Canada's GDP by 2040 by 0.012%. Again, we do want to diversify trade, but we do want to be careful.
I look forward to the bill going to committee at second reading, where we can pursue some of these questions.
:
Madam Speaker, it is a pleasure to rise in the House of Commons. I consider it a distinct privilege every time I am given the opportunity to use my voice in this place on my constituents' behalf and on behalf of the country and Canadians. It is also a pleasure to rise on a bill on which I think there is general consensus that, speaking for myself, we should send this bill to committee for further scrutiny. I think we have heard some reasonable concerns so far about this bill. It is important to understand how we arrived here.
I understand there have been many conversations between the House leaders looking for areas of collaboration. If one listens to question period every day, one would hear the government talk only about obstruction, but I think this is an example where at least the official opposition party has offered its support to work with the government, to collaborate on moving and expanding our trading relationships for the betterment of Canadian employees, workers and businesses and our citizens around the world.
It is on this expanding trading relationship that I think there is some agreement to promote rules-based trade, although I would say I had to disagree with the when he gave his speech and said the rules-based trading system is dead. I do not think it is dead; on the contrary, I think it is worth fighting for. In fact, members do not have to take my word for it. The esteemed Christine Lagarde, who is the President of the European Central Bank, was the former finance minister in France and also headed the International Monetary Fund, was asked whether she agreed with the Canadian Prime Minister, and her comment was that she was on a different page than the Canadian Prime Minister. I think the rules-based trading system is worth fighting for.
Canada and Indonesia have had a long-standing relationship dating back at least to 1952, but even before that as it was gaining its independence.
As I mentioned before, while Conservatives generally support this bill moving to committee, we do think there are some issues that require further scrutiny, including those around procurement opportunities. I read the bill. At first glance, from feedback, there were a number of stakeholders who welcomed the bill. There were also a few individuals who highlighted the fact that with respect to procurement, it would appear that Indonesian firms have the access and ability to bid on Canadian government procurement projects; however, that same access is not afforded, by right, to Canadian firms to bid on projects in Indonesia. They would be welcome to indicate their willingness to bid, but they would have to be invited by the government to do so. I think that is an area of the bill that we would seek more information on and discuss in committee, to further scrutinize it to make sure Canadian firms are receiving equal preference.
I as an individual, but Conservatives also, have generally always stood for free-but-fair trade, and that includes reciprocity. We need to make sure that if we are giving market access to one group of producers in one country, we are afforded that same access when Canadian firms are abroad.
I am happy to report that the trade committee is working relatively well at the moment. We have a government bill that we have agreed to move forward in, again, the spirit of collaboration with the government that would allow the U.K. to ascend to the CPTPP, which I think is yet another proof point on how Parliament can work together.
I will remind everyone that we just had an election. About 41% of Canadians voted for folks on this side of the House, a few more per cent of Canadians voted for people just behind me, and just over 41% or 42% voted for people on the government side. I think that was a signal from Canadians that they expect this Parliament to find ways to work together, and I believe we are doing that.
Prime Minister Harper had embarked on an aggressive trade deal expansion, which really set up a number of agreements, including the one with the E.U. and member nations, on which this current government has built.
I do not think we always agree on many things in this chamber. I said to the yesterday at committee that I do not agree with a lot of what the Liberal government does: the spending, the overtaxation, doubling of the deficits. The government prefers to spend valuable police resources confiscating firearms from law-abiding citizens instead of actually going after criminals, gangs and smugglers of illegal firearms. I am skeptical of the government's decision to get a little closer to the Politburo in Beijing. However, I will not let all of those issues on which I disagree with the government blind me from acknowledging that we need to work together to expand our trading relationships.
On this issue, members can rest assured that because this is on behalf of the benefit of Canadians, because we believe that expanding our trading relationships and diversifying trade is an important step to take for our producers, our employees and our businesses, it is an area on which there is consensus. I offer my support; that is one word to use. I offer my hand in collaboration with the government to ensure we can continue to deliver to Canadians expanded access across the globe. It is an important thing to expand our trade, but we will hold the government accountable when it is making these decisions.
As I mentioned, we have some questions about Bill . We will not just blindly agree and support the government on every trade bill it brings forward. We believe it needs to go through the proper process, but we are here to work with the government.
I have to mention that I do have concerns with the government travelling to Qatar and to China. I think that will have some long-standing difficult situations that we will face ourselves. I think it is an acknowledgement and a confirmation to the CCP in Beijing that its tactics have worked when we have capitulated because of the way it squeezed us on tariffs. I would hope the government is taking some lessons from the way Mexico has been operating.
The member for recognized that this trade deal will only increase the GDP by, if I am correct, 0.0012%. That is not going to replace the big “elephant in the room” deal with the United States. We had a relationship with Americans and the United States before the current president. We will have a relationship with Americans and the United States after the current president. It is important that we sort out that relationship in a way that benefits everyone in North America, including Americans, Mexicans and Canadians, for the benefit of us all, not just for our economy but for peace and security and for certainty.
That is the primary job of the government. It was elected on a promise to manage that relationship. We are still waiting. Until then, we are happy to support the government as it tries to expand trading relationships across the globe.
:
Mr. Speaker, Canadians elected a minority government, and Conservatives fully respect the democratic will of the electorate. That is why, as His Majesty's loyal official opposition, we will carry out our constitutional responsibilities within the House.
[English]
On some matters, we will oppose the government as the official opposition, which is a constitutionally mandated role in a Westminster parliamentary democracy. On other matters, we will support the government, seeing as Canadians did not give the government a majority, which requires the opposition to play a role in moving certain matters forward in the House.
Conservatives respect the democratic will of Canadians as expressed in the last election. The government needs to do the same. That means the government needs to understand that, on certain bills in front of the House, we will oppose the government, and on other bills in front of the House, we will support the government.
It is not reasonable for the government to expect the opposition in the House to support it in all and any bills that it brings before the House. That would undermine the constitutional role the official opposition has in holding the appointed executive to account.
[Translation]
The Conservatives support Bill , just as we supported Bill , an act to implement the protocol on the accession of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and just as we have supported many other bills over the past year in this Parliament.
[English]
We have supported the following six government bills: Bill , an act to amend the Indian Act; Bill , an act to amend the Weights and Measures Act and other acts; Bill , an act respecting certain affordability measures for Canadians; Bill , an act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act; and Bill , the strengthening Canada's immigration system and borders act.
Recently, we agreed that we would expedite the study and passage of Bill , the bail and sentencing reform act. We have been clear that good ideas in the interest of Canadians will win our support. Including the bill in front of us today, we have supported eight government bills in this Parliament just in the last year.
[Translation]
The Conservatives support Bill , an act to implement the comprehensive economic partnership agreement between Canada and Indonesia, because we support diversifying our trade with other partners, especially in the Indo-Pacific region.
[English]
This agreement would eventually reduce tariffs on 97% of Canadian exports destined for Indonesia. However, the government procurement in this trade agreement requires further scrutiny. Indonesian firms could bid on Canadian contracts, but Canadian firms could only bid on Indonesian government procurement if it is expressly opened. Indonesian government procurement is largely closed.
Other trading partners of Canada secured better agreements with Indonesia on government procurement rules, including the United Arab Emirates and the European Union. The European Union also negotiated a commitment to begin market access negotiations. Canada has no specific timeline to begin negotiating market access. For Canada, market access is left to further negotiations and no published coverage schedules.
However, Conservatives will support passing Bill to committee, but we would scrutinize the effectiveness of this agreement and point to ways that it could be better utilized.
[Translation]
I would like to conclude my remarks on our support for this bill by adding the following: Just signing trade agreements is not enough to diversify our trade away from our main trading partner.
[English]
To capitalize on these trade agreements and these investment deals, the Government of Canada needs to do two other things. These are two things that the government has not been doing and that, if left undone, would prevent us from significantly diversifying trade away from our largest trading partner.
The first thing we need to do is make Canadian goods and services more competitive to buyers in Asia and in Europe. Over the last decade, the Canadian economy has become uncompetitive, and many of our goods and services are no longer desired by buyers in Asia and in Europe. The trade data bears this out.
In the year 2000, Canadian exports, expressed as a per cent of our gross domestic product, were 42%. In 2024, the last year for which we have data, our global exports, expressed as a per cent of our GDP, had dropped to 33%, which is a 9% drop. Clearly, our products and services are not as desirable to foreign buyers as they once were. That is because the Canadian economy has become uncompetitive and over-regulated.
Our tax system has become a completely Byzantine mess, and this includes both the personal and corporate income tax system. We need to overhaul competition policy to make our economy more competitive. We need to eliminate regulation and the regulatory overburden that is strangling our competitiveness. We need to overhaul our personal and corporate income tax system in the same ambitious way that we once did in 1971 and in 1986. The government has introduced none of these types of reforms to get our economy moving and to make our goods and services more desirable for buyers in Asia and Europe.
The second thing we need to do is increase the physical capability of exporting more goods and commodities to global markets via the Atlantic and Pacific oceans. Currently, we do not have the capacity to significantly increase exports of commodities or goods via our country's largest ports. The port of Vancouver, which is our largest port and a federal entity, is woefully inefficient. According to a Standard & Poor's global study that was commissioned in 2024 by the World Bank, the port of Vancouver ranked 389 out of 403 global ports for efficiency. It is critical to have sufficient trade corridor infrastructure to significantly increase the export of commodities and goods via our ports to Asia or Europe.
Here is another example of a lack of trade corridor infrastructure: Canada is the largest high-income nation in the world without a comprehensive national highway system, and by highway, I mean an autobahn, an expressway or an autoroute, a system that would run from coast to coast, be entirely grade-separated, have no cross-traffic and have four or more lanes, two or more in each direction, allowing travel that is unimpeded by traffic signals, driveways, stop signs or intersections.
I encourage anyone listening to go to Google Maps to map out the fastest way from Halifax to Vancouver or from Toronto to Vancouver. Every single route will route us through the United States of America, through the U.S. interstate system, which is faster and more efficient than any highway system we have in this country. That is just one example of the lack of trade corridor infrastructure that prevents us from significantly diversifying trade beyond that with our largest trading partner.
Again, the government has introduced no real plans to significantly expand trade corridor infrastructure or improve its efficiency.
[Translation]
As I said, we support Bill , just as we have supported seven other government bills in the House. However, simply signing trade agreements will not do much to diversify our trade unless the government does the necessary work here in this country to make our economy more competitive and ensure that the essential infrastructure is in place to export our goods and resources to global markets.
:
Mr. Speaker, I want to say hello to all my colleagues. Please excuse my hoarse voice. I seem to have caught a cold, probably from partying too hard over the holidays. My energy levels are still not back to normal, and neither is my voice. In any case, I am happy to be here. It lifts my spirits. I want to wish everyone a happy new year, although it is getting rather late to say that.
Today, we are talking about a bill to implement a new economic and trade agreement with Indonesia. I will start with the good before moving on to the bad.
Indonesia is a very large market. This bill provides a good opportunity for Quebec companies in a business environment that would be more stable and predictable, as is generally guaranteed by most agreements. It would support long-term investment and export development. The expansion of trade with Southeast Asia is also a great opportunity for green technologies, but not at any cost. I will talk about that in a moment. It is a good market. Of course, it will never replace the United States, which is something we will continue to point out. There is no easy fix.
It reminds me a little of that Indo-Pacific strategy that was announced with great fanfare a few years ago. I attended the briefing at the time, and later I asked a question. I said that Pierre Eliott Trudeau had announced a strategy, that Jean Chrétien had announced a strategy and that Stephen Harper had announced a strategy. Now it was Justin Trudeau's turn. I asked how this time would be any different. The answer I got was that there really would be a strategy this time and that we needed to have faith. A few months later, however, we found out that the Indo-Pacific strategy would be going ahead without India, because relations had broken down and negotiations had stalled. It was an Indo-Pacific strategy without India. My colleagues may make of that what they will.
However, we cannot say no to a good thing. We cannot be against the idea of an agreement with Indonesia in principle. I say “in principle” because we are very uncertain about supporting this all the way through. I will talk about our reservations.
I am going to start by talking about the method. It is nothing new: Parliament does not debate the actual agreement; it debates an implementation bill. Parliament passes laws according to a well-established process that involves conducting a detailed study in committee and holding public hearings. However, Parliament is largely excluded from the treaty-making process. Members will recall that the Bloc Québécois introduced Bill , which was rejected about an hour or two before this debate right now. It is almost as though the parliamentarians here are unwilling to do their job as parliamentarians, and that is absolutely shameful. It amounts to saying that it is a lot easier to hand off all responsibility to the executive, let it do what it wants, engage in negotiations and then ratify the agreement. Ultimately, we will end up debating and studying it for the first time during the negotiation process, which is extremely secretive. In the end, debating and amending a bill allows little opportunity to change much of what is in the agreement.
We are mere elected representatives of the people. Let us not forget that Canada is a monarchy. We are mere elected representatives of the people sent here to argue positions and raise points. There are things we would like agreements to include, things we would prefer they not include, and things we would like to advance on, but our wishes neither count nor matter, so they get pushed aside. I thank all my Bloc Québécois colleagues for voting in favour of this bill. I also want to thank the two Conservatives who voted for our bill earlier.
What is even more worrisome now is the human rights situation in Indonesia, particularly with respect to goods being produced for the Canadian market. The agreement will primarily benefit mining companies and the fossil fuel industry, and it puts respect for human rights and sustainable industrial development on the back burner.
I also have to mention the notorious investor-state dispute settlement mechanisms, which I talk about every time this comes up, and I will come back to this point a little later. This agreement includes such a mechanism, and it serves as a bit of right to profit for multinationals. It gives them the right to sue the governments where they invest if they feel that their profits have been adversely affected. It allows them to be treated as true sovereign powers and to take states and governments to court. It allows a multinational corporation to effectively override the democratic will of elected officials who may have adopted a policy that, according to that multinational, would undermine its right to profit. There are plenty of examples, each more scandalous than the last. When this mechanism was removed from CUSMA, we thought that Canada had finally entered the 21st century, that it had finally listened to common sense. However, as we saw with the bill that was on the agenda earlier, parliamentarians here like to shirk their responsibilities.
As a result, they are still quite capable of living with the fact that multinationals are overturning their decisions, even if it means that it is becoming increasingly difficult for governments to legislate on issues relating to social justice, the environment, labour conditions and public health.
According to a report from the United Nations Conference on Trade and Development dating from 2013, which does not take into account disputes initiated since then, 42% of cases were decided in favour of the state while 31% were in favour of the business. The remaining cases were settled. That means that, in 58% of cases, the claimants managed to completely or partially force the political leadership to backtrack.
Moreover, this quantitative data ignores an aspect that cannot be calculated: the pressure this puts on people responsible for establishing policy proactively. They might hesitate to pursue certain things for fear of being sued. There is clearly a deterrent effect in these mechanisms. Moreover, these disputes are very lucrative for large international law firms.
We have always opposed that, and I will continue to oppose it at committee. I do that all the time. Even when I vote in favour of certain trade agreements, I always vote against provisions that allow for investor-state dispute settlement under local law. After the committee reviews the bill being considered in the House, then I will decide whether I am ultimately for or against it. However, in either case, I will definitely vote against investor-state dispute settlement. I can give my word on that.
After all, Indonesia is a relatively poor country. Foreign investors should not be able to use the free trade agreement to dictate their will under threat of legal action. This would undermine the sovereignty of Indonesians, who already have so few rights. We will continue to oppose having this mechanism included in the agreement. If it were to be removed, we would undoubtedly be more favourable to the bill when it reaches the final stage.
Let us also talk about rights. During consultations on the agreement, working groups pointed out the prevalence of forced labour and human rights violations in Indonesian supply chains. They encouraged the government to include strong protections for workers, indigenous communities and the environment. Unfortunately, there is nothing about that in the agreement. There are no guarantees and no binding protections. The agreement even reverses the progress made on labour protections obtained by workers in some recent agreements, including the agreement with Ukraine. The only amendment that was retained in the agreement with Ukraine was mine. We were told that this needed to be monitored more closely, but that overall it was a real step forward.
However, after the signed agreements with Qatar and China, it became clear that human rights are not one of his top priorities. That is not the case for us. Human rights are important to us and we are committed to standing up for these values. The preamble of the agreement is totally ridiculous because it basically says that these are principles, period.
Indonesia is the largest manufacturing economy in Southeast Asia. The manufacturing economy accounts for more than 20% of its GDP. The manufacturing industry has really been a major part of Indonesia's modern economy. Unfortunately, Indonesia has gotten richer at the expense of human rights. That is putting it mildly. Although the Indonesian government requires all industries to comply with child labour laws, it has been reported that approximately 1.01 million children were involved in child labour in 2023. This is important and it must be taken into account. That will be coming our way before long.
There are many layers and subcontractors in the supply chains, which makes traceability challenging. This often makes it difficult to know the conditions under which certain products, like clothing, are manufactured.
There is no longer any doubt that the people who work in clothes manufacturing in Southeast Asia, particularly in Indonesia—whether they are involved in cutting, sewing or bonding—often work in dangerous conditions for poverty wages, without any social safety net and without a formal contract. These workers are often exposed to harmful chemicals and unsafe work environments.
That danger is also evident in the leather tanning industry. Workers, often migrants, handle hides and hazardous chemicals and are exposed to significant health risks, particularly from the chromium compounds used in tanning.
The rights of migrant workers, especially women, remain vulnerable in Indonesia. The United Nations Committee on the Protection of the Rights of All Migrant Workers and Members of their Families has indicated that 70% of migrant workers in Indonesia are women and it has emphasized the need for measures to protect these women from harassment and exploitation. The committee learned that these women are frequently victims of abuse and that those employed in the fishing industry, often in irregular situations, are particularly vulnerable to human trafficking.
If Canada is looking to increase imports of clothing, fishery products and leather from Indonesia, it is imperative that we strengthen worker protections and ensure that our fundamental values are upheld, particularly with regard to human rights, so that our trade is not conducted at the expense of ethics.
That is why I introduced Bill , which essentially copies the American model that works quite well, whereas Canada has almost never seized anything in its entire history. The burden of proof is reversed, and when entities, regions or companies are presumed to be using forced labour, the onus is on the importer to prove otherwise. It works. It has proven its worth. Canada's model, which relies entirely on the goodwill of customs officers, does not work.
Twice, in the March 2023 budget and in the March 2024 budget, we read verbatim that such legislation was going to be introduced by the end of the year, whether it was 2023 or 2024. As far as I know, it is now 2026 and we have not seen anything yet. I should mention that it was not spoken of again in budget 2025, although I imagine that has nothing to do with the 's kowtowing to China's dictatorship. There is probably no connection; it must be me who is crazy. In any case, we are going to have to get moving on that. In due course, I hope the House will pass this bill.
I also want to talk about palm oil. Palm oil is already being imported into Canada. It is the most widely consumed vegetable oil in the world. Indonesia is a major palm oil producer. Palm oil imports into Canada are increasing at a startling rate. However, the production process is associated with a real environmental and human cost. Huge swaths of tropical forests are being destroyed, often by burning, to make way for plantations, resulting in a massive loss of biodiversity and threatening iconic species such as orangutans. This deforestation also contributes to air pollution and climate change. In terms of the social impact, the expansion of plantations, often carried out under the direction of warlords, frequently occurs at the expense of local and indigenous communities, in a context of abusive working conditions, exploitation and sometimes forced labour.
This agreement severely exacerbates the situation by stimulating the production and export of palm oil, without imposing any serious requirements, even though this would have been the perfect opportunity to do so. Some folks might wonder what I am talking about and whether this problem is really serious. The European Union created a panel on EU measures concerning palm oil and biofuels from Indonesia to address issues surrounding the production and import of these products into Canada. I think that shows the situation is quite serious.
It is also important to discuss any additional harms we might be causing there. Canada produces a large amount of plastic waste every year, but only a small portion of it is actually recycled here. A significant portion of what we think of as being recycled ends up in foreign countries for processing, particularly in the United States or Southeast Asia, including Indonesia, where recycling infrastructure cannot handle these kinds of volumes. Some of this waste, which is often hard to recycle and mixed with garbage, ends up in landfills or is burned in open air pits, polluting the local environment and exposing communities to health and environmental risks. Activists and experts argue that continuing to export plastic waste to countries that are not equipped to process it is not a sustainable solution. In addition, this goes against Canada's so-called targets for reducing plastic pollution and violates the principles of international law regarding waste management.
I also want to talk about mining and conflicts between mining investors and governments. Canada, incidentally, is a haven for mining companies. Canada is a flag of convenience, because these mining companies are often not actually Canadian at all. They are simply registered here. All they need is a post office box to be able to benefit from the advantages of the TSX. That is why most of the world's mining companies are registered here, because it gives them advantages.
Conflicts between mining investors and governments often begin as conflicts between investors and local communities, which are initially displaced from their lands or suffer environmental degradation, such as contaminated drinking water. I have seen this happen in Colombia and Chile. I have spoken with people who have been affected by air pollution, water pollution, the use of private security firms that have fired point-blank at locals. There are a number of documented cases today. We also know that in many of these cases, investigations revealed that Canadian embassies had an official line of pro-mining diplomacy, always supporting these companies. It is all well and good to go and talk about human rights in Davos in front of a bunch of people wearing shiny shoes and $2,000 suits, but we should really be taking concrete action on this, too.
These disputes are often caused or exacerbated by a lack of adequate consultation on the project. In Indonesia, the community on the small island of Sangihe is a case in point. This community has long been fighting to prevent the Canadian company Baru Gold from starting industrial gold mining operations. If the community succeeds in stopping the project, but the agreement is ratified in Canada and Indonesia, the company would have the option of suing Indonesia for lost profits. On what grounds? On the grounds of the investor-state dispute settlement I mentioned earlier. Is that not a wonderful thing? Well, that is what Canada is defending.
The current reconfiguration of trade partnerships and supply chains calls for severe and strict requirements for ethical consistency: no economic ties should be maintained with suppliers or states involved in human exploitation or trafficking, particularly to the detriment of the Uyghur and Tibetan peoples, in the case of China. Of course, we will never cut off economic ties with the regions that are affected, but we must nevertheless be firm with the states that are in charge.
Lastly, we also have to bear in mind that Quebec and the provinces are responsible for implementing the provisions of treaties within their areas of jurisdiction. The Bloc Québécois demands respect for this sovereignty. Quebec has its own Indo-Pacific strategy—which pre-dates Canada's, if I am not mistaken—that aims to support Quebec exporters and attract foreign direct investors from that part of the world.
Yes, we are in favour of trade. The Bloc Québécois is the natural successor and supporter of the independence movement that was among the first to advocate for free trade with the United States in the 1980s. Free trade gave us a chance to breathe, to escape the confines of the Canadian market. We are still in favour of it, provided, of course, that the products we get are untainted by human rights abuses.
:
Mr. Speaker, I will be sharing my time.
Today, the House is debating a trade deal between Canada and Indonesia. It is a deal that Conservatives support advancing to the next stage of consideration.
In the context of this agreement, I would like to offer a few observations about the state of the world that have bearing on how and with whom we make international agreements. Over the course of my time following international affairs, we witnessed a dramatic shift in tone and expectations within certain parts of the democratic world. That shift has been from the unrealistic Liberal optimism of the past to the exaggerated Liberal pessimism of the present.
In an earlier era, Liberal optimism was evident in the attitudes and decisions of elite figures who proclaimed an inevitable march of history towards democracy, freedom, justice and an international rules-based order. Liberals thought it would happen, and they thought it would happen relatively easily. This optimism held, for instance, that engagement and increased trade with China and other authoritarian countries would gradually, inevitably transform their governments into progressive democracies. It is easy to see why Liberal optimism is no longer in vogue. It is no longer popular, because it clearly failed.
Authoritarian regimes that were once hiding their strengths and biding their time are now confidently asserting the supposed superiority of their political model and even winning converts in the free world. In some quarters, the transformation has been from this naive optimism to a new Liberal pessimism, vividly on display in the 's recent remarks at Davos. No longer is the triumph of freedom, democracy, justice and an international rules-based order presented as history's inevitable endpoint. Instead, the idea of a free, open and liberal international order is dismissed as a mirage, as an allusion akin to the lies once propagated by communist apparatchiks.
The argument of the was this false equivalency that both the authoritarian system and the liberal rules-based system are based on lies. The Prime Minister is not merely arguing that a rules-based order is difficult to achieve, under strain or not guaranteed. Rather, he is arguing that the very idea of such an order is fundamentally necessarily an illusion.
I do want to point out that both of these dispositions, yesterday's Liberal optimism and today's Liberal pessimism, have ironically been used to justify the same policy agenda. The Liberal Party of Canada, at least since Pierre Trudeau, has always wanted to pivot away from a foreign policy of engagement primarily with democracies towards a foreign policy that seeks a kind of strategic balance between the United States and Communist China. The Liberals have always been interested in the idea of ever-deepening engagement with authoritarian powers, especially the CCP, though they have justified it in radically different ways.
In the past, Liberal optimism was used to justify engagement with authoritarian powers on the grounds that such engagement would speed us towards the inevitable triumph of democracy. Today, Liberal pessimism justifies the same engagement, but this time on the grounds that such engagement is necessary and pragmatic in a world where international rules were always a mirage anyway.
How curious that leaders with a range of personal ties and economic interests linked to the PRC have always wanted the same policy outcome regardless of the convenient justification. Regardless, today I call on the House to reject both of these flawed dispositions, the extremes of Liberal optimism and of Liberal pessimism. Instead, I propose that we embrace a view of international affairs that makes room for genuine ideals and for firmly grounded pragmatism.
On ideals, the vision of an international order rooted in fixed principles, foremost among them the dignity of the human person and the right of communities to govern their own affairs, is worth defending. It was never realistic to believe that these ideals would emerge into practice easily and through some natural historical process. Ideals are realized and preserved only through struggle. The rule of law did not come to our own system without sacrifice and struggle, and the realization of the ideal of an international rules-based order will not be advanced or preserved without the same. The Liberal optimism of the past did not pay sufficient attention to this reality.
However, while these ideals have never been fully realized, they continue to exist in a more profound sense. The ideals of democracy, freedom, justice and an international rules-based order, founded on a recognition of the created dignity of the human person and the rights of communities of persons to govern their own affairs, express the highest political aspirations of human persons and communities. The dream of a morally grounded, rules-based international order is not a mere sign in the window. While it remains unrealized, it is a concept well worth pursuing. We must not merely accept the world as it is. We must act to create a better world.
My grandmother was a Holocaust survivor, and the promise we made to her generation was the promise of “never again”. For her generation and for the Uyghur children of today, whose genocide remains unrecognized by a Canadian government that wants to make deals with their oppressors, for them and for so many others, we must and we will keep that ideal in mind. Canada must chase its ideals with clear-eyed pragmatism, seeking concrete, meaningful gains rather than symbolic or ephemeral ones, and moving constructively towards those ideals where possible, focusing on what we can actually change.
The very nature of pragmatism is that it implies that there is an objective being pursued. To be pragmatic is to be practical in the process of pursuing some goal. One cannot call oneself pragmatic if one has no goals or ideals at the end of the day, so in this troubled world, we can hold our ideals high while being smart and strategic in their pursuit.
The has also spoken at times about this, calling it “values-based realism”. This is a concept that I could get behind in theory, but it is clearly not informing the concrete actions of the government. In reality, the Liberal Party has consistently pursued closer ties with authoritarian regimes. By contrast, Conservatives will be consistent in defending the vision of a free, democratic world that stands together and collectively defends its shared democratic values.
I noted that in the 's speech in Davos, he spoke only about “great powers” and “middle powers”, but the distinction between democratic powers and revisionist authoritarian powers remains the most central and defining distinction of our time.
The CCP, in addition to interfering in our affairs, continuing to jail our citizens, such as Huseyin Celil, and committing genocide against its own people, is trying to establish strategic control of the flow of resources that will be most critical as technology changes. The goal is for the CCP to be able to use strategic resource domination to direct world affairs. Deals made in the short term that reinforce that long-term strategic domination by our adversaries are neither values-based nor realist.
Obviously, it has become more difficult to speak today of an existing democratic world with a shared agenda and shared purpose. Forces within and without, intentionally or not, are undermining our unity, but even amid real and justified disappointments and frustrations among democracies, there is one central point we must remember: Every nation is more defined by the character of its constitutional order than by the character of its current leaders.
What makes democracies different from dictatorships is not the hope that democratic leaders are more personally virtuous; rather it is the fact that democratic leaders are constrained by a constitutional order. We should not be indifferent to the real risk that leaders in democracies can strain and even break constitutional safeguards, but as long as those safeguards hold, our friendships with democracies will be more well-founded than our relationships with authoritarian powers, where the will of the people at the top is implemented without question.
Rule-of-law nations are more likely to act in legal ways internationally, and might-makes-right nations are guided by that principle in domestic as well as international actions.
Our belief in democracy is not a belief in the inevitable virtuousness of democratic leaders; it is a belief in the virtuousness of democratic constitutions. The distribution of decision-making facilitated by those constitutions creates the possibility of durable friendship between nations that goes beyond individual leaders.
What happens when democracies disappoint us? Naturally, we should engage those nations at all levels to make our case, and we should also seek to diversify our engagements across a broad range of democracies, so that problems in one case do not have an overwhelming impact. We can do all this without embracing some false equivalency between fellow democracies and authoritarian powers. They are fundamentally different, and they remain so.
The trade deal before the House is, thankfully, a deal with a fellow democracy, Indonesia. Indonesia is the world's most populous Muslim-majority nation and the third-most populous democracy in the world. It is a country with a history of strong diversity and pluralism. It contends with a series of challenges, including challenges that threaten its pluralism, but it has strong civil society organizations that work hard to advance and defend its pluralistic identity. It is a good example of a nation where constructive engagement at multiple levels of society can pay economic and strategic dividends, so I look forward to seeing the further study that is going to happen on this trade deal as it goes forward.
Regarding our engagement with southeast Asia, I also want to underline that the fight for democracy requires urgent consideration of the situation in Burma. The people of Burma are successfully fighting for their freedom while facing brutal air strikes by the military junta. Burma now has the world's longest-running, ongoing civil war. The junta must face more severe sanctions, the people must be supported and institutions that represent the Burmese people must be recognized so that democracy can prevail.
In the days ahead, shared purpose and principled engagement among democratic nations could reasonably help deliver democracy in Burma, Venezuela and even Iran, and preserve security and advance the efforts of our democratic ally, Ukraine. This might be cause for a return to some kind of optimism, though an optimism more considered and more constrained by a recognition that struggle and sacrifice are always necessary for the maintenance and advancement of the international common good.
For Canada, the defence and advancement of democracy, freedom, justice and the rule of law must remain our North Star.
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Mr. Speaker, we support the government's modest efforts to open new markets for Canadian exporters. More trade is good. I support free trade.
Unfortunately, despite our efforts to work co-operatively with the government, yesterday the went into the lobby and did an interview with CTV where he spread misinformation about the Conservative Party, saying that we were simply obstructing the Liberals' agenda.
Some hon. members: Oh, oh!
Jacob Mantle: Mr. Speaker, what hubris from the other side, from the member for .
The , even before that interview, made an offer in good faith to the government to work with it on trade-related matters and others, and we are doing that. The Liberals do not have to give us credit for that. Canadians will judge. However, I would ask the government, and especially government leaders, not to confuse Canadians by saying things that just are not true.
I have a few comments about the proposed agreement with Indonesia. Let me just say that it is a rounding error. The PMO released a statement, calling it “game-changing.” The chief economist for Global Affairs Canada actually said, “the projected economic gains are modest.”
While the tried to speak to all of the new tariff-free access we have, the actual state of facts is that 88% of Canada's exports to Indonesia already enjoy duty-free access. Any additional benefits from this agreement would only flow to 9% of Canada's exports. The remaining 3% would continue to face high tariffs. In fact, the estimated tariff savings for Canada's top exports to Indonesia are estimated to be only $14 million. That is less than a rounding error. The total estimated impact to Canada's GDP is $226 million, which is less than one half of 1%.
Do not get me wrong. A new trade agreement is good, but I think Canadians should know that it is not a panacea for the problems we face. Indeed, it is not even clear that this agreement is necessary.
Let me explain. Indonesia has already made its formal application to join the trans-Pacific partnership. It did so in 2024. It is expected to proceed through accession to that agreement in 2026, which is this year, so it is not clear to me that this agreement is even necessary. Furthermore, Canada is already in a trade negotiation with ASEAN, which is the Association of Southeast Asian Nations. If that agreement proceeds, this agreement would, again, become redundant.
I am concerned that the government is spending valuable negotiating resources on an agreement that may not be relevant, when instead it should be focusing on our most important agreement, which is the agreement with the United States. Unfortunately, we have very little information about that because we hear one thing from the Americans, and then we hear another thing from the —