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View Gabriel Ste-Marie Profile
BQ (QC)
View Gabriel Ste-Marie Profile
2020-03-11 17:24 [p.1959]
Madam Speaker, it is a pleasure for me to rise and speak to the bill to ratify CUSMA. We are at third reading; things are moving fast. I am glad this is moving forward, but it is important not to rush. We need to take the time to properly study and debate this bill.
The job of the Bloc Québécois is to represent the interests of Quebeckers. That is why we are here. We agree with free trade agreements in principle. We need free trade. In economics, Quebec could be described as a small, open economy. We have a large territory with a population of about eight million. We need to trade with the rest of the world. Our areas of expertise include aerospace, artificial intelligence and computer science. We are proud of our farmers and our forestry workers in the regions. We are well positioned to trade. In essence, we support free trade agreements.
Obviously, no agreement is ever perfect. NAFTA was not perfect. Did we really need a new agreement like CUSMA to replace NAFTA? Our neighbour to the south demanded it. I would say this agreement is fairly good for the Canadian economy. The government did pretty well for the auto industry, for example.
There is one thing I find disappointing about this agreement and other agreements Canada negotiated recently. Generally speaking, an agreement should benefit the majority of the population, Canada's population in this case, but somebody always gets the short end of the stick. I do wonder—though not for long—why sectors that are important to Quebec's economy are always traded away.
In this agreement, concessions were made with respect to supply management. That happened with the trans-Pacific partnership too. Quebec is nowhere near the Pacific Ocean, but a significant chunk of the economy was traded away. The same thing happened with the Canada-EU free trade agreement. It seems that when Canada negotiates, it is all too ready to give up Quebec when it needs to offer something in exchange. Canada would like to protect Quebec's interests, but when it has to choose, it sacrifices part of Quebec's economy.
We saw the same thing happen when China joined the WTO. That killed our textile sector. It is still around, but as a shadow of its former self. The government did nothing to support that sector. Many women who had worked in the industry all their lives were left out in the cold, empty-handed. In contrast, the United States supported its textile industry and managed to save more jobs.
The same thing happened with our shipyards. The agreement with northern Europe ended up putting shipyards in Montreal and Sorel out of business, with neither compensation nor support. What a shame.
That being said, this agreement may not be perfect, but we think it offers a great opportunity to resolve the softwood lumber dispute. Quebec's forestry system was overhauled from top to bottom to ensure that the U.S. would have absolutely no reason to say it is subsidized and that we could do business on softwood lumber with our neighbour to the south.
Sadly, the new agreement did not resolve that dispute. The U.S. strategy is to drag out the dispute as long as possible and levy taxes to cool down this industry's market. Once it is on the verge of collapse, we will sign on the cheap. So far, this has not been done. I lament the fact that the Prime Minister has never spoken up in defence of Quebec's forestry industry. Forestry companies are paying more for lumber, since the price is determined by a market mechanism, and on top of that, they get taxed at the border as well. We did what was needed to fix that, but the government did not do its job at the federal level. As a result, our industry is paying twice. That is truly deplorable.
Given all that, we decided a year ago that the Bloc would support CUSMA on two conditions. The first was full compensation for supply-managed farmers. I am quite proud that I asked for the unanimous support of the House for full compensation for the last three agreements before ratifying this agreement. Naturally, we had to wait for the former member for Beauce to step out to go to the bathroom, because he was fiercely opposed to supply management. After all, he could have held it in. When we saw the support in the House we decided we could support this new agreement since half our conditions had been met.
The other condition was to have the illegal taxes on steel and aluminum cancelled. There are indeed steel producers in Quebec, as my colleague from Pierre-Boucher—Les Patriotes—Verchères confirmed. However, we were mainly concerned with the aluminum sector because 90% of the aluminum made in Canada comes from Quebec. There has been longstanding trade with our American neighbours when it comes to aluminum. I went to Washington and I wrote newspaper articles there. We held several meetings, we all pitched in and managed to get these taxes lifted. We thought that was it.
On December 10, 2019, after Mexico and the United States had signed the agreement, the House decided to move forward and the Liberals were patting themselves on the back. However, when we saw the final version of the agreement, we saw that a key section of Quebec's economy had once again been sacrificed. There was a disparity between the protection given to steel, which is primarily manufactured in Ontario, compared to aluminum, which is primarily manufactured in Quebec. Once again, Quebec got a last-minute surprise in the House. Quebec's economy did not receive the same protection as Ontario's. That is unacceptable. Since the United States and Mexico had already ratified the agreement, it was very difficult to go back and renegotiate provisions so that Quebec would have the same protections.
There was all kinds of pressure from the government and various stakeholders to sign the agreement, and we were made to believe that it could no longer be amended. My colleagues from Lac-Saint-Jean and Jonquière immediately rallied stakeholders in their regions, elected officials, workers, unions and businesses. They said that they could not allow this to happen and that they would do something. We were being told to sign the agreement because it was good for the rest of the economy. We were being asked to forget that supply management and the aluminum sector were being short-changed, and to think about the sectors that were gaining something.
We nevertheless decided to fight this and to stand up for the aluminum sector. We did not know how to proceed, but we managed to make significant progress with the help of stakeholders and—credit where credit is due—the Deputy Prime Minister.
We now know that the problem caused by last-minute changes to CUSMA was that steel was being given significant protection. The “melted and poured” provision of the agreement required that most of the automotive parts made in the territory of the agreement were to be made with North American steel. This clause did not apply to aluminum.
Many automotive parts are made in Mexico, which imported aluminum from China, the dirtiest aluminum in the world because it is made at coal-fired plants, compared to Quebec's aluminum, which is the greenest and made at the most energy efficient plants in the world. All Mexico had to do was process the Chinese aluminum to make it North American aluminum. Even the Prime Minister acknowledged that the dumping of Chinese aluminum is unacceptable and illegal in international trade.
We obtained a commitment from the government that it would ensure that Mexico applied the same traceability measures as Canada's to track Chinese imports and the portion of components made with Chinese aluminum. If a problem arises, we can then revisit the “melted and poured” clause. I have been led to believe that the Americans agree with us and that very soon they will implement traceability measures to prevent Mexico from using dumped aluminum.
I will stop here, as my time has expired.
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