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Results: 121 - 180 of 270
View Chrystia Freeland Profile
Lib. (ON)
As I already said, I can only talk about my responsibilities.
As minister of foreign affairs, I am responsible for signing—or not—export permits. We have not received an export application. I want to be very clear, and it's important for people to understand that, if we receive an application for an export permit to the Philippines, we will take human rights into account, as they are a very important issue for Canada. The Prime Minister and I have discussed our concerns in that area regarding the Philippines.
View Chrystia Freeland Profile
Lib. (ON)
I was very precise, and intentionally so, in my language. When the media reports appeared, what I said was that I instructed the department and our objective and independent public service—of which, Hélène, you were once a distinguished member—to do a thorough analysis. The report that I received from our public service was that there was no conclusive evidence of the use of Canadian weapons in the commission of human rights violations. That is the advice that I received, as minister.
We believe in a fact-based approach and we believe in relying on the counsel of our public service.
That said, as I said in my remarks, the issue raised some concerns for me. As I have announced today, that is why I think that now is the time for Canada to move to a more rigorous system of control over arms exports going forward.
View Chrystia Freeland Profile
Lib. (ON)
I will have to ask the department representatives for it.
View Chrystia Freeland Profile
Lib. (ON)
I agree with you on many of the issues, but I don't fully share your opinion on what you just discussed. I think the additions and amendments I announced today are a major improvement. I think it is very important for Canada that our government decided to join that treaty and it's a major improvement in terms of our export regulations.
As for our ties with the United States in defence, as you are well aware, that country is one of Canada's important strategic allies. That relationship is important to us, as well as to our American counterparts. We are allied, we share a border and we are both members of the North Atlantic Treaty Organization, or NATO.
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much, Jati, for that question.
As you know, I currently represent a very urban riding, but I was born and raised in a very rural one, so I understand that question, and I think it is a very important one. I'm delighted to have this opportunity to offer some clarity on that issue.
Bill C-47 will make changes to the process for importing and exporting controlled goods to and from Canada. It does not affect domestic gun control regulation and it does not affect the domestic trade in arms. The Firearms Act falls under Public Safety, so admirably and effectively managed by our friend Minister Goodale. This is not the purview of Global Affairs Canada. We have quite enough on our plate without that.
Bill C-47 does not create any form of new registry for gun ownership. Let me be very clear on that. Record-keeping obligations in the Export and Import Permits Act have existed since 1947, and Bill C-47 does not change the system that Canadians already know.
Let me quote from the the Arms Trade Treaty preamble, which acknowledges, and I quote:
the legitimate trade and lawful ownership, and use of certain conventional arms for recreational, cultural, historical, and sporting activities, where such trade, ownership and use are permitted or protected by law
I know that there have been some concerns about that issue, and I am very pleased to have the opportunity to absolutely put those concerns to rest, so thank you for that question.
View Chrystia Freeland Profile
Lib. (ON)
I'm glad to be on the record about that.
View Chrystia Freeland Profile
Lib. (ON)
We were very pleased just a few weeks ago to co-host with the United States the summit on peace and security on the Korean peninsula. This is one of the most pressing issues in the world today. North Korea's nuclear and ballistic missile tests are a breach of international law and pose a dangerous security threat for the entire world. Our summit meeting in Vancouver was an opportunity to show international solidarity and international resolve around that important issue. It was a very important opportunity for us, the assembled foreign ministers, to assert together that a diplomatic solution is both possible and essential in this crisis.
We were very pleased to host the meeting in Vancouver for a number of reasons, not least among them that Canada is the proud home to one of the largest Korean diaspora communities anywhere in the world. As MP for University—Rosedale, Toronto's Koreatown is in my riding. We do have a special interest and responsibility. As our B.C. colleagues know, we are a Pacific nation, so we are particularly engaged in this issue.
One additional important purpose and value of that meeting was to show our support for our partner, South Korea. Minister Kang, South Korea's foreign minister, is an excellent, extremely effective foreign minister. While we in Canada certainly are concerned about what is happening in North Korea, we're concerned because of the threat to the world. Of all the countries in the world, South Korea is most directly exposed. It's very important for us to be showing solidarity and support for South Korea. This was a very good opportunity to do so.
We were very glad to host the meeting. I thank our colleagues from Global Affairs. They did a fantastic job pulling it together at what, by the standards of these sorts of summits, is very short notice. This is going to be an issue in which Canada will continue to be very urgently engaged.
Finally, the timing of the meeting turned out to be very fortuitous, because it happened just as North and South Korea were able to engage in talking about and working together on the Olympics. All the participants in the meeting were able to speak about the value of that engagement as admittedly a very small step, but a positive step.
View Chrystia Freeland Profile
Lib. (ON)
And “Go, Canada, Go”, for our athletes at the Olympics.
View Chrystia Freeland Profile
Lib. (ON)
Thank you for the question, Ms. Vandenbeld.
I'll start by responding to your preamble.
The work we have all been doing together on Bill C-47 is a real example—and Mr. Chair, let me address you also—of how a parliamentary committee can do really important work in improving legislation. As I said, this is not the first time this committee has had a real impact on the work of the government. The Magnitsky report is another example of the way this committee's work has shaped our government policy. That's the way parliamentary democracy is supposed to work, and I would like to thank the committee, and the witnesses who come before the committee, for being so effective. It's made a real difference to what we're doing as a country.
Regarding the theme you and I are flighting for—women, the country and security—I absolutely agree with you. I also want to congratulate you, Ms. Vandenbeld, on the work you are doing, not only in Canada, but also in Kosovo, Vietnam, Bangladesh and the Congo. I think that those life experiences enrich your life both as an MP and as a member of this committee; that's very clear to me. It is very useful for Canada to have a woman with those kinds of experiences.
For our government, including women in everything we do in terms of peace and security issues is a priority. We talked about that at the peacekeeping summit in Vancouver, and it was only the beginning. I am certain that our plan to include more women in peacekeeping operations will make a huge difference for Canada, for the world and for the United Nations.
There will be a lot of work, and it won't be easy. However, this is important work, and we now have a plan. We have the support of many countries around the world. I know that this work is necessary, and I am sure we will manage to do it
View Chrystia Freeland Profile
Lib. (ON)
Let me, in that case, just say we need to do precisely what you suggest in your question.
I very much agree, and I think at this point we have a pretty broad national consensus around the fact—which is now proven by quite a rich historical experience and empirical studies—that when we include women in peace and security processes, when we have women engaged in peacekeeping, and when we have women engaged in policing, we have better outcomes. It's the right thing to do because it's fair and it's in line with our values, but it also leads to better results, and that is why Canada is so proud to be championing this.
View Chrystia Freeland Profile
Lib. (ON)
I worry, John, that you're trying to get me in trouble with François-Philippe, my friend who is my benchmate in the House of Commons. We all have to try to stay in our own lanes.
Let me say on behalf of the government that as the Prime Minister has announced, we were very pleased to be able to reach an agreement in principle on the CPTPP. Canada is absolutely committed to this deal, and we are very pleased particularly with the changes that we were able to achieve in the final months of negotiation.
I think the additional protections on the cultural exemption are very valuable for Canada. I'm very pleased with the changes on the IP front, and we have some additional opportunities for Canadian autos that I think make this a better deal. Our government is enthusiastic about it and committed to it. I'll leave the details to François-Philippe, but you have that assurance from me.
We are very mindful. Speaking on the agriculture file, no one, I think, knows it better than Steve Verheul. We're very mindful of the additional opportunities, particularly in the Japanese market. This is great news, in particular for Canadian ranchers.
I'll let you finish your....
View Chrystia Freeland Profile
Lib. (ON)
We're very mindful of the opportunities for Canadian agriculture, in particular, I would say, for Canadian ranchers. We're also mindful that this first mover advantage is very valuable.
I think we saw that with the Korea trade deal. The fact that Canada fell behind really meant that our ranchers and our pork producers were at a disadvantage, which they're still fighting to make up.
There are some great opportunities there, and I look forward to seeing Canadian farmers and ranchers take advantage of them.
View Chrystia Freeland Profile
Lib. (ON)
You are rightly familiar with the dairy access that is granted under CPTPP, because that, of course, was negotiated by the previous Conservative government. Steve and I and our negotiating team work very closely with our stakeholders, very much including the supply-managed sector, when it comes to the NAFTA negotiation. We are very aware of the concerns and the very legitimate needs of our supply-managed sector.
When it comes to the NAFTA negotiation, as I said in my opening remarks, we are making good progress on what I would describe as the modernization chapters, areas such as cutting red tape, such as electronic forms at the border, such as our small and medium-sized business chapter, which we have closed. We've closed that chapter, the competition chapter, and the anti-corruption chapter, so we're making really good progress there. As you will know from working with business people, those are really important chapters. We actually found in our—
View Chrystia Freeland Profile
Lib. (ON)
Hang on; I'm going to get there, okay? I want to give you the context.
In our consultations ahead of the NAFTA negotiation, at the beginning of the negotiation we found that 40% of Canadian exporters do not use their NAFTA preferences. That's a really big number, and what that tells us is both that the red tape involved in claiming those preferences is very high and probably that the delta between the NAFTA preferences and the WTO rate is smaller than it was when NAFTA was first negotiated. As a result, we're focusing a lot on those modernization areas and we're making meaningful progress there.
That said, there are other areas where significant differences remain. The sector you've alluded to is one of them.
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much, Mark, and I'd really like to thank the whole committee for being here. As Mark said, a Monday in the middle of August is not generally a time when intense committee hearings are held, and the fact that you've brought us together here I take as a sign of your really hard work and the real commitment that every member of this committee has to a great outcome for your constituents and Canadians in these talks. It's a privilege and an honour for me to be here to speak to you, and I want to thank everyone who is here. As Mark has pointed out, it's a pretty full room for a summertime committee meeting, which I also think speaks to how consequential these talks are for Canadians.
I'd like to make some opening remarks, and then I'd be happy to answer your questions.
I'd like to start by acknowledging that we're gathered on the traditional territory of the Algonquin.
Trade is about people. It's about creating the best possible conditions for growth, jobs, and prosperity for individuals and working families. That is why we are modernizing the North American Free Trade Agreement, known as NAFTA. That is why we are seizing this opportunity to make what is already a good agreement, even better. The North American free trade area is now the biggest economic zone in the world. Together, Canada, the United States, and Mexico account for a quarter of the world's GDP, with just 7% of its population.
Since 1994, trade among NAFTA partners has roughly tripled, making this a $19-trillion regional market representing 470 million consumers. Thanks to NAFTA, Canada's economy is 2.5% larger than it would otherwise be. It's as though Canada has been receiving a $20-billion cheque every year since NAFTA was ratified. Thanks to NAFTA, North America's economy is highly integrated, making our companies more competitive in the global marketplace and creating more jobs on our continent.
These historic NAFTA negotiations are to begin in two days. We're keen to get to work, not least because we know that uncertainty is never good for our economy.
At every opportunity we've explained to our southern friends—and many of you have been part of that effort—that Canada is the largest export market for two-thirds of U.S. states, and America's biggest overall customer by far. Indeed, Canada buys more from the U.S. than China, the U.K., and Japan combined. I think quite a few of us have uttered that sentence in recent months.
Our American partners have been listening. Today they understand, as we do, that our relationship, the greatest economic partnership in the world, is balanced and mutually beneficial. To wit, in 2016 Canada and the United States traded $635.1 billion U.S. in goods and services. That exchange was almost perfectly reciprocal. In fact, the United States ran a slight surplus with us of $8.1 billion U.S.—less than 1.5% of our total trade. So it's very, very balanced.
We've also been working energetically with our Mexican friends. I'd like to welcome the Mexican ambassador, my friend Dionisio, whose birthday we celebrated at lunch in Mexico City, together with the foreign minister and Minister of Economy and trade. The relationship has, of course, also included regular conversations between Prime Minister Trudeau and Mexican President Enrique Peña Nieto.
Most importantly, we have been listening to Canadians. As of today, we have sought and received more than 21,000 submissions of Canadians' views and concerns about NAFTA. That includes contributions from 16 academics and think tanks, 158 associations, and 55 businesses and corporations.
The Canadian objectives I will now outline are built on these extensive consultations. This process is just beginning. Our negotiations with our NAFTA partners will be informed by continuous consultations with Canadians.
Here are some of Canada's core objectives.
First, we aim to modernize NAFTA. The agreement is 23 years old. The global, North American, and Canadian economies have been transformed in that time by the technology revolution. NAFTA needs to address this in a way that will ensures that we will continue to have a vibrant and internationally competitive technology sector and that all sectors of our economy can reap the full benefits of the digital revolution.
Second, NAFTA should be made more progressive. We will be informed here by the ideas in CETA, the most progressive trade deal in history, launched by Conservatives and completed, proudly, by our government.
In particular, we can make NAFTA more progressive, first, by bringing strong labour safeguards into the core of the agreement; second, by integrating enhanced environmental provisions to ensure no NAFTA country weakens environmental protection to attract investment, for example, and to fully support efforts to address climate change; third, by adding a new chapter on gender rights, in keeping with our commitment to gender equality; fourth, by adding an indigenous chapter, in line with our commitment to improving our relationship with indigenous peoples; and, finally, by reforming the investor-state dispute settlement process, to ensure that governments have an unassailable right to regulate in the public interest.
One reason that these progressive elements are so important, in particular with respect to the environment and labour, is that they are how we guarantee that the modernized NAFTA will be not only an exemplary free trade deal, but also a fair trade deal. Canadians broadly support free trade. Their enthusiasm wavers, however, when trade agreements put our workers at an unfair disadvantage because of the high standards that we rightly demand. Instead, we must pursue progressive trade agreements that benefit all sides and help workers both at home and abroad enjoy higher wages and better conditions.
Third, this negotiation is a valuable opportunity to make life easier for business people on both sides of the border by cutting red tape and harmonizing regulations. We share the U.S. administration's desire to free our companies from needless bureaucracy, and this negotiation is a welcome chance to act on that goal.
Fourth, Canada will seek a freer market for government procurement, a significant accomplishment in CETA. Local-content provisions for major government contracts are political junk food, superficially appetizing, but unhealthy in the long run. Procurement liberalization can go hand in hand with further regulatory harmonization.
Fifth, we want to make the movement of professionals easier, which is increasingly critical to companies' ability to innovate across blended supply chains. NAFTA's chapter 16, which addresses temporary entry for business people, should be renewed and expanded to reflect the needs of our businesses. Here again, CETA provides a model.
Sixth, Canada will uphold and preserve elements in NAFTA that Canadians deem key to our national interest, including a process to ensure that anti-dumping and countervailing duties are only applied fairly when truly warranted; the exception in the agreement to preserve Canadian culture; and Canada's system of supply management.
In all of these discussions, we will come to the table with goodwill and Canada's characteristic ability and willingness to seek compromise and find win-win solutions. But we are committed to a good deal, not just any deal.
So, I would like to say to Canadians today what I will say to our negotiating partners on Wednesday: Our approach in these talks will be in keeping with our national character, hard-working, fact-based, cordial, and guided by the spirit of goodwill and the pursuit of compromise. We also know that there is no contradiction between being polite and being strong. It is no accident that hockey is our national sport.
These negotiations are a deeply serious and profoundly consequential moment for all of us. Trade deals always matter. Done right, they are a vehicle for helping to create more well-paid jobs for the middle class.
Preparing for these negotiations has already united us as a country. I've been astounded and moved by the extremely high level of support and collaboration I and my team have received from business, from labour, from civil society, from every level of government, and from many of you around this table even though we are not all members of the same political party. Time and again Canadians across the country have told me how proud they are to be Canadian at this moment in time and how committed they are to doing everything they can do to help in these consequential negotiations.
Our bipartisan NAFTA Council is evidence of this, and all Canadians are truly fortunate that in these talks we will be represented by the best trade negotiators in the world. Canada's trade officials are internationally renowned for their prowess, and it is a privilege for me to work with this outstanding team of Canadian public servants. Let me take this moment to acknowledge the great Canadians who are sitting alongside me and with whom the committee will have a chance to speak directly later on: Tim Sargent, our deputy minister for trade; Steve Verheul, our chief negotiator for CETA, who is very familiar to many people in this room; and Martin Moen, who is also working very hard on the softwood file in his spare time.
As I said, these talks are profoundly consequential. There may be some dramatic moments ahead, yet I am deeply optimistic about the final outcome.
That is due to this fundamental reality: the Canada-U.S. economic relationship is the most significant, mutually beneficial, and effective anywhere in the world. We know that, and our American neighbours know it too.
Based on those very strong economic fundamentals, I am essentially optimistic going into these negotiations. Together with this fantastic team of trade negotiators, we're going to work very hard and we're going to get a great deal for Canadians.
Thank you, and I'm happy now to take your questions.
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much, Randy, for that, as usual, highly informed question.
I do want to start by thanking you personally for your work, and also thanking parties on the other side of the House. I really am grateful for the way that, particularly south of the border, we've been working together to advance Canadian national interests. I'm glad that you share with me acknowledging the excellence of our negotiators. It's true also that having Kirsten Hillman in Washington is an advantage. I'm not going to claim any credit for the excellence of our public service, particularly in that space.
I know that Gerry, sitting next to you, interacted a lot with Steve as agriculture minister.
I believe, Gerry, you won't contradict me when I say that we share—well, you might on some things—the highest regard for our trade negotiators. It's really, really important.
I just also want to pause on one thing that you mentioned, Randy, that I agree with very strongly. One of the particular aspects of this negotiation that is different from previous big deals Canada has been involved in is that it is not a greenfield negotiation. In a greenfield trade agreement, of course you want it to work because it has the possibility of bringing great benefit to Canadians. But as I said in my remarks this morning, this is more like renovating a house that you're still living in. That makes it a really delicate operation. A great deal of our economy is based on the existing NAFTA, and that is something that we heard in our consultations leading up to this moment. Canadians are very aware of that, and I want to assure the committee that I and the team are very aware of the delicacy of what we are engaged in.
You asked about the consultations, so let me start by saying that we've been focused on two things. One is working hard with our partners and raising their awareness.
We've been working hard with our Mexican partners, and I thank you, Dionisio, for being here. We've been focused very particularly on outreach to the U.S., which you've been a part of.
I just want to remind people that we've had 185 visits to the U.S. We've reached 300 U.S. decision-makers, 200 members of Congress, 50 governors and lieutenant-governors. On our outreach to Canadians, we've had more than 22,500 submissions from Canadians, as well as contributions from academics, think tanks, 158 associations, and 55 corporations.
As I said in my remarks earlier today, our intention is that the consultation with Canadians will be ongoing throughout the talks. The model here is very much like that for CETA, and that's why I'm turning to Steve. I think the CETA effort has an unprecedented number of stakeholder tables and ongoing consultations, and we're going to continue with that practice. Let me say that in those consultations, labour, environment, indigenous groups, and women will very much be included. I think people are aware of the NAFTA Council that we have set up.
View Chrystia Freeland Profile
Lib. (ON)
Have I run out of time?
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much for the question.
All of us have a stake in trade and a great trading relationship with the United States, but for your New Brunswick constituency, I think the relationship is particularly engaged and important. The relationship between New Brunswick and Maine is absolutely essential. You know that 38,500 Maine jobs depend directly on trade with Canada, and Canada by far is Maine's largest export market.
As we're talking about the New Brunswick-Maine relationship, I do want to offer a particular shout-out to Governor LePage of Maine. I have been in close contact with him. I often speak with him on the phone. He is an influential voice in this administration and understands very, very well the intense and interconnected relationship between Maine and Canada. He understands it in detail. He happens to have a personal background in the forestry sector that really informs his point of view in a very useful way, and I have found him to be a fantastic advocate of the relationship and its importance for Maine. I have also found him, not solely in conversation with him but also in his advocacy in Washington, to be very good at explaining a key element of our economic relationship with the United States, which is that we build things together. That is a key element that can sometimes be missed. People can think of trade as something simply being made in one country and sold to another, but the Canadian and U.S. economies are so closely integrated that we actually make things together. An input is produced in Canada and sold to the United States. More work is done on that input. It goes across the border, and that happens over and over and over again in the course of the creation of so many products. We're familiar with that from the auto industry, from manufacturing, but it's also very true in New Brunswick's trade with the United States.
That is why your question is so important, because something that we have done successfully is to make it possible for us to have that kind of a closely integrated and very effective commercial relationship. A core objective for Canada is not only to maintain that relationship, but as I said in my remarks, to also use this negotiation as a real opportunity to make that kind of work even easier.
One of the things we have heard again and again in our consultations, including when I was in Edmonton on Friday speaking to people from the agricultural sector, is that cutting red tape and making it easier to trade is something that Canadians really really see as a concrete and useful outcome. Indeed, one useful thing that we have heard repeatedly from this U.S. administration, both in direct conversations and publicly, is the real desire to cut red tape to make it easier for businesses to do business.
I think that cutting red tape and making our economic connection even easier is going to be one of our chief goals and is something that Canadians across the country, very much including New Brunswick, are very keen for us to achieve.
View Chrystia Freeland Profile
Lib. (ON)
Thank you for the question.
It is a real service to Canada and to your constituents, Tracey, that you're on this committee, and I know that you know very well and that you represent a constituency that understands and is involved in this trading relationship as much as any part of our country is. I know you speak from a very informed place.
On supply management, as I have said repeatedly and as I said in our remarks today, our government is fully committed to supply management. There is something we have said both in public and in private to our American partners and it bears repeating today as an important point to underscore. That is about the balanced and mutually beneficial nature of Canada's overall trading relationship with the United States. It is truly reciprocal. When it comes to dairy, the United States sells us far more than we sell them. It is—
View Chrystia Freeland Profile
Lib. (ON)
And that is why it's important to point out to them, as we do both in private and in public, that when it comes to dairy, today the balance of trade is 5:1 in the U.S.'s favour. I would call that already a pretty good deal, and both I and my negotiators, who have great experience particularly in the agricultural sector, are very aware of that.
Something else that is very important, and that again we point out in public at the table and in our private conversations, is that when it comes to dairy, Canada has our system of supply management for supporting the interests of our producers. The U.S. clearly does not have supply management, but the U.S. has its own system for supporting dairy producers in the United States.
View Chrystia Freeland Profile
Lib. (ON)
Dairy producers in the U.S. are beneficiaries of an extensive web of government supports. That is the reality as well. We remind our American partners of that fact when we enter into this conversation, but I think it's also worth pointing out to Canadians, because I have noticed that in some of the Canadian discussions—
View Chrystia Freeland Profile
Lib. (ON)
Okay, but let me, Tracey, just finish this.
View Chrystia Freeland Profile
Lib. (ON)
I'm speaking now particularly to our journalist friends. Something that I feel may sometimes be missing from the public discourse in Canada is a full appreciation of the extent to which the U.S. dairy sector also benefits from an extensive network of subsidies. Their way of doing it is different from ours, but there are significant government supports.
View Chrystia Freeland Profile
Lib. (ON)
As I said in my remarks earlier today, Canada takes a strong interest in improving and making more progressive investor-state dispute settlement mechanisms. That is something that we were very proud to push hard on in CETA and is definitely an area that we are interested in pursuing here. In particular, of paramount importance is preserving a sovereign, democratically elected government's right to regulate.
View Chrystia Freeland Profile
Lib. (ON)
I'd like to thank you for your work, Ms. Lapointe, as well as your question, which is a very important one.
Not only are the provinces and territories involved in the NAFTA negotiations, but they are also at the centre of our trade relationship with the United States. As everyone knows, a number of issues and challenges affect the Canada-U.S. relationship. We continue to work closely with our provincial and territorial friends and counterparts.
As you highlighted, Quebec has a special role to play given its extensive relationship with the United States and Quebec's importance to the U.S. On that point, I have told the U.S. administration on numerous occasions that the electricity for Trump Tower is supplied by Quebec. It's key that our American counterparts never forget the importance of those economic ties.
As I mentioned, we consulted Canadians quite widely, including the provinces and territories, and those consultations will continue throughout the negotiation process. The CETA negotiations proved that Canada was stronger when the provinces, territories, municipalities, and federal government all worked together. The strongest team we can have is one that truly represents Canada.
Quebec played a special and very key role during the CETA negotiations, and, once again, I want to thank the province for that. On Thursday, I discussed NAFTA with my provincial and territorial counterparts, highlighting the federal government's approach and our desire for continued co-operation. Many provinces and territories are sending their experts and officials to Washington for the first round of negotiations, and that will be incredibly beneficial.
Mr. Hoback indicated that state governors play a very significant role and have a lot to bring to the table. I feel the same way. Perhaps it has to do with the fact that governors have a solid grasp of the economy because they are closer to the day-to-day reality in the country.
View Chrystia Freeland Profile
Lib. (ON)
The provinces and territories played a key role in the CETA negotiations. Lessons were learned, and they will inform the NAFTA negotiations.
This is important for a number of reasons. For one, because we are in constant consultation with the provinces, we've gained a lot of information that will help us during the negotiations.
Another reason the role of the provinces and territories is so important is that they've developed vital ties with our partners and therefore have the potential to exert influence. What we saw during the CETA negotiations was how Quebec was able to influence the governments of France and Belgium, particularly in the case of the Walloons.
As for ties with the U.S., the provinces and territories have formed their own relationships. Quebec, for instance, has worked a great deal with the State of New York.
Thank you.
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much for the question, Peter, and for your very hard work on this file.
I strongly agree with the direction of your question. I also represent a diverse riding, as, I'm sure, many of us do. My riding in particular has very strong Portuguese and Italian communities, and there's been a lot of enthusiasm around CETA, which is going to enter into force on September 21, and we're so happy about that. It presents real opportunities for those communities in Canada to build even closer relationships with the communities in the countries they have come from, and also to use their cultural ties to build some economic benefit for both the EU and Canada.
I really agree with you that our relationship with the U.S. presents many opportunities of a very similar nature. When I am speaking to Americans, I like to say that we're not just friends and neighbours but that so many of us are relatives. It's hard to find a Canadian—and in some of the border areas of the U.S., it's hard to find an American—who doesn't have a close personal human connection with Canada. I think that's one of the reasons that our trading relationship has over time been so strong and so effective.
The former U.S. ambassador to Canada liked to tell a story about how when he travelled around Canada he would say, “So, do you guys do a lot of foreign trade with companies?”, and they would say, “Oh no, we only trade with the United States.” I think that anecdote tells a lot about how Canadians view trade with our biggest trading partner and neighbour.
When it comes to opportunities, you referred specifically to small and medium-sized enterprises. I think that is an important area to focus on. In the consultations I've personally done—and I know my negotiators have had the same experience—including in Edmonton on Friday, I have heard the same message that for those enterprises the red tape is a particular obstacle. We've even heard from people who have said they don't bother using the NAFTA preferences because it's so much of a hassle to fill out all the forms. One of our core objectives—and I think this has particular relevance for small and medium-sized businesses—will be to use these negotiations to cut red tape, to continue the really good work we've already been doing on harmonizing regulations, and to make this trading relationship even more frictionless.
Again here, I do want to emphasize that we see some real opportunity here in our negotiating approach, because this is really consistent with something we have heard in public and in private from this U.S. administration, which is that it is focused on cutting red tape and on making life easier for businesses, and that this is an opportunity for it to do just that.
When I was with the Prime Minister in Rhode Island at the governors' meeting, there was a lot of emphasis from the governors on exactly that point. They said, “Let's use this as a big opportunity to cut red tape to make things easier for businesses.”
I think Mark wants me to stop talking now.
Some hon. members: Oh, oh!
View Chrystia Freeland Profile
Lib. (ON)
I raised it directly with the foreign minister. He acknowledged that I had raised it, so let's hope that creates some opportunity—
View Chrystia Freeland Profile
Lib. (ON)
View Chrystia Freeland Profile
Lib. (ON)
I do want to say this. I know we're here to talk about NAFTA, but that is an important case. We as a government have been very focused on it.
View Chrystia Freeland Profile
Lib. (ON)
I was glad to have an opportunity to raise it. What I did say to the foreign minister was that this was an issue of great concern to Canadians, and concern particularly to Canadian businesses.
View Chrystia Freeland Profile
Lib. (ON)
There are two questions embedded in that, and let me take them in turn.
When it comes to the labour and environmental chapters, I'm glad to hear Conservative support for our government pushing very hard in these areas. I think that holds real opportunity for Canada. I am very pleased with the progress we've made there in CETA, a deal that is actually going to be provisionally applied in a few weeks.
View Chrystia Freeland Profile
Lib. (ON)
Hang on. That gives it particular value. It's particularly useful in trade negotiations to refer to a trade deal that is actually in force, not to something that is simply written on a piece of paper.
I'm aware of those provisions that were negotiated in the TPP, and I think they're very interesting. We will also use some of the ideas from the TPP, very much including some of the labour and environmental ideas, which have particular value because there was some U.S. input on them. However, I would point out that the TPP is a deal that this U.S. administration has rejected. We need to be aware and mindful of that.
Also, when it comes to the TPP, we need to realize that embedded in the body of that agreement—and I know you know this very well—is a provision according to which the agreement cannot enter into force. Even if the TPP 11 parties were all to ratify that agreement, it would not enter into force without U.S. ratification. All of our conversations about the TPP need to be based on that fundamental reality.
I do want to say, though, that I was in Manila last week and had very good conversations with many of our TPP 11 partners, including Australia, New Zealand, Malaysia—
View Chrystia Freeland Profile
Lib. (ON)
—Singapore, and Vietnam. We are very pleased to be part of continued discussions among that group. Canada absolutely sees the opportunities in the Asia-Pacific, and we are pursuing them energetically.
View Chrystia Freeland Profile
Lib. (ON)
I share those concerns. The softwood lumber issue is absolutely a key issue. It's—
View Chrystia Freeland Profile
Lib. (ON)
It's a priority of mine and of our government. In fact, I was speaking about the issue less than 12 hours ago with some key representatives of the B.C. industry, and as I mentioned, Martin Moen is my partner in crime on this particular file.
We are very engaged with the U.S. on softwood lumber. We want a good deal and we think that is achievable, but we don't want just any deal, and the Americans know that. We want a deal that is good for Canadians.
I think at the moment that the softwood lumber negotiations will continue in parallel with the NAFTA negotiations, as has historically been the case. We are open to other modalities, but for now I think they'll continue in parallel.
Thanks.
View Chrystia Freeland Profile
Lib. (ON)
Thank you for the question, Kyle.
You're absolutely right that the auto sector, which is so important for your constituency, is important for all of Canada. The concerns of the auto sector, including those of car parts manufacturers like NAPA, and those of labour, are an absolute priority for us in our NAFTA negotiations.
I want to make one other point, because Gerry asked me about softwood lumber and I didn't have enough time to answer. I'll just say quickly on softwood that I do want to highlight what an engaged partner Wilbur Ross has been in those conversations. He has really gotten immersed in the detail of the file, has really been personally involved, and I really appreciate that.
On autos, we are consulting very actively and energetically, and are going to continue those consultations as the negotiations progress. We are talking to the big auto companies. We're talking to the car parts suppliers at multiple levels. As you know, it's a really complicated industry. I'm very pleased that Linda is serving on our council, and also, a really important piece for us is talking to labour. Labour understands the auto parts sector very well and has an important perspective.
One of the incredibly important things that our auto sector brings to the NAFTA conversation and that will be an issue that Canada will keep bringing up at the negotiating table is the extent to which our trade with the United States is really integrated and sophisticated. Flavio Volpe likes to say that we make things together. Don Walker likes to say that too about Magna, right? And that is really the point, that our relationship, particularly in a complex and highly integrated sector like auto parts, is really all about a highly integrated sector that works. One of the things that we are really going to focus on in the negotiations is being aware of the complexity of that economic relationship and ensuring that is reflected in the negotiations. We're going to work hard to make the trade there even easier.
There's something else for which I do want to really thank all the Canadians who work in the auto sector. Randy spoke right at the beginning about the work we have all been doing in reaching out to our partners and colleagues south of the border. That has also been a sector-to-sector outreach, and I think some of the most effective conversations that have been happening to date have been between Canadians and Americans who build things together. People in the auto sector have been particularly effective in having that dialogue and in ensuring that their American partners are fully aware of how important NAFTA is as a foundation for that very effective, integrated economic relationship.
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much for those questions.
As you raised dairy, I can't resist asking whether Max Bernier is also with the program here.
Sorry, I couldn't resist.
View Chrystia Freeland Profile
Lib. (ON)
I'm sorry, I just couldn't resist.
I was very clear in my speech earlier this morning, in my opening remarks here, and in my answer already that our government supports supply management. I think from the questions here that we are now hearing cross-party consensus on this. What is very important is how we frame this issue, both for our American partners and for Canadians. It's important to remind our American partners that in the dairy trade they already benefit 5:1. It's important to remind them also that while supply management is our system for supporting our dairy producers, they have their own systems for subsidizing and supporting their dairy producers. Again, as I mentioned in response to an earlier question, it's particularly important to underscore that in the Canadian public discourse. Those will be the points that we'll be making, and we're very clear on our position on that.
You asked about container sizes. Again, we're very aware of the value and importance of flexibility there. I would also put that in the category of how important it is for us to cut red tape and make trade easier. Certainly I believe that one of the objectives we share with the U.S. administration is that governments should not be creating unnecessary impediments or frictions that make business more difficult. We really see NAFTA as an opportunity to act and improve on that.
You mentioned the carbon tax. I think this may be one of points on which we have to have a friendly disagreement on both sides of the house.
Have I run out of time?
View Chrystia Freeland Profile
Lib. (ON)
I'm sorry, Tracey, because of the echo in the room I didn't exactly get your last point. Could you repeat the climate change point?
View Chrystia Freeland Profile
Lib. (ON)
I thank you for that question.
Something that our government is very proud to have done is to ratify the outstanding ILO conventions. Labour is very important to us, and those conventions are a very important way for Canada to be part of an international community of commitment to high labour standards. The ratification of those conventions was part of our CETA negotiation process, so the ILO conventions, in our experience already, can be part of a trade discussion.
Certainly, in negotiating with our NAFTA partners, we are going to share with them the value that we believe those conventions have, and the value that they have for all economies.
View Chrystia Freeland Profile
Lib. (ON)
As I said in my remarks, we do really see some opportunity, and it was great to hear that the Conservatives support strong labour protections in trade agreements too—they did; don't laugh, Gerry, it's true—and I see some real opportunity here to raise the bar on labour across North America.
View Chrystia Freeland Profile
Lib. (ON)
Thank you for the question.
First, I'd like to underscore something the chair said. Of course, talks with the Americans are a government responsibility, but that responsibility also falls on Parliament and all of its members. I know that the committee members have already done a lot of work on this issue, and I'd like to thank you for that. I'd also like to point out, however, that that is just the beginning. We still have a tremendous amount of work to do.
As you know, the legislative process in the U.S. is absolutely critical during trade deal negotiations, and you, as members of Parliament, have a unique and important relationship with your American counterparts. I want to thank you for all your efforts so far and urge you to keep them up. This is just the beginning. We have a long road ahead.
You asked about the work that had begun in January. Having already spoken at length about the consultations, I'd like to point something else out: our work did not start in January or February but, rather, last summer, before the U.S. elections.
As Minister of International Trade, I had asked department officials to put together materials on NAFTA. We saw that NAFTA had become an election issue during the campaign in the U.S. I want to make that clear because I think it's important for Canadians to know just how much Canada has been preparing. We've been at it for over a year. For me, negotiations have always been like exams: preparation is the most important thing. I want to thank our officials for the work they started more than a year ago.
I'd also like to make another point about our discussions with the Americans. I think that we, as Canadians, understand how the U.S. system works better than anyone, aside from the Americans themselves.
Okay, that's it, sorry.
I have just one last thing to say.
We realize that it is not just relationships with Washington or the White House, with the president and members of cabinet, that matter. While those relationships are indeed essential, those at other levels are important as well. The entire Canadian team, which includes our companies, has endeavoured to work with their U.S. counterparts at all levels, and that is extremely important.
View Chrystia Freeland Profile
Lib. (ON)
Thank you very much, Chairman.
Thank you very much, members of the committee. I think we've all been busy. I think the trade committee has been one of the busiest, most active, and most energetic committees, and I thank you very much for that work. It's really important.
I want to introduce my officials. You've just been hearing from Marvin, who is working on the trade agreement that I think is close to the hearts of all Canadians. Everyone knows the famous Steve Verheul, of CETA fame. I don't know if people have had the chance to meet the terrific new deputy minister of trade, Tim Sargent. We are very lucky to have him. For people who don't know Tim, he comes to International Trade from the Department of Finance and brings to the trade files a very strong economics and financial background. I think that's extremely valuable to have in our department.
Thank you very much, Tim.
I'm going to make a few opening remarks, and then I look forward taking your questions.
I am very pleased to speak to you today in support of CETA, the Act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union, and the Act to implement the Free Trade Agreement between Canada and Ukraine. These are two historic trade agreements for everyone, and I know many honourable members have worked hard on both agreements.
Our government believes strongly in an open global economy, and we will continue to champion the open society and open global trade. However, we cannot ignore the reality that, today, we are living in the most protectionist environment I have experienced in my lifetime, probably the most protectionist environment since the Second World War.
The Canada-EU Comprehensive Economic and Trade Agreement, CETA, and the Canada-Ukraine free trade agreement, CUFTA, are historic trade agreements for everyone. I know everyone in this room has worked very hard on both.
Our government, and I personally, believe very strongly in an open global economy, and we will continue to champion the open society and open global trade, but none of us here, and no Canadian, can ignore the fact that today we are living in the most protectionist environment I have experienced in my lifetime, probably the most protectionist environment since the Second World War, if not earlier.
There's a reason for that. A lot of people feel that 21st century global capitalism just isn't working for them. This very big anxiety is manifesting itself, among other things, in a powerful backlash against globalization. For those of us who support the open society, it is incredibly important not to be in denial about the power of these sentiments that are sweeping so much of the Western industrialized world.
Mark opened up our conversation by saying that Canada is a trading nation, and I know we all understand that profoundly. Those of us who really understand that in our core can be tempted to believe that the issue is only one of rhetoric and that if only we were better at talking about how valuable trade is and how costly protectionism is, everything would resolve itself. I think that is not going to be enough. We need to look more deeply than that and understand that this powerful wave of populist anti-globalization sentiment that we're seeing around the world is based in the real, very concrete experience of so many people, particularly in Western industrialized countries, including our own.
When we look at the sources of anxiety that people have, that sense of a hollowed-out middle class, I think we also have to appreciate that the answer has to be about more than trade deals, because the anxiety is about more than trade deals, even if that is where the anger is sometimes directed.
What people are worried about, and I think rightly, is the impact of 21st century global capitalism. The concerns people have, their economic concerns, their concerns for themselves, for their retirement, and for the jobs their children will have or not have are very real, and we need to address them. That is why I feel a central part of our ability to be effective on the trade file, of my ability to be an effective trade minister, comes from other parts of our government's agenda. It is why I am so proud to be part of a government whose first action was to cut taxes for the middle class.
I am proud that we raised taxes on the 1%. That element of fairness is so important to Canadians. We are very proud to have created the Canada child benefit for the families most in need and to have boosted CPP for our seniors.
We are making essential investments every day that strengthen and support our middle class, and it is because of those investments, that broader economic framework, that we can proudly say that in Canada, unlike in very many countries today, we do have broad public support for the open society. We are open to trade and open to immigration.
CETA is one of the most progressive trade agreements ever negotiated. It will help redefine what trade can and should be. It will lead to increased prosperity on both sides of the Atlantic, and create well-paying middle-class jobs, which is our priority objective.
With CETA, Canada is raising the bar and establishing more inclusive trade and higher standards for how global economies must function in the 21st century. This agreement that we are examining today cements the paramount right of democratically elected governments to regulate in the interest of our citizens, to regulate the environment, labour standards, and in defence of the public sector.
When it comes to CETA, this is the most progressive trade agreement that has ever been negotiated. Well done, Steve. CETA will help—is already helping—to redefine what trade agreements can and should be. CETA will lead to increased prosperity on both sides of the Atlantic and create well-paying middle-class jobs.
Canada is raising the bar with CETA. With this agreement we're establishing more inclusive trade and higher standards for how globalization should work in the 21st century. The agreement that we are talking about today crucially cements the paramount right of democratically elected governments to regulate in the interest of our citizens to protect the environment, to protect labour standards, and to defend the public sector. Those are key elements, something I am very proud of. We're proud to have made these changes to CETA since coming into office, and we will continue to champion progressive trade policies.
As our Prime Minister said about CETA:
That leadership that we were able to show between Canada and Europe is not just something that will reassure our own citizens but should be an example to the world of how we can move forward on trade deals that do genuinely benefit everyone.
And the benefits really are clear.
I want to mention a couple of examples of companies that will benefit from CETA, because while it can be fun for us to talk about policy, I think it's really important to bring it back to actual humans we are helping with our work.
Take Vancouver's Corinex, which will now be able to bid and compete for contracts and provide its consulting and communications services to EU clients on a fully competitive basis, or Northland Power from Toronto, the city I represent, with its clean and green power projects that will now be able to expand even further into Europe, where it has a strong footprint, or one of my personal favourites, Manitobah Mukluks, the Métis-founded business based in Winnipeg, whose mukluks are currently subject to a 17% tariff in Europe. That tariff will go down to zero after CETA comes into force. It's clear, Mr. Chair, that CETA will translate into increased profits and market opportunities for Canadian businesses of all sizes, in all sectors, and in every part of the country.
Now let me speak for a few moments about CUFTA, which I know you were speaking about earlier.
This is an agreement that has great personal significance to me as a Ukrainian Canadian. I was thinking about it this week, because Tuesday was the day when we gathered to commemorate the very bitter anniversary of the Holodomor, the artificial famine created by Stalin in Ukraine. That was a moving reminder for me of the very deep connections between Canada and Ukraine. Although I expect to face fierce questioning from you all—not from Gerry, though—it was a reminder for me that in our country we have support across party lines for Ukraine. Linda Duncan was there representing the NDP and Peter Kent was there representing the Conservatives.
It was a great personal honour for me on July 11 this summer to sign the free trade agreement with Ukraine in Kiev. My Ukrainian counterpart Stepan Kubiv signed it on behalf of Ukraine.
Canada and Ukraine understand the importance of trade and of developing our economic relationship for the prosperity of people in both countries, but the agreement is also a further affirmation of the strategic partnership between Canada and Ukraine. It's a very concrete way that we can support a country that is fighting very bravely for its independence and for its democracy and that has deep historic ties with our own country.
I should also say that signing the Canada-Ukraine free trade agreement this year is a nice historical moment, since it's the 125th anniversary of the arrival of the first Ukrainian immigrants in Canada.
Actually, they arrived in my home province, in Alberta, but there are a lot in your province too, Randy.
View Chrystia Freeland Profile
Lib. (ON)
What is even more important, if Canada is to ratify both of these agreements, is that we will also send an essential signal to the international community, that in an era of nativism and protectionism, Canada stands for the open society and for open trade.
Mr. Chair, if Canada is to ratify both of these agreements, we will be sending an essential and very distinctive message to the world this year that in an era of rising nativism, of rising protectionism, Canada is a country that stands for the open society and for open trade, and that we are a trading nation and we understand that good progressive trade agreements build prosperity for our middle class and the people working hard to join it.
I want to thank everyone for listening to me just now, and for working so hard to make sure that we continue to be an open society.
Merci.
View Chrystia Freeland Profile
Lib. (ON)
Absolutely not. Probably the elements of our work on CETA.... I want to back up and say on CETA that one of the things I think is so exemplary about this deal is it shows that Canada can be strongest when we can have a change of party and government but continue to work in the national interest. The Prime Minister and I are very happy to acknowledge in particular the work of the former prime minister, Stephen Harper, in setting CETA in motion. As you know, in opposition, we were very proud to support it.
Having said that, I'm perhaps proudest of all, on a personal note, of the changes we made to make this agreement more progressive. When we formed government, one of the first things we learned was that CETA, this very important agreement we championed in opposition, was actually stalled—
View Chrystia Freeland Profile
Lib. (ON)
No; let me finish, please, and then I'm happy to take more questions.
CETA was concluded at a technical level in September 2014. From that time to November 2015, when we formed government and took office, there was no progress. The finalization of the legal scrub was stalled, and that was because the Europeans had come to the conclusion that the old-school ISDS provisions in the old-school CETA were not something Europe could support. They weren't something European civil society could support, and they weren't something that progressive Europeans could support.
View Chrystia Freeland Profile
Lib. (ON)
We looked at it, and I agreed. I thought they were exactly right. ISDS has been around for a long time. I think that now is the time to build a more progressive system, something in which the right of states to regulate is fully enshrined—
View Chrystia Freeland Profile
Lib. (ON)
Hang on.
In addition to making this a better agreement in substance, the changes that we made to the ISDS provisions were essential to getting CETA done on a practical level. I made those changes because they were the right thing to do, but had we not made them, this agreement would still be in legal purgatory in the offices of the European Commission.
View Chrystia Freeland Profile
Lib. (ON)
View Chrystia Freeland Profile
Lib. (ON)
Gerry, that is simply untrue.
It was the European Commission that put forward its investment court proposal. This was something that was a concern of the governments of Germany, France—
View Chrystia Freeland Profile
Lib. (ON)
—the Netherlands, and Italy. This agreement would not have happened had we not made the changes to ISDS.
Let me also say—and I think it's good for the committee to know this—the progressive direction that we have moved in with CETA is something that we are rolling out across all of our trade agreements. It's something we believe in and that we're proud to champion.
View Chrystia Freeland Profile
Lib. (ON)
—she's very close to the Ukrainian market. I think that a desire you and I share, and I hope everyone around this table, is to do as much business with Ukraine as possible.
View Chrystia Freeland Profile
Lib. (ON)
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