Mr. Speaker, I need to start my remarks by recognizing that today is the 75th anniversary of D-Day. I have the ability to stand in this House, in our parliamentary democracy, because of the sacrifice of the 359 Canadians who died on D-Day, the 14,000 who landed on Juno Beach, and the 25,000 involved in the operation with our allies. I would be remiss if I did not start my remarks with this, because we are fortunate to have democracy based on that.
The parliamentary secretary said that this bill is a reflection of the Liberal government's values when it comes to trade. He is either reading a speech that was provided for him, or he does not realize it is actually a very high-profile abandonment of the values that Liberals projected on trade for several years. The parliamentary secretary has heard the foreign minister talk countless times about the international rules-based order. With the trading order and security order, the international rules-based order has probably been one of the foreign minister's most common refrains. In fact, in her famous speech in Washington, in June 2018, she said:
One answer is to give up on the rules-based international order, to give up on the Western alliance and to seek to survive in a Metternichian world defined not by common values, mutually agreed-upon rules and shared prosperity, but rather by a ruthless struggle between great powers governed solely by the narrow, short-term and mercantilist pursuit of self-interest.
“The ruthless, short-term, mercantilist pursuit of self-interest” should be the preamble to Bill C-101. It is an abandonment of WTO rules with respect to international trade, the rules on which the minister would like to lecture not only us but also the Americans in Washington.
It is not just my opinion that it is a WTO violation. As noted trade lawyer Mark Warner tweeted about Bill C-101, the Canadian government has been proclaiming its adherence to the rule of law at every turn, and now is suspending parts of the WTO safeguards agreement for two years.
This is an example of an abandonment of a rules-based approach to trade, and our trading partners and friends around the world notice that.
Now, there is a real politic to trade that the government avoided and ignored for its first several years. That is why Canadians should be shocked that in the final weeks of this Parliament and with no collaboration from the opposition, Liberals have tabled a ways and means motion on the new NAFTA, on safeguard provisions. In fact, they are changing the law, not to allow safeguards not to have their two-year suspension after being applied, but to have the ability to have permanent safeguards. The Liberals are doing this in the final days of the House and will likely use time allocation to rush it through.
The Conservatives are going to use this time to try to suggest some ways to mitigate the impacts of Bill C-101 with regard to issues that the government should have thought of and should have brought for debate. We are going to stand up for the interests of the wider group of employers and employees in the fabrication of steel products, particularly the western steel and construction industries, and recommend ways to help them through the disruption this bill will cause.
Hopefully, the government will address some of our concerns and make this better. Hopefully, it will deal with the companies and employees in western Canada, in Quebec and in Newfoundland and Labrador who will be impacted. In my remarks, I am going to use some time to recommend that. We want to, and may, support this bill, but it is up to the government, rushing it through in the last few days, to address the real issues that will affect small and medium-sized businesses, and to allocate some of the $2 billion it has already collected in retaliatory tariffs. The government promised this would help small and medium-sized enterprises, but it has not.
We want to hear a plan. The government has lurched from crisis to crisis on trade, tariffs, NAFTA, canola with China and pork with China. Enough with the crises. We want a plan. As an effective opposition, that is what we will do.
I have already said that this violates WTO safeguard regulation, but it also violates the ruling of the Canadian International Trade Tribunal from April, our own rules-based order. I would refer to the Minister of Finance and the Minister of Foreign Affairs. The trade tribunal did say that there was “serious injury” with respect to the dumping or import of heavy plate and stainless steel wire. However, it clearly said that on rebar, energy tubular products, hot-rolled sheet, pre-painted steel and wire rod, there was no serious injury and therefore no need for safeguards.
These may seem like obscure terms to Canadians, but our recommendations today will actually show how we can go with the spirit of the safeguards and also safeguard the jobs and economic activity that depend on these steel products.
I will bring it home for Canadians. Energy tubular products are used in our oil sands, the energy industry in western Canada. There is steel plate that, if we do not have specific imports, will raise the cost of the Champlain Bridge in Quebec by $1 billion, putting at risk critical public infrastructure. There is also the Muskrat Falls project in Newfoundland and Labrador. I would like to shake out of their slumber the Maritimes and Atlantic members of the Liberal caucus. Do they realize that this project, which is already in huge cost overruns, will potentially be made worse unless there are geographic or steel-specific exemptions? The LNG Canada project, which I believe the Prime Minister took some photos at the launch of, is at risk unless some exemptions or specific regional quota is provided. There is also the Site C dam in British Columbia.
Therefore, critical jobs, economic development and public infrastructure, like the Champlain Bridge, are all potentially at risk economically because of steel that needs to be imported.
We do not make enough of these types of products, such as rebar. We already know of the affordability crisis in Vancouver, the Lower Mainland and Toronto. The construction industry needs rebar for commercial and residential building, and 40% of it in western Canada has been imported from Asia, Taiwan mainly. It will be cut off, and the producers, construction companies and fabricators that use a lot of these types of steel will see their prices go up by more than one quarter. There are real impacts here.
The government cannot rush in all of these bills at the end of Parliament because it messed up its trade strategy for four years. Therefore, we are going to have some recommendations that we want the government to take seriously, because there are thousands of jobs. Let us have a win for the steel producers, fabricators and construction companies by being smart with safeguards and having regional provisions, regional protections and quota allocations.
Let us review the history. The Liberal government came in knowing that the U.S. had issues with the Chinese oversupply and transshipment of steel. In fact, the Obama administration, in 2016, applied tariffs when it introduced the Trade Facilitation and Trade Enforcement Act and brought up steel duties by 500% on some steel products. We know that the Prime Minister got together with President Obama for another photo-op the other day. We know that bromance. Why did they not start coordinating concerns about transshipment then? In fact, they did not. Some of the members are waking up now, and I am happy to see that.
In 2017, the U.S. president expressed a direct concern about oversupply and transshipment, and said he would use section 232 tariffs on steel and aluminum. What was our response? Absolutely nothing. We know that because of the admission of failure from the finance minister that came on May 30, 2018, when he quietly introduced country-of-origin labelling rules for Chinese steel tracing, which is part of transshipment investigation, hours before section 232 tariffs were applied on Canada. I would remind the member for Malpeque of that.
The U.S. had been asking for this. In fact, the Commerce Secretary has acknowledged that Canada did not work with the U.S. on transshipment concerns; therefore, section 232 tariffs were applied.
Despite the fact that, in 2018, the Prime Minister went to Sault Ste. Marie and a number of other communities and said he had their back because he had a one-month exemption, the Conservatives who were going down to Washington knew that Canada had not made the moves. It had not put in tracing measures, country-of-origin labelling, to take American concerns on transshipments seriously. Therefore, the tariffs were applied. We could have avoided that.
I laugh at the friends who used to call the current Prime Minister the “Trump whisperer”. We have been in a one-sided, bad-outcome relationship with the United States under the Prime Minister, going back to Obama, because transshipment concerns could have taken place back in the Obama administration. I will remind the members that, in June of last year, over a year ago, I asked the minister about this at the trade committee. I referred to the section 232 tariffs and the need for country-of-origin marking and transshipment concerns. The minister dodged my questions for six minutes.