MP David Tilson speaks on Canada-EU free trade in the commons
December 16, 2021
PARLIAMENT HILL – David Tilson, Member of Parliament for Dufferin-Caledon, spoke this week in the House of Commons on the Comprehensive Economic and Trade Agreement Canada is currently negotiating with the European Union."Mr. Chairman, the successful negotiation of a high-quality ambitious trade agreement remains a key priority for the Canadian government as the EU is the world's top single market, with a population of nearly 500 million and a gross domestic product of more than $19 trillion in 2009,” stated Mr. Tilson during the take note debate in the Commons Tuesday evening. In addition, the EU is the second largest trading partner in goods and services and the second largest source destination for foreign direct investment.”
As CETA negotiations cover a broad range of areas, it could result in an agreement that is both broader and deeper than the North American Free Trade Agreement, NAFTA, Canada's most comprehensive free trade agreement to date.”
Mr. Tilson took part in this important debate in his role as President of the Canada-Europe Parliamentary Association, an all-party group of Canadian MPs who regularly exchange views and visits with their counterparts from the European Parliament.
Given the importance of this agreement, the Canada-Europe Parliamentary Association has made significant efforts to remain abreast of CETA negotiations as well as engage with members of the European Parliament. These discussions have taken place in Europe and, more particularly, the Council of Europe in Strasbourg. We also met with members of the European Parliament here in Ottawa about a month ago. We are satisfied that negotiations are going well.”
From:
http://www2.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Mode=1&Parl=40&Ses=3&DocId=4888841#Int-3683752
Mr. David Tilson (Dufferin—Caledon, CPC):
Mr. Chair, it is my pleasure to rise in the House this evening to speak to a key objective being sought by Canada in our negotiations with the European Union towards a comprehensive economic and trade agreement, namely ensuring real, effective market access for Canadian exports to the European Union. As the minister said this afternoon in response to a question, the focus of this agreement is jobs and prosperity.
In May 2009, Canada and the European Union announced the launch of negotiations towards a comprehensive economic trade agreement, also known as CETA. Based on the results of a 2009 joint scoping exercise, Canada and the EU developed a broad and ambitious negotiating agenda that would include a variety of topics from trade and investment to sustainable development.
CETA also marks the first international trade agreement where the provinces and territories will participate in the negotiations. Officials in Canada and Europe have indicated that provincial and territorial support is crucial to the success of the agreement.
Negotiations are continuing at a fast pace and are expected to be completed by the end of 2011. Negotiations are being undertaken both in Europe and, of course, in Canada.
The successful negotiation of a high-quality ambitious trade agreement remains a key priority for the Canadian government as the EU is the world's top single market, with a population of nearly 500 million and a gross domestic product of more than $19 trillion in 2009. In addition, the EU is the second largest trading partner in goods and services and the second largest source destination for foreign direct investment.
As CETA negotiations cover a broad range of areas, it could result in an agreement that is both broader and deeper than the North American Free Trade Agreement, NAFTA, Canada's most comprehensive free trade agreement to date.
Almost all of the speakers here tonight are members of the international trade committee. I am not. I am here to express my interest as the president of the Canada-Europe Parliamentary Association.
Given the importance of this agreement, the Canada-Europe Parliamentary Association has made significant efforts to remain abreast of CETA negotiations as well as engage with members of the European Parliament. These discussions have taken place in Europe and, more particularly, the Council of Europe in Strasbourg. We also met with members of the European Parliament here in Ottawa about a month ago. We are satisfied that negotiations are going well. Indeed, the European Parliament passed a resolution in May 2010 where it expressed support for the ongoing CETA negotiations.
Eliminating tariffs and creating rules of origin that enable Canadian goods to qualify for preferential tariff treatment are essential to gain effective and improved market access. I understand that good progress has been made on both, although more remains to be done.
On tariffs, negotiators have exchanged conditional initial offers on goods that would have 90% of all tariffs go to duty free immediately upon the implementation of the agreement. The second round of offers is being prepared over the next few months on both sides to see tariff eliminations being made even more ambitious.
On the rules of origin, Canadian negotiators are making steady progress towards an outcome that would take into account the integration of Canadian production into North American and global supply and production chains.
However, eliminating the tariffs and getting the right rules of origin are only half the equation. As tariffs come down, regulatory barriers take on greater importance in the ability of exporters to get their products into other markets. Thus, addressing and preventing regulatory barriers is the other half of the equation. Of course, this is easier said than done, particularly since the European Union represents perhaps the most complex regulatory environment in the world.
Effectively dealing with regulatory barriers hinges on: preventing or avoiding their establishment; reducing to the greatest extent possible the impact of those regulatory barriers that are put in place; and, ensuring the right mix of rules and procedures to enable us to efficiently and conclusively address them.
These elements, or outcomes, of effective market access form the basis of Canada's negotiating approach to multiple chapters in the agreement affecting trade in goods, including those related to technical barriers to trade and regulatory co-operation.
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Collaborative efforts between the European Union and Canadian regulators toward compatible regulatory approaches are the key to avoiding or preventing regulatory barriers. Our negotiations will build on existing regulatory co-operation between Canada and the EU and will seek to improve it by increasing its visibility by making it clear that regulatory co-operation is a priority between Canada and the European Union.
Generally speaking, regulatory co-operation is forward looking and while it can help to erode differences and facilitate compatible regulatory approaches, it will not necessary prevent all trade irritants. Seeking to improve the compatibility of European and Canadian standards is also a key to preventing regulatory barriers.
Currently, although Canada and the EU both rely heavily on international standards, we both maintain our own regional and national standards. For the EU this is necessary to facilitate the European single market, while for Canada this is necessary to maintain the integrated nature of the North American market. Bridging this gap will be challenging, but we know it is important to our exporters who face increased costs due to differing standards which, nevertheless, have the same intent and desired outcome underpinning their purpose.
Enhancing transparency in the regulatory development process is another important element in avoiding regulatory barriers. Through provisions addressing technical barriers to trade, we can take greater strides to ensure exporters and employees on both sides of the Atlantic do not get sideswiped by technicalities which have the effect of restricting trade.
Other mechanisms are necessary to tackle regulatory trade irritants. For this reason, to ensure both parties continue to enjoy the benefits of real market access, Canada envisions establishing a solid and responsive institutional framework in the agreement to effectively deal with instances of unjustified barriers or deviations from the obligations of the agreement.
It is important that both Canada and the European Union have a forum where concerns related to the bilateral commercial relationship can be raised and addressed in an efficient, rapid and transparent manner. This will be particularly important to address any technical barriers that might arise in the future.
Finally, to ensure the enduring value of the entire package, we are seeking an effective and efficient dispute settlement mechanism. While dispute settlement is always a last recourse, it is inevitable that concerns will arise that cannot be resolved through consultations. When this is the case, we will need a mechanism that allows us to resolve differences between us quickly and efficiently, allowing manufacturers and traders to get on with their business.
Thus, at its very essence, Canada is seeking significant, effective and enduring market access gains for its manufacturers and exporters. These gains will be enhanced by closer co-operation between our regulators and backstopped by a more robust trade policy implementation regime and an effective and timely dispute settlement process in a comprehensive economic and trade agreement with the European Union.
To put this in plain language, achieving real and effective market access in these negotiations will mean getting reasonable and practical solutions to the current barriers faced by the Canadian exporters and proactively dealing with future issues through greater co-operation. This will translate into opportunities and jobs for Canadians. That is why our government is moving toward a truly comprehensive free trade agreement with the European Union.
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Mr. Francis Valeriote (Guelph, Lib.):
Mr. Chair, I will refer to the document, “Municipal Procurement Implications of the Proposed Economic Trade Agreement between Canada and the European Union”. It is an opinion that was prepared by Sack Goldblatt Mitchell for the Centre for Civic Governance at Columbia Institute. He refers to sub-national procurement and states:
In setting out the principles that should guide Canadian trade negotiations, the FCM [Federation of Canadian Municipalities] stressed the importance of: Canadian content for strategic industries or sensitive projects: A trade deal must recognize strategic and public interest considerations before barring all preferential treatment based on country of origin. There may be industries of strategic significance to a particular region, such as transit, or projects where considerations of quality, public benefit, environmental protection or business ethics means that a local government may be allowed to implement minimum Canadian content levels, within reason.
Thus under CETA, municipalities would no longer be able to restrict tendering to Canadian companies, or stipulate that foreign companies bidding on public contracts accord some preference for local or Canadian goods, services, or workers. As a result, municipalities would lose one of the few, and perhaps the most important tool they now have for stimulating innovation, fostering community economic development, creating local employment and achieving other public policy goals, from food security to social equity
I am wondering if the member would tell me whether he considers this as being one of the technicalities that he speaks to, these mere technicalities, that might upset a free trade agreement and how serious he considers the issue of sub-national procurement.
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Mr. David Tilson:
Mr. Chair, the member speaks as if all these clauses are a done deal. They are still under negotiations and the negotiations will continue to the end of 2011 and possibly longer.
The municipalities and the provinces have been consulted and briefed regularly by the negotiators and are fully aware of all these items that the member has spoken to. Of course the municipalities have indicated their support for where the government is going in this area.
Government procurement, including at the sub-federal level, is one of the areas of negotiation as described in the Canada-EU joint report released in 2009. The obligations would only apply to agreed upon types of procurements. For example, international procurement obligations would not apply to non-contractual agreements such as grants or loans or items purchased for commercial sale or resale of contracts below specified dollar value thresholds.
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Mr. Alex Atamanenko (British Columbia Southern Interior, NDP):
Mr. Chair, this is not about free trade. This agreement is basically about the control of corporations over our way of life.
The member mentioned that the communities had been consulted. I would urge him to to check with the FCM and other organizations, such as the Union of British Columbia Municipalities, to get their comments on this agreement which they feel would be devastating.
It seems that the government's answer for all the ills of our country is to open up more trade. Our agriculture committee did a study and we recommended local procurement for federal government institutions, which would make sense for local farmers. We were told that we could not do that because of trade obligations, so the government is going out to get more trade.
On the other hand, the state of Illinois has legislated that by the year 2020 that 20% of local produce in state institutions will come from local farmers. There seems to be an imbalance and I am wondering if the hon. member sees an imbalance in this.
We tried to negotiate a deal. We put everything up front and yet the European Union, with all its heavy subsidies, with its control and with its help for farmers, right now there is only 0.5% access to pork for their total production, and yet it wants to increase the quota for Canada.
I am just wondering if the member thinks there can actually be a fair agreement or if trade is really the answer, or should we be really careful especially when it comes to our way of life on procurement and especially when it comes to agriculture.
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Mr. David Tilson:
Mr. Chair, of course we will be careful. We will be careful in all of the negotiations. We take great interest in protecting the rights of Canadians and in protecting jobs. To say that we are not doing that is unfair.
The member said that there were no negotiations or discussions with other organizations. The government has consulted with non-governmental organizations, trade unions and industry to ensure that their interests and concerns are taken into consideration in developing our negotiating position with the European Union.
As with every international agreement, our agreement with the European Union will be subject to the treaties in Parliament. When this agreement is reached, we will have extensive debate in this place as to the validity of this agreement and whether it should be passed.
Moreover, legislation to implement the agreement, like any other free trade agreement, will come to Parliament where parliamentarians will vote on it. This process will allow industry, non-governmental organizations and others to express their views.
Most of the members who have spoken today are members of the international trade committee. I am not a member of that committee but I am quite aware that every free trade agreement that has gone through this place has ended up in that committee and has been dealt with extensively, where it debated the pros and cons on whether those agreements should be passed.
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Mr. Gerald Keddy (Parliamentary Secretary to the Minister of International Trade, CPC):
Madam Chair, I thank my colleague for his work on behalf of all parliamentarians as the chair of the Canada-EU Interparliamentary Association.
When a group of European Union parliamentarians travelled extensively throughout Canada last month, they also had fulsome discussions here in Ottawa under the member's guidance. I attended those meetings and I noticed how positive all of the European Union parliamentarians were about this comprehensive agreement benefiting both the EU and Canada.
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Mr. David Tilson:
Madam Chair, the member is quite correct. It was about a month ago when a number of delegates from the European parliament were here and we discussed a wide range of topics, and this agreement was one of them. Although there many other topics mentioned, they will probably be discussed in the agreement.
We had a successful and positive debate. Members from both sides of the House were present at those meetings. The critics on immigration and international trade discussed a wide range of topics on which the European Union delegates expressed concerns, as did we. They also indicated to us that they, too, were pleased with the way the negotiations are going.