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Canada–United States–Mexico Agreement Implementation Act

An Act to implement the Agreement between Canada, the United States of America and the United Mexican States

This bill is from the 43rd Parliament, 1st session, which ended in September 2020.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

This enactment implements the Agreement between Canada, the United States of America and the United Mexican States, done at Buenos Aires on November 30, 2018, as amended by the Protocol of Amendment to that Agreement, done at Mexico City on December 10, 2019.
The general provisions of the enactment set out rules of interpretation and specify that no recourse is to be taken on the basis of sections 9 to 20 or any order made under those sections, or on the basis of the provisions of the Agreement, without the consent of the Attorney General of Canada.
Part 1 approves the Agreement, provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional and administrative aspects of the Agreement and gives the Governor in Council the power to make orders in accordance with the Agreement.
Part 2 amends certain Acts to bring them into conformity with Canada’s obligations under the Agreement.
Part 3 contains the coming into force provisions.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-4s:

C-4 (2025) Making Life More Affordable for Canadians Act
C-4 (2021) Law An Act to amend the Criminal Code (conversion therapy)
C-4 (2020) Law COVID-19 Response Measures Act
C-4 (2016) Law An Act to amend the Canada Labour Code, the Parliamentary Employment and Staff Relations Act, the Public Service Labour Relations Act and the Income Tax Act

Votes

Feb. 6, 2020 Passed 2nd reading of Bill C-4, An Act to implement the Agreement between Canada, the United States of America and the United Mexican States

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 10:50 a.m.

Bloc

Alexis Brunelle-Duceppe Bloc Lac-Saint-Jean, QC

Mr. Speaker, earlier today, my colleague from Jonquière asked the hon. minister if she could explain why aluminum did not get the same treatment as steel under the new NAFTA.

She answered indirectly by saying that 70% of aluminum is protected. Unfortunately, that is not true. It is actually 70% of parts made from aluminum that are protected. This means that parts manufacturers can source their aluminum from anywhere in the world, including China, which produces the dirtiest aluminum, whereas Quebec makes the greenest aluminum in the world.

I was a little disappointed that the question was not answered directly, so I will put it to my hon. colleague. Why does he think steel got better treatment than aluminum in the new NAFTA?

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 10:55 a.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Mr. Speaker, one could speculate about all sorts of reasons why it was not given the same consideration. Maybe the U.S. just felt that it would rather have the ability to use Mexico as a place to bring in Chinese steel that is dumped into Mexico. Maybe the U.S. does not have a big enough aluminum industry to worry about. One could speculate on a variety of things.

However, the member for Chicoutimi—Le Fjord made some good suggestions for the workers in his riding. He talked about green aluminum. I think the member would also agree that green aluminum should have been focused on. That could have been our angle going in. We could have said that this is why Canadian aluminum should be bought and why that dirt cheap aluminum from China should not be bought. The good quality stuff from Quebec here in Canada should be bought.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 10:55 a.m.

NDP

Daniel Blaikie NDP Elmwood—Transcona, MB

Mr. Speaker, I will admit that I am somewhat confused by the comments of the member for Prince Albert. I remember six or seven months ago, when we had a very similar deal with respect to the dairy sector and the requirement to consult the U.S. on a new trade agreement with China, the Conservatives said that the only problem with the Liberals was that they were not ratifying the deal quickly enough. Then some changes were made and we have gotten rid of requirements that would raise the price of prescription drugs and there are more protections for workers in Mexico, and now the Conservatives are saying that this is a terrible deal.

I am just trying to understand what changed between the first iteration of the deal and this iteration of the deal, such that we have gone from saying that we need to ratify this as quickly as possible to saying this is a really bad deal, we need to study it and we are not sure we should have it at all.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 10:55 a.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Mr. Speaker, I disagree with the member's comments on that. If he goes back to the last election, the Conservative Party leader was saying this is not a great deal and a Conservative government would make it a better deal. It was part of his election platform, so I am not sure why the member thinks Conservatives were so quick to say this is such a good deal.

The reality on this piece of legislation is that the premiers, the aluminum associations and the dairy associations are kind of saying they are going to pay for it, but they understand they have to give something up. There are a lot of people saying that overall, they have to let this happen. Do they like it? No. Anyone who speaks to the members individually knows they are not happy. A lot of them would like to just stay with what they have. The reality is that is not an option either, so what do they do? They want bankability, stability, to make sure the economy keeps growing and to maintain partnerships with the U.S. and Mexico. Yes, there are some flaws for sure, but when a Conservative government is elected next time around, it can maybe start addressing those flaws one by one, pick away at them and make sure they are better for producers, consumers and manufacturers.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 10:55 a.m.

Conservative

Gary Vidal Conservative Desnethé—Missinippi—Churchill River, SK

Mr. Speaker, I want to congratulate the member for Prince Albert, who has done a great amount of work on this file on behalf of our party. Also, as he has mentioned, he is the member for my neighbouring riding and he has been a tremendous source of encouragement and support for me as I have gone on this journey. I want to thank him for that.

It is indeed a privilege and an honour this morning to stand in the House for my first speech representing the people of Desnethé—Missinippi—Churchill River. I am very grateful for the trust the people have shown in me and I commit to do my very best to represent each and every person for every moment of time they see fit to grant me the opportunity to be here and to serve them in this place.

From my nomination in December 2018 until the election on October 21, our campaign was a fabulous opportunity to get to know many people in this vast riding, and I will cherish that experience forever. My wife Lori and I continue to be thankful to the many people, some who worked tirelessly during the campaign, to provide me the opportunity to serve in the House. I would be foolish to begin mentioning names, as I am sure I would inadvertently exclude someone, but I know that each of them know who he or she is, and I thank each of them.

I will be forever grateful for the support that Lori and my entire family have been to me on this journey. I thank Kent and Rebekah, Mac and Hannah, Nicole and Washington, and Alex for their constant support and encouragement. Lori's commitment and sacrifice may go unnoticed by many, but it will never go unnoticed by me. I honestly do not know how anyone could serve in this place without the unwavering support of their family.

Finally, I would be remiss if I did not point out that the highlight of the campaign for me was becoming a grandparent for the first time on October 8.

For those who are not aware, Desnethé—Missinippi—Churchill River is basically the north half of Saskatchewan. In fact, it is 52% of Saskatchewan geographically. It is the second-largest riding in the 10 provinces, and its approximately 70,000 residents are spread over 342,000 square kilometres. Just for reference, the country of Germany has nearly 83 million people spread over a slightly larger 357,000 square kilometres.

As my team and I travelled over 25,000 kilometres during the campaign, speaking to people, one of the common messages I heard was the need for Canada to get our fiscal house in order. I believe that because of my experience as a partner in an accounting firm for nearly 30 years and my service as mayor of the City of Meadow Lake for nearly eight years, voters sent me to this place to be their voice and to hold the government accountable for its wasteful spending.

I feel very fortunate to have built a great team of people, both here and in Meadow Lake, my home community. These people are credible, capable, competent and they are committed to working hard to represent the interests and to bring forward the concerns of all the people of northern Saskatchewan. We know we have much to learn, but we are prepared for that challenge.

Being appointed the shadow minister for indigenous services in November was a tremendous honour. It is a welcome opportunity to be part of an incredible team of people working on behalf of all indigenous Canadians in addition to those I serve in northern Saskatchewan.

My years of coaching minor hockey and my time as mayor, working with my immediate neighbours from Flying Dust First Nation, have taught me how first nations and non-first nations communities, which have relationships built on trust, can work together to find solutions that benefit everyone. I am proud to say that when I set out to seek the nomination for my party, one of my first endorsements was from Chief Jeremy Norman of Flying Dust First Nation. I believe that is a testament to the positive relationship we have built over many years.

I am personally excited in my role as shadow minister to have the opportunity to continue building relationships with indigenous communities across Canada and to continue working to understand the challenges faced by these communities.

However, we are here today to talk about a trade agreement.

The Conservative Party of Canada is the party of free trade. It was under former prime minister Stephen Harper that Canada signed a record number of trade agreements, providing our Canadian businesses with unprecedented access to markets around the world. We have long supported free trade and will continue to support a free trade agreement with the United States and Mexico.

However, we cannot blindly support a free trade deal for the sake of supporting a trade deal. We need to take time to ensure it is a good deal for Canadian businesses. We must do our due diligence and examine all aspects of this deal. After all, this is a deal with Canada's largest and most important trading partner. Unfortunately, as has been mentioned earlier already, the government has withheld some important information from us, like the economic impact analysis, and this has hindered us from adequately scrutinizing the deal to this point.

It seems to me that Canadians have every reason to be a bit leery of this new NAFTA. We only need to look at how the government has mishandled very important trade issues for the farmers in my riding.

Throughout the campaign, I heard from canola and pulse crop producers who, over the past couple of years, have had to deal with the failures of the government on the international scene. I think specifically of pulse crop exports to India and canola exports to China. These are real issues and challenges for the farmers in my riding.

As we consider the legislation before us today, I would also like to highlight something that is missing from this agreement.

I am not aware of any agreement on softwood lumber being included in the new NAFTA. This is a significant issue for our forestry sector. I know we often think of B.C. and the workers who are suffering extreme hardships there due to the current government's failure on this file. My colleague, the member for Kamloops—Thompson—Cariboo, spoke very capably on this issue in the House on Tuesday afternoon when she pointed out that over two dozen mills had closed in British Columbia, while the government had focused western diversification funds predominantly to the major urban centres of Victoria and Vancouver.

Let me share a story from my own riding on this.

My riding in Saskatchewan also has a very significant forest industry. There are two lumber mills, an oriented strand board mill and a pulp mill, all within a few miles of my small community. I am sure members can appreciate the number of direct and indirect jobs and the economic spinoff this creates in a number of small communities in that area.

In question period in December, I highlighted one of these companies, NorSask Forest Products. This is a sawmill that supports over 400 direct jobs in the Saskatchewan forestry sector. It also has the highest proportion of indigenous forest employment in Canada.

NorSask is a 100% first nations-owned company, whose profits are directed to the nine bands that make up the Meadow Lake Tribal Council. The profits from NorSask Forest Products are funds that are used for core programs like housing, education and health care. This would also include suicide prevention programs, which unfortunately is a very significant challenge in these same ownership communities of which I speak.

As I pointed out in December, since 2017, NorSask has paid over $10 million in softwood lumber tariffs. That is $10 million of lost dividends that could have been paid to the ownership first nations. Imagine the services that could have been provided to the people of these nine small communities with $10 million.

Many stakeholders are affected by this agreement. They are looking for the certainty that comes with knowing they are getting a fair deal, so they can make good business and good investment decisions. That is why I personally look forward to reviewing this deal in detail and contacting many of the businesses in my riding to ensure their success will not be impeded as a result of this trade agreement.

I consider it an incredible honour to serve as a member of Parliament and I will never take that privilege for granted. I again thank all the people of Desnethé—Missinippi—Churchill River for putting their trust in me.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:05 a.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons

Mr. Speaker, I want to acknowledge and express appreciation for the amount of support that has been given to the agreement. Yesterday, for example, the Conservatives, the New Democrats and the Greens recognized the importance of this agreement to all Canadians, and that was encouraging.

I listened to my colleague's comments on the indigenous community. One of the things we really underestimate is the potential of indigenous entrepreneurs. This trade agreement will help those entrepreneurs who are looking to exporting into the future and getting these secured markets. Those entrepreneurs are one of the faster-growing communities across our country. The agreement will do a great deal in benefiting entrepreneurs in general.

Could the member provide his thoughts on secure markets and the benefits of today's and tomorrow's entrepreneurs, going forward?

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:05 a.m.

Conservative

Gary Vidal Conservative Desnethé—Missinippi—Churchill River, SK

Mr. Speaker, it is my understanding that there is no secure market for the forestry industry in the United States at this time.

During my campaign, I talked a lot about opportunity for all in the indigenous communities in my riding. What I mean is that the creation of great jobs is one of the very significant solutions we have for many of the challenges facing northern Saskatchewan, in my riding in particular. If we could provide people the opportunity to have a great job, we could give them some economic stability, self-worth and the fulfillment that comes with having a good job.

However, what we also provide in northern Saskatchewan with good jobs is hope. What is lacking in northern Saskatchewan is the hope that comes with having opportunity.

I have spoken many times about how the suicide crisis in northern Saskatchewan is because of a lack of hope. If young people in northern Saskatchewan could look to the people they look up to, their parents, big brothers and sisters, and if they could look to the people they respect and see them succeed by being part of the industry in northern Saskatchewan, they would have hope. With that hope, they would not have to consider suicide as an outcome.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:05 a.m.

Bloc

Mario Simard Bloc Jonquière, QC

Mr. Speaker, I thank my colleague for his excellent speech.

In the negotiations for the past few multilateral agreements, Quebec always seems to end up as a bargaining chip. It happened with softwood lumber, which still has no protection, it happened with the many breaches in supply management, and it is happening today with aluminum.

I wonder if my colleague has any thoughts on this. Why does Quebec always end up as a pawn in bilateral negotiations between this government and other countries?

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:10 a.m.

Conservative

Gary Vidal Conservative Desnethé—Missinippi—Churchill River, SK

Mr. Speaker, I do not think it was just Quebec that was a pawn in the negotiations for some of these deals. Many industries and individual players in Canada have maybe been used as pawns in this agreement.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:10 a.m.

Green

Paul Manly Green Nanaimo—Ladysmith, BC

Mr. Speaker, one of things I am very pleased about with this new trade agreement is that it has eliminated the investor-state dispute settlement provisions in the trade agreement, which give corporations extraordinary rights and powers to challenge our laws and policies that are put in place to protect citizens, our environment and workers.

Would the member opposite like to see investor-state dispute settlement removed from the other trade agreements we have signed, historically, and would he like to see Canada renegotiate some of these trade agreements to get rid of this anti-democratic measure that was in NAFTA, which will be removed in the CUSMA?

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:10 a.m.

Conservative

Gary Vidal Conservative Desnethé—Missinippi—Churchill River, SK

Mr. Speaker, we need to ensure that all Canadian businesses have the ability to prosper.

With the indigenous services file, one of the things we are looking for is partnerships between indigenous communities and industry, allowing indigenous people to be part of the private sector, to be part of the market so they create economic activity that will help them take care of the very demanding needs in their first nations communities.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:10 a.m.

The Deputy Speaker Bruce Stanton

Before I go to resuming debate, I have a comment for hon. members. I see many members standing up to participate in the time for questions and comments. I encourage hon. members to continue doing that and eventually we will get to them. We will do our best to apportion the opportunities to speak in this regard.

I invite members who would like to participate in questions and comments to continue to stand up. They will eventually be given the floor.

Resuming debate, the hon. member for Saint-Hyacinthe—Bagot.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:10 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, as we saw yesterday, the first bill was passed with the support of all parties in the House except for the Bloc Québécois. That does not mean that we are against free trade and openness to trade, far from it.

In fact, if we look at Quebec's history, the separatist movement has nothing to prove in that regard. The great economists, who were also some of the greatest statesmen of modern Quebec, such as Bernard Landry and Jacques Parizeau, were the fathers of free trade in Quebec. We need not be lectured about that. It would be in extreme bad faith to accuse us of being opposed to trade with other countries.

Nevertheless, that did not prevent Jacques Parizeau from opposing certain agreements. We had to vote against the agreement as presented yesterday for somewhat similar reasons. There seemed to be more arguments against than for. This is politics, not religion. Just because this agreement has a free trade label on it does not necessarily mean that it will get our vote, if it has negative impacts.

Sure, the agreement has some positives and we wish we could have supported it. Some real progress has been made, compared to the old NAFTA. However—and I think that the outcome and the policy positions show exactly why the Bloc is necessary—we represent Quebec, and Quebec is getting the short end of the stick with this agreement in many respects.

Some significant concessions were made, and this came up earlier in some of the questions that were asked. Quebec is bearing the brunt of these concessions, as usual. This agreement contains two deal breakers in particular. First, it undermines our agricultural model, which relies heavily on supply management. Once again, the dairy industry is an example of that. Second, it significantly hinders our aluminum industry's future prospects. This industry is Quebec's second-largest exporter and is a jewel in the crown of our economy.

Our aluminum industry shines for its small carbon footprint. Some even call it carbon neutral, and my colleagues from Saguenay—Lac-St-Jean would know about that. This agreement benefits Chinese aluminum, which would literally flood the North American market through Mexico. A great deal of carbon pollution is created in manufacturing this aluminum.

We are working very hard to force the government to take into account Quebec's interests, which it bargained away during the negotiations. That is our job as parliamentarians and our mission for the immediate future. We are reaching out to the government so that it will work with us to find ways to limit the harm it is causing to the aluminum industry and dairy farmers. As members know, we proposed a way to improve the agreement without having to open it completely. That does not mean that we will not do our job in committee by asking questions and trying to take the agreement in a better direction. Nevertheless, we suggested an approach that would not require opening the agreement.

If the government finds a way to limit the harm that the agreement will cause our dairy industry and to protect our aluminum smelters, particularly against Chinese dumping, then we will be pleased to support the next steps. That is what we want for Quebec.

The government started speaking about openness the very evening it was elected. We have also heard about openness in this debate. However, openness goes both ways. We are willing to negotiate and discuss, but we will not compromise our principles.

Let's talk first about the key sectors of the Quebec economy that are threatened by this agreement. We believe that supply-managed products are a non-negotiable item, yet the government undermined protections for these products when it gave the Americans oversight over our trade practices.

We also believe that the aluminum industry is a non-negotiable item, yet the government agreed to allow Chinese aluminum to flood the North American market by going through Mexico.

Obviously, the government did not stand up for Quebec with the same vigour as it did for Ontario and western Canada. We cannot support the bill to ratify the CUSMA as it stands.

That is why we want the government to co-operate with us and take Quebec's needs into account.

Let's start with aluminum. Canadian and U.S. courts determined that Chinese aluminum was being dumped. That is not our allegation; it is the courts' finding. Unfortunately, as we all know, dumping is common, unfair and illegal. Canada and the United States both impose anti-dumping tariffs. Mexico, however, has no aluminum smelters, so it does not impose anti-dumping tariffs on Chinese aluminum.

As written, the agreement makes it possible for Chinese aluminum to flood the North American market, even though Canada and the United States have protective anti-dumping tariffs. Chinese aluminum is simply processed in Mexico, circumventing the protections we put in place. For free trade to be truly free and profitable for all, it must make unfair trade practices such as dumping impossible.

We also want to minimize our dairy producers' losses. In addition to opening up 3% of the Canadian market to American producers, CUSMA will make it harder for our producers to sell their milk protein to processors. As a result, American diafiltered milk imports could skyrocket, which is an ongoing issue we have been talking about for years.

As drafted, the agreement gives the Americans oversight into all our milk protein exports outside North America. Having a provision like this in a trade agreement is unheard of and it has the potential to completely destroy the dairy industry. We are trying to raise the main concerns with that aspect of the agreement.

I want to come back to aluminum to recap. Under NAFTA, automobile and truck manufacturers are under no obligation to buy North American steel and aluminum. Under the terms of the new CUSMA, 70% of the aluminum and steel bought by car and truck manufacturers has to originate from North America. To qualify as originating from North America, the steel and aluminum will have to undergo significant processing in North America.

On December 10, 2019, the three negotiating parties of the agreement signed a protocol of amendment to CUSMA. The protocol states that seven years after entry into force, steel purchased by manufacturers will have to be refined and cast in North America. That is the rub. There is no such provision for Quebec's aluminum. The amendment also states that 10 years after entry into force of this agreement, the parties will review the appropriate requirements in the interest of the parties so that aluminum can be considered as originating from North America.

Groupe Performance Stratégique, or GPS, examined the absence of a definition for aluminum similar to the definition included for steel in the protocol of amendment, and the economic impact this will have on Quebec between 2020 and 2029. According to GPS, the absence of this definition will jeopardize six major projects on the North Shore and in Saguenay—Lac-Saint-Jean, in other words, the heart of Quebec's aluminum sector. The authors explained that Mexico can continue to transform primary aluminum purchased at a very low price from China or elsewhere and export it to the United States.

I am pleased that my colleagues from Saguenay—Lac-Saint-Jean are here for the debate, because those six projects involve construction investments worth about $6.2 billion. I am sure everyone would agree that this is a lot of money. Between 2020 and 2029, if you add up the combined economic impact of the development and construction phases of the six projects, we are talking about investments worth $12.2 billion and 60,000 jobs created, at an average salary of $59,775.

These projects would generate revenues of more than $900 million for the Government of Quebec and almost $325 million for the Government of Canada. These projects would also produce 829,000 new tons of the greenest aluminum on the planet.

As we have been told repeatedly by the government, nothing in the former NAFTA protected the aluminum sector. We agree. This addition may look like progress, yet that is exactly where the problem lies. They are mixing up aluminum parts and aluminum. My colleague from Lac-Saint-Jean just talked about that. Why is aluminum, a Quebec product, not being offered the same protection as steel, which is a product of other provinces? That is where the problem lies and I will say that we are going to stand firm on this issue.

The definition of steel is clear. It includes the entire process, from melting, to mixing to coating. This will come into effect in seven years. Auto and parts manufacturers will have time to switch suppliers and to start purchasing North American steel. That is all very well and good. We have no problems with that at all.

However, a definition for “originating good” was not adopted for aluminum. Back in 2018, since there was no definition, the agreement was nothing more than a statement of intent that essentially allows automobile and parts manufacturers to get their primary aluminum wherever they want.

I should point out that Canada is the only of the three signatory countries for which protection against Chinese dumping is a real issue. In Quebec, it is imperative. For parts manufacturers in Ontario, this will be more of a long-term issue, which may explain why the government is so reluctant to deal with it.

Now, I want to talk about dairy farmers. Quebec needs a strong voice standing up for it, and we hope to be that strong voice. As members know, supply management is extremely important in Quebec, but less so in the rest of Canada. This is what makes us different as a people, as a nation. This is why we will not compromise on this.

Since 2001, which, coincidentally is the same time when the Bloc lost its recognized party status, there have been three breaches in supply management. When the Bloc had power, there were no breaches in supply management. Once again, this very fact demonstrates why we need to be here.

The Canada-United States-Mexico Agreement, or CUSMA, opens up a new breach in supply management that will take away more than 3% of our dairy market, which amounts to a loss of about $150 million a year, every year. The government announced that there would be full compensation. Let us be clear about the nature of that compensation. It is out of the question for this support to come in the form of a modernization program, like the fiasco that happened in 2018 with the European agreement. We are demanding a direct support program, starting with the next budget. That is what farmers are calling for. We will not budge on this either.

One issue that is not getting much attention, but that has the potential to destabilize the industry, is milk protein. Consumers in both Canada and the United States are drinking less milk but eating more butter, cream, cheese and ice cream. This leaves dairy farmers with surplus protein to dispose of. The Canadian International Trade Tribunal ruled in 2006 that above a certain concentration, these proteins became so denatured that they could no longer be considered dairy products and were therefore no longer subject to supply management, the existing laws that prohibit cross-border imports. The American agrochemical industry has developed milk protein concentrates designed specifically to circumvent supply management and enable U.S. farmers to dump their surplus into the Canadian market at lower prices than our farmers can afford to sell for. In Canada, the price paid to farmers is regulated by the Canadian Dairy Commission, as we know. However, imports of diafiltered milk, which does not even deserve to be called milk, have simply skyrocketed.

From zero in 2008, they shot up to 20,000 kilograms in 2014 and 33,000 kilograms in 2015, and they probably would have kept rising.

To solve the problem, farmers came to an agreement with processors on a price that would enable them to switch from American diafiltered milk to our domestic surplus protein. Their agreement was endorsed by Ottawa, the Canadian Dairy Commission, the provinces and the marketing boards.

Canada created a new class of dairy products, surplus protein, that could be sold at a low price. It was commonly known as class 7. Imports of diafiltered milk collapsed, prompting a flurry of irate tweets from U.S. President Trump, who promised to solve the problem during the renegotiation of NAFTA, as members may recall.

In CUSMA, the Americans insisted on spelling out in black and white that Canada would abolish class 7, and Ottawa agreed. To make sure that the class was not revived under a different name, they demanded that they get a say in Canada's protein trade. This whole section of the agreement is deeply disappointing to farmers, but sadly, with a certain sense of resignation, they are giving up the fight. They are not asking the government to push back on this. What they are asking for is a little time to adjust, as much time as is necessary and reasonable.

The government's eagerness to hastily ratify this agreement could cause a lot of harm. Let us take our time on a debate like this one. Let us not rush through this or there will be collateral victims.

Right now, our dairy farmers are selling some of their surplus milk protein concentrates on international markets, for example, in Asia and the Middle East.

The wording of CUSMA regarding the trade of protein concentrates seems to give the United States a say in all of our exports. Washington could decide to limit the quantity of protein concentrates that our farmers can sell to third country markets. Depending on how this CUSMA provision is interpreted, Washington could limit the quantity of protein concentrates that our farmers have the right to sell to the rest of the world. This would enable the Americans to get rid of a competitor on global markets at very little cost. It is a first in the history of international trade to give a foreign country oversight over our trade with the rest of the world. It basically hands over a part of Canada's sovereignty to Washington.

Our producers are likely to end up with huge surpluses of milk solids they cannot sell, which would totally destabilize the system. As written, CUSMA makes that catastrophic scenario a possibility, but the wording is unclear. We need clarity about things like that before we can support the agreement.

Fortunately, there will be a process to debate it. We are perfectly willing to do our job as parliamentarians with the government and the other opposition parties, but let me make it clear that some things are off the table. We are willing to compromise, but not to be compromised.

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:30 a.m.

Liberal

Yvan Baker Liberal Etobicoke Centre, ON

Mr. Speaker, I want to thank the member for his comments and ideas.

I think this version of NAFTA is a major win for Quebec's aluminum workers. We fought to get rid of U.S. tariffs. We are the only major aluminum producer not subject to U.S. tariffs. The new agreement guarantees that 70% of the aluminum used in cars will be North American. Currently, there are no such guarantees.

Is it not true that this agreement will make things better for aluminum producers and workers? Is it not true that the Government of Quebec supports this agreement?

Canada-United States-Mexico Agreement Implementation ActGovernment Orders

January 30th, 2020 / 11:30 a.m.

Bloc

Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot, QC

Mr. Speaker, aluminum workers have expressed their fears. The best way to discuss what is right for them is to ask them directly. A full delegation from Saguenay—Lac-Saint-Jean actually came here yesterday to make their voices heard. It was made up of local elected officials, union leaders and representatives from the economic sector, and its message was not that this agreement would be good for aluminum workers. It is easy to assume all kinds of things and say that it is a better agreement, but at the end of the day, when we ask those people, the answer is clear.

As for whether this constitutes progress compared to NAFTA, the use of the word “parts” basically waters down any potential benefit that might have come from such protection. This is a problem. When we talk about parts rather than molten aluminum, that changes everything—