CIIT Committee Report

SUPPLEMENTARY REPORT BY THE LIBERAL PARTY OF CANADA

THE CANADA-EUROPEAN UNION COMPREHENSIVE ECONOMIC AND TRADE AGREEMENT

INTRODUCTION

The Liberal Party of Canada supports free trade, believing that free and fair trade agreements open markets to Canadian goods and services, grow businesses, create jobs and provide Canadians with more choices and fairer prices. We are also broadly supportive of the Canada-European Union Comprehensive Economic and Trade Agreement, or CETA, which, if fairly implemented, would remove existing trade barriers, widely expand free trade between Canada and the European Union (EU), and increase opportunities for Canada’s middle class.

A wide range of testimony was received by the Committee on the topic of the CETA. While much of the testimony indicated the promise of the CETA for Canada, witnesses testified that their support for the CETA is conditional at this time. A common refrain was “the devil is in the details,” and it is hard for Canadians to give outright support to an agreement when they haven`t yet seen the text but only the technical summary. As the Committee heard, technical discussions on a wide array of issues are continuing, and we don`t know when the final agreement will be concluded or what the final outcome will be.

CONSULTATIONS

Witnesses disagreed regarding their view of the consultations that the federal government undertook regarding the CETA. While a number of groups noted that they were satisfied with the nature of these consultations, a significant number of other witnesses expressed that the consultations by the government were either superficial or non-existent.

With something like a trade agreement, which has broad and significant impacts on a great many Canadians and Canadian businesses, consultations must be considerably more thorough, transparent and ongoing than was felt to be the case during the CETA negotiations. As free trade agreements continue to be pursued, we can only hope that the government learns from this experience.

SPECULATION AND ASSESSING IMPACTS

Another issue that gave our Party cause for concern was that so much seemed to be speculative. No doubt this partly reflects the fact that the final text is not yet available. Without that text, all that witnesses are able to do is speculate about the possible gains, losses and/or other impacts of CETA on them or their sector. 

The Committee heard an abundance of testimony on the CETA, but with so few details about the finalized text, it is very difficult for decisions and investments to be made with any certainty. Consequently, once the CETA is implemented, it may be too late for businesses to take full advantage of the CETA.

While some witnesses made positive comments about the impact of CETA on the Canadian economy, it should be noted that this view was not uniform. A number of witnesses raised specific concerns about how the agreement would affect their sectors, and have been left wondering how the federal government plans to support them in helping mitigate any negative impacts.

RECOMMENDATIONS BY THE LIBERAL PARTY OF CANADA

The Liberal Party of Canada believes that in addition to the recommendations in the body of the report, the following are some of the additional recommendations that should be considered since their implementation would, in our view, improve the quality of life of Canadians, enhance the economic standing of Canadian businesses, and ensure that trade with the EU is free and fair.

However, it is also important to recall previous recommendations and concerns expressed by the Liberal Party of Canada. First, the key Liberal recommendations from this Committee’s 2012 report have not been addressed in this report. Second, as of the date of this report, there remains no final text of the CETA, only a brief technical summary, which limits analysis and debate. The indication by officials that a final document may not be ready for months is concerning. This report thus remains little more than a speculative exercise due to the lack of a final document.

The Liberal Party of Canada recommends:

Recommendation 1

That the federal government ensure that the final text of the CETA includes details about non-tariff barriers and the agreed means to deal with them so they will not impede trade between the two parties after CETA comes into force. At a minimum, the text should address issues such as labeling, traceability, and genetically modified organisms.

Recommendation 2

That the federal government, in developing an action plan to support Canadian businesses in their efforts to take advantage of the CETA, ensure that the plan includes the following actions:

• increase the number of trade commissioners in EU member states;
• use the Export Development Canada to better advantage;
• introduce measures to promote Canadian brands.

The government should also pay attention to supporting small and medium-sized enterprises (SMEs), which should be provided with the tools and other resources they need to take full advantage of the CETA.

This action plan and the supports specific to SMEs should be in place before the CETA enters into force.

Recommendation 3

That the federal government, in the context of the rules of origin in the CETA, recognize the importance of supply chains and ensure that the integrated nature of the North American automotive sector is recognized.

Recommendation 4

That, before the coming into force of the CETA, the federal government develop a strategy to help the dairy sector, cheese producers and fishing communities throughout Canada benefit from the CETA.

Recommendation 5

That the federal government ensure that the thresholds set out in the CETA for the acquisition of goods and services in relation to government procurement allow municipal, provincial and territorial governments to maximize local economic benefits, including through the provision of local employment opportunities.

Recommendation 6

That, before the CETA comes into force, the federal government clarify which European ships will be permitted to ship in Canadian waters and which Canadian waters these ships will be able to access.

Recommendation 7

That, if the CETA includes an investor-state dispute settlement mechanism, the federal government ensure that the mechanism is transparent, contains binding provisions to avoid conflict of interest for arbitrators, and does not limit the ability of governments to act in the public interest. As well, the mechanism should provide different time frames for the resolution of disputes in different sectors.

Recommendation 8

That, before the coming into force of the CETA, the federal government conduct and publish a study assessing the financial impact of increased intellectual property protection of patented drugs in Canada on Canadian provincial and territorial health care systems and prescription drug costs. As well, the government should inform Canadians about likely delays in accessing drugs and/or any possible increases in prescription drug costs, and should ensure that access to health care is not jeopardized.