Canada-Ukraine Free Trade Agreement Implementation Bill, 2023
Second Reading--Debate Continued
February 14, 2024
Honourable senators, most of you know me well enough to know that I usually weigh in on matters of social affairs, human rights and global affairs as they pertain to these areas. But, for the first time, I’m weighing in on a trade agreement, on the Canada-Ukraine Free Trade Agreement, or CUFTA. That’s because I see it, as Senator Harder said so eloquently yesterday, as not just a trade agreement. It’s a signal and a symbol of our support to a troubled nation, which is under illegal attack.
Ukraine is in desperate need of our support, no matter in which form it comes, especially now as its citizens bravely risk their lives in defence of their country. I am quite frankly in complete awe of their resilience, but despite their resilience — let’s not fool ourselves — the situation is dire, with Russia inflicting daily destruction on the country, killing civilians and causing widespread displacement of millions, as refugees either abroad or within Ukraine.
For me and for many others, a particularly troubling aspect of this illegal invasion is the forced kidnapping of thousands of Ukrainian children to Russia without their families’ or guardians’ consent. The International Criminal Court, or ICC, has therefore called for the arrest of Russian President Vladimir Putin on charges of illegally deporting children. The United Nations Committee on the Rights of the Child has called on Russia to cease this forced kidnapping and to work on reuniting these children with their families.
We also know that the actions of Russia impact and resonate across the globe. The actions are impacting hundreds of millions of people in the global south by causing food shortages and famine due to the blockade of Ukrainian ports. This conflict has led to a surge in global energy prices and food prices, affecting all countries, including right here in Canada.
Russia’s actions pose an existential threat to the global order and to our national security. It is imperative for Ukraine to triumph in this war, and we must hold Russia to account for its crimes.
In March 2023, the World Bank estimated that the reconstruction of Ukraine will cost $411 billion, increasing by $10 billion each month. This underscores, therefore, the significance of the Canada-Ukraine Free Trade Agreement, particularly as Ukraine’s economy has declined by a full 30% since the war.
Senator Harder explained the trade agreement very well, so I won’t be as fulsome on the particulars as he was.
This trade agreement will encourage greater involvement of Canadian businesses, including Indigenous businesses. The modernized investment chapter ensures a protective framework for investors, maintaining the parties’ right to regulate and offer flexibility in crucial areas, such as the environment, health, safety, Indigenous rights, gender equality and cultural diversity. The updated chapter introduces a modern dispute settlement mechanism with strengthened alternatives to arbitration and enhanced transparency.
Furthermore, the agreement includes a dedicated chapter on temporary entry into both countries, fostering economic opportunities for Canadians and permanent residents. This chapter facilitates temporary entry and labour mobility for specific categories of business individuals, eliminating border barriers such as economic needs tests or numerical quotas.
It also includes a groundbreaking chapter on trade and Indigenous peoples. This economically oriented and cooperation‑driven chapter establishes a bilateral committee aimed at facilitating cooperative efforts to eliminate barriers and challenges faced by Indigenous peoples in trade participation. It commits to upholding — and refraining from weakening — domestic laws and protections safeguarding the rights of Indigenous peoples, fostering trade and investment while promoting responsible business conduct. The two countries also affirm their commitment to the United Nations Declaration on the Rights of Indigenous Peoples, or UNDRIP.
This trade agreement, therefore, benefits not only Canada’s economy, but also guides Canadian companies in investing in Ukraine’s reconstruction. Believe me, the reconstruction will come, and we need to be there to help Ukraine build itself up again, and to take part in that reconstruction.
Colleagues, I have always been heartened when our political leaders stand up on the global world stage and follow our collective moral compass: Lester B. Pearson during the Suez Crisis and the creation of the first-ever UN peacekeeping force; prime minister Brian Mulroney in his stand against apartheid in South Africa; prime minister Jean Chrétien in the banning of anti-personnel land mines; and Stephen Harper’s strong stand against Russia after the annexation of Crimea. I was not in the room, but I have heard that he pretty much said the following words. I’m trying to channel my inner Stephen Harper; he must have said something like this: “President Putin, you must get out of Ukraine.” Hurrah for Canada at that moment.
I have also taken comfort that support for Ukraine since the full-scale invasion has not been a political issue in Canada. All corners — in both houses of Parliament — have supported Ukraine.
This has led to substantial financial aid of roughly $9 billion. This includes military, humanitarian and immigration assistance. Additionally, Canada has taken a lead in advocating for the confiscation and repurposing of Russian frozen assets to support the reconstruction of Ukraine and to make Russia pay. As my good ally Bill Browder has said, “Putin broke it, he should fix it.”
I have to tell you that I am worried. For the first time, we are seeing in Canada a fraying of support for aiding Ukraine. A recent poll from Angus Reid Institute indicates a decline in support for aiding Ukraine, especially among Canadians who identify as Conservative. This shift, I think, can be attributed to a number of factors, including winds from south of the border that have penetrated our national narrative — possibly the presence of Tucker Carlson in Alberta, and so on and so forth.
While I am confident in the robust support for Ukraine within this chamber, we cannot — and should not — turn our backs on Ukraine.
We also cannot, colleagues, let a domestic fight and political disagreement on carbon pricing impact our support for Ukraine. Ukraine has had a price on carbon since 2011 — way before we were even talking about it. This agreement in no way imposes a requirement for that.
Colleagues, moving forward with this legislation is what we need to do. It will send a powerful message of solidarity and commitment to standing by Ukraine in its moment of need.
Thank you very much.
Honourable senators, I rise today to speak in favour of Bill C-57, which will implement the modernization of the Canada-Ukraine Free Trade Agreement, or CUFTA. For those in this chamber who understand Ukrainian, it’s called —
[Editor’s Note: Senator Kutcher spoke in Ukrainian.]
Like Senator Omidvar, I’m absolutely no expert in free trade, but, like Senator Omidvar, I recognize the importance of this piece of legislation for the global security of this world and the security of Ukraine.
This bill addresses updates to the existing agreement that has been in place between our two countries since it came into effect in August 2017. This was the culmination of many years of negotiations that began under the government of prime minister Stephen Harper.
Much has changed since then — in Canada, in Ukraine and globally. These changes are part of the reason to revise this existing agreement and to bring it into effect as quickly as possible.
As we know, Ukraine is a developing democracy, having thrown off the shackles of Russification following the dissolution of the Soviet Union. This move away from the autocratic influence of Russia threatened Putin’s vision of an imperial empire, and Russia began a genocidal war on Ukraine, invading them on February 24, 2022.
Putin’s certainty of a rapid victory was dashed by a vigorous and successful Ukrainian resistance that has resulted in the slog of warfare that everyone in this chamber is familiar with.
Ukraine, while fighting a war against one of the world’s largest military powers, continues its march toward democracy and toward a stronger affiliation with Western values and Western collaboration. Indeed, some have noted that Ukraine is defending the eastern borders of Western democracies, giving them time to improve their defensive readiness for what may become the greatest threat to democratic survival since the rise of Fascism in the 1930s and World War II that followed.
Canada is a country that is an integral part of the multilateral association of like-minded states that Ukraine is seeking to join.
Canada has been working for many years to help strengthen Ukraine’s democratic institutions, for example, by assisting in judicial reform through a number of projects, which include the following: Canada-Ukraine Judicial Cooperation Project; Canada-Ukraine Judicial Reform Project; and Canada-Ukraine Policy Advice (sub-) Project. Operation UNIFIER — the Canadian Armed Forces’ military training and capacity-building mission in support of Ukraine’s armed forces — was launched by Prime Minister Harper in 2015, and it continues.
Since 1991, Canada has been one of Ukraine’s leading bilateral development assistance partners and between 2014 and 2021 has committed more than $250 million in developmental assistance to Ukraine. We’ve also provided substantial military and financial support. This includes more than $350 million in humanitarian funding, and Canada currently participates in international activities addressing Ukraine’s reconstruction once this war over and Ukraine has been victorious.
Canadians are, for the most part, supportive of Ukraine and its difficult journey towards becoming a functioning democracy. We are appalled at the Russian aggression, the criminal missile attacks targeting civilians, the unnecessary loss of life and the theft of children. Many Canadians are donating substantial sums of money to support the Ukrainian people.
The Ukrainian diaspora in Canada numbers about 1.5 million, most of whom have long-established family and personal ties with Ukraine and who are actively involved in supporting Ukraine, including this revision of the Canada-Ukraine Free Trade Agreement, or CUFTA. Ukrainian immigrants to Canada have helped our country grow and prosper. From the settling of the Western provinces to outstanding contributions to our economic, scientific, cultural and political life — indeed, even to contributions in this chamber — the links between Canada and Ukraine have been long-standing, robust and good for both countries.
Ukraine is not some far-off foreign land. On the contrary, it has long-established economic, military, institutional, cultural and people-to-people relationships with Canada. It is struggling to free itself from tyranny during a war and to move more quickly into the group of like-minded states that share the values of democracy and the rule of law. This modernization of the Canada-Ukraine Free Trade Agreement is one small but important step towards that goal.
An important voice to Ukrainians in Canada is the Ukrainian Canadian Congress, the UCC. It clearly and unequivocally supports this modernization of the Canada-Ukraine Free Trade Agreement. In addressing this issue, in addition to confirming their support, the UCC president, Alexandra Chyczij, put her finger on a very important issue. She said, “. . . supporting Ukraine means supporting measures to build Ukraine’s economic resilience . . . .”
With this analysis, she identified that trade agreements are more than just agreements about trade. Trade agreements are an important component of foreign policy and part of the fabric that can be used to support the rules-based international order. Bilateral agreements, such as this, can bring about various economic, political and strategic benefits for both countries. The Canada-Ukraine Free Trade Agreement provides such a direction.
It builds on a robust history of post-Soviet Union interaction between Canada and Ukraine. It recalls a long-standing history of deep person-to-person ties between the Ukrainian diaspora and Canada. It points to a future where economic, political and strategic collaboration between Western democracies, such as Canada, and a Western-Europe-facing borderland, such as Ukraine, will become ever more important, not only for bilateral considerations but as a necessary cog in the machinery that binds like-minded states together to support the rules-based international order.
The larger value of this agreement in helping to stabilize the geopolitical situation of Europe’s eastern border cannot be underemphasized. Stronger economic ties with Canada would be helpful not only during this period of genocidal war but also during the reconstruction period, as Senator Omidvar has mentioned. This would also assist the ongoing work that Canada has been doing with Ukraine in strengthening Ukraine’s democratic institutions. Engaging in economic partnerships with countries that share similar values can help promote those principles, not only in Ukraine but — and this is important — in other previous Soviet Union satellites. These are countries that are nervously observing the current wave of Russian imperialism and wondering about charting their own path towards a democratic — as opposed to an authoritarian — state.
This trade agreement is an important step for Canada as it charts its course in the complex geopolitics of what is increasingly becoming a multilateral world order. Modernizing CUFTA at the same time that Ukraine is fighting for its right to throw off Russia’s autocratic chains is a strong sign of action on the global stage. It’s a strong signal showing Canada’s support of democracy as a preferred system of governance and the international rule of law.
This agreement has a number of potential positive outcomes for Canada. These include, but are not limited to, the opening of new markets not only with Ukraine itself, but as a doorway into the European Union and the emerging economies of the new Silk Road states, such as Kazakhstan and Turkmenistan, especially given their strategic location between Russia and China.
Additionally, strengthening Canada’s trade relations with Ukraine helps Canada diversify its markets, reducing our risk to supply chain disruptions, whatever their cause. Indeed, the legislative summary of the bill clearly identifies this market‑‑opening intent.
Of additional interest to Canada is the potential that this updated free trade agreement can have on the further development of our agricultural sector. Ukraine’s major exports are agricultural products, and it is rapidly developing its agri-food industry. Indeed, the European Union has already been active in activities directed at enhancing this sector of the Ukrainian economy.
The Ukraine Agri-Food Value Chain TA Project is a good example of that work. CUFTA-based collaboration between the Canadian and Ukrainian agri-food industries and collaboration between Canadian and Ukrainian universities that can provide the research and development necessary for further innovation and growth in this sector would then bring benefits to both countries.
Additionally — and I’m from the East Coast — our growing fish and seafood export industry may be a potential beneficiary. In 2022, Canadian exports to Ukraine were about $115.5 million. Of this amount, fish and seafood products made up a very significant component. Canada is currently amongst the top suppliers of fish and seafood to Ukraine. According to Ukrainian Importers of Fish and Seafood, Canadian exports in the sector were primarily frozen hake, cold-water shrimp, capelin, pollock, ocean perch and frozen and live lobster.
Those who have been following our global fish and seafood export market development are aware of the challenges that currently face our China-facing exports, and may be able to appreciate the opportunity for export of these commodities to a nation that will grow wealthier and become more interested in global trade opportunities.
These are only two of the sectors that we can see potential growth in. A modernized CUFTA will not only continue to provide additional opportunities for preferred market access but will help establish a better set of circumstances to promote new market access for additional trade sectors and investments.
Colleagues, much more can be said in favour of moving ahead quickly on this important piece of legislation with its potential positive economic and geopolitical impacts. Simply put, in my opinion, CUFTA will be good for Canada and good for Ukraine. Isn’t this what we want from a bilateral free trade agreement?
Please join me in voting to send this bill to committee for detailed study as soon as possible. Thank you. Dyakuyu.
Honourable senators, I ask for leave of the Senate to suspend the sitting until 6 p.m. to await the Committee of the Whole.
Is leave granted?
Therefore, the Senate is suspended until 6 p.m.
