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Canada-Ukraine Free Trade Agreement Implementation Bill, 2023

Second Reading

February 15, 2024


Honourable senators, I rise today to speak about Bill C-57, An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine.

Canada’s connections with Ukraine stretch far into our past and are very deep. In 1896, a federal program sought to settle the Prairies with Eastern European farmers by promoting Canada as the “Last Best West.” Thousands of Ukrainians came to Canada to build a new life and fulfill their dreams. Fast-forwarding to 2024, at least 1.3 million Canadians now claim Ukrainian heritage.

But our relationship with Ukraine is not merely historical; it is also based on the strength of the human spirit and our collective commitment to uphold the principles of justice, liberty and human dignity. I am profoundly moved by the enduring friendship between Canada and Ukraine, a bond forged through shared values of freedom, democracy and mutual respect.

It is worth noting that Conservatives have a long history of supporting Ukraine’s sovereignty and independence. The Conservative government of Brian Mulroney was the first, along with Poland’s, to recognize Ukraine’s independence, on December 2, 1991. Two years before that, former Prime Minister Mulroney appointed Ray Hnatyshyn as Governor General of Canada, the highest honour ever bestowed to a Canadian of Ukrainian origin.

The invasion of Ukraine by the Putin regime did not start in February 2022. Its origins can be traced back to 2014. At that time, former Prime Minister Harper spearheaded efforts to isolate Russia and impose sanctions in response to its aggression. The leadership exhibited by Canada under former Prime Minister Harper’s guidance was widely acknowledged and played a pivotal role in fostering a consensus. As former Prime Minister Harper emphatically stated, “Whether it takes five months or 50 years . . .” our commitment to safeguarding the territorial integrity of Ukraine remains unwavering. When Vladimir Putin went to shake his hand at an international summit, former Prime Minister Harper refused and told the Russian thug to “get out of Ukraine.”

As we know, Putin did not get out of Ukraine. On the contrary, in February 2022, Russia attacked Ukraine.

I must address the illegal invasion of Ukraine by the Putin regime, an act that stands as a stark reminder of the challenges we face in defending the principles of sovereignty, territorial integrity and international law.

It’s crucial to recognize that Putin’s war of aggression extends beyond Ukraine. His actions aim to undermine the very foundations of democracy, the rule of law and the pursuit of opportunity in the Western world. President Zelenskyy’s warning resonates deeply; he said, “Moreover, it is dangerous not only for Ukraine, but also for all countries of the democratic world.”

By weaponizing energy, Russia not only destabilizes regions like Europe, but also fuels the conflict in Ukraine, creating eternal suffering and instability. We must pay more attention to these warnings, take decisive action to counter Russian aggression and uphold the principles of democracy, peace and international law. We Conservatives will support Ukraine unconditionally; we will always stand with Ukraine.

But our support for Ukraine goes beyond mere condemnation of Russian aggression; it is rooted in a deep and abiding commitment to standing with Ukraine in its struggle for freedom, democracy and prosperity. From the earliest days of Ukraine’s independence, Canada has been a vocal advocate for Ukraine’s right to self-determination and consistently called for the protection of its territorial integrity and sovereignty. Canadians of Ukrainian origin, who make up a significant portion of our population, have played a crucial role in shaping our country’s response to the crisis, mobilizing support within their communities and advocating for stronger action against Russian aggression.

In Canada, the Conservatives have been vocal champions of Ukraine, tirelessly advocating for robust measures to counter Russian aggression and support Ukraine’s sovereignty and territorial integrity. We have called for increased military assistance to Ukraine, including the provision of lethal defensive weapons, to bolster its ability to defend itself against external threats. The Conservatives understand that Ukraine’s fight is not just about its own sovereignty but also defending the principles of freedom, democracy and international law that are under assault from authoritarian regimes like Russia’s.

One of the most significant milestones in Canada’s relationship with Ukraine was the signing of the Canada-Ukraine Free Trade Agreement, or CUFTA, in 2016. Under the leadership of former Conservative prime minister Stephen Harper, Canada became the first Western nation to sign a free trade agreement with Ukraine, opening up new opportunities for trade and economic cooperation between our two countries. This landmark agreement has strengthened the economic ties between Canada and Ukraine, creating new opportunities for Canadian businesses to expand into the Ukrainian market and for Ukrainian exporters to access Canadian markets. CUFTA came into force on August 1, 2017.

Genuine free trade with Canada is crucial for Ukraine’s economic development and prosperity, providing Ukrainian businesses with access to new markets, investment opportunities and technology transfer. By deepening our economic ties with Ukraine, Canada is helping to support Ukraine’s economic growth and stability, creating new opportunities for job creation and economic development.

The Canada-Ukraine Free Trade Agreement is not just about economics; it is also a symbol of Canada’s unwavering commitment to supporting Ukraine’s sovereignty and independence in the face of this Russian aggression. By strengthening our economic partnership with Ukraine, Canada is sending a powerful message of solidarity and support to the Ukrainian people as they strive to build a brighter future for themselves and future generations.

With respect to what is contemplated in Bill C-57, this modernization would build on the 2017 agreement.

In 2022, our trade numbers with Ukraine totalled a hefty $420 million. That breaks down to $150 million worth of goods heading out from Canada and $270 million worth coming in. When we hashed out this deal during the Conservative government’s tenure, we intentionally structured it to initially give Ukraine a bit of a leg up. The idea was to start small and gradually expand, adding more items to the agreement over time.

Originally, our focus was mainly on trading physical goods such as cars and seafood. But as we progressed, we broadened the scope to include services as well, making the agreement more comprehensive. Since the inception of this deal, exports to Ukraine, excluding coal, have increased by approximately 28% between 2016 and 2019.

This upward trend highlights the mutual benefits of free trade for both parties. It is because of significant results like these that Conservatives support free trade in principle. They underscore the benefits of fostering open trade relations and the positive impact they have on economic growth and prosperity for both Canada and its trading partners.

With respect to the things we trade, we’ve been exporting products such as vehicles, parts, fish, seafood and pharmaceuticals to Ukraine, while Ukraine has been dispatching products such as animals, vegetable fats, oils, steel and electrical equipment to us. This presents a real opportunity for Canadian enterprises to up their game and tap into the burgeoning Ukrainian market.

So, as we think about the future trajectory of trade between Canada and Ukraine, it’s evident that this initial agreement has laid a solid foundation. By sustaining this momentum and exploring new avenues, we can continue to foster growth and fortify the bonds between our two countries.

However, when we examine the complexities of international trade, particularly in the context of agreements with the European Union, we encounter a host of challenges concerning sanitary standards, particularly regarding the trade of beef and pork. These hurdles have become especially apparent in our ongoing talks with the United Kingdom, where Canadian producers encounter significant barriers to getting their products to market. Despite the passage of time, these barriers remain, largely due to strict regulations aimed at protecting public health and biodiversity. While these measures are undoubtedly important, they sometimes act as non-tariff barriers, complicating trade and disrupting the smooth movement of goods.

The process of resolving disputes related to these standards has been further complicated by some intricate arbitration procedures, which can often be cumbersome — and, in some cases, nearly impossible — to overcome. However, amidst these challenges, there is a ray of hope found in the provisions outlined in the current free trade agreement. These provisions commit to addressing such disputes according to the established guidelines of the World Trade Organization. This marks a significant departure from past agreements, like CETA, the Canada‑European Union Comprehensive Economic and Trade Agreement, where similar issues have remained unresolved, impeding trade and economic cooperation. Thus, the incorporation of these provisions in the current agreement is a positive step forward, offering the promise of greater clarity and efficiency in resolving trade disputes linked to sanitary and phytosanitary standards.

When exploring the landscape of Canada’s energy opportunities, there is a crucial aspect: the provisions within the agreement pertaining to the phasing out of coal. This discussion sheds light on the noteworthy resurgence of coal consumption observed across Europe. This resurgence is not merely a happenstance but rather a deliberate response to reduce dependence on Russian gas imports, which, as we’re all aware, directly funds Russia’s ongoing military aggression in Ukraine.

What’s particularly striking is the proactive stance taken by several European countries in seeking Canadian exports of liquefied natural gas, or LNG. That demand that has been readily met by the United States, evident in its recent investments in expanding LNG export facilities. Unfortunately, Canada has yet to capitalize on this burgeoning demand, resulting in missed economic opportunities and potential avenues for collaborative endeavours that could have propelled our energy sector onto the global stage. A Conservative government will take a much more proactive approach.

Colleagues, it’s imperative to recognize the significance of establishing genuine free trade agreements, ones that prioritize fair economic exchange while upholding democratic values and international law. A robust free trade agreement serves not only as an economic tool but also as a bulwark against aggression and tyranny. It is a tool for fostering collaboration, prosperity and stability on the world stage.

Conservatives have negotiated over 50 trade deals. We are the party of free trade. Free trade between free nations is something we support 100%. We were the first western country to sign the free trade agreement with Ukraine.

Let me reaffirm: Conservatives stand with Ukraine tirelessly and unequivocally. The relationship between Canada and Ukraine is very important. We have 1.3 million Canadians of Ukrainian origin living in our country. Many of these individuals played pivotal roles in the development of Western Canada, contributing significantly to its growth and prosperity. Their presence enriches the social fabric of Canada, and their invaluable contributions to our nation must not be overlooked. Consequently, these strong people-to-people connections between Canada and Ukraine have been fostered, in part, by their enduring influence.

Conservatives stand with Ukraine in its fight against Russian aggression. We stand with Ukraine in its pursuit of freedom, democracy and prosperity. We will continue to stand with Ukraine, shoulder to shoulder, as it charts its course towards a brighter and more prosperous future.

I strongly support this position. Putin’s war of aggression is not just against Ukraine. His war machine attempts to undermine the Western consensus for democracy, the rule of law and the pursuit of a quality of opportunity, and we will not back down from standing with Ukraine.

I will have more to say about this bill when it gets to third reading, especially the inclusion of an inappropriate and unnecessary carbon tax in the text of the bill. For now, I invite you, colleagues, to send this bill to committee for further study and to get it back here as quickly as possible. Thank you.

The Hon. the Speaker [ + ]

Are senators ready for the question?

The Hon. the Speaker [ + ]

Is it your pleasure, honourable senators, to adopt the motion?

Some Hon. Senators: Agreed.

An Hon. Senator: On division.

(Motion agreed to and bill read second time, on division.)

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