Canada-Ukraine Free Trade Agreement Implementation Bill, 2023
Third Reading--Vote Deferred
February 29, 2024
Moved third reading of Bill C-57, An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine.
He said: Honourable senators, the hour is late, the time is urgent, the bill is ready. I invite you to vote for this bill now.
That is a difficult act to follow.
Honourable senators, I rise today to speak in support of Bill C-57 at third reading and its importance to our continued and steadfast support of Ukraine.
Following the second anniversary of Russia’s illegal invasion of Ukraine, and prior to the third journey of the Ukrainian Canadian Association of Yukon to the war-ravaged country, I wish to share with you some of their efforts to help. I will be brief, colleagues.
Following the invasion in 2022, a group of concerned Yukoners came together informally to come up with how they could best help Ukrainians in need, and formally founded the Ukrainian Canadian Association of Yukon, UCAY, to formalize their efforts in 2023.
Important to note throughout this discussion, honourable senators, is that the population of the Yukon is 45,000 people.
The UCAY, through volunteer efforts and the generosity of Yukoners, has collected and delivered more than $100,000 worth of aid of various kinds.
Specifically, the UCAY has partnered with a civilian municipal hospital in Yuzhnoukrainsk, Mykolaiv Oblast, and the charitable foundation Pokrova Chortkiv. In February 2023, Jeff Sloychuk of Whitehorse delivered 2,000 pounds of items donated by Yukoners to Ukraine, which included thermal clothes, sleeping bags, cameras, tablets and other equipment to help Ukrainian soldiers to endure the harsh winter conditions.
In June 2023, two more Yukoners, Lesia Hnatiw and Donna Reimchen, travelled from Poland to the partners in Ukraine — the partners I just mentioned — and with Health Partners International Canada, they delivered $50,000 worth of antibiotics and facilitated the purchase of $10,000 of medical equipment in Kyiv. Also, part of this mission’s donations were various electronics, radios and first aid equipment. The value of the goods donated and purchased was $73,000.
Beyond the material aid delivery, the Ukrainian Canadian Association of Yukon, or UCAY, has been key in facilitating partnerships and strong bonds between Ukrainians and Canadians. In October, they arranged for a delegation from the city of Chortkiv to Whitehorse, where Mayor Laura Cabott and Mayor Volodymyr Shmatko signed sister city proclamations.
The Chortkiv flag now flies at Whitehorse City Hall with our city flag and the flags of the Kwanlin Dün First Nation and the Ta’an Kwäch’än Council. This is such an important symbolic gesture to show citizens of Chortkiv how we all stand together against this illegal invasion.
Having welcomed 150 refugees from Ukraine to the Yukon, UCAY has provided resettlement services, including housing and work search assistance, and other general information to assist their successful integration into the Yukon.
On March 9, two Yukoners will embark on their third mission to Ukraine. A medical evacuation vehicle has been purchased in Poland and will be driven by the Yukoners to Ukraine with a load of antibiotics and other medicines, military first aid supplies, high-powered radios and thermal imaging cameras valued at some $60,000. Once the goods are delivered, Pokrova Chortkiv will outfit the vehicle with stretchers and take it to the front line in eastern Ukraine.
Honourable senators, the story so far of the Yukon’s involvement with Ukraine was shared with me at the second anniversary vigil of the occupation in Whitehorse. Yukoners and Ukrainians in attendance also shared with me their very important message of how important Bill C-57 is to them and to the people of Ukraine.
They asked me, as the Yukon’s only senator, to work hard and to support this bill. I am not only proud to share their efforts with you, but also to express my support for this bill.
It is this support and recognition of volunteers, like these Yukoners, whom the people of Ukraine need and appreciate for these services.
I would like to share with you, if I could, the words of thanks from Ukraine that were shared at the vigil: “Your visit is our only ray of hope in unrelenting darkness.”
I urge us all to add to this ray of hope with support at third reading today and the passage of Bill C-57.
Thank you. Gùnáłchîsh. Mahsi’cho.
Honourable senators, I rise today to talk about Bill C-57, An Act to implement the 2023 Free Trade Agreement between Canada and Ukraine.
Conservatives stand unequivocally with Ukraine, firmly supporting its sovereignty and independence in the face of threats from Russia. Our unwavering commitment to Ukraine is deeply rooted in our core values of freedom and democracy. We firmly believe in standing by our allies in times of need, and Ukraine’s struggle against aggression is no exception.
Also, Conservatives support free trade, recognizing the importance of fostering economic growth and prosperity for both Canada and our trading partner Ukraine.
The invasion by the Putin regime is illegal. It is not merely a localized conflict; it represents a significant threat to fundamental principles such as sovereignty, territorial integrity and international law. Beyond Ukraine’s borders, Putin’s aggression poses a direct challenge to the core tenets of democracy and the rule of law — not just in Ukraine, but across the Western world.
President Zelenskyy’s warning resonates deeply: He states, “. . . it is dangerous not only for Ukraine but also [dangerous] for all countries of the democratic world.”
Additionally, the insights shared by the Canadian ambassador highlight Russia’s use of energy resources as a tool to cause trouble and instability — not just in Ukraine, but also across Europe. This deliberate approach makes the situation worse, leading to more suffering and chaos, which calls for a strong reaction from the global community. We must recognize this urgency.
Colleagues, as you know, the conflict in Ukraine actually began a decade ago with Putin’s illegal invasion of Crimea. It was during the tenure of former prime minister Stephen Harper’s Conservative government. At that pivotal juncture, Canada played a leading role within the G7, rallying support for sanctions and diplomatic isolation aimed at deterring Russian aggression. Prime Minister Harper’s unwavering commitment to Ukraine’s territorial integrity reverberates to this day, underscoring our enduring solidarity with Ukraine in the face of ongoing Russian aggression.
Canada has maintained a strong and enduring relationship with Ukraine, providing diplomatic, economic and humanitarian support to help Ukraine build a brighter future for its people.
One of the most significant milestones in Canada’s relationship with Ukraine was the signing of the Canada-Ukraine Free Trade Agreement, or CUFTA. Under the leadership of Prime Minister Harper, Canada became the first Western nation to sign a free trade agreement with Ukraine, ushering in new opportunities for trade and economic collaboration between our two countries.
This landmark agreement has solidified the economic ties between our countries, paving the way for Canadian businesses to expand into the Ukrainian market and for Ukrainian exporters to access Canadian markets.
Moreover, with regard to this agreement, its modernization builds upon the 2017 version, which introduced or updated 11 new chapters. These chapters covered a wide range of areas, including rules of origin and procedures, government procurement, competition policy, electronic commerce, labour and more. This substantial evolution from the original agreement demonstrates the commitment to deepening economic cooperation and fostering mutual growth.
Genuine free trade with Canada is pivotal for Ukraine’s economic development and prosperity. By providing Ukrainian businesses with access to new markets, investment opportunities and technology transfer, Canada is actively contributing to Ukraine’s economic growth and stability.
Furthermore, the Canada-Ukraine Free Trade Agreement symbolizes Canada’s unwavering commitment to supporting Ukraine’s sovereignty and independence in the face of this external aggression.
The trade between Canada and Ukraine is remarkable. In 2022, our bilateral trade amounted to a significant $420 million, with $150 million worth of goods exported from Canada and $270 million worth imported from Ukraine. This trade deal was carefully structured to facilitate gradual expansion and benefit both parties.
While the initial focus was on physical goods like cars and seafood, the agreement has since expanded to include services, reflecting its growing comprehensiveness. And we are happy to see it grow further. The upward trend in exports to Ukraine, excluding coal, highlights the mutual benefits of free trade for both nations.
However, as we reaffirm our steadfast support for Ukraine and free trade agreements, it is essential to address a critical concern: the inclusion of carbon taxing within this trade agreement. Our attention should be on providing Ukraine with the vital support it needs to defend itself, rebuild itself and thrive, which means supplying them with the fuels they need for survival.
Colleagues, without adequate support by way of armaments from their allies, a free and democratic Ukraine will cease to exist. That is the reality of the situation.
We have consistently urged for heightened military aid to Ukraine, including the supply of lethal defensive weaponry, to enhance its capacity in repelling external threats.
President Zelenskyy has unequivocally voiced Ukraine’s pressing need for armaments, underlining the critical importance of such assistance in countering Russian aggression.
They are fighting for their very survival. Many see the inclusion of language relating to carbon taxing in the agreement as being completely inappropriate under these circumstances. But the government just cannot resist an opportunity for virtue signalling. Trudeau cannot even obtain broad support for a carbon tax within his own borders. It is perplexing, counterproductive and has no place in an international free trade agreement with an ally fighting for its very existence.
Ukraine needs weapons, military hardware and financial aid. President Zelenskyy’s previous addresses have underscored the urgent need for assistance in combatting Russian aggression and stabilizing the region. Now is not the time to burden Ukraine with unnecessary measures like carbon pricing, but to stand in solidarity and provide the support they urgently require.
While other countries are supplying F-16 fighter jets, we have delivered a comparatively very minor supply of lethal weaponry. We do, however, have a stockpile of over 80,000 decommissioned CRV7 rockets in a warehouse in Saskatchewan that are slated for disposal. In fact, the government is set to spend millions of dollars on their disposal, but now we know that Ukrainian officials have requested those rockets. Colleagues, every single serviceable CRV7 rocket should be on its way to Ukraine without any bureaucratic delay. That is the kind of action that makes a difference in war, not carbon pricing.
We also know that Russia has essentially weaponized the energy industry. Many countries — an entire region, really — is beholden to Russia to meet energy needs. And, unfortunately, sourcing energy from Russia also means indirectly financing Russia’s continued actions in Ukraine.
Canada has the capacity to be a world leader in energy, including LNG, but we have a government that ideologically refuses. We’re sitting on huge deposits of natural gas and coal — we have the capability, we just need the leadership.
When asked about the opportunity for Canada to supply energy to the region at the Foreign Affairs Committee yesterday, the President of the Canada-Ukraine Chamber of Commerce, Zenon Potichny, stated:
In Canada, we have missed that opportunity. Over the last couple of years, during the war, Americans have sold a lot of LNG to Ukraine and other European countries. European countries are obviously trying not to buy from Russia. . . . Many countries totally refuse to buy gas from Russia, but they have to replace it with something. LNG was one of the huge opportunities, and the U.S. has really taken advantage of that. Unfortunately, in Canada, we were not ready. If we wait another few years, we might totally miss the opportunity . . . .
Colleagues, our ally needs energy and adequate armament. They do not need navel-gazing and virtue signalling. The entire exercise is dripping with intellectual dishonesty.
When I asked our trade officials how many of our other trade agreements contain language regarding a carbon tax, the answer was “none.” When asked twice this morning at the Foreign Affairs Committee about whether it was the Government of Canada or the Government of Ukraine that initiated and insisted on the inclusion of carbon pricing in the agreement, Minister Ng refused to answer on both occasions. For it to be insisted upon now, during a time of war and vulnerability, is completely inappropriate, in my opinion — a Hail Mary pass from a government facing complete collapse.
This should have been an easy agreement to sign and pass. This agreement could have simply symbolized our economic collaboration and commitment and Canada’s steadfast dedication to upholding Ukraine’s sovereignty and independence in the midst of Russian aggression. It could have been — and should have been — an opportunity to promote and celebrate our partnership, full stop. Unfortunately, the Trudeau government again just couldn’t help themselves.
Colleagues, it’s imperative to emphasize that Conservatives are unwavering in our support for Ukraine, standing by them with full conviction. We wholeheartedly endorse free trade agreements, recognizing their pivotal role in fostering economic growth and cooperation between nations. Let us unite in solidarity with Ukraine, championing their cause and striving toward a future marked by peace, prosperity and collaboration.
The Conservative Party remains steadfastly committed to Ukraine, firmly advocating for their sovereignty and prosperity. We stand resolutely on the side of Ukraine, just as we stand for the principles of free trade. Let’s get this contrived distraction out of the way and concentrate instead on getting Ukraine the military hardware and armaments it so desperately needs. Thank you, honourable senators.
Senator MacDonald, would you take a question?
Of course.
Senator MacDonald, I listened to your speech with great interest. It seemed to me that you were building up to supporting this free trade agreement and then, of course, you talked about intellectual dishonesty.
You say it is not the same to burden Ukraine with carbon pricing. You are aware, are you not, that Ukraine has had a carbon pricing system since 2011? How can this be a burden to them when they have been doing it way ahead of us?
First of all, I think you have to compare the carbon price between — excuse me?
Senator MacDonald, you have the floor.
Would you repeat the question, please?
I’m asking you if you are aware that Ukraine has had a carbon pricing system since 2011. How can this agreement be a burden on them if they have already been doing it, in fact, far ahead of us?
I am aware that they have a carbon arrangement, but the argument that I am making is that, at this time in their history, what they need are armaments. How they find themselves today, fighting for their existence, why would we even put this stuff on the table? There are all kinds of free trade agreements out there. We haven’t addressed any other government that we have a free trade arrangement with. They do not need to deal with this sort of a discussion when they need military support, and that’s what we should be concentrating on.
On this side — because they sit close to me — they are saying this is virtue signalling, and you talked about intellectual dishonesty.
From my point of view, what your side is putting on the table as an objection to a sorely needed free trade agreement for Ukraine in the time of war is political dishonesty. Would you agree with me?
Of course I wouldn’t agree with you. That’s why I’m sitting on this side of the chamber.
Would Senator MacDonald take another question? I understand that today at the Foreign Affairs Committee, there was a question about what the carbon tax in Ukraine actually is. I understand that it’s tiny, but we can’t seem to find out what the answer is. I know that there wasn’t an answer provided this morning by either the minister or the officials, but the officials were going to get back to your committee about it. Do you have an answer for that yet?
No, Senator Batters. When the minister was asked, she could not provide an answer. She deferred to the bureaucrats who were there, and the bureaucrats could also not provide an answer. They assured us that they would get back to us in the fullness of time.
I was not going to speak to this until after a meeting earlier today. I will be brief. I want to commend Senator Harder for his riveting speech, and I know there are others who should take note of the length of that speech and maybe adjust theirs accordingly, but that is for another day, Senator Gold. Senator Gold and I will take note.
In any event, I think I need to put some facts on the record, and I do promise you that I will be brief. I want to put some facts on the record regarding the Trudeau government’s commitment to Ukraine.
Let me start by quoting the Edmonton Sun on the government’s record with respect to Ukraine: “Trudeau has, once again, overpromised and underdelivered.”
On Ukraine, like on all other matters, the Liberals are quick to announce, slow to act and fail to deliver. Justin Trudeau is a big talker and a little doer when it comes to Ukraine. He’s made all these announcements of hundreds of millions of dollars of different equipment, and he’s never actually delivered any.
According to government data compiled by Le Devoir, almost 60% of the military assistance that Trudeau has pledged to Ukraine since Russia invaded on February 24, 2022 — $1.4 billion of $2.4 billion — has yet to arrive. This includes a $406 million surface-to-air missile system that the Trudeau government announced with great fanfare over a year ago. It also includes 35 high-resolution drone cameras valued at $76 million announced at the end of last summer; small arms and ammunition worth $60 million; $25 million of winter clothing — it’s summer now and they promised winter clothing — last October; plus armoured vehicles, artillery and satellite communication systems.
For over two years, Ukraine has been asking Canada and our allies for more military assistance, including artillery shells and rockets.
Conservatives have been calling on the government to increase the production of key munitions, such as 155-millimetre artillery shells, and to replace all the weapons donated to Ukraine so that the Canadian Armed Forces, or CAF, can protect Canadians and be a dependable partner to our allies. The Trudeau government has failed to sign contracts to increase artillery shell production. In fact, when answering questions last fall, government officials confirmed that the Trudeau government had not increased production in Canada by a single shell. This is despite the head of the Canadian Armed Forces confirming that we only have a three-day supply of shells available for our defence and despite the continuing need for shells by our Ukrainian allies.
Earlier this month, following the Ukrainian requests, Conservative leader Pierre Poilievre called on the government to donate — and Senator MacDonald already mentioned these — 83,000 Canadian Armed Forces rockets to Ukraine. These rockets were requested by the Armed Forces of Ukraine in November 2023. They are slated, as Senator MacDonald said, for disposal by the CAF. The Trudeau government has failed to even commit to delivering these rockets that Ukraine desperately needs.
Listen to this, folks: Ukraine said, “We will come and pick them up. You don’t have to deliver them.” The problem is they can’t ship them out of Montreal because the containers are all full of stolen cars — they can’t get any of these in there. That is just an assumption, but considering the number of stolen cars we have in Canada, in Montreal, I think it’s a fairly safe one.
Let me quote Christian Leuprecht, a professor at the Royal Military College:
All these delays necessarily have enormous consequences in terms of security for the Ukrainians and make the shortage of arms and ammunition in which they currently find themselves even more difficult . . .
He continues:
It is clear that the government’s words regarding Canada’s lasting support on which Ukraine can count are not in line with reality, and this has an impact both on the battlefield and on Canada’s image with our allies, allies who perceive us more and more as indifferent to this war and above all unreliable.
Canada made promises, without having coordinated the ministries and agencies involved in these deliveries and without knowing the production and delivery capacity of its military industry.
In a book launched a couple of weeks ago on Canada and the Ukraine war, the authors make it clear that Canada is pursuing an image campaign where the main objective is to show the maple leaf over any other consideration, including the fate of Ukraine.
When all help, including loans, is computed, Canada ranks 31 out of the 39 countries that provided direct help to Ukraine in terms of their GDP. We are at the level of Portugal. As I said, “big talker.”
Let’s look at the rest of the Liberal record. After President Zelenskyy asked Canada not to provide a turbine to Russia that could fuel and fund its war machine, the Liberal government sent the turbine. Justin Trudeau allowed Canada to supply detonators for mines that are being used to blow up Ukrainians.
Ukrainians have asked Canada for our liquefied natural gas, or LNG, to replace Russian fuel they were using, and the Liberals said no. Instead, the Liberals decided to put carbon tax language into the Canada-Ukraine Free Trade Agreement.
The value of frozen Russian assets is estimated to be at least $320 billion. With no reasonable prospect for Russia paying compensation to Ukraine any time soon, and Ukraine’s need for both short- and long-term financial assistance, confiscations of Russian assets become the only just and viable option, especially in view of the fact that up to $1 trillion will be needed for Ukraine to fully recover. Justin Trudeau is doing nothing on that front. We also know that he embarrassed the Ukrainian president by having a Nazi invited to a major state visit.
Ukraine has had a carbon tax since 2011 — Senator Omidvar, we’re aware of that — which it needs to one day be part of the European Union. No other trade deal until now has made mention of the carbon pricing mechanism, and the agreement currently in place with Ukraine does not include any mention of it. Why is Justin Trudeau so obsessed with this carbon tax that he wants to include it in an agreement with an ally who is at war? Why does Justin Trudeau think that Ukraine needs a carbon tax more than ammunition?
Speaking of obsessions of the Trudeau government that have nothing to do with the needs of Ukrainians, what about the $4 million announced for “. . . establishing a gender and diversity working group to promote gender-transformative mine action in Ukraine”? Because, of course, a country at war needs gender‑transformative action, not ammunition.
And I am sure that those brave Ukrainian soldiers on the front will find comfort in Canada giving money to study “. . . gender disparity issues in the Ukrainian media.” One has to wonder why Winston Churchill never thought to ask for this kind of help when London was being bombed in 1941.
For Justin Trudeau and Chrystia Freeland, Ukraine is just another opportunity for virtue signalling, for photo ops, to grandstand, to pretend to care and to make empty promises. Let me give you the news, colleagues: It is no longer working. Canadians and the rest of the world now realize this simple fact: Justin Trudeau is not a serious prime minister. He is not worth the cost.
Conservatives have supported and will continue to support Ukraine in its fight to protect its territorial integrity from the illegal invasion by Russia and Vladimir Putin. As soon as we are in power, we will deliver the munitions and weapons Ukrainians need to defend their sovereignty from Russian aggression, and we will do all of this without any reference to a carbon tax — a tax that we will axe when we form government.
Senator Gold has been pushing disinformation about this bill, pretending that it is urgent that we pass it.
The government chose to have a coming-into-force date for Bill C-57 at its discretion. Colleagues, we could pass this bill today and it would not come into force on Royal Assent. So us passing this bill today will do nothing, colleagues.
In fact, the government itself in the other place, Senator Gold, is not in a hurry to adopt the bill. On December 14, we offered to pass the bill in the House of Commons. This is what Minister Gould, the House leader, said to our colleagues in the House of Commons:
. . . it is really important that the Conservatives reflect over the holidays and perhaps consider changing their position, because it would be really nice to be able to show Ukraine that solidarity and unanimity that the House has always shown Ukraine. I am going to give them the time and space to reflect . . . .
She gave them seven weeks to reflect, colleagues. I think we should have two weeks to reflect. That’s reasonable. That’s less than half the time that the House needed to reflect. I think we should be afforded that.
Colleagues, let’s take the two weeks to reflect on this, come back here refreshed on March 19 and vote on this bill. Ukrainians will still need help at that time, and we will still be able to continue to offer help without giving any. Thank you, colleagues.
Honourable senators, the Canadian Senators Group typically does not grant leave to expedite process on government bills. Today, we were silent when Senator Harder asked for leave on Bill C-57, and this was not an error on our part, notwithstanding how fast Senator Harder was with his manœuvres today. Congratulations.
Make no mistake; we still believe in respecting the legislative process, as outlined in the Senate Rules. Some may find notice periods tedious and inefficient, but our predecessors introduced these speed bumps to ensure careful, timely and appropriate reflection time.
The Rules exist to ensure that we all as senators have time and opportunity to fully review, assess and debate legislation, and we believe that circumventing the legislative process should never be taken lightly or as a routine.
I want to give a bit of background; Senator Plett referred to it. Bill C-57 was introduced in the House of Commons on October 17, 2023. It went to committee a month later, came out with some amendments and was finally concurred at report stage on December 12. Over that time, some political games broke out.
During those games in November and December, in the Senate here, we were told at various times that this bill was a priority and would be coming to us; then it was no longer a priority, and then it was a priority again. We finally received this bill on February 6.
All this being said, the Canadian Senators Group decided that third reading of Bill C-57 can and should fall into the category of an exception, but it is not because we stand on one side or another on the necessity of this bill; it’s because we refuse to play any games. We will not take part in what’s being done here and what has been done for months.
We’re not talking about one particular party. There is a lot of blame to go around. Senator Plett mentioned grandstanding. There have been a lot of folks on the grandstand, using this bill for their own purposes. The ongoing rhetoric about this bill is no longer about its virtues and flaws. It is now being used as a political pawn in a broader game that will likely come in the fall of 2025 in the form of an election.
This bill has always been about one thing, and that is the importance of a relationship between Canada and Ukraine. While Ukraine is struggling for its very existence as a modern, democratic country, it needs support and respect from Canada. Somewhere, that message has gotten lost, and it is truly unfortunate.
Let’s bring the message back. We in the Canadian Senators Group are going to call for a standing vote on this bill, and we are going to see who stands with Ukraine and who doesn’t. Let’s show this brave nation the respect that they deserve. Thank you.
Are honourable senators ready for the question?
Is it your pleasure, honourable senators, to adopt the motion?
All those in favour of the motion will please say “yea.”
All those opposed to the motion will please say “nay.”
I think the “yeas” have it. I see two senators rising.
Any advice on the bell? Pursuant to rule 9-10, the vote is deferred to 5:30 p.m. on the next day the Senate sits, with the bells to ring at 5:15 p.m.
