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Canada-Israel Free Trade Agreement Implementation Act

Bill to Amend--Third Reading--Debate

May 9, 2019


Hon. Linda Frum [ - ]

Honourable senators, I rise to speak to Bill C-85, An Act to amend the Canada-Israel Free Trade Agreement Implementation Act and to make related amendments to other Acts.

As I noted in my second reading speech, the negotiations that led to this agreement were initiated in 2014 under the former government, with the aim of broadening our bilateral trade agreement with Israel. They were completed in July 2015 with four chapters in the original agreement having been updated and with an expansion of the free trade agreement to include seven new chapters.

These discussions with undertaken to build on the significant success of the original Canada-Israel Free Trade Agreement which has permitted two-way merchandise trade between Canada and Israel to triple over the past 20 years. It was more than $1.9 billion last year.

I appreciate the fact that the current government worked to finalize the details of this important expanded agreement.

What we have in the bill represents a genuinely bipartisan approach on the issue of Canada-Israel relations.

I believe that such an approach on any foreign policy or trade issue is always beneficial for Canada since it ensures policy consistency and certainty. Such consistency strengthens Canada’s hand internationally, and it ultimately benefits all Canadians.

Certainty is one of the most important things any government can provide to business.

It is ironic that the government appears to have partially understood that principle when it comes to international trade initiatives, but yet has not brought a similar understanding to the need for a stable legal and regulatory environment in Canada that can attract foreign investment.

When it comes to Canada’s economic prosperity, these are really two sides of the same coin. We cannot expect to fully benefit from trade agreements, such as the Canada-Israel Free Trade Agreement, if we do not have a complementary and equally attractive investment regime.

I hope that very soon we will have a government in Canada that recognizes this. In the meantime, we can at least all agree that Bill C-85, and an expanded Canada-Israel Free Trade Agreement, deserves support.

I would like to address some of Senator Saint-Germain’s observations in her speech the other day. She suggested that Bill C-85 should have employed language similar to the EU‑Israel trade agreement as it pertains to Israeli goods that originate beyond the Green Line.

I would like to draw to her attention that in 1997, the original CIFTA was specifically drafted to reflect the fact that Israel and the territories are treated as a single economic unit under the Protocol on Economic Relations between Israel and the P.L.O., known as Paris Protocol, signed in 1994 as part of the Gaza-Jericho Agreement and later incorporated into the Oslo II Accords.

It makes sense that Israeli and Palestinian leaders have established a customs union, given the wide-ranging integration of the Israeli and Palestinian economies. Israel is a primary market for Palestinian goods. More than 100,000 Palestinians are employed in Israeli businesses. The Paris Protocol has contributed to significant investment, economic cooperation and growth in the West Bank economy.

Under CIFTA, and consistent with the Paris Protocol, Palestinian exports to Canada benefit from preferential treatment. Shortly after CIFTA was first signed, Canada and the PLO established a Joint Canadian-Palestinian Framework for Economic Cooperation and Trade, under which the Palestinian leadership approved the extension of preferential tariffs, including future trade benefits through CIFTA to the West Bank and Gaza.

Requiring different labels for products originating in the West Bank and Gaza could endanger those gains for Palestinian business. In my opinion, that would be regrettable.

Also, I would note that it is the hateful BDS Movement which would like to see Israel isolated within the international community and which has advocated in favour of applying labels to goods originating in the disputed territories. I don’t believe that this chamber or the Canadian government should be supporting the BDS Movement, which is why I support adopting Bill C-85 in its current form.

Honourable senators, today I rise to speak to Bill C-85, An Act to amend the Canada-Israel Free Trade Agreement Implementation Act and to make related amendments to other Acts.

I want to thank Senator Wetston for answering my question on the absence of human rights provisions in this agreement. I also want to thank Senator Saint-Germain for her incisive observations on this bill, which I share, for the most part. For example, I agreed with Senator Saint-Germain the day before yesterday when she said:

Trading with the Israeli settlements in the territories occupied by Israel supports the development and illegal expansion of those territories to the detriment of the Palestinian economy.

I believe this is fundamental.

In the debate on free trade with Israel, I also agree with Senator Saint-Germain when she said that it is necessary, and I quote:

 . . . that trade policy is carried out in keeping with its principles and duties with respect to fundamental rights.

Colleagues, at the end of my speech I will move an amendment to the purpose clause in this bill, adding a brief reference to human rights, modelled on what both Canada and Israel have already committed to in other similar and current agreements, including the agreement between the United States of America, the United Mexican States and Canada, formerly NAFTA, and Canada’s free trade agreement with Colombia as well as Israel’s agreement with the European Union.

Human Rights Watch, Amnesty International and other human rights watchdog associations have noted that after Israel’s military occupation of the West Bank in 1967, the Israeli government began and continues to involve private businesses in establishing settlements in occupied Palestinian territories. So the issue of labour and human rights observance is highly relevant to the bill before us, as is the case in the examples I share today.

I note that the 2017 EU-Israel Association Agreement contains a human rights provision, which is used to monitor for possible human rights violations in the occupied Palestinian territory. There have been findings of human rights violations that are in breach of international human rights law and norms. Including a reference to human rights in this bill is consistent with Canada’s commitment in practice and in law to an international governance order that promotes and protects universal human rights.

Please consider that clause 3(d) of the existing purpose clause that I propose we amend has a number of verbs conveying a higher level of obligation than the verb “build” that is in proposed clause 3(d), the one part of the bill that I propose we amend. The purpose clause is not long, so I will summarize key text in the purpose clause noting where my amendment would be placed, and I invite you to consider that the intent and values already set out in the purpose clause are not undermined or distorted by the proposed amendment.

In fact, this amendment would allow for implementation of this agreement consistent with other parts of the purpose clause and with what Canada does in other current trade agreements.

By amending subclause (d) on page 2 of Bill C-85, the words in Section 4, the purpose clause of the act, are untouched because my proposed amendment is to add “and human rights,” and in French, “les droits de la personne” — to subclause (d) of the purpose clause so that it would read:

The purpose of this Act is to implement the Agreement, the objectives of which, as elaborated more specifically through its provisions, are to

(a) strengthen the bilateral commercial relationship between Canada and the State of Israel;

(b) improve access to the Israeli market for Canadian businesses by reducing and eliminating tariffs, addressing non-tariff barriers, enhancing cooperation and increasing transparency in regulatory matters;

(c) ensure a high level of environmental protection through comprehensive and legally-binding commitments;

And this is the clause that I propose to amend:

(d) build on the respective international commitments of Canada and the State of Israel on labour —

And then I propose that we add, “and human rights matters;” and

(e) promote gender equality and encourage women’s economic empowerment and the use of voluntary corporate social responsibility standards and principles, as well as promote access for small and medium-sized enterprises to the opportunities created by the Agreement.

Colleagues, by adding the words “and human rights” to subclause (d) of clause 4 of the existing purpose clause, we would not be adding to existing international human rights commitments but simply acknowledging the existing commitments already made by Canada and Israel with both countries having ratified all the same human rights instruments for decades.

Colleagues, you may have noticed that the amendment I am proposing now is different from what was initially discussed. This is because, after further discussion with colleagues and reviewing additional legal advice, I approached the purpose clause with a fresh perspective that led me to the decision to propose the addition of three words in English and five words in French to an existing subclause rather than adding an entirely new clause. This amendment simply clarifies that both countries will build on existing labour and human rights commitments.

To put this motion in context, let’s take a quick look at three other current agreements, one that Israel has made with the European Union and two that Canada has made with other countries. In the EU-Israel Association Agreement in force in 2017, article 2 stipulates:

Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect for human rights and democratic principles, which guides their internal and international policy and constitutes an essential element of this Agreement.

In the agreement between Canada and Colombia, there is an agreement concerning annual reports on human rights and free trade between Canada and the Republic of Colombia wherein each country has committed to drafting an annual report for tabling in their respective legislatures on the effects on human rights in both Canada and Colombia of measures taken under the Canada-Colombia Free Trade Agreement.

The U.S.-Mexico-Canada agreement that replaced NAFTA last year contains article 23.3 that goes into considerable detail, but the key comparison is to note the strong obligatory language in this article:

Each Party shall adopt and maintain in its statutes and regulations, and practices thereunder, the following rights. . .

And it goes on to list freedom of association, the right to collective bargaining, the elimination of all forms of forced and compulsory labour, the effective abolition of child labour and the elimination of discrimination in respect of employment and occupation.

Colleagues, I think you can see from these examples that I am not proposing any such obligatory language because this is not the time for Canada to go back to the table on this particular trade deal, but it is timely and appropriate for Canada to be consistent and to acknowledge existing human rights agreements ratified by both Canada and Israel as a means of strengthening the purpose of the Canada-Israel Free Trade Agreement.

By comparison, each of the word-for-word examples from three other current agreements that I have quoted to you is more stringent than what I am proposing for Bill C-85. No one has been able to explain why the Canada-Israel Free Trade Agreement does not include any reference to human rights. But surely the implementation goals of the agreement are, in fact, strengthened by clarifying that the purpose of this agreement, as would be set out in an amended section 4 of the act, would include to build on the respective international commitments of Canada and the State of Israel on labour and human rights matters.

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