David Lametti

[Business of Supply, February 18th, 2016]

Mr. Speaker, I am pleased to rise to speak on this motion today and take the opportunity to share with the House the important economic ties between Canada and Israel.

As we know, the Government of Canada believes the BDS movement to not only be unhelpful but also unjust. Canada is proud of its economic and commercial ties with Israel. For example, members will recall that the Prime Minister directed the Minister of International Trade in her mandate letter to prioritize the implementation of the modernized free trade agreement with Israel.

Canada and Israel share a strong, bilateral, multi-dimensional relationship that includes close political, economic, social and cultural ties. Support for Israel, especially for its right to live in peace and security alongside its neighbours, has been central to Canada's Middle East policy since 1948.

That relationship is still flourishing, as evidenced by co-operation in many areas, such as public safety, defence, trade, and investment, and by official visits on both sides.

We support Israel, but we also support the Palestinian people and their legitimate desire to live in peace, security, and justice. However, in order to achieve this, we need to remain engaged with all parties in the region at all times.

As with any friendship, as in our case with Israel, we will sometimes agree, sometimes disagree, sometimes be critical of each other, but we will remain friends. BDS will not help the Palestinian people achieve their desire for peace, security, and justice.

Therefore, with that general context being given, I will proceed to tell this House some of the more economically oriented aspects of our relationship with Israel.

Canada and Israel want improved bilateral trade and economic relations. Along the same lines, the Canada-Israel Strategic Partnership MOU seeks to strengthen and consolidate bilateral relations in a number of areas, including energy, security, international aid and development, innovation, and promotion of human rights around the world.

In order to meet the objectives set out in the strategic partnership, Canada and Israel signed a joint statement of solidarity and friendship. In addition, both countries signed memoranda of understanding on foreign ministry cooperation and on public diplomacy co-operation and a declaration of intent on enhancing trade promotion.

Various bilateral agreements support Canada’s commercial relations with Israel. These include the Canada-Israel Air Transportation Agreement (2015), a renewed and funded science and technology agreement, the Double Taxation Agreement (1977), and the Canadian Space Agency - Israeli Space Agency MOU for Space Cooperation (March 2005).

The Government of Canada is determined to provide Canadian businesses with the tools they need to succeed and compete in a global marketplace. In today's modern, knowledge-based economy, free trade agreements, or FTAs, need to go beyond reducing tariffs on goods. A 21st century agreement must take new trade challenges into account. Israel is an important economic partner for Canada within the Middle East and the North African region, with a full range of commercial opportunities, including trade, investment, science and technology, and innovation.

I have taught or lectured in Israel on two occasions, at three different institutions, in the areas of property and intellectual property. Its universities are excellent, its research and technology sector outstanding, and I can attest to the dynamism of the innovation sector in Israel, often called “start-up nation”.

In order to draw on this potential, the modernization of the Canada-Israel Free Trade Agreement, or CIFTA, is beneficial for Canadian businesses because it eliminates or reduces tariffs on certain goods. In addition, by eliminating a number of former trade barriers, it will open up new opportunities in the Israeli market for Canadian exporters, for example, in the agricultural and agri-food sectors, as well as the seafood sector.

On July 21, 2015, Canada and Israel announced the conclusion of an expanded and modernized CIFTA adapted to the 21st century, which reduces technical barriers, strengthens co-operation, increases transparency in regulatory matters, and reduces transaction costs for businesses.

Israel offers a wide range of technologies in areas of exports, investment, science and technology, and innovation.

A modernized CIFTA will enable Canadian companies to take greater advantage of these opportunities. This agreement will also support Canadian businesses and investors, deepen trade and investment linkages, and further strengthen Canada’s bilateral relationship with Israel.

This agreement creates new opportunities to further expand on the Canada-Israel economic partnership. This means that Canada and Israel are creating the right conditions for trade in our modern and knowledge-based economies. This modernized CIFTA is truly a 21st century agreement.

Accordingly, the modernized CIFTA includes provisions to address non-tariff barriers in Israel. Building on the strength of the existing Canada-Israel commercial relationship, the modernized CIFTA establishes new mechanisms under which Canada and Israel can co-operate to discuss, prevent, and resolve non-tariff barriers that could have a negative impact on exports.

Canada and Israel will complete their respective domestic processes, with the goal of having the modernized agreement in force as soon as possible, to the benefit of a stronger Canada-Israel economic partnership.

A key element of the commercial relationship is collaboration in science, technology and innovation, or STI. Bilateral STI relations are strong and based on a long history of close collaboration. Currently, a number of Canadian government organizations and some provinces are involved in collaborative research and development with Israel.

Israel has a relatively open investment environment. Foreign investors mostly enjoy equal treatment with nationals, though foreign investment is restricted in some sectors, such as defence, and requires government approval in other sectors, such as banking and insurance. Israel has robust infrastructure, a highly skilled workforce, and it benefits from its qualified industrial zone agreements with Jordan and Egypt. Israel is a rich country with advanced technology and developed agricultural and industrial sectors. Canada and Israel have well-established relationships in trade and investment, a market that offers commercial opportunities in a wide range of sectors.

Indeed, international rating agencies rate Israel as investment grade. In addition, the Canadian Trade Commissioner Service can provide on-the-ground intelligence and practical advice on the Israeli market to help Canadian businesses make better, more timely, and cost-effective decisions in order to meet their clients' objectives in that market. Similarly, Export Development Canada is a partner of choice for Canadian businesses in Israel.

In short, co-operation between our two governments and our two peoples is extensive. Our governments work closely with each other on matters relating to trade, investment, science, technology, innovation, education, and many others. Numerous initiatives along a wide spectrum of co-operation bring together an increasing number of Canadians and Israelis.

Finally, one of the underlying strengths of the Canada-Israel bilateral relationship lies in the extensive people-to-people ties. There are approximately 20,000 Canadian citizens living in Israel, and many Canadians have family in Israel.

These initiatives are proof positive against BDS. By being engaged with Israel, we will help promote peace, security, and justice for Israel and its neighbours, principally the Palestinians.

[Canada Labour Code, February 5th, 2016]

Madam Speaker, we often talk about social trust, in other words, the good faith relationship between the members of a society to advance that society. In the context of labour law, there is a good faith relationship between the employer and the employees to advance the common interests of the business. Does my colleague see the bill introduced and passed by the previous government as a negation of social trust?

[International Trade, February 5th, 2016]

Mr. Speaker, we began consultations from the time we were elected. The important date is ratification. We will look at this treaty carefully. We will look at this treaty through Parliament and through parliamentary committees. We will continue to consult Canadians until we know we have the evidence necessary to make the right decision that will benefit not just the forestry industry, obviously, but all Canadians from coast to coast to coast.

[Business of the House, February 4th, 2016]

Madam Speaker, it is an honour to follow the hon. member for Abbotsford. Let me take a moment to salute his record as the former minister of international trade. We look forward to future collaboration with him.

Why are we here? I would rather not focus my closing remarks as they were on this day in Parliament on actual numbers but rather ask what the cost is. I am willing to grant that the previous government did its best to spend as little as possible, but that is not necessarily a good thing, particularly because it did leave us in debt anyway because it failed to balance a single budget between 2008 and 2014, but more importantly, because of the costs that this had in Canada over that period of time. Let us not forget that.

Over the past 10 years our economy has been characterized by fundamentally weak growth. Perhaps some of the gains that the hon. member for Abbotsford made acting as minister of international trade in negotiating trade agreements, which our government believes were generally good, could have been better. Had we developed our manufacturing sector, had we put money into innovation, had we put money into becoming a stronger and more diversified economy, then perhaps we would have been able to profit from those agreements much more than we have. We have done the opposite. We effectively cut infrastructure spending over that period of time in real terms and have ended up with an infrastructure deficit that cries out to be rectified. Cuts were also made to veterans affairs and social programs, including programs for social housing.

I spent the past 20 years teaching in one of the world's finest law faculties in one of Canada's finest universities. I could see the cuts to university research that the previous government undertook and the devastating impact that had on research programs in pure science, applied science, and the social sciences. That was one of the reasons I decided to put myself on leave from that tenured position in order to go into direct public service: to rectify what I saw as an incredible problem in policy that the previous government chose to follow.

Not only did the previous government cut university research for the sake of balancing budgets, but it destroyed archives, weakened research and development in this country, and put our innovation agenda way behind other countries, including countries like Scandinavia for example.

Yes, it is fine to talk about budgetary numbers, but let us not forget the costs. When it is time to reinvest in an economy, reinvest in infrastructure, reinvest in Canada's people as it is now, a government needs the courage to do it.

[International Trade, February 4th, 2016]

Mr. Speaker, in our consultations thus far in the TPP, we have heard opinions for, we have seen studies for, we have heard opinions against and have had representations against.

We are taking all of this into consideration. That will be the work of the committee. That will be a decision made before this Parliament. It will be this Parliament that decides whether we ratify the TPP.

[International Trade, February 4th, 2016]

Mr. Speaker, I would like to thank the hon. member for her question.

As I just said, we are signing the agreement to give ourselves the time to have a parliamentary committee study it properly.

Should we ratify the agreement, we will work with the sectors affected. That is a commitment we made during the election campaign, and that is exactly what we are doing.

[International Trade, February 4th, 2016]

Mr. Speaker, we signed the agreement precisely to give us the time to look at the accord, to look at the treaty in depth, to study it, to get the proper studies done, to do this work through our parliamentary committee. It is ratification that is important. We have not taken a decision on ratification yet. We signed it in order to give us the time to look at this treaty properly.

[International Trade, February 4th, 2016]

Mr. Speaker, it is true that the previous government negotiated this accord in secret, but it is also true that the hon. member for Outremont decided not to support the agreement without even having read it.

We promised the Canadian public during the election that we would study the agreement and we would look at all aspects of the agreement in depth, and that is precisely what we have done and what we are going to continue to do.

[International Trade, February 4th, 2016]

Mr. Speaker, I thank the hon. member for Outremont for his question.

We will study the impact of the TPP. That is what we have been doing by holding consultations since October 19, as we did during the election campaign, and that is what we will continue to do by means of the Standing Committee on International Trade here in Parliament. The important thing is whether we ratify the agreement. Signing it does not mean much; ratifying it does. We will make that decision after we study the agreement.

[International Trade, February 4th, 2016]

Mr. Speaker, I thank the hon. member for Outremont for his question.

Parliament will have an opportunity to study the TPP by means of a parliamentary committee, and there will be consultations with Canadians. We will certainly examine the impact on various sectors, and we will look not only at the challenges, but also at the solutions should we decide to ratify the agreement.