Canada-Israel Free Trade Agreement Implementation Act
Bill to Amend--Third Reading--Debate Adjourned
May 7, 2019
Moved third reading of Bill C-85, An Act to amend the Canada-Israel Free Trade Agreement Implementation Act and to make related amendments to other Acts.
He said: Honourable senators, it is with great pleasure that I rise to speak in support of Bill C-85 at third reading debate.
The Canada-Israel Free Trade Agreement, or CIFTA, is a forward-looking trade agreement that will support the efforts of both countries to expand trade and deepen economic cooperation.
The original CIFTA was Canada’s first free trade agreement outside of the western hemisphere. Until now, CIFTA has been a goods-only trade agreement.
The modernized CIFTA updates four of the original chapters, including dispute settlement, to bring CIFTA up to the standard of our more recent free trade agreements. It also adds nine new chapters, including intellectual property and e-commerce. These measures further strengthen the Canada-Israel bilateral commercial relationship and improve access to the Israeli market for Canadian exporters by eliminating and reducing tariffs and advancing a variety of non-tariff barriers.
Honourable senators, let me elaborate on this point by turning to how this translates into real benefits for Canadian businesses.
Canadian exports of industrial products, fish, seafood and some agricultural products already benefit from duty-free access as a result of the original CIFTA, which came into force over 20 years ago. Since then, two-way merchandise trade between Canada and Israel has more than tripled, totalling $1.9 billion in 2018. There is room to grow and deepen the commercial relationship. The modernized agreement will further expand this access and create new opportunities for Canadian companies.
Once in force, close to 100 per cent of all current Canadian agriculture, agri-food and seafood exports to Israel will benefit from some form of preferential tariff treatment, up from the current level of 90 per cent. This will clearly generate benefits for Canadian companies.
Once fully implemented, the modernized CIFTA will also create more favourable conditions for exporters through important commitments to address non-tariff barriers and establish mechanisms under which Canada and Israel can cooperate to address and seek to resolve unjustified non-tariff barriers that may arise.
The modernized CIFTA also includes trade facilitation measures designed to reduce red tape at the border. This includes the use of automation to expedite the release of goods, and an impartial and transparent system to address any complaints about customs determinations.
Furthermore, the modernized CIFTA contains provisions to facilitate cooperation between both parties to combat intellectual property — or IP — rights infringement and to cooperate on the enforcement of IP rights. It also includes commitments by Canada and Israel not to levy customs duties or other charges on digital products that are transmitted electronically.
Finally, let me highlight once again that this forward-looking framework includes new chapters on trade and gender, small and medium enterprises, labour and environment, as well as a new provision on corporate social responsibility. These are firsts for Israel in a free trade agreement. These inclusive provisions are designed to allow more businesses to take advantage of CIFTA’s opportunities.
Honourable senators, this modernized agreement puts Canada and Israel on a positive and innovative track towards generating more business for both countries. This is why I urge all senators to support the modernized Canada-Israel Free Trade Agreement and passage of Bill C-85 as quickly as possible. Thank you.
Senator McPhedran, did you wish to ask a question?
Yes. Would Senator Wetston take a question?
Yes.
Senator Wetston, in the free trade agreement with Mexico and the United States, there is considerable reference to human rights and gender equality. There’s nothing similar to that in this trade agreement. I wonder if you could help us understand why that’s missing.
That’s a good question. I’m not sure whether I can answer it. The one thing I will tell you is that Canada has taken extensive positions on various issues in the Middle East and has decided to adopt a trade agreement that is similar to other trade agreements, reflecting the nature of the relationship in this particular area.
What I mean by that is that, understandably, Canada’s positions are well known when it comes to Israel, and Canada’s position is recently well known when it comes to the territories. I recognize that the issue of human rights you are referring to would probably reflect more with respect to the territories than with respect to Israel.
The best I can say about this — a very good question, obviously — is that I believe the rationale for not including human rights and gender equality was primarily, I expect, because this trade agreement would not easily facilitate the kind of agreement that was expected under these circumstances — recognizing that it has been updated extensively, but this particular area of human rights was not discussed or agreed to. I’m sorry I can’t help you more with that.
Honourable senators, I rise today to talk about Bill C-85, a bill to modernize the Canada-Israel free trade agreement. I’d like to share an observation with you. Let me begin by saying that I support this bill.
I support Bill C-85.
Since CIFTA came into effect in 1997 — CIFTA, as you know, is the Canada-Israel Free Trade Agreement — trade between Canada and Israel has more than tripled, totalling $1.9 billion in 2018. With the modernization of this agreement, it is expected to grow further.
The modernized agreement will include new, progressive, contemporary standards in such areas as dispute settlement, trade and gender, the environment, intellectual property and corporate responsibility.
Beyond strictly economic considerations, this bill enhances the robust relationship that Canada has with the Israeli state — a deep, lasting relationship that is reflected in strong economic, social, cultural and political ties.
That being said, I want to share with you today an observation about the issue of the territories occupied since 1967 — that is, the West Bank, the Golan Heights, Gaza and East Jerusalem — and the identification of goods coming from those areas.
My goal is not to involve myself in a highly complex conflict. I simply want to point out an inconsistency. I want to say, in answer to Senator McPhedran’s question, that Canada is no stranger to negotiating human rights provisions in its free trade agreements.
The agreement applies to the territory where Israel’s customs laws are applied. This means that the Israeli territory, as defined in the agreement, includes the territories occupied since 1967, since Israeli custom laws currently apply there, which is paradoxical.
Indeed, according to Global Affairs Canada, Canada does not recognize Israel’s permanent control over those territories.
In its testimony to the committee, the former United Nations Special Rapporteur on the situation of human rights in the Palestinian Territory occupied since 1967 indicated that Global Affairs Canada’s position was based on an erroneous interpretation of the customs union entered into in 1994 by Israel and the Palestine Liberation Organization, as set out in the Paris Protocol.
In view of this, I believe it would have been judicious to make a clear distinction between goods from Israeli territory and goods from the territories occupied since 1967. This would have honoured the requests made to all states by the UN Security Council in its resolution 2234 of December 2016. The European Union decided to require that all goods from the Israeli settlements and territories occupied since 1967 be identified as such for the purposes of trade between the EU and Israel.
The similar measure would have enabled Canada to correct that inconsistency. 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. Being able to identify goods from those territories is important, because the information can then be passed on to consumers so they can make informed decisions.
I wanted to make this observation today to ensure that it is formally recorded in Hansard and to express my regret that the agreement does not reflect Canada’s position regarding the occupied territories.
That being said, since the negotiations are over and the agreement will produce benefits for the citizens of both Canada and Israel, I will vote for the bill. However, I urge the government to ensure, in all current and future negotiations of international agreements, that trade policy is carried out in keeping with its principles and duties with respect to fundamental rights.
Thank you.