Meeting 21 · February 5, 2026 · 11:00–12:32 (1h 32m)
45-11 witness · 112 interventions · 11,433 words
The committee met to study Bill C-18, the Canada-Indonesia free trade agreement, and later proceeded to clause-by-clause consideration of Bill C-13. The Minister of International Trade, Hon. Maninder Sidhu, appeared as a witness, along with Rodney Neufeld, Senior Counsel at the Department of Foreign Affairs, Trade and Development, who answered questions during the clause-by-clause portion.
Minister Sidhu emphasized that the agreement would create opportunities for Canadian workers and businesses, particularly in agri-food, aerospace, mining, and energy, by reducing tariffs and providing enforceable labour and environmental provisions. He noted that Indonesia is a fast-growing economy and that the deal would help diversify Canadian exports beyond the United States. He also highlighted that the investor-state dispute settlement mechanism (ISDS) is included because Canadian investors frequently use it and have won favourable outcomes, and he defended the agreement against concerns about forced labour and environmental standards by pointing to enforceable chapters and ongoing dialogue.
Rodney Neufeld clarified during clause-by-clause that section 2 of Bill C-13 makes ISDS awards enforceable under Canadian domestic law through the Commercial Arbitration Act, while a separate act, the Settlement of International Investment Disputes Act, deals with ICSID awards. He responded to a member’s question about the legal effect of the enactment formula, confirming it is standard language authorizing Parliament to enact legislation.
During debate on amendments, the Bloc Québécois proposed requiring a three-year review of the agreement and a precondition for resolving sanitary and phytosanitary barriers before implementation. The Liberal and Conservative members expressed openness to the review amendment, noting it was reasonable and within a future committee’s responsibilities, and it was adopted on a recorded vote. The Bloc’s amendment on sanitary and phytosanitary barriers was ruled inadmissible by the chair, and the member challenged that ruling, but the committee voted to uphold the chair’s decision. Two Conservative amendments were withdrawn by their mover. The committee agreed to schedule future discussion on committee business.
AI-generated summary — may contain errors; verify against the official evidence.
Rodney Neufeld
Senior Counsel, Investment and Services Law, Department of Foreign Affairs, Trade and Development
Opening remarks
Thank you very much for the question. I'll answer in English so I that I don't get my words wrong. This provision makes the ISDS award an award in Canada, per domestic law, so it's enforceable in Canada.