International Trade

The House of Commons Standing Committee on International Trade met to continue clause-by-clause consideration of Bill C-18, which implements the Comprehensive Economic Partnership Agreement between Canada and Indonesia. Appearing as witnesses were Raahool Watchmaker, Deputy Director and Senior Counsel, Trade Remedies Law, from the Department of Foreign Affairs, Trade and Development; Aaron Fowler, Associate Assistant Deputy Minister, International Trade Branch and Chief Trade Negotiator, from the same department; and Meda-Cristina Horacsek, Executive Director, Commercial and Trade Policy, from the Canada Border Services Agency.

Raahool Watchmaker confirmed that clause 26 of Bill C-18 is the only clause related to the investor-state dispute settlement mechanism, as it amends the Commercial Arbitration Act. He clarified that clause 27, concerning the Canadian International Trade Tribunal, implements provisions on bilateral safeguards and safeguard exceptions rather than state-to-state dispute settlement.

Aaron Fowler argued that the agreement does not change market access for Indonesian palm oil, noting Canada maintains a 6% most-favoured-nation tariff on crude palm oil and a zero tariff on refined palm oil, with only $55 million imported from Indonesia in 2024. He pointed to existing mechanisms within and outside the agreement, including a subcommittee on environment, a labour council, consultation mechanisms, and dispute settlement, as well as Canada's national contact point under OECD guidelines, to address environmental and labour concerns. He disagreed with the need for amendments requiring annual reports or expert groups, stating these issues are already covered. On investor-state dispute settlement, he explained it was included based on stakeholder requests for alternative dispute resolution options given significant Canadian investment in Indonesia, and that such provisions are evaluated case-by-case.

Meda-Cristina Horacsek was unable to provide immediate data on shipments seized due to human rights violations or on goods detained for forced labour, but committed to searching for and providing the information. She did not directly address a member's concern about the CBSA's past refusal to share such data, citing privacy or Customs Act constraints.

The committee debated several amendments moved by a Bloc Québécois member, including proposals for an expert monitoring group on palm oil, an annual ministerial report on environmental and human rights issues, a broader expert group on human rights and the environment, and a three-year review provision. The chair ruled some amendments inadmissible as beyond the bill's scope, but those rulings were overturned on challenge. Most amendments were ultimately defeated, though the three-year review provision was adopted. Clauses 2 to 15 were grouped and adopted unanimously, while clause 26 was adopted on a recorded vote. The committee also adopted a programming motion to schedule future studies, with a member noting the work plan does not extend to the end of the session and requesting flexibility for the chair to adjust the order of studies.