Carbon pricing mention in updated Ukraine trade deal sparks political spat

Conservatives voted against approving the updated agreement and argued it imposes a carbon tax on Ukraine, which the Liberals denied and accused the Opposition of betraying Kyiv.

After Tories voted against a bill that implements a Canada- Ukraine free trade agreement this week, Conservative Leader Pierre Poilievre said on Thursday that his MPs are rejecting a bill that promotes carbon pricing — not voting against the idea of an agreement between the two countries.

“There’s no reason to promote a carbon tax for Ukrainians or for Canadians. The carbon tax is crippling our people,” Poilievre told reporters in Toronto.

The Conservative position has Liberals arguing that the official Opposition is following segments of the U.S. Republican party in chipping away at support for Kyiv against Russia’s invasion.

That has led to heated exchanges in the House of Commons as it debates legislation implementing a negotiated update to the existing trade deal.

The proposed text primarily focuses on maintaining market access under an agreement that former prime minister Stephen Harper’s Conservative government had originally negotiated. It also includes new investment provisions that Ukraine says could help with an eventual rebuild of the war-torn country.

The text being debated also adds a new environmental chapter in which both countries agree to “promote carbon pricing.”

Ukraine has had a price on carbon in place for years, and its ambassador is urging Canada to pass the legislation.

Senior Canadian officials have testified that the language around carbon pricing is meant to clarify that such policies won’t hamper bilateral commerce.