Canada-Peru Free Trade Agreement Implementation Act

An Act to implement the Free Trade Agreement between Canada and the Republic of Peru, the Agreement on the Environment between Canada and the Republic of Peru and the Agreement on Labour Cooperation between Canada and the Republic of Peru

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Stockwell Day  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment implements the Free Trade Agreement and the related agreements on the environment and labour cooperation entered into between Canada and the Republic of Peru and signed at Lima on May 29, 2008.
The general provisions of the enactment specify that no recourse may be taken on the basis of the provisions of Part 1 of the enactment or any order made under that Part, or the provisions of the Free Trade Agreement or the related agreements themselves, without the consent of the Attorney General of Canada.
Part 1 of the enactment approves the Free Trade Agreement and the related agreements and provides for the payment by Canada of its share of the expenditures associated with the operation of the institutional aspects of the Free Trade Agreement and the power of the Governor in Council to make orders for carrying out the provisions of the enactment.
Part 2 of the enactment amends existing laws in order to bring them into conformity with Canada’s obligations under the Free Trade Agreement and the related agreement on labour cooperation.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 3, 2009 Passed That the Bill be now read a third time and do pass.
June 3, 2009 Passed That this question be now put.
April 23, 2009 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:05 p.m.
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NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, the member's question is an important one that we need to consider with this free trade agreement.

One of the problems with labour in the Americas, as I did point out, is that unionized labour is a very small percentage of the population. In fact in Colombia it is about 5% and it is approximately that in Peru also.

When Canadian companies are there, I am hoping the conditions will improve for the workers who work for those Canadian companies, but that is a very small portion of the population. If we can raise the standard of living for the people who work for Canadian companies, that is wonderful, but let us not forget that there should be an advantage for all the other workers in those countries, where the poor continue to get poorer and poorer. While there is some advantage to unionized labour working for Canadian companies, there is not necessarily any trickle down effect or a role model that is followed by other companies in those countries.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:10 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I want to congratulate the member on an excellent presentation regarding the free trade agreement with Peru.

I would like to ask him how he would improve this agreement, what the cancellation provisions are of this agreement and how they would help alleviate concerns if we were to proceed with this agreement and we found that the agreement was not working properly in a year or two.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:10 p.m.
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NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, unfortunately, when we talk about parts of a free trade agreement where there is an opt out clause, it is pretty clear that governments are loath to trigger that.

If we look at our current free trade agreement with the United States and Mexico, I believe that with a six month warning we could get out of that free trade agreement. Quite frankly, people in my riding and people I deal with particularly in the forestry industry but in other industries as well put part of the blame for the situation we are in right now on NAFTA's shoulders. We have continually asked for something to happen with NAFTA, to renegotiate it. I was glad to read in the news the other day that the Liberals have decided that to renegotiate NAFTA is a good route to go. It seems people are loath to trigger that particular mechanism, so I am not confident that even though the mechanism exists in a free trade agreement, it will be used.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:10 p.m.
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Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, I am pleased to speak this afternoon to Bill C-24, Canada-Peru Free Trade Agreement Implementation Act.

A free trade agreement is important for economic development. It allows us to see how two countries can do business with one another.

Before becoming a federal member of Parliament, I was into economic development support and trade financing for businesses. When it comes to economic development, it is often said that diversifying one's economy is the key. Even we, as federal members of Parliament, say so. Economic diversification is important because it allows a region to vary the sectors on which it relies, which is important in times of economic slowdown like the one we are going through. Economic diversification might have helped to a certain extent to mitigate the crisis we are dealing with.

It is the same thing with market diversification. When 75% to 80% of an economy depends on only one market we call that putting all one's eggs in one basket. In my own province of New Brunswick, about 80% of exports go to the U.S. When the American market has difficulties, our own businesses also have difficulties and our jobs are threatened.

When I worked in economic development and business support, I often repeated one thing to my clients: it is great to diversify one's economy, but the company must also try to achieve market diversification. That will allow it to react when one sector is in trouble. When one country is in trouble, the company can turn to other countries to help it get by. Today we are faced with a global crisis, one that is not limited to just one country. However, the reality is that the diversification of our market through various countries at least gives us the opportunity to identify potential markets, or a potential client or region. If it does not have the tools to identify various markets, it is difficult for an entrepreneur or a company to save jobs.

However, we have done exactly what I was talking about: we put all our eggs in one basket. In many respects, that is exactly what we did here in Canada, because we thought that was the easy route. The Americans are our closest neighbours. However, when they are in trouble, we see what happens, in other words, the current crisis. But that was an easy way. They were closest. It often represented large volumes.

Some members have said here today that that agreement gives us access to a small amount, a small market. Perhaps that is true; however, when we look at the distinctiveness of many of the provinces and many regions, we see that some of our businesses need those small markets to make a difference.

Let us look at the agreement with Peru. There was a company in my riding for which I fought a long time to ensure its survival. I am referring to Atlantic Yarns, in Atholville. That factory needed, among other things, an agreement between Canada and Peru to facilitate the export of goods to that country, and also to manufacture other goods. Earlier, I was surprised to hear some members, primarily NDP members, say that this is not a good thing. I was surprised to hear that, because when I was working with the union members of that company, they were hoping that the government would sign a free trade agreement with Peru, and they would consistently ask when such an accord would be concluded. That was urgently needed to protect their jobs.

This is now April 20, 2009. It is too late, because the government erred, and we are not seeing any concrete measures to move forward quickly.

Unions and the NDP often get close together. However, I can understand why organized labour in my riding is beginning to distance itself from the NDP, because they are finding out that New Democrats are not always there to support union workers.

I said that the government erred regarding this issue. It all began in 2006. Taking action back then may not have completely saved one of our companies, but it might have helped to some degree. From the beginning of the process, in 2006, until now, April 20, 2009, over three years have gone before we were able to move forward on this issue.

While I did speak favourably of the agreement, one must understand that, at some point, a government cannot take all the time in the world to act. Sometimes, it must move forward a little more quickly and take the initiative. If the government would stop proroguing Parliament, perhaps we would move forward more quickly on this issue. Moreover, if the government had not called an election not that long ago—when elections were supposed to be held at fixed dates in this country—perhaps we would already have made progress on this issue.

I remember hearing people say, precisely on this issue, that they did not want an election or prorogation. Instead, they needed us to implement these measures for, among others, Atlantic Yarns, in Atholville, New Brunswick, to which I referred. These are realities that affect people in my riding and elsewhere, and these are things that they need.

That being said, we nevertheless need to examine other issues. When we do business with other countries, we have to protect certain things, such as our supply management system. With regard to the Canada-Peru Free Trade Agreement, I was relieved and truly reassured by the fact that everything to do with supply management—the security and future of supply management—will be protected. It is rather surprising, coming from the Conservative government, because it sometimes talks out of both sides of its mouth. At times we wonder if the Conservatives simply want to get rid of supply management. At least in this document it has not been forgotten.

We will have to continue reminding them of the importance of supply management for the survival of various industries: the dairy industry and the egg and poultry industry, both chicken and turkey. These are important files. The Conservative government has at least listened to us this time and understood the importance of supply management, as clearly indicated in this bill.

We must ensure, when concluding similar agreements, that there is respect for human rights. I would like to name a few of them, five to be precise: the right to freedom of association, the right to collective bargaining, the abolition of child labour, the abolition of forced or compulsory labour and the elimination of discrimination. These are important issues for Canadian society and citizens. Citizens want these rights to be respected. When doing business with other countries and when making free trade agreements with other countries, our citizens also want those countries to respect the values of the Canadian government and people.

Our Canadian values cannot be taken away from us. The essence of being a Canadian citizen can be taken away by few people. We live in a democracy and we worked hard to achieve that. When I say we, I am including those who came before us in this House and elsewhere, those who built this country. They fought to ensure that we could keep the freedom and democracy that we enjoy today.

Let us go back to what I mentioned earlier. If we want to move forward and prosper, we must not be content to follow. We must sometimes take the initiative. When I raised the issue of the agreement between Canada and Peru a few years ago in this House, I was motivated by our neighbours to the South, the Americans, who had previously started the process of negotiating a free trade agreement with Peru.

Now, let us look at the reality. Our population is only one tenth the population of the United States, and it is certain that our economy is much smaller in volume than the American economy. The Americans, for their part, decided that it was important to do business with that country, even though it is a small market.

When I look at this situation, I wonder why the members of this House say that it is such a small market and that it is not worth spending any time on it, although countries with markets much larger than ours and with a larger population consider it is in their interest to have a free trade agreement with Peru. As Canadians and as a government, we must not always be followers. It is sometimes important to act as leaders. To be leaders, we ought to have started the process earlier and accelerated it. Then, perhaps,we would not be among the last to act in signing such agreements.

As I have mentioned before, while the American industry was enjoying its benefits, our Canadian companies had to suffer from the inaction of the government. There were delays in moving forward with the implementation of the free trade agreement. It must be hoped that there will not be any more job losses such as the ones in my riding at Atlantic Yarns. We must look to the future. There is no choice. If the government had moved more quickly, there would have been a choice, perhaps, but today, we have no choice.

Seeing the benefits is a responsibility shared by all parliamentarians. Whatever the agreement, there can be comments more negative than others. I am repeating myself because this is important. We have been told by the workers from these plants in our area that we had to act quickly. This might therefore be some kind of lesson, or certainly a comment that some members, particularly those from the NDP, should take into account.

Textile was mentioned earlier. Things are taking a bit longer than they would like, but the fact is that things have to be put in place so that progress can be made. Going against this will mean that nothing will ever get done. Some steps can take a bit longer than others, but that is already better than doing nothing and never being able to help the workers in our communities.

Now is the time to think about market diversification so that, once out of the crisis, we can rebuild our economy and diversify our markets. This will allow us to become even stronger and do business pretty much anywhere around the world. It will allow our companies to operate around the world, which, in turn, will ensure that long-term rather than short-term jobs are created. The next time there is a crisis, we will be able to get through it, without people experiencing the dramatic situations they are currently experiencing in all Canadian industries.

We know that the Conservative government has failed to take action on several fronts with respect to plans to stimulate the economy and the forestry industry, which is a huge part of the economy where I come from. It has failed, in general, to take action. During the last federal election in September and October, the Prime Minister himself said that there was no crisis. Well, I am sorry, but the crisis in Madawaska—Restigouche started a few months—maybe even a year—before that. The Conservative government probably figured that even if that region was in crisis, it would not touch the rest of the country. That is a shame, because if it had listened to us in the first place, it would have found out about the crisis in my part of the country and we might not be going through the crisis we are going through now.

Trying to explain that to a government that refuses to see or to listen is not necessarily easy. It is even harder when that same government buries its head in the sand, convincing itself that nothing is wrong and everything is great. As a member of Parliament and a citizen, when people all around me, including my neighbours, are losing their jobs, that is no fun for anyone. When a person loses a job, it is bad for the economy because less money will flow to our regions.

Inaction hurt us all. It is still hurting us, but there comes a time when we have to take action to ensure a better future for our people.

Some companies want such measures, and the people working for those companies want such measures, so as parliamentarians, maybe we should open our eyes and our ears, pull our heads out of the sand and ask ourselves if this will make things better for our fellow citizens and workers in the near future.

Personally, I think that it will. It might be a small step, a drop in the bucket. It is a small country, but that does not mean that some of our companies and manufacturers will not benefit.

So, let us ensure the well-being of our people. Let us ensure that they have work. Let us also listen to our workers and business leaders. We have to hear from them how important free trade agreements like this one are to them.

Perhaps then, within a short time, we will be able to create what we need: wealth. Our people will be able to go back to work and start spending again, which in turn will make the economy run even better so that more people can work. Efforts will have to be made not to repeat the errors of the past, by overlooking the time frame for going forward with such a plan or implementation plan or, worse yet, failing to listen to people, parliamentarians, our fellow citizens, our workers, labour as well as management of Canadian businesses. They might have been able to move things forward faster and prevent the crises faced today.

In closing, let me just reiterate what I said earlier. We are seeking to diversify our economies. That is what we are here for and what we are preaching to anyone who will listen. In our respective regions, we are telling people that the economy has to be diversified if we want risks to be eliminated. Should one falter, the others are there for support. Let us use the same logic.

I am not saying that we should necessarily take after all countries, of course. There are surely countries around the world which are having a much harder time with what we might think are good things. But in this instance, let us make a point of working toward being able to provide what is known as market diversification. Let us allow our companies to have access to additional markets and diversify their markets. That would make it much easier to go through tough times like these.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:30 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I quite like the hon. member for Madawaska—Restigouche as a person but once again I think the Liberal Party is on the wrong track. Once more it is saying yes to anything the Conservatives present, especially old George Bush-style free trade deals. There is no difference between the Liberal Party and the Conservative Party. The Liberals always endorse the Conservative approach to everything. We saw it in the softwood lumber agreement, even though thousands of jobs were lost. It was very predictable. All the witnesses had said there would be massive job losses as a result.

Now we have tens of millions of dollars in fines that Canadian taxpayers have to pay, and the Liberal Party says yes. Just a few weeks ago, there was a bill that killed the shipbuilding industry. The Liberal Party said yes. There too, we saw that the Liberal Party says yes to anything at all.

I have a simple question for the hon. member: why does the Liberal Party not just merge with the Conservatives? There is no difference.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:30 p.m.
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Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, there is a clear difference: when we make decisions, we are well-informed because we listen to the people who need those decisions.

My colleague said he quite liked me. I understand his point, but there are limits. I can understand he likes me because the reality is that we are working hard for people. He should understand something else though. I would have preferred Atlantic Yarns to be still operating today. He would have had a chance to do what I personally did, that is, sit down with the union representatives and discuss the company’s future. When I say the union representatives, I am not talking about management but the employees. These employees wanted to make progress and they wanted to keep their jobs.

I think it is important for you to understand this, Mr. Speaker, and for you to pass along the message to the NDP member who just spoke. These workers wanted to make progress. Maybe they would still have their jobs today. Maybe they could have been working today and supporting their families. That was one factor among others that might have saved the company. It shows one thing: that I took the time to talk with the union representatives and review with management what was needed for the company to survive. One of the things was the implementation of this free trade agreement. Whether it suits the NDP member or not, this is what the people out in the real world wanted. This is what the workers needed to make progress with their jobs.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:30 p.m.
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Conservative

Blaine Calkins Conservative Wetaskiwin, AB

Mr. Speaker, I want to bring to light something that I read this morning. I thought it was quite interesting. It is an article by Gren Winslow in the Canadian Cattlemen magazine.

He starts out by saying that cattle producers have a reason to be thankful that the Minister of Agriculture, the hon. member from the Conservative government, is at the helm. He goes on to say:

It traces right back to January 9 when [the Minister of Agriculture] accepted the Beef Value Chain Roundtable recommendation to create a market access secretariat within Agriculture and Agri-Food Canada that will direct the efforts of industry, government and producers to open up new markets for agriculture commodities.

He then goes on to say that the minister jumped on a plane to test out the concept and was the head of a trade mission to India and Hong Kong, which of course is in China. Equally important is the fact that Hong Kong is the gateway to mainland China. The author of the article continues on and basically says what a positive step it is to get that first step in the door when we get into these emerging markets.

He goes on to actually say that we are actually doing so well that the U.S. Meat Export Federation President and CEO Philip Seng noted that the U.S. has some catching up to do in terms of market access in Hong Kong. He goes on to praise, obviously, the work that we have done in Jordan, basically, creating an opportunity there, where it has now spread and we have some agreements where we have some under 30-month beef going into Saudi Arabia.

Could the hon. member provide some more examples of what good policy can do when we actually create these free trade agreements? It creates a network of countries working together to improve the lives and benefits of all of their citizens.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:35 p.m.
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Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, obviously, many things can be done to improve the lot of our businesses and workers. One thing I liked in the comments of the hon. member opposite, is when he talked about a gateway. A gateway is a means to give us access to markets and make trade easier between two countries.

As I said earlier, it may not be a big country or a major player, but there is a link with the diversification of our markets I was talking about earlier. This diversification of our markets is just as important as economic diversification within our own borders. It is the same kind of approach that can help find a way out of our problems when a market is in crisis and help our businesses take a wider perspective. True, businesses need to work hard, and spend time and energy if they are to access new markets. If they are not provided with the right tools by the government, it is hard for them to do it. But in all of this, we have to take stock of the situation. There are hard facts that should be considered. It is not all wide open, and we should be realistic and reasonable.

The supply management issue is important. Supply management must be protected. We cannot tell other countries this will be sacrificed. We have already given too much in the past. At this time, there are situations where other countries do no respect the same limits we set for ourselves. And our own people end up paying the price. Today, we must work with our people. There are numerous examples. We should be able to maintain some balance. Some things are acceptable, but there are things we should preserve for ourselves. We should make sure we fight for our important and vulnerable industries.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:35 p.m.
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Bloc

Monique Guay Bloc Rivière-du-Nord, QC

Mr. Speaker, in Quebec, we are in favour of free trade and we have always been. However, we must take into account the nature of the two countries involved. Canada is a developed country and Peru is a developing country. When we negotiate agreements, we must sit down and examine the real opportunities for both countries. In our view, the agreement that is proposed does not meet both countries' needs, particularly not those of Canada.

We must take the time needed to reach good agreements. We believe that this agreement has not been examined thoroughly enough to allow both countries to get their fair share.

I would like to hear my colleague talk about that.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:35 p.m.
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Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, it would seem that the benefits of such an agreement are not immediately clear to some parliamentarians. There can be no benefits without an agreement. That much is clear. In order to move forward, we have to look to the future and see what opportunities would open up for Canadian companies to do business with a country like Peru if the agreement were implemented starting today.

We may not be talking about a huge volume of trade or a large country, the economic situation in our two countries is different and the size of the economy in our countries may be different. I realize that. However, nothing is exactly the same around the world. In doing business with other countries or companies, seldom are quantities and volumes equal.

Opportunities have to be assessed nonetheless. What opportunities will our companies have? That is what we should think about. If we do not act today, then there will not be any opportunities to enjoy tomorrow. If nothing is done today, then tomorrow's jobs will not be saved.

We have to rebuild from the mess inherited from the Conservatives and figure out how to improve the lives of Canadians and workers, and perhaps preserve the future of those plants affected by job losses because of government inaction.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 5:40 p.m.
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Bloc

Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Mr. Speaker, I am happy to speak today to Bill C-24, the Canada-Peru Free Trade Agreement Implementation Act.

A few weeks ago, I took part in a parliamentary mission to Peru as part of the activities of the Inter-Parliamentary Forum of the Americas. I had the opportunity to meet Peruvian parliamentarians, government representatives, representatives of the Canadian mining industry and people involved in international cooperation. I found that there were many potential affinities between the two countries and that it would be useful to develop ties with Peru.

But a red light went on in my head when the Peruvian parliamentarians invited us to take a close look at the contents of the agreement. It is a good thing to want to engage in trade and create wealth in both countries, but the Canadian government has decided to incorporate the equivalent of chapter 11 of NAFTA into this agreement. This chapter allows a company to sue a government if it is not satisfied with an application or a new law.

In this case, it is said that these regulatory or legislative amendments must be comparable to direct or indirect expropriation or a measure equivalent to expropriation.

We understand the Conservative government's rationale even better. I am somewhat surprised at the Liberals' position on this. The Conservative government wants to allow Canadian mining companies to operate in Peru with virtually no restrictions. They have financial power, and they are faced with a democratic country that wants to carve a place for itself, but does not have our abilities.

There is another argument. For example, if the Peruvian government were to decide to reorganize how the lands of the indigenous Quechua people are distributed and wanted to improve ownership for the indigenous people who have lived in Peru for centuries and were there even before the Spanish came, the agreement as written would allow a company to say that the government cannot do that without compensating it. That is a fact. I am not making anything up. NAFTA already has such a provision. The Canadian government itself, under the Liberals, was taken to court over its ban on MMT.

MMT is a gasoline additive, a known nerve toxin. The Canadian government had banned that additive. The American company went before the courts and won its case, and the Canadian government had to pay compensation to that company. That is the tail wagging the dog. Including a provision in an agreement like this one will simply ensure that republics like Peru stop putting forward protectionist measures because it could never compete with companies like we have in this country.

This visit was also an opportunity to realize how important it would be for such free trade agreements to follow consultations among parliamentarians from each country.

Had the parliamentarians in the House of Commons and their Peruvian counterparts had the chance to discuss before the drafting of the agreement between their two countries started, I think there would have been lessons to be learned and the agreement eventually signed would not have included such a provision.

It does not make much sense and does not reflect well on Canada's reputation. Canada signed an agreement with northern European countries. We supported that agreement which did not include a provision like chapter 11. These being developed countries, it was agreed that our countries would deal with one another as equals and that no increased powers would be given to companies. When signing bilateral agreements with developing countries, we take the liberty of creating a framework that is not in line with the will and development of each country.

During my visit to Peru I saw that that there was a will to change things. People also hoped that the agreement, which had been negotiated during economic good times, could survive the economic slowdown. Experts who made presentations warned us against the impacts of the agreement on agriculture in Peru and also in Quebec and Canada. The supply management system has been protected. It is not included in the agreement per se, which is a good thing, but the agriculture sector will continue to be treated as any other market sector. That is not good for the future of our agriculture and of the Peruvian agriculture.

I also had the opportunity to visit the beautiful village of Chincha Baja, which has suffered greatly from natural disasters, including an earthquake. CIDA has a house building project there. The village is on the fringe of Lima, the huge capital city with 8 million inhabitants, where we can see all levels of poverty and wealth. In the village's rural setting I could witness the importance of giving the agriculture sector in a country like Peru the opportunity to organize itself well enough to be able to access our market, but on a level playing field.

I was reminded of the situation in Africa. Some African countries produce cotton that is more expensive than the cotton they could import from the United States because of the subsidies the U.S.A. gives to its producers. Agricultural producers in Peru could find themselves in the same situation because we have a well structured agricultural sector and unions. Over the years, we have developed some tools that they do not necessarily have in Peru.

For this agreement to become acceptable, we would have to remove the clauses that are similar to NAFTA's chapter 11. Those clauses give excessive power to companies, which can sue governments if their operations are adversely affected. In this case, this is a serious matter, because we are talking about the mining sector. In Peru, Canadian companies are the main stakeholders in that sector. This agreement is going to give them more power, and that is dangerous. This comes at a time when the government itself refused to follow up on the round tables asking to adequately regulate the operations of extractive mining companies. We reached the point where a member of Parliament had to table a bill saying that the government's position was inadequate, and that we want something that reflects more closely what was proposed by the round tables. The Bloc Québécois also drafted a bill along those lines. Today, the Conservative government is going in the exact opposite direction. It is opening up the floodgates, so that mining companies can really do as they please.

Earlier, a Conservative member talked about the reputation of Canadian companies abroad. The vast majority of Canadian companies have a good reputation, but a number of them have really engaged in excessive things, and we should be able to discipline and control them. One way to do that would be to follow up on the recommendations made by the round tables. Another would be to at least ensure, in agreements such as the one before us, that we do not give them increased power, such as what the chapter similar to NAFTA's chapter 11 is going to give them.

Let us not forget that we are talking about a country that is a democracy and that is trying to move forward, but that is also experiencing difficult circumstances.The Sendero Luminoso organization, or Shining Path, is a terrorist group that is still active and that did things just last week. We must be very careful before going ahead with agreements that will exacerbate existing problems. We must provide more opportunities for these problems to subside and disappear, so that we have a much more rational and concrete reality that will achieve the desired results.

Why is the Bloc Québécois opposed to this agreement, not to mention the issue of investment protection?

Bilateral agreements often lead to agreements that put richer countries at an advantage over poorer countries. That is what is happening at this time. We would much rather see the development of multilateralism, in other words, a group of countries around the world that agree on conditions so that negotiations are more balanced. A group of developing countries could get together, thereby strengthening their bargaining power. There may be common interests shared by one developed country and one developing country that are not shared by other countries. Ultimately, this would allow for a much more balanced agreement.

A bilateral agreement like the one with Peru is not the most problematic; the one with Colombia is much more so. There are problems in Colombia related to a failure to recognize workers' rights and environmental rights. That is a part of daily life in Colombia, although it is not the case in Peru. But we hope to see that situation improve, rather than deteriorate.

The agreement signed by the Canadian government almost seems to suggest that the government is a corporation. It is looking solely at the economic advantages for Canadians in the short and medium term, but is not considering the impact it will have on the other country and is acting like an invader, which is not Canada's tradition. As members of the Bloc Québécois, we have a responsibility to hope these things will be corrected.

The problem is that a free trade agreement such as this cannot be changed. We must decide whether or not we will support it. It is an important issue. Naturally, we will debate it and show that we find it lacking. In the past, ancillary agreements have sometimes mitigated negative effects, but they do not have the same force. In this case, the agreement in its present form is unacceptable for the reasons I gave, especially on the issue of investments.

It is unfortunate because Peru is a country with abundant resources and a great deal of potential. It may not previously have developed the structures for distributing wealth such as we have in Quebec and Canada. During my stay, I was very surprised to see that it does not have any type of employment insurance or social welfare. The informal economy is very pervasive and there is no declaration of income or payment of taxes. There is barter, which does not contribute to collective wealth. Other practices should be developed in this regard.

If, in the future, we wish to sign agreements that foster globalization with a human face, they should contain provisions ensuring that both countries will agree, for example, that the developed country will help the developing country establish a better support system for the distribution of wealth and that it will provide the developing country with the expertise required to accumulate this wealth.

Peru's economic growth is presently in the order of 7% to 9%. This is a very good rate of growth that is closely tied to the mining sector. When the economy slows down, as it has in recent months, the situation becomes much more difficult. We are facing a very paradoxical situation. We are signing an agreement at a time of increased economic growth. Canadian firms and the Canadian market needed these resources, but now there is a slowdown and we find ourselves facing a new reality.

Peru, which depends heavily on exports, has signed numerous agreements of this kind. It has agreements with various countries. When I went there a few weeks ago, it was negotiating an agreement in principle with China, which wants to get natural resources by the same method. Obviously this aspect, the fact that the rules of the marketplace alone govern the situation, places an additional responsibility on the Canadian mining industry, which has a major presence there, to ensure that our corporations conduct themselves ethically and serve as a model.

This is the case for some corporations, but not for all corporations. For example, it is the case for junior mining companies that are most often involved in mining exploration. Often, the corporations do the mining themselves, but small companies that do not comply with the basic requirements are also tolerated by the system.

We would have liked to see Canada impose standards, in signing this kind of free trade agreement, that could then become a model. We hear that argument when we are being sold the free trade agreement, and we are told that with this kind of agreement we will have to fix the situation here at home. In fact, however, the provisions that govern investments and the right of corporations to bring suit will have the exact opposite effect. It will give corporations more power in relation to governments, which certainly need to be on firmer footing and be in more control.

We have seen this in Quebec. There is nothing new under the sun. Fifty or 60 years ago, as the members from Lac-Saint-Jean and the North Shore know, we frequently made very major concessions to attract businesses. It took years to try to fix that situation, and even today we can see that when companies are sold, these kinds of concessions are still being made.

They did it when Alcan was sold to Rio Tinto under secret agreements, under a Canadian law that lacked the teeth to impose conditions regarding employment. In any case, the Conservative government did not want to.

As regards Peru, a country I visited very briefly, I tell myself it should be given an opportunity to avoid this type of situation, rather than increase the risk of the same thing happening.

It was the same for trade with Costa Rica. In the present matter, even if trade between Quebec and Peru and Canada and Peru were possible and substantial, there are businesses on location there, and also some international cooperation. However, following my meetings with various international cooperation NGOs, I note that they are very careful to ensure a clear distinction between purely capitalist market-oriented companies—such as the mining sector—and aid to communities, so that no link between the two can take away their independence of action.

The Canadian government is no example. We saw it remove some countries in Africa from its aid list, in order to do business with Peru and Colombia.

Does that mean that Peru and Colombia do not need aid? No. We agree, and, in any case, the Canadian government could have done more in the area of international aid. What is unacceptable is taking aid away from Africa, which is desperate for it, in order to turn a policy of international cooperation into a policy of support for economic development rather than a true policy on international aid. The Canadian government is acting as if it managed a private company rather than a government. I do not think Canadians and Quebeckers expect this type of behaviour from their government.

I will conclude my remarks on this point. Peru is a country that deserves solid cooperation. This free trade agreement will not do it. And because the agreement as such cannot be amended during negotiations, the Bloc prefers to vote against the bill for a free trade agreement with Peru, even if it means calling on the government to redo its work to ensure that the rules of the game are clear and will benefit both countries involved—both Peru, a developing country, and Canada and Quebec.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 6 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I congratulate my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup on his speech. I have absolutely nothing to say against the position of the Bloc Québécois and I am jubilant, since that was not the case in the past.

What we just heard from the Bloc Québécois is an important reversal. As we well know, the softwood agreement was bound to cause massive job losses in Quebec. The industry in Quebec said that it would cause job losses. The position of the Bloc Québécois was that we could not reject free trade agreements signed by the Conservative government. We know very well that that is not true. We even have the responsibility to reject agreements of this type.

When the House dealt with an agreement that targeted shipbuilding, the workers in Quebec said that it must not jeopardize those jobs in Quebec. The Bloc voted in favour of that. I congratulate the Bloc Québécois on its present position, which is against this agreement. The only question that I have is why it took so long for the Bloc to finally reach the position it did on free trade.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 6 p.m.
See context

Bloc

Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Mr. Speaker, I would say to the hon. member that the Bloc has a pragmatic rather than dogmatic approach to issues. That is often the difference between the NDP and the Bloc.

How did we come to that position? We went to Peru. We met people from Colombia when we studied an agreement with that country. As for the softwood lumber agreement, many businesses in my own riding were affected. We took part in the consultation process to see if we should support the agreement. Companies and unions told us that the agreement had to be signed and that the companies needed the money as fast as possible to avoid bankruptcy. That was the position of all regions of Quebec and not only of my own. That was a pragmatic position that took the context into account. We never said that the agreement was a great deal. We said that entrepreneurs and all other partners wanted us to support it. Unions and communities wanted us to take the position we took and so we did.

As for the agreement with Peru, I am glad to hear my colleague say that he thinks our position is interesting. Personally, I would hope that next time there are preliminary consultations so we can support agreements that are beneficial to both parties. We are not here to vote down measures, but rather to come up with good agreements. Unfortunately, in this case, the agreement is not in the best interests of Quebec and Canada, particularly when we know the impacts of chapter 11 of NAFTA, which gives private companies unacceptable rights over the power of governments to impose conditions, namely to protect the environment.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 6 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, I agree with my NDP colleague, who described our positions as well thought out and balanced. I agree with what he said.

I would like to come back to investment agreements, which were included in the agreement with Peru and are similar to chapter 11 of NAFTA. Considering what we have experienced and the numerous lawsuits of various multinationals, whether concerning Mexico, the United States or Canada, I would like to ask my colleague the following question. Considering that we have asked this government repeatedly for years to ensure that these investment agreements do more to protect the businesses and individuals in the respective countries against foreigners who come in and exploit businesses, and want to have control in terms of public health and environmental precautionary principles, how can this government propose such agreements? The result is an automatic loss of sovereignty and control for each of the respective governments. I would like to ask my colleague what could possibly make a government like the Conservative government keep repeating the same mistake.

Canada-Peru Free Trade Agreement Implementation ActGovernment Orders

April 20th, 2009 / 6:05 p.m.
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Bloc

Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC

Mr. Speaker, I heard the answer to that question from a Peruvian Quechua representative, an indigenous representative. She explained to us that her people had been there for hundreds, even thousands of years before the Spanish. She said that the Quechua had organized their lands and found ways to transport water, among other things. Under this kind of agreement, if the Government of Peru decides to restore lands to indigenous peoples, companies affected by direct or indirect expropriations can submit complaints, the matter could go to court, and the company could be entitled to compensation.

What is the Government of Peru supposed to do with that? It would spell the end of social change. The Conservatives have chosen to put the interests of private companies before the common good. That is what is missing from this agreement, and that is what we are against.