Bill C-20 (Historical)

Canada-Honduras Economic Growth and Prosperity Act

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

This enactment implements the Free Trade Agreement and the related agreements on environmental and labour cooperation entered into between Canada and the Republic of Honduras and done at Ottawa on November 5, 2013.
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 agreements 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 entered into between Canada and the Republic of Honduras.
Part 3 of the enactment contains coordinating amendments and the coming into force provision.

Canada-Honduras Economic Growth and Prosperity Act

[Diane Ablonczy, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, I am pleased to speak today on this topic. I have been to Honduras more than once. It is a wonderful country with very warm, friendly, and welcoming people. They are a very proud and hard-working people. I am so pleased to see this agreement now come before the House.

Canada's development solidarity with Honduras is truly helping to build prosperity in that country. I also want to say a little bit about how we in Canada are helping to address inequality, social exclusion, and insecurity in that country. This work provides a positive platform, of course, for the Canada–Honduras free trade agreement.

Our Conservative government believes strongly that engagement, not isolationism, is the best way to be a good neighbour and friend to Honduras. We want to be truly helpful in addressing its development, security, and human rights challenges. We profoundly disagree with the NDP approach, which can be summed up as: “The beatings will continue until morale improves”. Shame on them.

We are pleased to say that Canada is working on several fronts with the Honduran government in this regard. We are also proud that Canada is making a difference. Canada has a long-standing and substantial development relationship with Honduras.

Honduras is one of 20 countries of focus for Canada's development work. We have provided close to $40 million in the last fiscal year. Canada also delivered close to $70 million in security programming in all of Central America to support regional efforts, which include Honduras, to address insecurity in this region.

The people of Honduras appreciate their development and security partnership with Canada that has been provided over the years, and we have a strong relationship with that country, based on an open and frank dialogue. I have been there and have had these discussions. There are some wonderful leaders looking for friends and collaborators to help pull their country out of some of the deep difficulties they have faced for many years. These are issues important to both Canadians and the citizens of Honduras.

I would like to take a few minutes to talk about Honduras' challenging social economic situation and present some compelling statistics on poverty and insecurity in Honduras. These are issues which Honduras leaders are determined to address, and things like this new trade agreement will provide a real boost.

At this time, unfortunately, Honduras is one of the poorest and most unequal countries in the Americas. Sixty percent of the population of Honduras is considered poor. Nearly one-fifth live in extreme poverty. In fact, they live on less than $1.25 a day.

The poverty in Honduras is concentrated in rural areas. It affects mostly women, young people, and indigenous communities. They need the kinds of opportunities that this trade agreement would provide. It goes without saying that this situation is not meeting the aspirations of the country's proud and hard-working citizens.

When I say “hard-working”, I would point out that Honduras' unemployment rate remains relatively low, but underemployment is huge. In fact, just over half of the total workforce is underemployed. It holds part-time jobs despite seeking full-time work, or the workforce is overqualified based on education, experience, and skills. They need opportunities.

In addition, Honduras' informal sector accounts for nearly three-quarters of non-agricultural employment and nearly 60% of total employment. Members can appreciate that many of these workers in the informal sector are therefore working under poor conditions in terms of safety, income, and social benefits.

A free trade agreement opens up the door. It provides certainty and a framework for Canadian investors and Canadian businesses to partner with Hondurans to provide the kind of strong, stable employment opportunities that Hondurans need and want.

Here is another huge challenge. Over half of Hondurans are under the age of 19. It is a very young population, so it does not take a genius to figure out that the lack of economic opportunities for these young people is a major driving force behind the country's persistent social and security problems. There are criminal elements who are very happy to draw young Hondurans into their net, and it is very sad to see that. Legitimate business opportunities are so needed to counteract that.

The Honduran government has made an effort to address poverty and security issues, but resources are scarce and progress has been slow.

The crime rate and insecurity have increased to the point where, today, this beautiful little country, this gem of a country, is one of the most violent in the world. I am sorry to say that Honduras has the highest intentional homicide rate in the world, averaging 20 murders per day, in addition to other violent crime. That is, to a large extent, criminal elements are having their way, using this country as a drug route and drawing young people into this terrible, violent activity.

That is why Canada's bilateral development partnership promotes sustainable economic growth through investment in rural development and works to reduce social exclusion and inequality through ongoing investments in health, education, human rights, and democratic development.

Canada is helping to achieve strong results toward increasing food security and securing the future of poor Honduran children and youth, particularly in rural areas.

We are making a real difference in the lives of small farmers and their families by sharing best practices that are improving their sustainable farming practices. To date, over 27,000 farmers have received critical collaboration to improve the quantity and quality of crops, access new markets, and diversify income. Many of these are now ready to integrate into more structured supply chains and access local, regional, and global markets, like Canada.

We are also collaborating to help strengthen health in this country, to improve the quality of education. I want to pay tribute to Dave Hubert and Canadian Peacemakers International, who are putting computers into rural villages and putting the country's education system on the computers. People in the villages and small towns come to these computer stations and work through the programs to increase their education through self-help programs. It is an amazing program by Canadian Peacemakers International.

We are working through the Organization of American States, the International Program for Professional Labour Administration–Americas to promote respect for international labour standards and to work with the leaders of Honduras on many fronts to lift this country up.

Prosperity, security, and democratic governance, including the full respect of human rights, go together. They are interconnected and mutually reinforcing. That is why this trade agreement is such good news, a bright light on the horizon for Honduras.

In short, this agreement would benefit Hondurans. It would also help create jobs, growth, and long-term prosperity for Canadians. That is called a win-win, and I hope that all members will leave aside the nonsensical rhetoric of the NDP and support this important new partnership with our friends in Honduras.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, the people of Honduras and Canadian companies do not want a trade agreement at any cost. Everything being said in the House has to do with trade; however, there are still a lot of problems in Honduras, and trade agreements will not solve all of those problems.

Furthermore, when we enter into a trade agreement, we have the upper hand. That is precisely the right time to use the negotiations for that agreement as an opportunity to try to solve those problems. The economic aspect alone will not solve everything. We therefore need to take this a little further, beyond a simple trade agreement, to help a country overcome the problems that the member talked about earlier.

[Diane Ablonczy, Conservative, Calgary Nose Hill, AB]

Of course we do, Mr. Speaker. I just talked about all of the partnerships, the sharing of best practices, and all the work that has been done by Canada in that country. We are good friends with Honduras. There are many NGOs working with Honduras, like Peacemakers International. The Honduran people have strong friendships with them.

Yes, the free trade agreement is only a part of what we want to do, but it is an important part. It is a part that Hondurans have longed for, worked for, dreamed of, and it is finally in the House, its dream coming to fruition. I cannot imagine why the NDP would want to stick a knife in something so important to this little country.

[Michelle Rempel, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, I have to say it has long been a dream of mine to stand up in the House of Commons and ask the member for Calgary—Nose Hill a question. Since I have the floor, I want to tell the House what a wonderful person and mentor to me she has been, and it is a great pleasure to stand here and ask her the following question.

Many of the assertions today in debate have been that Canada somehow has not contributed to cultural and social change in Honduras. I know that the member did a lot of good work in this particular country during her time as minister of state for the Americas. Some of the statistics that I have around Canada's recent contributions, include our co-operation programming through DFAITD, in which we provided over $39 million to the country in support for food security, sustainable economic growth, addressing issues related to human rights and gender equality.

Can the member talk about some of the assertions that have been made here today?

I believe one of the members of the NDP today said that this country is not an important trading partner for Canada. Could the member for Calgary—Nose Hilltalk about Canada's contributions to Honduras in terms of our international aid and what that has done for the community, and also to sort of speak against the assertion that somehow trade cannot help social change in a country?

[Diane Ablonczy, Conservative, Calgary Nose Hill, AB]

Mr. Speaker, I thank my colleague for her kind words.

To give some specifics, Canada's support has led to a reduction in newborn mortality in Honduras by 11% in the regions we have concentrated on. We have provided health and counselling services to over 85,000 young people. We have contributed to reducing primary school dropout rates, so that now the dropout rate is only 1%, and to reducing the average of grade repetition rates to under 5%. This progress is important. These are real people. These are people who are striving and struggling. Corruption and insecurity is not something confined to Honduras. It is part and parcel of the entire region. It is preyed on by criminal elements and those in the drug trade. It has a very young population and very low incomes.

I am proud of the work that we have done to be a friend and neighbour to Honduras. Honduras is important to me. Honduras is important to Canada. It may not be important to the NDP, but even the poorest and smallest among us deserve support, respect, and friendship.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I am pleased to rise to speak to this free trade agreement. I was a member of the Standing Committee on International Trade when I was first elected, and I think it is a very important committee. I do have to wonder about one thing. Not only should Canada create trade relationships with other countries, but it should also use its status—which unfortunately has diminished since the Conservatives won a majority government in the House of Commons, and even before that—to initiate change in countries where people are more vulnerable and where the political will to do so might unfortunately be lacking.

[Diane Ablonczy, Conservative, Calgary Nose Hill, AB]

That is not true.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Yes, it is true, Mr. Speaker. I think my colleague across the aisle, who just shouted at me, did not understand what I said. I did not say Canada never got involved; I said that Canada should use its status to initiate change in some countries. I am not saying that Canada was never involved in Honduras. I simply wanted to correct my hon. colleague.

I understand that Canada donates money to Honduras through a number of international co-operation programs. I also understand that it is trying to achieve certain things. However, what message is Canada sending by signing such an agreement? That is what I wonder about. This is not the first free trade agreement the Conservatives have rushed through behind closed doors and with no transparency.

What message are we sending to a government that, unfortunately, does not respect human rights? We will lose our best bargaining chip if we sign this free trade agreement. Then, when we negotiate with the government, what will we say? We will be making our demands after we have already signed the agreement. We need to do that before we sign. We need to ask our economic partner to meet our criteria before we sign the agreement.

I could give all sorts of examples. For one, if we tell a child that we will give him $5 if he does the dishes, then he must do the dishes before he gets the money. That is a basic principle. It is not a political ideology. It is common sense. We must ask our economic partner to meet our criteria before signing the agreement. We must not sign the agreement and then wash our hands of the situation, saying that we have done our duty as a government and as a nation. If we reach out to a country to sign a free trade agreement, does that mean that what happens afterward does not concerns us? No. That is not how things work. That is what is called cheap diplomacy. The Conservatives' international trade policy is basically cheap diplomacy that puts commercial interests before everything else.

I would like to quote a witness who appeared before the Standing Committee on International Trade, Sheila Katz, a representative of the Canadian Council for International Co-operation's Americas Policy Group. I would like to quote what she had to say because she addresses this very point. She said:

The Americas Policy Group has recommended that Canada refrain from concluding free trade agreements with countries that have poor democratic governance and human rights records.

...[Let us take for] example Canada's eager recognition of a president who came to power in a military coup in Honduras in 2009. This is another example of Canada prioritizing the trade pillar of its Americas strategy above the rest. Since the coup, hundreds of regime opponents have been intimidated, arbitrarily arrested, disappeared, tortured, and killed. The Americas Policy Group is concerned that Canada has validated this regime by adopting a business-as-usual approach and signing a free trade agreement with Honduras in spite of its human rights record.

As a number of my colleagues have already mentioned, the homicide rate in Honduras is the highest in the world. Opposing this free trade agreement is not just about political ideology. It is common sense. It is too bad that my colleagues across the way and the Conservative government are ignoring common sense and using easy political attacks just to make us look bad. To me, it is the Conservatives who look bad.

There is no basic principle that could defend Honduras' record when it comes to protection for human rights and individual freedoms, the homicide rate and drug trafficking. The Conservatives cannot justify this agreement.

It is true that it looks good from an economic perspective. However, can we really validate this type of behaviour? We are losing our clout and Canada's fundamental role in this type of negotiations. We must not sign the agreement and wash our hands of everything that is happening. On the contrary, before signing the agreement, we must ask our economic partners to meet the basic criteria recognized around the world as being the fundamental principles of human rights.

My colleagues across the way can attack us all they want. I have no problem rising in the House to say that they made a mistake or to vote against this free trade agreement.

It is true that Honduras is an economic partner of Canada. I understand that. However, Honduras has been widely criticized by all the Latin American countries, the European Union, the United States and the United Nations General Assembly. All of our largest partners have denounced the situation.

Once again, in typical fashion, the Conservatives have decided to ignore the terrible situation and move forward by recognizing a government that does not respect fundamental human rights. It makes absolutely no sense. This is a prime example of the Conservatives' agenda.

Honduras has the highest murder rate in the world. What is more, according to Transparency International, Honduras is the most corrupt country in Central America.

How can the government negotiate a free trade agreement with a country that is considered to be the most corrupt in Central America and not even mention that?

None of my colleagues who spoke today condemned the situation in Honduras. Can we really trust the Conservatives when they tell us not to worry and that they will ask Honduras to abide by our highest standards? No, we cannot trust them. They cannot even condemn the situation in Parliament. They are not even able to say that many NGOs rank the Honduran government as the most corrupt in the world. We cannot trust them.

I just introduced my private member's bill on corporate social responsibility, which is another big problem. The extractive sector is a significant commercial interest for Canada, and the provisions to protect investors are an important part of the agreement. Mining companies, which have gotten caught up in conflicts, are unfortunately at more of an advantage in this free trade agreement than the very vulnerable people of Honduras.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, I am pleased to rise to congratulate my colleague on introducing her bill. This is always an extremely important moment in a parliamentary democracy. The member's speeches are always passionate and we know they are heartfelt.

I am always shocked when the Conservative and Liberal members say that the NDP is opposed to trade and international agreements.They have all forgotten the Canada-Jordan Free Trade Agreement, but that is not the issue.

Some claim that it is sometimes better to do business with countries that have serious problems and that we should sign treaties with them. They believe that we must do business with them and convert them in the process. I cannot believe that the members opposite do not recognize the human rights problems in Honduras.

What concerns me is that the Conservatives are not talking about this. The member dealt with this aspect at length, but I would nevertheless like her to answer my question. I am wondering whether they are really going to do what it takes to change their ways and to ensure that there is strong protection for human rights.

In this case, would it not be more prudent to ensure that the countries we trade with are good international citizens? Or should we instead, like the leader of the third party at the other end of the House, congratulate the government and then ask for a copy of the agreements?

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I would like to thank my colleague for her question.

Several of the witnesses who appeared before the Standing Committee on International Trade said that the Conservatives' first mistake was making Canada the first country to recognize the Honduran government.

This proves that they wanted to advance their trade agenda with no regard for the extremely difficult and problematic situation in Honduras. As a result, we have lost our key bargaining chip.

Typically, you do not ask a state to respect human rights after signing a free trade agreement. There are lawyers, economists and business people in the House, and they know that that is not how things work.

We have to ensure that the economic partners are on equal footing before signing an agreement. That is how it should work. The Conservatives' logic makes no sense because it eliminates our key bargaining chip.

No Conservative member mentioned the reports by the UN and various NGOs detailing the extremely serious problems with human rights, journalistic freedom, the highest murder rate in the world and corruption.

Can we trust the Conservatives? No.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Mr. Speaker, I would have liked to hear my colleague's thoughts on the Canadian mines in Honduras, particularly the Goldcorp mine in San Martin.

Before 2009, there were complaints about the use of toxic chemicals in this open-pit mine. Then-president Manuel Zelaya had drafted a legal framework to crack down on mines. Just a few days before the measure was to be passed in 2009, there was a coup. The subject never came up again.

I would like my colleague to tell us what she thinks of this.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I thank my colleague for his question.

As he knows, this is an important issue for me. I have been working on it for three years, and I am very pleased to have introduced my bill today to create an ombudsman for the corporate social responsibility of Canadian extractive corporations.

Canadian companies must be subject to the same rules as any government or individual and must respect human rights. It is extremely important for the Canadian government to understand that, at this time, it cannot condone such extensive and significant human rights abuses.

What message is the Conservative government sending the Honduran authorities? Unfortunately, it is not a clear message asking them to immediately pass regulations. It is a meaningless message.

[Robert Goguen, Conservative, Parliamentary Secretary to the Minister of Justice]

Mr. Speaker, others have mentioned in the House the many benefits this agreement would bring to Canadians. Today, I would like to speak of the importance to Canadian investors. Foreign investment is crucial to any modern economy. It not only brings with it jobs, but it increases the transfer of knowledge, efficiencies, and economies of scale to the host economy.

Foreign investment builds people-to-people ties, helps strengthen the country's competitiveness, and in turn paves the way for new opportunities for Canadian companies in dynamic fast-growing markets around the world, markets like Honduras.

Investment opportunities help Canadian companies remain globally competitive by ensuring their integration into the global economy. At the end of 2012, Canadian direct investment abroad had reached an all-time high of $711.6 billion. The value of the stock in foreign direct investment within Canada is also impressive. By the end of 2012, Canada had attracted more than $633 billion in foreign direct investment.

The global economy has faced tremendous challenges over the last few years; but throughout, Canada proved to be a safe harbour as the global economy faced challenges. It is no wonder Canada has proven to be such a draw for foreign investment.

Canada is home to 26 of the Financial Times global 500 companies. More top companies have headquarters in Canada than in Germany, India, Brazil, Russia, or Italy.

Canada has outpaced its G7 partners, with its economy growing the fastest in the last 10 years as a result of low corporate taxes, prudent fiscal management, a business climate that rewards innovation and entrepreneurship, and an open economy that welcomes foreign investment.

That being said, we all know Canada is not an island. We are not immune to the global economic turbulence. That is why we remain focused on helping create more jobs for today and tomorrow with ambitious pro-trade and pro-economic growth measures.

Canada must remain vigilant to ensure that our economic fundamentals remain strong at home and that Canadian businesses continue to have an increasing number of investment opportunities abroad. This is why it is important for us to leverage the investment relationships we have around the world with countries like Honduras.

Canadian direct investment in Honduras was estimated by Statistics Canada to be $105 million at the end of 2007. This was predominantly in the financial services and mining sectors, both of which offer strong potential for growth; and these opportunities are just the beginning for Canadian investors.

We have heard about the tremendous opportunities that exist in Honduras with respect to large infrastructure projects. These projects include the building or improvement of ports, roads, hospitals, bridges, and airports. A country like Canada, with so much expertise in these areas, can take advantage of these significant opportunities in Honduras.

Just these few examples clearly illustrate how important it is to enhance our investment relationship with countries like Honduras.

A free trade agreement with Honduras would provide investors from both countries with the benefits that come with enhanced investment protection and stability. These provisions, which would promote the two-way flow of investments, provide a range of obligations that benefit investors from both countries. They are designed to protect investment abroad through legally binding rights and obligations. The investment obligations of this agreement incorporate several key principles, including treatment that is non-discriminatory and that meets a minimum standard, protection against expropriation without compensation, and the free transfer of funds.

In short, Canadian investors would be treated in a non-discriminatory manner. This dynamic would help foster an investment relationship between our two countries and pave the way for an increased flow of investments in the years ahead.

This agreement would also provide investors with access to transparent, impartial, and binding dispute settlement.

I would like to make clear to the House, however, that while this agreement would ensure that investors and their investments are protected, it would not prevent either Canada or Honduras from regulating in the public interest with respect to such areas as health, safety, and the environment. This is the position our government has consistently taken in our trade and investment agreements.

The investment provisions also include an article on corporate social responsibility. This provision recognizes that Canada expects and encourages Canadian companies operating abroad to observe internationally recognized standards of responsible business conduct. This provision also helps level the playing field for Canadian investors when they invest abroad, by encouraging CSR principles among all investors.

Fundamentally, this agreement would send a positive signal to our trade and investment partners around the world. The agreement would enhance investment opportunities for Canadian investors in one of the most dynamic markets of the Americas. To date, Canadian companies have shown a significant interest in investing in the Honduran economy.

It is important this legislation moves quickly through this House. As time lapses, opportunities for Canadian investors are placed at risk. That is why it is critical that Canadian companies have the ability to strike while the iron is hot.

The United States is Canada's biggest competitor in Honduras, and many Canadian goods and services compete directly with those of the United States in Honduras. Our government will not stand by and let Canadian companies compete on an uneven playing field.

I encourage all members not to delay approval of the agreement. Our government has been very clear that trade and investment are vital to economic growth and the long-term prosperity of Canadians. That is why our government continues to move forward with an ambitious pro-trade plan that focuses on creating partnerships in key markets around the world.

Our government is committed to doing everything we can do to open doors for Canadians. That is why I ask all hon. members to show their support for the Canada-Honduras free trade agreement.

[Jean-François Larose, NDP, Repentigny, QC]

Mr. Speaker, my question for the government is rather simple.

Historically, Honduras is undemocratic, does not respect human rights and mistreats its citizens. Drug trafficking is rampant and the extent of corruption is extraordinary.

Why does the government not have the will and the strength to use a free trade agreement to impose international laws or Canadian values in order to ensure a better future for Honduran society?

My question is simple. I do not see the government making any effort to head in that direction.

[Robert Goguen, Conservative, Moncton—Riverview—Dieppe, NB]

Mr. Speaker, we will certainly not encourage a country to adopt the democratic principles of a country like Canada by ignoring problems with democracy.

We know that there has been financial support in a number of areas, especially when it comes to setting an example regarding labour and occupational health standards. We have also provided training for those working in the area of justice in Honduras. Additionally, Foreign Affairs provides financial support to encourage respect for human rights.