Evidence of meeting #26 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was fta.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Ricardo Grinspun  Associate Professor, Department of Economics, York University, Fellow and former Director, Centre for Research on Latin America and the Caribbean, As an Individual
Rosemary Joyce  Professor of Anthropology, University of California, Berkeley, As an Individual
Clerk of the Committee  Mr. Paul Cardegna

12:25 p.m.

Associate Professor, Department of Economics, York University, Fellow and former Director, Centre for Research on Latin America and the Caribbean, As an Individual

Ricardo Grinspun

I think we need to start by thinking what kind of economic development will Honduras have? Currently, foreign investment in Honduras is very important. For example, in the apparel sector, labour-intensive investment is crucial for the country, but the conditions under which this sector operates are highly detrimental for development.

That can be changed. One can develop strategies to bring about development that increases the value-added, that increases human capital and the ability to raise productivity in those activities, that advances technological innovation and the introduction of higher-quality products into the line of production, that brings feedback mechanisms that are not an enclave of the economy, that has feedback into the local economy and sources from it.

There are many ways that we have learned, for example, from the success stories in Southeast Asia and East Asia about how you bring about development processes that are very different from the kind of model implied in the FTA.

12:25 p.m.

Conservative

The Chair Conservative Rob Merrifield

Very good.

Mr. Hoback, the floor is yours.

12:25 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

I thought we were just doing one round. I didn't realize you were doing that.

12:25 p.m.

Conservative

The Chair Conservative Rob Merrifield

We're still on that first round.

May 1st, 2014 / 12:25 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

That's no problem.

One of the things we've heard in a lot of the testimony from previous groups is the atrocities and the human rights abuses and the abuse of media that has been going on in the past in Honduras.

One of the questions I have for you is that when you look at Colombia and the changes and improvements that are going on there—and of course the trade agreement is a piece in the puzzle in bringing about a better quality of life for the people in Colombia.... I look at that example and I ask why couldn't we use that here in Honduras? I look at the example and ask if we're going to make things better, what is the best way to do that? How do we move forward? Looking at it the way it is right now, obviously it's not working, because we still have atrocities. We have to figure out a way to work with the Hondurans on how to step forward.

I look at trade as one of the tools to do that. Now that doesn't make it the only tool. There should be other things we should be considering while we're doing a trade agreement, looking at other aspects that will help improve the quality of life for Hondurans over the longer period of time. That's the goal, I think, behind this trade deal. The goal of the Hondurans is to get a quality of life that will actually be better than what they're experiencing right now.

I look at this and I see a lot of reasons to criticize it. There's no question about it that you can criticize a lot of things and can always say that they should have done this or that better. But the reality is that you can only do so much at a certain point in time and then you build upon that. You draw a line in the sand and say that for now, at this point in time, this is a good agreement that everybody can actually work with. Then you build upon that more and more as you move forward.

If we didn't do this trade agreement, from talking to groups like Gildan and other companies that we've seen there before, where would their employees end up? If they did not work for Gildan or a mining company, making good wages, with a good quality of life, good working conditions, and good health care, what would they do? What is their other option?

The reality for them would otherwise be narco-trafficking, or nothing, or being employed in very poor economic activities with very poor alternatives, with a very poor outlook for the quality of life, not only for themselves, their families, and their communities, but also for the whole infrastructure surrounding them.

I'm looking at this and seeing this as a way to help them up. Now you're saying that we do nothing. You're saying, don't do a trade deal; don't do anything else. Just leave it be. But the status quo in my opinion is not acceptable.

How would you move forward? If you're saying don't do this, how else would you move forward? Right now what you're proposing is the status quo, and that ain't working. Give me something that works.

12:30 p.m.

Professor of Anthropology, University of California, Berkeley, As an Individual

Rosemary Joyce

Who is the question addressed to?

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

I'll address it to both of you because I'm looking for ideas on how to make this better. You haven't really said how to make it better; you've just said this is bad.

12:30 p.m.

Professor of Anthropology, University of California, Berkeley, As an Individual

Rosemary Joyce

I can answer the question. I think you're misrepresenting my words and certainly the other witness's words. Neither of us is saying to do nothing; we're saying that the current free trade agreement does not include the kinds of guarantees that would produce the kind of development of human capital that guarantees those workers all of the things you just cited. Good working conditions, for example, are not actually—

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Excuse me, I've only got so much time—

12:30 p.m.

Professor of Anthropology, University of California, Berkeley, As an Individual

Rosemary Joyce

In addition, I have to contest some of what you're saying about the only alternative being employment in narco-trafficking. There are other alternative forms of employment in Honduras, but Canada could also encourage its companies to create those opportunities.

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

You make a very good point there. There are other alternatives, but all those alternatives involve economic activity and trade. They involve the opportunity to take what they work with, whether in the agricultural or the manufacturing fields or other industries or sectors, and it would involve trade. It would involve shipping these products out of Honduras somewhere so that they'd get hard currency—

12:30 p.m.

Professor of Anthropology, University of California, Berkeley, As an Individual

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

—to spend at home. Correct?

12:30 p.m.

Professor of Anthropology, University of California, Berkeley, As an Individual

Rosemary Joyce

Yes. This is why I cited the fact that trade was important in the post-constitutional era in beginning to create the conditions for development.

That was derailed in 2009 and Honduras is not back on the rails to sharing those benefits with its population in general. The concentration of wealth that has happened in the last five years in the hands of a very small proportion of the population has reversed a generation of economic progress. That's what we're asking you to pay attention to.

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Again, that's the problem I have. You say it's not progress. I'm not going to argue with you on your point; you're probably correct, but how do you get movement in the right direction? By doing nothing, by not giving them market access into Canada or into the U.S. or Europe, which is already there, we're denying them the ability to compete with other countries that already do have that access into these countries. As they develop their economies—

12:30 p.m.

Associate Professor, Department of Economics, York University, Fellow and former Director, Centre for Research on Latin America and the Caribbean, As an Individual

Ricardo Grinspun

If I may jump in there?

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Just one second. Let me finish up.

As they develop their economies they need market access. They need places to ship to. If they're competing against countries that already have preferential access into countries in Europe and the U.S. and Canada, how do they compete?

12:30 p.m.

Professor of Anthropology, University of California, Berkeley, As an Individual

Rosemary Joyce

I think my colleague would like to make a point.

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Well, this is my five minutes, ma'am.

12:30 p.m.

Associate Professor, Department of Economics, York University, Fellow and former Director, Centre for Research on Latin America and the Caribbean, As an Individual

Ricardo Grinspun

May I respond to your question, please?

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

Yes, please do.

12:30 p.m.

Conservative

The Chair Conservative Rob Merrifield

Go ahead.

12:30 p.m.

Associate Professor, Department of Economics, York University, Fellow and former Director, Centre for Research on Latin America and the Caribbean, As an Individual

Ricardo Grinspun

I want to reiterate what has already been said to this committee, that Honduras enjoys wide market access for its export products. It's one of the countries in the Americas with the most market access, according to the data from the Economic Commission for Latin America and the Caribbean.

Market access is not one of the restrictions that is keeping Honduras from advancing its situation. It's an economic model, which has been aggravated since the 2009 coup by the new regime, that is exclusionary. The fact is that 100% of the economic gains in the country have gone, according to the statistic I mentioned, to 10% of the wealthy people in the country.

So we're not dealing here with how to increase trade—

12:30 p.m.

Conservative

Randy Hoback Conservative Prince Albert, SK

I disagree with you on that, sir.

12:30 p.m.

Associate Professor, Department of Economics, York University, Fellow and former Director, Centre for Research on Latin America and the Caribbean, As an Individual

Ricardo Grinspun

—but are talking about how the benefits....

You seem to be insisting that the only way we can engage with this country is through this particular trade agreement, which does not address any of those issues.