Claude Guimond

[Business of Supply, February 5th, 2009]

Mr. Speaker, I am sorry. I will learn.

As I was saying, it is obvious that these measures could be devastating for Quebec. Our economy is closely linked with that of the United States, which accounts for 57% of Quebec's exports when interprovincial trade is factored in.

In terms of international exports alone, that figure rises to 85%. Quebec has a large surplus due to its trade with the United States. In fact, Quebec sells twice as much to Americans as it buys from them. In this context, it is clear that Quebec wants trade with the United States to be as flexible as possible. A trade war, or even partially opting out of NAFTA, would not be beneficial for Quebec.

Free trade is part of the Bloc Québécois philosophy as long as the agreements are well regulated and monitored. Contrary to what the Conservatives and Liberals are suggesting, which is that Canada join in the mad dash to implement bilateral trade agreements, the Bloc Québécois is questioning the nature and the long-term impact of these agreements. It is imperative to us that, prior to signing an agreement, we take the time to evaluate the positives and negatives of the agreement for our economy.

We believe that in order for trade to be mutually beneficial, it must first be fair. A trading system that results in the exploitation of poor countries and dumping in rich countries is not viable. We cannot accept a system of free trade that would be based on the lowest common denominator. For that reason we find it difficult to understand why this government insists on signing and moving forward on the free trade agreement with Colombia in particular.

We believe that multilateral negotiations are much more advantageous for everyone. They are better monitored and generally more effective. The liberalization movement that has taken place in the world in recent years now needs to be given a more human dimension. The problem in our mind with these bilateral agreements is that they do not allow us to apply rules to civilize trade.

Most of these agreements do not contain clauses on human rights, labour rights or the environment. We believe that the government should perhaps sign better agreements rather than signing a large series of agreements that do not reflect our concerns.

In this regard, the Bloc Québécois is urging the federal government to revise its positions in trade negotiations in order to ensure that trade agreements include clauses ensuring compliance with international labour standards as well as respect for human rights and the environment.

In the end, we must continue to move forward, to improve our agreements and to increase the chances of prosperity for all. Therefore, we cannot understand why the new American administration is seeking to adopt measures that forsake our mutual commitments. This reminds us of the attitude of the previous administration which, in 2001, resorted to section 203 of the 1974 Trade Act in order to impose customs duties and a licensing system on steel imports for a period of three years. Under considerable pressure from industry representatives in Canada and Mexico, the United States decided to exempt these two NAFTA trading partners from these measures.

Nonetheless, this sparked considerable irritation throughout the entire world, and the United States was harshly criticized for this unilateral move. In the situation concerning us now, perhaps we can be made an exception to the rule once again. But the message that has already been sent should caution us against possible protectionist measures and encourage us to protect our own industries better.

The difficulties Quebec has seen in recent years prompted us to change our trade priorities. Last year, the rise in the Canadian dollar, driven by Alberta oil exports, reduced the competitiveness of Quebec businesses on the American market, while emerging countries were dominating the global market.

In this context of a deteriorating trade environment, the Bloc Québécois made accessing foreign markets our top trade priority. I would also like to point out that the Bloc is proposing important measures regarding international trade, while always keeping in mind the need for balance and healthy competition when it comes to trade.

To close, the Bloc Québécois supports the motion before us today. The Bloc Québécois prefers a diplomatic solution over legal action to resolve the difference of opinion between Canada and the United States regarding protectionism.

[Business of Supply, February 5th, 2009]

Mr. Speaker, I would like to thank all of the parliamentarians who have spoken for their contribution to the debate. I am pleased to have a chance to speak to this issue.

The motion we are debating, which the Bloc Québécois will support, reflects the urgency and gravity of the current situation. The protectionist measures in the American recovery package could have a serious impact on Quebec's economy and undermine trade agreements between the United States and its partners. The Bloc Québécois believes that the House must take a strong stand and give the government a mandate to press our case immediately and tirelessly with American authorities.

Although President Obama seems to have backed down on certain parts of the Buy American Act, the protectionist measures proposed by the United States may contain provisions to sidestep international trade agreements, such as NAFTA. For example, one clause in the Buy American Act imposes restrictions on the use of steel and steel by-products in American construction projects. Most highway infrastructure work is funded by the Federal Highway Administration, and we know that there is a big difference between the projects it funds and the direct purchases it makes. The projects it funds are subject to the Buy American Act provisions, while direct purchases are subject to NAFTA.

In practice, this distinction means that chapter 10 of NAFTA will not apply to the 80% of U.S. highway construction projects that are considered funded , and that Quebec and Canadian companies will not be entitled to the same treatment as American companies. State-level projects are not subject to NAFTA and must comply with the Buy American Act. With respect to steel, the American recovery plan has tightened the rules to make it practically impossible for Quebec companies to bid on projects. This matter is serious because the requirement to use American-sourced metal now includes all public infrastructure construction, alteration, renovation, maintenance and repair projects.

It is clear that these measures could do a lot of damage in Quebec. Our economy is very closely linked to that of the United States.

[Dairy Farmers of Canada, February 3rd, 2009]

Mr. Speaker, this year, the Dairy Farmers of Canada are celebrating their 75th anniversary. I would like to congratulate them and encourage them to persevere with their important work of defending this vital sector of Quebec agriculture. As a dairy farmer, I am pleased that there exists such a representative and strong organization.

Given that they are here today, I would like to reiterate my personal commitment, and that of the Bloc Québécois, to promoting and defending supply management. Producers working under supply management need protection to compete with farmers in other countries who are subsidized. Supply management is a fair agricultural model, which ensures that our agriculture, particularly dairy production, remains viable.

Therefore, it is vital that this House once again demonstrate its intention to defend supply management, as stated in the Bloc Québécois motion adopted unanimously on November 22, 2005.

[Canada-EFTA Free Trade Agreement Implementation Act, February 2nd, 2009]

Mr. Speaker, as I said earlier, the Bloc Québécois is in favour of the free trade agreement with the European Free Trade Association. What we are saying is that this agreement has to be accompanied by a policy providing real support to the shipbuilding industry.

[Canada-EFTA Free Trade Agreement Implementation Act, February 2nd, 2009]

Mr. Speaker, as one of the measures that should accompany this policy, we have talked about loans and loan guarantees for shipyards that have to invest so they can provide a financial guarantee in order to bid on new contracts. That takes capital, and the government should provide support so they can do that.

The tax rules for financial lease agreements absolutely have to be improved, and these people have to be given additional tools so they can sign contracts. We are talking about refundable tax credits for shipbuilders. Again, this is a measure to make their lives easier.

We believe that all these measures should be included in a genuine policy for our shipyards, in both Quebec and Canada. This would enable them to deal with free trade, particularly under the agreements with Norway that are part of the agreement with the European Free Trade Association.

[Canada-EFTA Free Trade Agreement Implementation Act, February 2nd, 2009]

Mr. Speaker, I would have been very surprised had my NDP colleague not mentioned the softwood lumber crisis. He had to do it, he just could not help himself.

The Bloc Québécois believes that this agreement with the European Free Trade Association is a good agreement. However, in order to accept it, Canada needs to have a true policy for the development of its shipyards. The Bloc position on this agreement is very clear.

[Canada-EFTA Free Trade Agreement Implementation Act, February 2nd, 2009]

Mr. Speaker, I thank my colleague for giving me the opportunity to explain the recommendations made by the Bloc Québécois in the report. Because of the high cost of these products, the industry is calling for special financing arrangements for the shipbuilding industry so that it can purchase equipment of that value. Precisely because of the value of these products, which often comprise the bulk of the purchaser’s assets, the industry needs special tax rules in order to be competitive. Again, because of these major investments, the industry needs to share the risk it assumes at the research and development stage, in particular to facilitate access to credit.

Another very important measure involves offering financing to cover a large portion of the value of the contract, 87.5%. That is what we are calling for. To conclude, all these measures should be available both to Canadian purchasers and to foreign purchasers.

[Canada-EFTA Free Trade Agreement Implementation Act, February 2nd, 2009]

Mr. Speaker, I am pleased to take part in this debate on Bill C-2, which should lead to the implementation of the Free Trade Agreement between Canada and the European Free Trade Association. The Standing Committee on International Trade has already studied it and I am glad to be able to add my thoughts to the current debate.

The Bloc Québécois has already indicated that it is generally in favour of this agreement. We think that it is a good agreement, especially for the Quebec economy. There are attractive opportunities for us in the countries that are signing it. Whether in pharmaceuticals, nickel mining or aluminum exports, Quebec is very well positioned and will surely benefit from its advantages. This does not mean, though, that the agreement is perfect. We have serious concerns, especially in regard to the inclusion of shipbuilding. The Bloc expressed these concerns in the supplementary opinion it attached to the committee report, and I would like to take this opportunity to draw this issue again to the attention of the members.

The future of our shipyards is very important to Quebec and especially eastern Quebec. This region lies along the shores of the St. Lawrence River, the largest navigable waterway in the world, and shipbuilding is an important part of its economy. This free trade agreement will therefore have a direct impact on the people of my region in a few years. That impact will be positive or negative depending on the choice that the government makes today.

Shipbuilding has suffered for many years from a flagrant lack of government support. Our shipyards have fallen well behind the Norwegian ones, and Norway is one of the signatories of this agreement. While Norway has been investing massively for years in modernizing its shipyards, it is sad to say that the federal government has long been ignoring our shipbuilders. There is no real marine sector policy in Canada today, and the results over the next few years could be very bad.

Under the existing agreement, the most sensitive shipbuilding products will enjoy a gradual reduction in tariffs for a period of up to 15 years in some cases. After that adjustment period, no tariff protection will be allowed, and vessels from Norway, for example, will enter the Canadian and Quebec market to compete on par with our ships. This would not be a problem, except that we lag far behind in this area. If our borders were to open wide tomorrow morning to the competition, our shipyards would disappear. And that would be very unfortunate, since our shipyards are essential for economic, strategic and environmental reasons. Now the question remains: how will our marine industry look 15 years from now?

If the past is any indication, we have every reason to be extremely pessimistic about the survival of this industry, given the increased foreign competition. Clearly, if the federal government continues to ignore the needs of our shipyards and refuses to take action to support them, we will definitely see them gradually deteriorate over the next 15 years. That is why the Bloc Québécois presented an important recommendation to the Standing Committee on International Trade in advance of this agreement taking effect. The recommendation reads, “The Canadian government must without delay implement an aggressive maritime policy to support the industry, while ensuring that any such strategy is in conformity with Canada's commitments at the WTO”.

That was the only recommendation made in the report. The Conservatives never see any problems with their policies and the Liberals, as usual, failed to propose any recommendations. The NDP, in its predictable opposition to free trade, opposed the agreement altogether.

The Bloc Québécois recommendation, which finally received the committee's support and was included in its report, meets the expectations of many shipbuilders in Canada and Quebec. Even though they have no hope of seeing their sector excluded from the agreement, they do expect the government to act quickly and forcefully. We read in the report that, according to representatives of shipbuilders and marine workers:

...without combined access to the SFF and ACCA, the impact of the agreement would be devastating to the industry and would lead to job losses. In their view, this additional government support was critical if the Canadian industry was to survive increased competition from Norwegian producers.

Some will say that Norway has announced that it has stopped subsidizing its shipbuilders and that that will enable Canada to compete on a level playing field with that country. But what are we doing to make up for all the years when there were no subsidies here, while Norway was achieving the high level of competitiveness it enjoys today, thanks to generous government support? Quite simply, there needs to be a dramatic shift in the federal approach to the marine industry, which means abandoning the laissez-faire policy the Liberals and Conservatives have followed to date.

I am happy that we are holding this debate on the trade agreement with the European Free Trade Association, because it reveals how fragile our marine industry is in the face of foreign competition and forces us to take a stand on these issues quickly. It is not the agreement that is bad, but our policy. That is why a change of direction is imperative. In 5 or 10 years, it will be too late. We must act now. With a few targeted measures, our shipyards can become modern, productive, financially healthy and extremely competitive. The biggest problem to date has been the lack of political will to change things, and it is high time that changed too.

Of all the aspects of this free trade agreement, this one concerned me the most. The other aspects of the agreement, including agriculture, seem to be well handled and in line with Quebec's interests. I would just like to add, as some of my colleagues have already pointed out, that this free trade agreement may open the door to a future agreement with the European Union. We must seize the opportunity when it arises and, more importantly, be ready to compete.

[Economic Development Agency of Canada for the Regions of Quebec, January 30th, 2009]

The government has given more handouts to Ontario, in particular by creating a southern Ontario development agency. When can we expect this government to adopt a comprehensive and constructive approach for Quebec regions by restoring funding to these organizations?

[Economic Development Agency of Canada for the Regions of Quebec, January 30th, 2009]

Mr. Speaker, the Conservative government expects to revive the Quebec economy with this new budget. However, there was not one word about development of the regions, such as the Lower St. Lawrence, which have already been affected by cuts to non-profit economic organizations announced by this government .

Will the Minister of State (Economic Development Agency of Canada for the Regions of Quebec) restore funding to non-profits such as Technopole maritime du Québec and Corporation de soutien au développement technologique des PME?