Bill C-24 (Historical)

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 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.

Canada-Peru Free Trade Agreement Implementation Act

[Bev Oda, Conservative, Durham, ON]

moved that Bill C-24, 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, be read the second time and referred to a committee.

[Gerald Keddy, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, it is an honour and a pleasure to speak to Bill C-24, a bill dealing with trade liberalization and market access.

Bill C-24 is just another step that our government is taking to help Canadians compete and succeed in the global economy. Our global commerce strategy includes a re-energized agenda of trade liberalization with our partners around the world.

As a trading nation, Canadian companies, Canadian producers and Canadian investors need access to international markets to stay competitive. We have entered an age of fierce global competition as emerging economies continue climbing the value chain and establishing themselves in an ever-widening range of sectors.

In this time of economic uncertainty. where a slowdown in the U.S. economy, our top commercial partner by far, and ongoing turbulence in international financial markets will continue to affect Canadian exporters and investors, we have done a good job of riding out the storm. thanks largely to Canada's strengths, strengths like low unemployment, the strongest fiscal situation in the G7, a sound borrowing system and our endowment of natural resources that continue to be in demand the world over.

We could add to that fiscal attribute by recognizing the fact that Canada's banking system is the most stable and best banking system in the world today.

We should also recognize the fact that our public pension plans have sound fiscal footing, unlike many public pension plans around the world.

It is clear, however, that we must remain vigilant. Canada must continue to fight protectionist pressures around the world and continue taking steps to ensure Canadian companies remain competitive, maintain their markets, and have access to new opportunities.

We have done something about that. Our government understands the challenge. Canada has committed to playing an active role in the Americas and in building strategic relationships with key partners in our neighbourhood. Our neighbourhood certainly is the Americas. The government's policy of re-engagement with the Americas has made a lot of economic sense. It is only reasonable, practical and intelligent foreign policy and trade policy on Canada's behalf that we have become more active in the Americas at our very own doorstep.

In Latin America, Peru is a leader, a lynchpin in the political and economic stability of the region. It has been an economic engine with a gross domestic product growth rate of 9.1% in 2008, near the top of the Latin American countries. Peru also has a solid outward orientation. A leader in trade liberalization, Peru is currently pursuing trade negotiations with a number of countries. We need partners like Peru, especially as we move forward on engaging with like-minded countries throughout the Americas. Canadians will benefit. Peru is already an established and growing market for our businesses. Exports like wheat, pulses and mining equipment are just part of that picture.

Canadians also offer services in the financial and engineering fields and this activity is driving strong, two-way commerce between our businesses. In 2008. two-way merchandise trade between our countries totalled $2.8 billion. Canadian exports. like cereals, pulses, paper, technical instruments and machinery, were all a part of this success.

Peru is an important supplier to Canada of gold, zinc, copper and petroleum,

Canadian investors, too, have a significant presence in the Peruvian market. In fact, Canada is one of Peru's largest overall foreign investors with an estimated $1.8 billion worth of investment stock in Peru in 2007 led by the mining and financial services sectors. It is no wonder that Canadian businesses in a number of sectors have been strong advocates of this agreement. Their support has been crucial throughout the negotiating process which began in June 2007.

The result is something we can all be proud of. With this new agreement, our nations are taking a critical step to intensify our commercial relationship in the years ahead and to create new opportunities for citizens in both countries who will be able to prosper.

We have negotiated a high quality and comprehensive free trade agreement covering everything from market access for goods to cross-border trade and services to investment and government procurement. Canadian exporters will certainly benefit. The agreement would create new opportunities for Canadian businesses and producers in the Peruvian market. Under the agreement, Peru will immediately eliminate its tariffs on nearly all current Canadian imports with remaining tariffs to be gradually eliminated over the next five to ten years.

Canadian producers will enjoy immediate duty-free access to Peru products like wheat, barely, lentils and peas. A variety of paper products, machinery and equipment will also enjoy the same benefit.

However, an effective free trade agreement should do more than eliminate tariffs. It should also tackle the non-tariff barriers that keep a trade relationship from reaching its full potential. We have done that by including new measures to ensure greater transparency, including better predictability for incoming regulations and the right by industry to be consulted at an early stage in the development of regulations, promoting the use of international standards and creating a mechanism to promptly address problems.

We are taking action on a number of fronts to unlock the trade potential inherent in the Canada-Peru relationship.

However, this agreement is significant for other reasons. It also includes important side agreements that demonstrate our joint commitment to corporate social responsibility, the rights of workers and preserving the natural environment. Our nations recognize that prosperity must not come at the expense of the environment and workers' rights.

This agreement paves the way for significant dialogue on other areas of mutual interest, including poverty reduction and trade related cooperation. In fact, this approach builds on our successful experience with free trade partners such as the U.S., Mexico, Chile and Costa Rica. The agreement will provide an opportunity to grow business and investment between Canada and Peru. We anticipate that freer trade will promote economic growth and employment and help Peruvians reduce high levels of poverty.

CIDA has contributed significantly to developing and enabling environment for trade and investment in Peru by improving the economic governance through the development of Peru's natural gas and mining regulatory frameworks, building its capacity to protect the environment, managing social conflicts by promoting corporate social responsibility in Peru, supporting work on improved labour administration, promoting democratic governance, meeting developmental targets and supporting the FTA negotiations on trade related cooperation between Canada and Peru.

The Canada-Peru free trade agreement builds on our work by including a number of development friendly provisions. It improves market access for Peru to Canada and allows Peru to adjust to freer trade with Canada. For the first time in a Canadian free trade agreement, Canada has agreed to the incorporation of a chapter on trade related cooperation that will help Peru maximize its opportunities under the free trade agreement. Through these measures, as well as the parallel agreements on labour and the environment that my colleagues have previously outlined, the Canada-Peru free trade agreement stands as a comprehensive and wide-ranging agreement.

It is also another example of Canada's re-engagement in the Americas. Our government is committed to working closely with our partners throughout the hemisphere to deepen our economic and security ties and promote stability, security and prosperity. The Canada-Peru free trade agreement is an important part of these efforts. It will also help us expand upon the friendship and cooperation our countries enjoy and create new economic opportunities for Canadians and Peruvians alike.

We share a belief that open markets and international trade are the best hopes for fostering development and our common security in the hemisphere.

We recognize that prosperity cannot take hold without security or, in the absence of freedom and the rule of law brought about through the pursuit of democratic governance, a good, healthy democracy cannot function without a sound underpinning of personal security and the chance to improve living standards through increased trade and investment. That is why we are committed to working closely with partners like Peru to influence positive change throughout the region and promote the principles of sound governance, security and prosperity.

Taken together, these agreements mark a new chapter in the Canada-Peru relationship, one that will forge an even stronger bond between our nations in the years ahead. They also mark yet another milestone in Canada's trade policy. In this day of fierce global competition and overall economic uncertainty, I am proud to say that we are taking the measures necessary to continue creating a resilient and competitive Canadian economy in the years ahead.

I ask for the support of all hon. members as we continue these efforts and create new opportunities for all Canadians to thrive and prosper in the global economy.

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Madam Speaker, I would ask the member whether the government has any projections for trade between Canada and Peru over the next five or ten years.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Madam Speaker, we expect this free trade agreement with Peru to be the beginning of a very prosperous trade relationship that will benefit both countries. We are looking at $2.8 billion worth of trade today and we certainly expect that to be enhanced and expanded upon in the future.

Peru has a growing economy with a 9% GDP increase every year. With an opportunity like that, there is absolutely no reason why both countries would not prosper and continue to prosper from this enhanced and improved trading relationship.

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, I would like to ask the hon. member a question.

Peru is a rather small market for Canada and Quebec. When the government decided in 2002 to forge ties with the countries of South America, there were supposedly some consultations and discussions with various organizations, companies and so forth. Surely the government did an impact study. If so, what were the medium and long-term forecasts concerning Peru?

In addition, what factors are most motivating the government to quickly sign agreements of this kind which still have a lot of NAFTA’s chapter 11 in them? Investment agreements like those in chapter 11 are detrimental because they enable multinationals to sue governments.

I would like the hon. member to answer these questions.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Madam Speaker, if I understand the question correctly, the hon. member was looking at the situation that Peru was in when many of these negotiations began in 2002 and the situation that Peru is in today.

I already mentioned that Peru's economy is growing at about 9% a year. That is certainly a record that many countries would be very jealous of and should be very jealous of.

The other issue that we need to understand is Canada's whole development of not just foreign policy but trade policy. When we came to government, the Prime Minister made a clear commitment to pay more emphasis to the Americas. That is not just that longstanding relationship between Canada and the United States and Mexico, but beyond the NAFTA borders where there really are many more opportunities for Canadian companies throughout all the provinces.

Certainly, our re-engagement with the Americas in Central America, in the Caribbean and in South America is very positive for Canadian business. There are tremendous opportunities there. The long-term prognosis of a stable, secure trading partner of proven stature in South America is extremely important, not just for our trading relationship with Peru but our trading relationships with other South American countries. We signed a free trade agreement with Colombia as well. We have signed a science and technology agreement with Brazil.

Those agreements are all extremely important to our re-engagement with the Americas, to our emphasis on Canadian trade, to the number of companies within Canada that are doing business directly, especially in the extractive sector in Peru, and for the opportunity to sell our manufactured goods and agricultural goods. It is a two-way relationship. Peru will also benefit from our increased emphasis and our demonstration of that through this FTA with the Peruvian government.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, I thank my hon. colleague for doing a great job as the parliamentary secretary on our international trade committee. My hon. colleague just alluded to part of our government strategy to diversify our trade. Our number one trading partner for years has been the United States, and we continue to work closely with that country. I would like my hon. colleague to expand a little bit more on how this specific agreement will help Canadian businesses during this global economic crisis.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Madam Speaker, I would like to thank my hon. colleague for his kind words and reiterate with some of my own. He is also a valuable member of our trade committee.

It is not simply a free trade agreement with Peru. There has been a terrific change in the entire mindset of government. We appreciate and understand how important our NAFTA partners are, how important that north-south trade with Mexico and with the United States is to Canada, but we are not about to sit back on our heels and simply be dependent on that.

Look at our trading partners around the world. Look at what we did with our free trade agreement with the European Free Trade Association, the EFTA countries, Switzerland, Liechtenstein, Iceland and Norway. Look at ongoing negotiations with South Korea and many other countries around the world. Look at where trade has moved. China is now our number two trading partner. Who would have imagined that five, six or seven years ago? Nobody, quite frankly.

There is opportunity. There is opportunity abroad, there is opportunity with Japan, Korea, China, and the European Union. Those are all opportunities that we expect to engage in.

In the immediate term, there is tremendous opportunity on our very doorsteps in a region of the world that we live in, and we would be remiss if we did not take advantage of that in a very mature, open and equitable manner as we have done.

Everything has been covered under these free trade agreements. It is not just about trade. We have certainly looked at corporate social responsibility, the responsibilities of our country when working abroad. We have certainly looked at the environment and the importance of having a separate environmental agreement with the free trade agreement. We have looked at the whole question of human rights, where there has been all kinds of criticism but not many facts from the opposition.

All of these issues are addressed. They are addressed in this agreement. They are addressed in all of the free trade agreements we are looking at. That is a positive move. At the end of the day, it is good for the countries we are doing business with and it is good for Canada to not be as dependent on that NAFTA relationship as we have been in the past.

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, getting back to what the previous member said in reference to the economic development of Peru, I want to remind him that Canada and Quebec have a negative trade balance with Peru that increased at least ninefold 2004 and 2008. Our exports and imports are mounting and the disparity between them has increased tremendously.

I want to ask him a final question. Canadian mining companies have a strong presence in Peru. What kind of regulations does the government foresee for Canadian mining companies, which tend to behave rather badly in foreign countries when it comes to the environment and, unfortunately, human rights?

[The Acting Speaker, NDP, Denise Savoie]

The parliamentary secretary has less than a minute to answer, 55 seconds.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

How many seconds, Madam Speaker, 55? I will try to address that.

We know that when we are dealing with free trade agreements, first of all, it is a two-way trade, so the trade balance does shift and change. Sometimes it is in Canada's advantage and sometimes it is in the other country's advantage. That is to be expected and that is normal. I would say it is also fair and equitable.

The other issue is the whole question around the extractive sector and corporate social responsibility. I have been on a number of mine sites, both within Canada and abroad, and our companies, certainly on the sites I have been on, have done an exemplary job, a stellar job of representing Canada abroad, of running a solid corporation, and of providing benefits, safety measures and environmental mitigation to the country they are in and to the workers they employ.

I really take exception to the idea that the entire extractive sector is out there running rampant and footloose around the world. It is not the case. These companies are very responsible.

[Scott Brison, Liberal, Kings—Hants, NS]

Madam Speaker, it is a pleasure to rise today to speak to Bill C-24, the free trade agreement between Canada and Peru.

The Liberal Party recognizes the importance of free trade and the opportunity to create jobs and prosperity not only for Canadians but for our trade partners. Particularly, during this global economic downturn, it is important that we not only work to expand our free trade relationships but we fight protectionist tendencies, whether it is from U.S. congressmen or senators or from Europeans.

Around the world there is a tremendous fear of protectionism. We saw what happened in the 1930s, going back to the Smoot-Hawley tariff act in the United States, which turned a recession into a full-fledged depression, as we saw responses from around the world and retaliatory actions against U.S. protectionism. Thankfully, the international community and the G20 have been quite consistent in acting and speaking against protectionist measures. We hope that wisdom will last but we have to be vigilant and vigorous in our opposition of protectionist measures.

We are a trade-dependent nation. We have a small, open economy. It is troubling that under the Conservative government we have the first trade deficit that Canada has seen in over 30 years. It is ominous that as a small, open economy that depends on external trade for our prosperity and jobs, in fact, today we are buying more as a country than we are selling. We are facing a weakened global economy and we must broaden our trading relationships. We must seek out new trading opportunities.

Canada's reliance on trade with the U.S., particularly with the United States having been hit the hardest during this economic downturn, demonstrates to us that we need to diversify our trading relationships during not just these difficult times but on an ongoing basis so that we are not as vulnerable or reliant on one market for the future. The U.S. is an important market to us, we all recognize that, and we need to continue to deepen and strengthen our trading relationship with the U.S., but we need to diversify dramatically our trading relationships so that we are not as dependent.

Countries like China, India and Brazil are critically important. My colleague, the Parliamentary Secretary to the Minister of International Trade, just mentioned that China has become Canada's second largest trading partner. He asked who could have imagined that just a few years ago. In fact, the Liberal government and Prime Ministers Chrétien and Martin saw this coming.

The Liberal government worked very hard to deepen our trading relationship and friendship with China, a friendship that goes back to Dr. Bethune and Pierre Trudeau. Pierre Trudeau and Richard Nixon agreed on almost nothing but the one thing they did agree on was the importance of opening up China. They were right then. The opening up of China in terms of economic trade and relationships has increased our capacity to influence the Chinese on issues of human rights and freedom, and market liberalization.

In fact, economic engagement can strengthen our capacity to influence other countries and our trading partners on issues of rights, labour and the environment. We have seen that occur around the world where we choose to use our economic relationship to actually enhance our capacity to influence other issues.

I will be speaking about the Chinese relationship a little more in my remarks, but on the issue at hand, Canada's free trade agreement with Peru, we in the Liberal Party believe very strongly that there are opportunities for Canada in deepening our trade relationship with Peru. We believe we also have a responsibility as a Parliament to evaluate these trade agreements on an individual basis at the committee level and to study them thoroughly in a multi-partisan and, to as much of an extent as possible, a non-partisan basis to ensure that the benefits exist for Canada.

With this in mind, the Liberal Party will vote in favour of Bill C-24 at second reading so that the Canada-Peru free trade agreement can receive a careful examination in committee. We want to hear from Canadian stakeholders. We will support this free trade agreement beyond committee stage if we believe that it is, on balance, a good deal for Canadians.

We recognize and believe in the principles behind free trade in terms of providing enhanced prosperity for our citizens and for economies like Peru, but we recognize as well that there is a significant economic risk to Canada if we do not pursue free trade agreements with countries like Peru.

Peru has been aggressive in pursuing bilateral free trade agreements with a number of countries. Since 2005, Peru has concluded free trade agreements with the U.S., Chile, Thailand, the Mercosur nations, that is Argentina, Brazil Paraguay and Uruguay, and Singapore.

Peru's FTA with the United States, Canada's largest trading partner, has been approved by the U.S. Congress and came into force on February 1 of this year. Now that the U.S. FTA with Peru is in place, some American exporters enjoy a comparative advantage over Canadian exporters in the Peruvian market. For example, U.S. wheat exports now receive duty-free treatment in Peru. Canadian wheat exports on the other hand continue to face a 17% tariff.

Clearly, Canadian wheat producers are now at a disadvantage in this market compared to American competitors and wheat comprises 38% of Canada's total exports to Peru. Therefore, we could say, tongue in cheek, that not having a free trade agreement with Peru goes against the grain for Canadian interests. We need to work to close this gap with the U.S., not just for our wheat producers but in other sectors as well.

In terms of the Canada-Peru FTA, the merchandise trade between Canada and Peru was about $2.8 billion in 2008. Canadian merchandise imports from Peru were about $2.5 billion last year. Our exports to Peru totalled about $400 million in 2008. This is an 18% increase over 2007.

There is a significant growth opportunity for Canadian exporters in Peru, particularly in the supply of mining and hydroelectric transmission equipment, particularly good areas for Canadian expertise.

Peru currently maintains tariffs of 4% to 12% on Canadian exports of machinery and equipment, paper, oil, plastics and rubber. Eliminating these tariffs will help enhance Canadian competitiveness and protect and expand Canadian jobs.

There are also opportunities for Canada's financial sector in Peru. The Bank of Nova Scotia is, in fact, the third largest bank in Peru. It sees great market potential in expanding its presence in the Peruvian market.

By increasing Canada's access to foreign markets, we can help Canadian companies grow and create jobs, both here in Canada and in developing economies like Peru.

In terms of our financial sector, particularly given the relative strength of our Canadian banks and financial institutions relative to their international competitors, that stripe that is accentuated and amplified today during this global financial crisis, there is tremendous opportunity to focus on our financial sector as an area of comparative advantage where we can deepen our relationships, expand our financial sector in some of these emerging economies and capitalize on the comparative advantage that has been the strength of our Canadian financial sector.

Examining the FTA agreement that Canada signed with Peru on May 29, we see that it does protect supply management. We need to support and defend supply management for what it is. It is simply a system that ensures Canadian farmers are paid a reasonable price for what they produce, a market-based system that ensures Canadian farmers are paid fairly for their products. It is not a trade subsidy from the government. We need to counter the arguments against supply management that define it for what it is not. Often the critics of supply management define is as some sort of government subsidy. It is not. It is simply a sound pricing mechanism to ensure Canadian farmers are paid a reasonable price.

The Peru FTA also includes side agreements on labour cooperation and the environment. The agreement also contains provisions on corporate social responsibility. Both the labour cooperation agreement and the agreement on the environment include a complaints and dispute resolution process. This allows any member of the general public in Canada or Peru to request an investigation if they believe that either Canada or Peru is not living up to its commitments in this agreement.

The labour cooperation agreement also enables an independent review panel to fine the offending country up to $15 million annually if the agreement's provisions are violated.

We will work with Canadian stakeholders and experts at the committee stage to determine whether these side agreements and provisions are robust enough. We will act to make sure this FTA is good on balance for Canada. We will continue to believe that diversifying our trade relations is an important way for Canada to move forward as part of a global economic recovery.

I believe very strongly that Canada's multiculturalism can actually help us diversify our trade relationships, that our multicultural communities represent natural bridges to some of the fastest growing economies in the world. We should be capitalizing on the strength of our multicultural communities and not only consider multiculturalism as a successful social policy here in Canada, but view it for what it is today.

At a time of global economic change, multiculturalism is in fact not just a social policy today. It is an economic driver, if we harness it and if we work with the entrepreneurial leaders. Some of the most successful entrepreneurs in Canada are leaders in Canada's multicultural communities. We need to harness that multicultural entrepreneurialism and build natural bridges to these fast-growing economies.

With the Canada-Peru FTA, the Liberal Party will ensure that this is a good deal for Canada. We will continue to emphasize the need for Canada to diversify its trading relationships and we will continue to highlight training opportunities around the world.

Let me return to the issue of Canada-China trade. There are immense opportunities for Canada in the important emerging market of China. Despite concerns over the global economic downturn, China's real GDP is still expected to grow at 6% in 2009 and 7% in 2010. The Chinese government is targeting even higher figures. Regardless, these are impressive numbers compared to either Canada's or other industrialized economies where we see a shrinkage of GDP during this time of economic downturn.

The Chinese government has announced a stimulus package worth $725 billion, investments in infrastructure, transportation, environmental and energy infrastructure, a need for the commodities that Canada produces and a need for the technologies that Canada has developed and can continue to develop. For instance, in clean energy, China has a remarkable need for clean energy and for clean energy technologies. We should be deepening our relationships with China, India and Brazil to help these countries get the energy solutions they need, the technologies they need and the energy they need and at the same time protect the planet against climate change.

As the Chinese government moves forward in its commitment to improve air, soil and water quality and produce cleaner energy, China will demand and need more clean energy and green technologies. Canada can become China's clean energy and green technologies partner, as a global leader in this field. However, in China the state has a strong influence on economic activity, so Canadian businesses cannot realize these opportunities absent of a strong relationship between the Canadian and Chinese governments.

After three years of damaging Canada's relationships with China, it appears that the Conservative government is finally recognizing that the Chinese economy and the Chinese economic opportunity is important to Canada, and that relationships matter.

On Saturday in The Globe and Mail, Jeffrey Simpson said in his column:

Finally, if belatedly, the Conservatives are coming to terms with the reality of China, not the rather one-dimensional view they developed in opposition and brought with them into government. They are arriving at the elementary conclusion that had long ago dawned on all sentient observers in the world: China is hugely important.

Mr. Simpson goes on to say “the puerile partisanship of Conservative politics and their stunning ignorance of the world” has damaged the relationship between Canada and China.

The fact is it is absolutely essential that we have a strong relationship between Canada and China, both in terms of the economic opportunities that trade between Canada and China represents for both our countries and in terms of our capacity to influence Chinese human rights.

We should ask ourselves this. Did Canada have more influence over Chinese human rights three years ago, when we had a strong relationship between the Government of Canada and the government of China, or today when that relationship is in tatters?

The fact is it is self-evidence to anybody who is paying attention, including the stakeholders, the labour organizations and the business leaders, who are telling us we have lost ground over the last three years in China due to a very ideological and narrow perspective of the Prime Minister to China. We need to reverse that.

In the recent weeks the government has demonstrated a change in tone, but the Prime Minister has still not visited China. He has still not, at the top, demonstrated an absolute commitment to deepening and strengthening that relationship, to undoing some of the damage he has wrought on the Canadian-Chinese relationship over the last three years.

Our exports over the last two years barely kept pace with China's import growth. The U.S., on the other hand, has grown its export trade with China by 60% in the last two years, far outpacing China's import growth. Australia exports five times as much to China as we do. The Australian prime minister, Kevin Rudd, understands the importance of the Chinese economy. Prime Minister Rudd actually speaks Mandarin. We cannot even get our Prime Minister to go to China, yet the prime minister of Australia has learned Mandarin to help deepen the relationship.

The trade minister has recently been to China to re-announce some trade offices that were planned by the previous Liberal government. That is not enough. The government, any Canadian government, should be aggressively pursuing and deepening our trade relationship and expanding our opportunities with China. Canada should be aggressively pursuing a consistent agenda of trade liberalization around the world. As a trade-dependent nation, free trade is ultimately in Canada's best interests.

Canadians can compete and succeed globally given the opportunity. We do not need protectionism to defend Canadian jobs or to develop and protect Canadian prosperity. We need opportunities. The Canadian business community and Canadian entrepreneurs have every capacity to compete and succeed. We need to work with them, as partners in progress, to diversify Canada's trading relationships, to focus on Canada's comparative advantages in energy, in financial services and in commodities where we can deepen our trade relationships with some of these countries that need clean energy technologies, that need stronger financial services and strong financial institutions, that need our commodities to build their infrastructure.

We have every capacity as a nation to be a global leader in these sectors and to turn this economic crisis into a time of opportunity for Canada as we move forward. However, it requires consistency, which means that when we treat human rights and trade in one part of the world one way, we have to apply the same principles elsewhere.

The government has said, in terms of Colombia, Peru and other emerging economies, that economic engagement strengthens our capacity to influence their human rights. I agree with that. However, I wish and I want, as a Canadian citizen, for my government to apply that same principle to countries like China, particularly China, which represents such a tremendous opportunity for Canadians and for the Chinese people as we move forward in progress and building a stronger global economy.

[Gerald Keddy, Conservative, Parliamentary Secretary to the Minister of International Trade]

Madam Speaker, this discussion concerns the free trade agreement between Canada and Peru. I was glad to hear my hon. colleague say that it was his party's intention to support that agreement, certainly to look at all aspects of it but in general to support it. We appreciate that as the government. Canadians appreciate that. Canadians, especially in these darker economic times, are looking for opportunities and other places to sell Canadian goods around the world.

Not to get sidetracked on China, but China is an important trading partner. Canada has opened six consulate trade offices in China in the past couple of months. The Minister of International Trade has been in China on an extended trip. The Minister of State has been in China. We are not taking China for granted.

I agree with the hon. member that trade liberalization and economic opportunity go hand in hand and they also encourage and promote human rights. Economic opportunity will always promote human rights. When people have more money and more opportunity, they expect more for themselves and for their families. They are less likely to put up with lack of freedom of the press, lack of rights for women, lack of rights for children.

It is not just this free trade agreement with Peru, but it is other agreements that we will be signing in the Americas, other agreements that we have negotiated and the overall thrust which is a very robust free trade agenda, unlike the previous government which had a very minor free trade agenda. Does the member agree with the direction this government is taking in the Americas?

[Scott Brison, Liberal, Kings—Hants, NS]

Madam Speaker, we believe in expanding our trading relationship, and the Americas is certainly an important part of that. Clearly the Obama administration is putting forward a very different perspective on U.S. relations in the Americas and elsewhere. I think there is an opening for Canada. We do believe in diversifying our trade relations.

If we look at the trade opportunities in the Americas on an individual basis, except for some of the larger economies such as Brazil, these are still fairly small trading relationships and opportunities compared to those of China and India. I would remind Canadians that over the last three years the Conservative government has treated the Chinese relationship with contempt and the India relationship with indifference. Looking at the scale of those economies, yes certainly we should be diversifying our trade relationship and yes, the Americas represent an opportunity for us. But the huge opportunities of China and India in particular necessitate a reinvigorated approach and commitment to strengthening those relationships government to government, business to business.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, I appreciate my colleague's support in moving this free trade agreement forward as soon as possible.

I would like to echo the comments of the parliamentary secretary in recognition of our Minister of International Trade who has recently been to China and Japan. He was in India in January. He is working very hard to open doors throughout the Asian markets as well as the Americas, working with the Colombia free trade agreement. The Prime Minister was in Port au Prince this past weekend.

We know that time is of the essence. The member mentioned President Obama and working together with all parties. This free trade agreement needs to pass as soon as possible as the U.S. ratified its agreement a couple of months ago, and every day that goes by Canadian companies are not on a level playing field. How does the member see us moving this bill as quickly as possible through the House so Canadians can be more competitive in the world market?