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

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

Madam Speaker, the reality is that there are many ways to negotiate agreements and we want fair trade agreements. We want to take into account as many of the possibilities and eventualities that can happen, and whether that involves labour, environment or human rights issues, they should all be put into agreements because people want to trade. To get a sound trade agreement, people will agree to have decent standards if we require those in an agreement.

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Madam Speaker, I am pleased to have this opportunity to speak in this debate to 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.

Part of the context of our debate today is the fact that this morning and this afternoon thousands of members of the Communications, Energy and Paperworkers Union, CEP, my old union, will be gathering here on the Hill for a national day of protest to say that forestry workers fight back for jobs, pensions and families. I was a proud member of CEP Local 232.

One of the reasons this protest has been organized is because of the failure of free trade agreements between Canada and the United States and the failure of the softwood lumber agreement between Canada and the United States to protect the jobs of Canadian workers. That is one reason why thousands of people will be here in Ottawa today to protest the failure of Canada to protect Canadian jobs and Canadian workers through these types of trade agreements. That shows why it is so crucially important that we pay attention to these agreements as we sign them and as we develop them. I am glad that we have this opportunity to debate the Canada-Peru agreement here in the House today.

As my colleague from Elmwood—Transcona said, New Democrats support trade agreements but we would support fair trade agreements. We want to ensure they meet the social, environmental and labour goals of our country and that they support our democratic vision for our country and for countries around the world. We want to ensure that any agreement we enter into supports those standards.

I do not think that makes us Boy Scouts, as the member for Mississauga South indicated. I do not think the Boy Scouts would appreciate the way he slagged their intent to be honourable citizens. It does not make us Boy Scouts or naive to want to uphold those kinds of standards in these agreements. One might ask the member for Mississauga South if he is prepared to sell his soul for a mess of potage, which may be the other end of the coin when it comes to these kinds of agreements. This is a very appropriate time to give due diligence to these agreements and ensure they do what they say they will do.

We are very concerned and we always raise the context of labour rights, of environmental protections and the investor chapters of these agreements. This Canada-Peru trade deal is no different in those regards. We believe these agreements do put the interests of big business before workers and the environment and that is one reason why we do not support the agreement. We have not learned anything from the problems with NAFTA's chapter 11 on investor rights. We continue to be concerned that this would give corporate interests the ability to override the democratically elected representatives of the people of the country when it comes to corporate relations and some training relationships. These provisions have been maintained in this Canada-Peru agreement and it is one of our key concerns with that deal.

The other contextual setting that I want to give is with what happened with the U.S.-Peru free trade agreement, how that was implemented and its effects since it was signed in December 2007. It is important to understand what happened with that deal and to look at some of the differences between what the United States negotiated with Peru and what Canada has negotiated with Peru.

Some of this information comes from an article written by Mary Tharin, a research associate with the Council on Hemispheric Affairs. She has pointed out a number of problems since the negotiation of the U.S.-Peru free trade agreement. She claims, and backs it up with evidence, unlike other members of the House who seem to have opinions but no evidence, that the U.S.-Peru free trade agreement has been used by President Garcia of Peru as an excuse to dismantle environmental and labour standards that did exist, such as they were, in Peru, and that it has also led to further economic deterioration in Peru. Ms. Tharin says that this should be taken into consideration before other free trade agreements are signed by the United States. I think that is instructive for Canada before we enter into this agreement with Peru.

She also notes that corruption is a serious issue with the Garcia government and that there is a long and continuing history of scandals in that government, especially scandals of corporate interests and the involvement of the government and leading officials with bribery and whatnot. That context is an important one for us to struggle with as well. Do we enter into agreements that cannot guarantee the force and supremacy of law and get bound up in these terrible scandals related to the development issues of their country?

The article goes on to talk about how President Garcia has been implementing and changing the legislative framework of Peru to accommodate the U.S.-Peru free trade agreement. He has been doing it by the use of legislative decrees. In fact, in the first six months after the agreement was signed, he enacted a total of 102 legislative decrees designed to harmonize national laws with the conditions laid down in the free trade agreement between Peru and the United States.

It is interesting to note that the Peruvian Constitutional Commission has recently declared about 40% of those decrees to be unconstitutional, which again brings into question the Garcia government's commitment to the constitution, law and background framework of this agreement. There has been considerable comment in Peru, via the Peruvian press as well as politicians and activists, that the government has used these decrees to the detriment of labour, the environment, the agricultural industry and indigenous rights there.

One of the most controversial of the legislative decrees was decree 1015, which was passed in May 2008. That decree was designed to facilitate the privatization and stripping away of communal lands held by indigenous and subsistence farming communities. Any of us who know anything about Peru know that communal land is essential to the Peruvian understanding and the traditional way of life in Peru.

Previously, the law in Peru required a two-thirds majority in congress to authorize any land sales from these communally held lands. However, decree 1015 lowered this requirement to a simple majority in a clear attempt to encourage those kinds of sales and subsequent exploitation of the land by foreign and domestic entrepreneurs. That is one of the key changes that came about, despite the agreement between the United States and Peru.

Another legislative decree, 1064, eliminates the ability of landowners to negotiate with oil and mining companies over the use of their land. Before that decree, companies had to reach an agreement with property owners in order to buy or rent their land for commercial use. Only if negotiations failed could companies turn to the government, specifically the ministry of mines and energy, to force owners to sell their land. Decree 1064 cuts out landowners completely, leaving the entire negotiation process in the hands of government.

Certainly, by our standards, this would be a significant backward step in how landowners and traditional communal landowners in Peru deal with the negotiations with oil and mining companies. In the context where Canadians are increasingly aware of the activities of Canadian corporations overseas and requiring stronger measures around corporate social responsibility, I do not think the lowering of this standard in Peru says good things about our ability to enter into an appropriate agreement between Canada and Peru for trade.

Another decree, 1090, is known as the forest and wildlife law. It allows President Garcia to remove barriers that protected the country's national forest. It redefines national forest patrimony and lists protections against logging and other forms of exploitation. There is considerable comment in Peru, and among opposition critics as well, that talks about how this decree reduces transparency and eliminates input from civil society.

This also all happens in a context where the environmental standards negotiated by the United States are stronger in its agreement than they are in the agreement that Canada has negotiated with Peru. That is another key reason why we should be very concerned about this agreement. It is why I and my New Democratic colleagues will not be supporting the legislation and the agreement between Canada and Peru.

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

Madam Speaker, it is a pleasure to rise and acknowledge my colleague, the member for Burnaby—Douglas, from beautiful British Columbia.

As a member of the Standing Committee on International Trade, the Canada-Peru trade agreement was something we spent a great deal of effort and time on to ensure the agreement would not only help the folks of Peru but Canadian businesses as well.

As alluded to by the hon. member, the softwood lumber agreement is something that the Forest Products Association of Canada, FPAC, stood firmly behind. If we did not have that agreement in place, the situation would be even more dire than it is today.

We are facing a global economic crisis. A few weeks ago I had a chance to travel to Finland to look at the forest industry there. It is hurting as well, so we are working together. We need to help Canadian businesses expand markets.

I am proud of previous Minister Emerson and our present Minister of International Trade, who is broadening opportunities in Latin America.

On this agreement, the hon. member talked about human rights and labour agreements, which is something that is very near and dear to me. He does not have a monopoly on this compassion and caring factor. Our government is concerned about that and that is why we have entered into some of the most strongest and stringent labour and environmental side agreements.

How is this agreement different than the agreement of the United States, given that we have instituted these tough regulations?

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Madam Speaker, I am glad the member raised the whole discussion of labour rights in Peru because I did not get a chance to address that in my speech. This will give me the opportunity to note that the Garcia government has also continued its legislative decrees in a number of areas related to labour rights, which have been very controversial.

Peru has a very small organized labour community. Public servants are one area where the existing labour rights have been jeopardized since the signing of the agreement between the United States and Peru. Despite the arrangements it made to support labour rights in its agreement, things like punitive evaluations of current employees have been introduced into the labour standards for the unionized public service in Peru. This has been done outside of the collective bargaining process. It has eliminated not only the ability of Peruvian public servants to collective bargain, but it has also eliminated respect for the collective bargaining process.

Most Peruvians participate in what is called the informal labour market and this is a very significant issue for the majority of Peruvians. Even though there have been increases decreed by the Government of Peru, these have been unenforceable because there are no significant labour laws to do that kind of work.

It shows the kind of context where we try use some kind of lip service, and that is all we can consider it, because these agreements do not seem to have any enforceable measures to improve the adherence to the existing labour law in countries or see any improvements to those labour laws that protect the rights of workers in these countries.

The United States was unable to do that through its agreement. I do not have much faith that Canada's agreement will be able to do that for the labour standards that we are seeking to uphold and improve between Canada and Peru.

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

Madam Speaker, the member has eloquently described how the American free trade agreement with Peru is superior and stronger than the current Canadian agreement that has been signed. Even in spite of that, the leadership in Peru has continued with a race to the bottom in environmental and labour areas. The government should pay attention to that and move quickly to try to renegotiate this agreement and stop this race to the bottom.

Would the member comment further on that?

[Bill Siksay, NDP, Burnaby—Douglas, BC]

Madam Speaker, it goes back to the whole question that the member for Elmwood—Transcona raised about the need for fair trade agreements. That has become a slogan for the NDP. It is a standard we try to live up to in our review of these kinds of agreements. There has to be respect for the people of the country with which we deal, and we do not see that in many of these agreements. That is are our stand on this.

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, I believe this will be the last time I speak to this implementation bill. Practically, I owe this to the member for Kelowna—Lake Country, who of course has moved the previous question. Otherwise, I would not have been able to continue speaking on this bill.

It really is a huge undertaking to try to educate and teach some members of this House, be they Conservatives or Liberals. It has been said and we will keep saying it: in teaching, you have to repeat the message. I have a few minutes to repeat this message again.

All of them, Conservatives and Liberals alike, seem to be saying that we in the Bloc Québécois and the New Democratic Party are not in favour of our businesspeople and businesses being able to export and bring profits home to Quebec and Canada. The opposite is true, of course. In Quebec, we are great traders, and we certainly want to be able to pay for the social policies we adopt. Ordinarily we support these agreements. We always hope they will be multilateral, but in this case we are talking about a bilateral agreement between Peru and Canada.

Generally, the Bloc Québécois agrees with what is good for Quebec, but in this case, as in the other cases, no impact study has been done in connection with this free trade agreement, whether in terms of jobs in Canada, in Quebec or in Peru, in terms of workers’ rights or in terms of the environment.

Sometimes we wonder how the negotiators do their jobs if they have no impact study or, if they tell us they do not have one available, they surely have some minimal impact study so they can determine what the repercussions might be in the two countries.

I have always taken the position that when I engage in a business transaction with someone, I do not want to take advantage of that person, I want both parties to come out ahead in an economic transaction. That is also what I would like to see for all of the agreements signed by this House and implemented by legislation.

Yesterday, in debate on the implementation bill, a Conservative member made comments in which he repeated that two democratically elected parties held talks and decided to sign this agreement. But democracy is the power of the people. How were the people able to be heard and consulted, to speak out against the weaknesses in the agreement on various points, whether it be in relation to the investment agreement, the environment agreement, the labour cooperation agreement or the laws governing the accountability of our mining companies?

As well, the fundamental point for which the Bloc constantly fights is to bring us, instead, agreements that are under the umbrella of multilateralism. When I talked about democracy, agreements like these truly can result in a loss of sovereignty for some countries. This is particularly the case for the investment agreement. Certainly we have to protect someone who invests abroad against misconduct the other country or the other party might engage in. But when we say that a company abroad can have more rights than the people, that is a loss of sovereignty and a loss of democracy for the country in question.

This government also has a virtually knee-jerk reaction, particularly in an economic crisis like the one we are experiencing.

Its initial reflex reaction is to turn to less regulated markets, as in the case of the agreement with Colombia or the one with Peru. Things were not very complicated, on the other hand, in the case of the free trade agreement with the European Free Trade Association. The Bloc quickly supported it. We know that these agreements can be beneficial, but the parties have to be equals and the country we are negotiating with has to be able to ensure human rights.

During my first speech on this bill, yesterday, I referred to the remarks of some of the witnesses who appeared before us in committee, but I did not have a chance to finish. I want to go over three of them.

First, Ms. Theresa McClenaghan told us that investor access to states was very problematic. We should not have this kind of thing in free trade agreements. She referred as well to sovereign rights—those of the other country, of course, but also the sovereign rights here in Canada and Quebec of local governments and the central government. We have a good example of this now with NAFTA and 2,4-D. That is a pesticide we do not want used on our lawns for aesthetic purposes. Well, the company is suing the Government of Quebec.

When a government can no longer legislate for health reasons or out of the precautionary principle, there is a major loss of sovereignty. This agreement on investment is faulty, just like the one with Peru.

She pointed, as an example, to the agreement between the United States and Australia, which gives no direct investor-state remedy. She said it could be a model of social and environmental protection. Ms. McClenaghan was representing the Canadian Environmental Law Association. Although she was speaking on behalf of an environmental organization, she spoke mostly about the problem posed by the agreement on investment. She said that we should just send the government back to do its homework because it had done an incomplete job. This agreement is hardly ideal from the point of view of protecting people everywhere in the countries involved.

We also heard Mr. Rowlinson, a lawyer representing the steelworkers' union. He said labour rights were the main problem in the agreement. It mentions labour rights, of course, but talks only about basic rights and principles without really getting down to the fact that these rights need to be fostered so that the other party also benefits from the agreement. What it says about labour rights is very simply based on what currently exists. The same is true of environmental rights. They too are based on what currently exists in that country.

Automatically, we think that the mining or oil or gas companies set up there because there are collateral benefits. They have the advantage of a much weaker labour rights base. So it costs them less. The same may be said for environmental rights, and so it costs less to operate mines in these countries.

This gentleman wanted these rights included in the main agreement and not in the side agreements or parallel agreements, which, by their very nature, never meet. They are totally separate and based always on the minimum.

There was also Mr. Cameron, a lawyer who came as an individual and who told us that Peru, like Mexico, was divided into two social classes—the one benefiting directly from these agreements and the bulk of the population, benefiting much less.

I would like to come back to this important principle, as one member has introduced a bill and another a motion to make the mining, gas and oil companies operate more responsibly. If they are aware of the importance of all that, they will understand that they must reject this government's measure and not vote in favour of this implementation act. They must have it set aside so the government can redo its homework. In the meantime, they will be able to get their motion and bill passed, and we will support them in this regard, but not with regard to the free trade agreement with Peru.

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

Madam Speaker, my hon. colleague from Sherbrooke is also a member of the Standing Committee on International Trade. We have had the opportunity to travel together. I appreciate his comments, but obviously we have separate positions on this specific trade agreement,

I would like to ask the hon. member about a couple of sections that we talked about within the agreement. We had the reference to the strongest labour and environmental side agreements that the Canadian governments have signed in any trade agreements. In speaking to constituents, I was talking with one not too long ago who has been in business for many years in Peru.

Looking at the health, safety and environmental measures, which are part of article 809 of chapter eight, investment, it states:

The Parties recognize that it is inappropriate to encourage investment by relaxing domestic health, safety or environmental measures.

Article 810, corporate social responsibility, states:

Each Party should encourage enterprises operating within its territory or subject to its jurisdiction to voluntarily incorporate internationally recognized standards of corporate social responsibility in their internal policies...

We had the opportunity to visit Colombia. I know that businesses in Peru have corporate social responsibilities. Canadian companies are raising the bar.

How will leaving the status quo help increase quality of life and give opportunities to the people of Peru?

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, we are not calling for the status quo but, simply, for the government to resume negotiations and improve this free trade agreement. We refer to environmental and labour rights laws because the entire agreement honours only what already exists, the fundamentals. Our businesses, however, can take advantage of the gap between the fundamental conditions in Peru and those in Canada.

So the government would do well to renegotiate. Witnesses have said so clearly. The government's negotiators were not up to scratch. They did not manage to negotiate things that should have been negotiated, and the quality of what was negotiated left something to be desired. So it must redo its homework. We will support this free trade agreement with Peru when the government incorporates rights and the side agreements into the principal trade agreement and negotiates shorter periods. We know for a fact that the US has negotiated much shorter periods in connection with rights than those Canada and Peru negotiated.

So Canada must do its homework over, and the government's directives must be more specific so that we may promote labour and environmental rights.

[Paul Dewar, NDP, Ottawa Centre, ON]

Madam Speaker, I want to raise a question with my colleague from the Bloc that stems from a related bill in front of the House right now, Bill C-300, which addresses corporate social responsibility.

In light of my friend from the Conservative Party raising the issue, if we really want to deal with corporate social responsibility, I want to get his take on whether it would be better to have it embedded in a policy, not just for trade agreements and voluntary, which is the problem with this trade deal, but to have that kind of approach, that legislation, embedded in the Canadian governance model right across the board, for all companies.

[The Acting Speaker, Denise Savoie]

The hon. member has 30 seconds in reply.

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, the Bloc Québécois is, in principle, in favour of Motion M-293 on the accountability act and Bill C-300, which also deals with accountability.

We agree in principle. Canadian companies abroad should be made more responsible, so this is an important step. There may, however, still be a sizeable gap between the laws and regulations of the country with which we are negotiating a free trade agreement and our own laws and regulations.

Accountability should also impose severe regulations relating to protection of the environment of these foreign countries. I believe that these two aspects can, and must, complement each other.

[Paul Dewar, NDP, Ottawa Centre, ON]

Madam Speaker, thank you for the opportunity to rise to speak to Bill C-24.

Many have spoken of the concerns they have around this trade agreement. I think Canadians are listening carefully to the difference between what some call free trade and what we call fair trade. There is actually a shift in the debate around trade agreements and around how trade is done globally. I think we are going to see a change in the use of the term “free trade” because of the collective experience of countries with these agreements.

When we look at the details and drill down into some of these trade agreements, the notion that there is anything free is a misnomer. When we look at the give and the take, and what we end up with at the end of these trade agreements, many people have, quite rightly, been critical. I think we are going to move toward something more in line with a sectoral approach, that we really should not be doing these massive pieces of architecture to say that we are going to be all in or all out and give certain powers to certain sectors of society over others.

When we look at the experience with NAFTA, for instance, and chapter 11, and when we look at what was given up by Canadians to allow private corporations to meddle in the affairs of our governance, it actually undermines the fundamental premise of democracy. This is not free. This is actually a change of power where we end up with less and certain entities end up with more.

It has to do with the notion of sovereignty, as well. I think that most people would agree that our Parliament should be able to pass laws that are unfettered, in terms of outside interference, and be vigilant with respect to our obligations internationally, but also provide good governance for our citizens.

That is not the case when we look at the experience of chapter 11. In fact, not just people in this corner of the House have stated that but people outside who have critiqued these agreements have said that. That is one of the problems with this trade agreement. It continues down the ill-fated path of the chapter 11 experience. If we look at it, it really puts investors' rights over the rights of citizens. The fact that private companies can sue governments, with these chapter 11 provisions over our public policy choices, is a clear indication that there is something more than a free trade or an exchange or an opening of trade. It means that we are actually laying hands on certain people and giving them rights over others; in this case, private corporations.

I want to take that observation and align it with where Canadians are at and look at what is happening right now with another bill that is before us, Bill C-300, the corporate social responsibility bill. It is interesting. When people have critiqued Bill C-300, and I have a private member's bill that is similar to it and motions have been passed on corporate social responsibility, they have been concerned that extraterritorial provisions would be given to the Government of Canada over investments abroad in the extractive industries. It is interesting because when we take a look at chapter 11, what we are actually doing is legislating the rights of extraterritorial private interests to have influence on governance here. We do not hear them talk about that.

So, on the one hand we are saying we do not want to have too many rules for corporations when we are doing business overseas because that might interfere with the conduct of the business of certain countries, and on the other hand there is this chapter 11 cheque written out and handed over to private corporations with which we do these trade deals .

I think that is an important issue. I think Canadians want to know why these facets within these trade deals are being set. Who is benefiting? Is this helping the citizens of the countries with whom we are entering into these trade deals? I suspect not. I know that it is not. I think it is important because when we look at this trade deal, it again is reinforcing that.

When we look at this trade deal and we look at the side provisions on environment and labour, they are just that. They are side agreements. The language is voluntary. We cannot have voluntary human rights. Either human rights are embedded and we have strength in terms of support to ensure that those human rights are being granted or we do not. Having voluntary human rights, we might as well not bother. It really does a disservice to the whole concept and notion of human rights.

I can only think what John Diefenbaker would say to that. We have side agreements on human rights. I suspect that he would not be in favour of that notion and I think that is important.

I suspect that because the government thought there would be a furor over the lack of environmental and human rights provisions, it would do a little political inoculation and put a side agreement in, put a ribbon on it and everyone will be happy.

We on this side of the House see through that. We either have it embedded and strengthened with legislation or we do not bother. To have it on the side, as was mentioned by my colleague from the Conservative Party earlier in his intervention, makes it voluntary. It is like the response by the government to corporate social responsibility where it has taken a very robust report from both business and civil society about how we can do corporate responsibility and turned it into a suggestion box, that if we have a concern we can put the concern in this box and perhaps the government will deal with it. That is not good enough. We need to take this issue seriously because it affects the lives of ordinary people.

The trade agreement, sadly, is putting on the altar environmental protection and human rights protection for what? For profit. For the bottom line. As I said, I think people will see through that and we certainly do.

I would also like to point out where Canadians are in their view of where Canada should be when it comes to trade agreements. I want to reference a document that recently came out called “Back on the Map”. It is a very comprehensive overview of a study that was done for a new vision for Canada in the world. It was done recently by a non-partisan group called Canada's World during a national citizen's dialogue. The director is Shauna Sylvester whom I met with recently. She was pointing out to me the research that was done on what Canadians want to see in their foreign policy and in their trade agreements. One of the things in the research report said that Canadians wanted to see good governance as it relates to promoting good governance in trade deals. The report is based on researchers talking to Canadians about what they want to see in our foreign policy and trade deals.

They want to see the Government of Canada take a leadership role in convening and facilitating the reform of international financial development agencies; promoting fair trade practices and corporate social responsibility, particularly among Canadian companies with overseas operations; supporting a stronger voice for developing countries within international institutions; investing in public diplomacy; shielding effective programs from partisan politics; and instituting a federal process to help with that

What they want to see is Canadian governance in trade deals promoting fair trade, promoting corporate social responsibility and promoting the values that are embedded in our Canadian fabric, not to hand over to certain companies and interests a blank cheque to decide what they want to do with it and undermine not only our democracy but the interests of those in the country of origin; in this case Peru.

For those reasons our party will not be supporting this trade deal. I wish that we would have the support of the Liberals to oppose this trade deal because it is not good enough.

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

Madam Speaker, as a member of the trade committee, I understand the importance of free trade as I believe all members of the House do. We talk about fair trade, but we have to look at it from a different perspective and ask what fair trade means.

I have talked to many constituents about the importance of diversifying our trade around the world, and I know committee members have discussed this also with witnesses from across the country. Over 80% of our trade is with one trading partner and this has caused a lot of the economic downturn that we are seeing today.

We have the toughest side agreements with labour and environmental agreements. There are different ways of negotiating. The U.S. signed an agreement with Peru on February 1.

We talk about fair trade, but I would like to ask my colleague how this agreement is fair to Canadian businesses? They are at a competitive disadvantage every day that goes by. Quebec farmers and Prairie farmers are losing business. Businesses across the country are losing business.

How is it fair by delaying and dithering, and dodging the fact that we need to expand our market share because this agreement is going to help Canadian businesses?

[Paul Dewar, NDP, Ottawa Centre, ON]

Madam Speaker, I want to correct the member on something. The side agreements have been noted as being inferior to the agreement that the Americans have negotiated with Peru.

We on this side of the House think Canada can do better. Canada has had a solid history in the past on human rights, on labour rights and hopefully environmental rights. It is not good enough to have inferior side agreements on these kinds of critical issues.

I also want to underline the importance of getting it right. Trade agreements are about values as well as about trade. We cannot rush to get an agreement done that will leave behind our values.

Joe Clark put it well at the foreign affairs committee recently when he said that we can have trade agreements but we need to be able to pronounce our values to the world. If we give up our values in trade agreements, then our reputation is sullied with respect to diplomacy and our place in the world.

We on this side of the House think the government has to get it right. It has to take the time to get it right and protect the values that are so important to all Canadians, and to the people of Peru for that matter. The government has to make sure that due diligence is done.