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 Act

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I want to thank my colleague for his thoughtful remarks. I should tell him that one of the reasons the NDP enjoys its third majority government in Manitoba is that we have taken the hair shirt off the NDP. We have become a lot more fun, and the member would be happy to know that.

We are all in favour of good corporate citizenship. I know he is not speaking on behalf of corporate Canada, but we do take the member at his word, that most Canadians would expect Canadian businesses to conduct themselves in a way that his honourable when they operate outside of the domestic jurisdiction.

That has not always been the case. There is nothing particularly binding on them. We find the environmental standards, the labour standards and the health and safety standards in other countries sorely lacking. It is difficult for small countries or developing nations to impose stringent health and safety, environmental and labour standards because they are so desperate to attract investment.

This is the contradiction we have heard. This is the quandary in which they find themselves. I am not trying to imply the government of Peru is corrupt, although I did cite some sources that implied the current leadership is under a lot of stress because of bribery and corruption charges, but even in those countries where there is well-meaning leadership, they would look to the harmonization of labour standards and environmental standards as a huge benefit and a huge gain. However, there is nothing in these agreements that would make that so, other than the implied goodwill of the corporations.

As I said in my remarks, capital has no conscience. We have to impose a conscience on them.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, in his speech, the NDP member referred to President Garcia as somewhat of a supplemental factor in this agreement. We know that the president is widely challenged in his country in relation to the indigenous people, who want to protect their environment and their biodiversity. Peru is signing multiple bilateral agreements in this regard. It will in fact be signing one with Canada.

As we know, this is somewhat like the agreement signed with Colombia under the Uribe government, when we had rather serious suspicions that that government did not respect union rights. We have seen the murders that have occurred. We went to that country with the NDP member and we met with community and grassroots groups. There are a lot of abuses committed against workers. From that perspective, another agreement signed with President Garcia has also been criticized, as the member mentioned.

Why does this Conservative government still want to sign agreements with rogue countries when we are trying to promote a healthy environment and a healthy planet? We want to combat climate change and preserve our water and land, but we sign agreements that allow companies to degrade the land and jeopardize the quality of life and air and water quality in other countries. I would like to hear from my colleague on that subject.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, my colleague is correct and these very things have been pointed out to us by labour leaders in the United States, who pointed out that in regard to the United States-Peru free trade agreement, which was about a year ago, we are following the U.S. almost step for step in Colombia and Peru. It seemed that when the Bush administration signed agreements with Peru and Colombia, all of a sudden it became necessary for the Conservative government here to follow suit with the same kind of substandard agreements.

A very prominent labour leader, the head of the teamsters union in the United States, pointed out that it was outrageous that Congress and the Bush administration had approved yet another job-killing trade agreement at a time when American families were seeing their jobs shipped overseas, their food and toys tainted, their wages on the decline, and their houses foreclosed upon. Workers here and in Peru deserve better.

If we take out the word America and insert the word Canada, the same applies to this country too. We could not possibly pick a worse time to impose a free trade agreement that will have downward pressure on Canadian standards because of harmonization. The globalization of trade has resulted in us lowering our standards, not developing nations raising theirs.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Speaker, the member for Winnipeg Centre and I were criticized just a few moments ago by a Conservative member for being too diligent and taking our work too seriously, but of course we have actually read the agreement. I know the hon. member for Winnipeg Centre has, and we have seen, as testimony has also indicated, that it is a vastly inferior agreement to that which the U.S. government initially negotiated, and which then was gutted, rebuilt and amended by U.S. Congress.

My question for the member for Winnipeg Centre, who is a wise member, one of the most active in the House, is this. The Conservatives blew it on the softwood sellout, costing us thousands of jobs. They brought forward this Colombia trade deal, which is essentially privileged access by a regime that is tied, cheek by cheek and jowl by jowl, with murderous paramilitary thugs and drug lords. Now they bring forward this bill which is considered an inferior version of bills that have been negotiated.

We have record trade deficits and most Canadians have actually lost real income over the past 20 years. Why do the Conservatives always seem to get trade issues wrong? Why do they not have an overall strategy that actually works for economic development, both here in Canada and abroad?

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, my colleague poses a compelling question. I would only answer, in the brief time I have, by saying that the Conservatives seem guided more by ideology than by reason, logic, economics or empirical evidence.

There is a belief on their part that free trade will solve all of our ills the world over. What they fail to understand is that free trade benefits corporations. It benefits wealthier nations, but it even puts wealthier nations at risk in that the harmonization that has taken place has been terribly hard on our manufacturing sector. It has been dragging us down, frankly.

Unfettered free market capitalism is passé. It has gone the way of the dodo bird. We need regulation. We need guidelines and objectives. We need that triple bottom line, if you will, for everything that we do that will elevate--

[The Deputy Speaker, Andrew Scheer]

Resuming debate, the hon. member for Terrebonne--Blainville.

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Mr. Speaker, today we are discussing 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. I want to start by saying that the Bloc Québécois will oppose this bill and this agreement because we have no guarantee that the agreement is worded strongly enough and contains a framework to protect the environment and human rights in Peru.

The third point I want to make is that this free trade agreement with Peru contains a similar clause to chapter 11 of NAFTA. This chapter, which relates to investments, allows investors from member states in the North American Free Trade Zone to claim compensation from the government of another party to NAFTA when they believe they have incurred a loss as a result of the adoption of regulatory measures that modify existing business operating conditions. What does that mean? It means that if, for example, a country decides to introduce legislation that would force a company doing business in that country to adopt other procedures that might seem harmful to the business, it could sue the government of that country.

NAFTA is the only major free trade agreement to which Canada is a party that contains such broad provisions regarding the treatment to be granted to investors from other parties. The provisions of chapter 11 of NAFTA governing investments have been called into question. They are the source of numerous proceedings that have been brought against various governments in Mexico, the United States and Canada. They sometimes result in several million dollars in compensation being awarded.

I said earlier that chapter 11 defines a complete scheme to govern investments and that the definition of investments is very broad. That is why the provisions of this chapter have given rise to many lawsuits pertaining to the concept of expropriation.

In a way, the NAFTA provisions laid the groundwork. They are similar to the provisions in the proposed Canada-Peru free trade agreement, which will give companies a great deal of power. Ultimately, we are concerned about the sovereignty of governments and their ability to take measures to protect the health of people and the quality of the environment. Will it be possible for Peru to protect people's health and the quality of their environment? We doubt it.

The Bloc Québécois is well aware of the need for free trade. We support investment protection agreements, but we are not prepared to accept bad agreements at any cost, and we feel that this agreement is a bad one.

Foreign direct investment is soaring.

Every now and then, a Canadian company decides to settle abroad, where the government may decide to nationalize it. In order to create a predictable environment, to ensure that a foreign investor will not lose his nationalized business without compensation, and to give some assurances to companies, states sign treaties to protect investments. We think this is perfectly normal, and we accept that such provisions be included in these treaties.

However, over the past few years, we have seen such an incredible shift, because of NAFTA's chapter 11, that we are now wondering. We are very cautious with processes, chapters and clauses that may look like the provisions in NAFTA's chapter 11.

Under that chapter, foreign investors are allowed to go before international tribunals and challenge the expropriation, which may reduce their profits and result in a court action. If investors can prove that they are losing money because of a new act, or a new way of doing things by the government of the host country, they can get compensation by going before the courts. The important thing here is that the amount of the suit is not limited to the value of the investment, but includes all possible future profits. In other words, these investors can literally ruin a government, and that is totally abusive.

This chapter has been condemned time and again by many countries, by various organizations, and by the Bloc Québécois. Still, Ottawa continues to sign bilateral agreements that are patterned on this infamous chapter 11 in NAFTA. The government is on the offensive again and is negotiating numerous such agreements. We believe that the Conservative government is headed in the wrong direction and should instead take better care of the public good and of human rights.

A few years ago, the National Roundtables on Corporate Social Responsibility and the Canadian Extractive Industry in Developing Countries took place. Many Canadian mining companies are responsible and respectful, but quite a few, many of which I could name, are not. While negotiations for the Canada-Colombia free trade agreement were underway, it was clear that plenty of Canadian mining companies could not have cared less about aboriginal rights, environmental rights or human rights. They set up operations in various countries, take advantage of conditions there, such as military juntas and corrupt governments, and exploit those countries for profit.

We also have to consider human rights in Peru. Peru is one of Canada's smaller trading partners, and the mining sector is the primary trade driver. We know that Peru has a pretty poor track record when it comes to protecting workers in that industry.

Earlier, I mentioned the National Roundtables on Corporate Social Responsibility and the Canadian Extractive Industry in Developing Countries.

The national roundtables reported on what was going on. We all know the Canadian mining companies. We know their names. We know that a book has been written about their activities. They did everything in their power to get the book off the market; they even sued the authors in the hope that their activities would not be made known to the general public.

Canadian mining companies are the biggest foreign investors. Canada does not have any rules about what responsible companies should do, so they do as they please. We know that. We want to know what will happen if we have a bilateral agreement that does not impose any restrictions whatsoever on mining companies, an agreement that allows them to do whatever they like in countries like Peru, which do not have the means or even the ability to set rules and standards. Given the context, we cannot accept a country-to-country agreement with no guarantees.

One of the main reasons Canadian investors are attracted to Peru is the country's natural resources, particularly its mining resources. Canadian investment in Peru's mining sector is $5 billion, give or take. More than 80 Canadian mining companies are doing mining exploration in Peru. Canada leads investment in mining exploration and exploitation in Peru.

It was asked earlier why Canada is concluding a free trade agreement with Peru. It is very clear. It is to protect Canadian mining companies. It is not simply to do the right thing or for philanthropic reasons. It is to cover its own behind, to protect its own interests. We have nothing against that. However, the framework is too general. The free trade agreement with Peru gives greater protection to Canadian companies that invest in the mining sector. However, our fear is that the investment protection measures provide disproportionate protection to investors at the expense of local populations and the environment.

How many times have we watched as Canadian mining companies have displaced local populations, preventing them from reuniting, and polluted rivers? In Colombia in particular, rivers have run pink.

We know that Peru can protect itself, but it is still considered a developing country. It does not have the ability at this time. Also, not protecting workers' rights is standard practice in certain countries. The workers are small fry. They are considered worthless. Child labour often exists in these kinds of countries.

The Bloc Québécois would like to see mandatory standards and accountability measures imposed on the activities of mining companies working abroad. We would have liked to see the formation of a committee to advise the federal government, just as the national roundtables advisory group recommended. The minister at the time, the current international trade minister, practically refused and stonewalled.

It was recommended that a multiparty committee be formed, made up of representatives from the mining industry, to advise the federal government. I say “advise” because this government continues to do whatever it likes, no matter what anyone says, no matter what Canadians say. It stubbornly pursues its agenda without thinking about the fact that some people might be able to suggest a more acceptable approach. These people were calling for mandatory standards.

Mr. Speaker, how much time do I have left?

[The Deputy Speaker, Andrew Scheer]

The member for Terrebonne—Blainville will have four minutes to finish her speech when the House resumes consideration of this bill.

The House resumed from June 1 consideration of the motion 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 third time and passed, and of the motion that this question be now put.

Canada-Peru Free Trade Agreement Implementation Act

[Libby Davies, NDP, Vancouver East, BC]

Madam Speaker, I am pleased to rise in the House today to speak to Bill C-24, which is the free trade agreement between Canada and the Republic of Peru.

First of all, I want to thank all of my NDP colleagues who have spoken so forcefully in the House over the last few days on this bill. I think the concerns we have raised in the House about this agreement very much reflect what we have heard right across the country.

I have to say that often when we debate legislation in this House, the various bills before us, sometimes there is a sense that not many people are watching what is going on, that things just go through and nobody is paying attention. On this particular issue of the trade agreement between Canada and Peru, as well as the one that is to come back to the House which is the Canada-Colombia trade agreement, there is a huge constituency out there watching what happens to this bill.

There are people who are organized both in the labour movement and in civil society, people who work on human rights, who work with NGOs in Peru, Latin America and elsewhere who are very concerned that this trade agreement is going to go through.

I would like to make that point first of all. I am very proud of the fact that the NDP caucus has stood so strongly against this bill because we understand that this trade bill, like so many other trade bills that we have seen over the years, of the so-called free trade agreements, are agreements that basically put the vested interests of multinational corporations ahead of public interest, ahead of the interests of labour rights, and ahead of the interests of strong environmental standards.

Even though we are now at the final stage, we are happy that our colleagues in the Bloc are also standing together with us to try to stop this bill. We think it is very important that we do due diligence, that we expose the flaws of this bill, and that we alert more Canadians to the fact that our government conducts these kinds of negotiations basically in secret, behind closed doors, and comes out with these free trade agreements with various other nation states that really, in the bigger picture, are not in the public interest.

I find it ironic that on the one hand we often find that these trade agreements are based on the premise that these multinational corporations want governments to have as little to do as possible with regulating and overseeing what should be done in terms of trade or labour standards or the environment or social standards, and that the underpinning of this agreement, and so many like them, whether it is the North America free trade agreement, the agreement that we had in the House a few years ago dealing with the FTA that was the subject of many demonstrations in Quebec City, is to basically transfer power from democratically elected governments to corporations.

When we see things like chapter 11, which is contained in NAFTA, being mirrored in this agreement, and of course will be included in the Canada-Colombia trade agreement, that confers nation state rights to multinational corporations, we are looking at a fundamental violation of the democratic principles of a democratically elected government.

I think that is why so many people take issue with these trade agreements. I find it ironic that while on the one hand there is so much pressure from these private interests globally, as well as here within our own country, to adopt these agreements, on the other hand we see huge corporations, like General Motors just yesterday expecting to have massive bailouts of over $10 billion Canadian. We see the Canadian government coming forward and saying “Oh, yes, of course, no question that is going to happen”.

It seems to me that there is a huge contradiction here, that on the one hand we have had this globalized regime that has been a race to the bottom, where we have seen these trade agreements undermine very basic human rights of workers and of people generally, and on the other hand those corporations want a hands-off kind of approach from government.

However, when they are in trouble, they are the first in the line-up to say that they want the government to be there with these massive line-ups. That kind of point is not lost on us.

As one of my colleagues said, it is the old adage that the former leader of the NDP, David Lewis, pointed out of the corporate welfare bums. Those kinds of contradictions exist and we are very mindful of that when we debate these trade agreements.

It is important to us in the NDP to advocate for fair trade agreements and trade agreements that do not put labour standards and environmental standards in some kind of side agreement. It used to be that they were not even mentioned at all. I can remember attending many demonstrations and forums where a huge amount of organizing was done by the Canadian Labour Congress, federations of labour across the country and by NGOs to bring forward this issue of the need to ensure that trade agreements place on par the question of labour rights, environmental rights and social rights.

Historically, those rights were not even part of the agenda. Now we are beginning to see, particularly in this one with Peru, that there are side agreements. However, when we examine this agreement that is before us, we believe that to have a side agreement is completely inadequate. There should be strong labour standards and environmental standards contained within the agreement.

I think this really speaks to the heart of the matter. We certainly support and understand that trade needs to take place between nations but the rules by which that happens and what it is that we consider to be the priorities have been completely negated and missed in the agreement that is before us.

I would also point out that the actual bill before us is enabling legislation. If we had the ability to amend the agreement, if we could send it to committee and if we could deconstruct it and make the amendments that are needed, maybe we would be looking at a different situation.

Unfortunately, with the bill that we are now debating, Bill C-24, because it is enabling legislation, it is basically a take it or leave it proposition. Therefore, we have no recourse but to say that this agreement, as it was negotiated by the Canadian government, should not be approved by Parliament.

We are glad that it has come forward and that we actually have the opportunity to vote on the agreement but, in our opinion, the agreement is very flawed. It is basically a copycat agreement of NAFTA. We feel that this mirrors the outdated George Bush style approach to trade. As the situation financially changes, as we see the global crisis in capitalism, such as the situation with General Motors, then, surely to God, what we are doing with these trade agreements should also be changing. We should be recognizing that these agreements, as they have been negotiated in the past, are not even serving the corporate interests any more. Even those corporate interests are now in trouble, but they are certainly not serving the interest of average people.

When it comes to the situation in Peru, a lot of evidence shows how workers have been disaffected and how they have minimal rights. Therefore, we are insistent that this trade agreement should put at the top of the agenda the inclusion of those labour rights. We care about workers, whether it is here in Canada, Peru or in any other country, but to have this race to the bottom where workers pay the price and Canadians lose their jobs is a situation that we find intolerable.

We are against this bill. We believe there is very strong public support to defeat this agreement, to go back to the table and to renegotiate something that is based on fair labour standards, on protection for the environment and on protection for social conditions.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Madam Speaker, I would like to congratulate the hon. member on her excellent speech. The Bloc Québécois has long been concerned with the issue of the social and environmental responsibility of Canadian companies abroad, and most particularly Canadian mining companies.

Canada and some mining companies maintain that mining operations in the southern hemisphere provide a means of fighting poverty. We often hear the argument that mining is a benefit to populations in the southern hemisphere. However, we believe that quite the opposite is true. Indeed, under chapter 11 of NAFTA, mining companies can exert pressure on the social, economic, and cultural policies of the governments of these countries.

Can my colleague explain to the House how this agreement will be detrimental to the progress of these developing populations?

[Libby Davies, NDP, Vancouver East, BC]

Madam Speaker, my colleague from the Bloc is entirely right. There is a very negative history when it comes to Canadian mining companies, whether it is in Peru, Colombia or in other countries. In fact, there is a very strong movement within our own country to hold these companies to account for operating in a way that undermines local conditions and violates workers' rights.

The illusion that those companies are somehow there to help that developing country is a fallacy that we now understand, which is another indication of why this agreement is so flawed. This agreement does nothing to address the harmful practices of those Canadian corporations. They are exploiting labour and the environment and we want it stopped. Unfortunately, it will not be stopped by this trade agreement. It will only be made worse.

[Paul Szabo, Liberal, Mississauga South, ON]

Madam Speaker, I would like to follow up on the answer the member just gave.

The bill does nothing to address the labour difficulties in labour law in Peru, so let us stop any effort to improve our competitive trading position in Peru, which is in a trade deficit situation, so we can demonstrate our concern about labour practices.

At the same time, however, since the United States and a number of other countries have already signed these agreements with Peru, it means that Canadian businesses will not be competitive and we will lose that business and lose jobs in Canada.

The question is quite simple. Is it our role here to balance the needs to create jobs or retain jobs in Canada or to demonstrate that we are concerned about labour laws and practices in Peru?

[Libby Davies, NDP, Vancouver East, BC]

Madam Speaker, as I pointed out before, the bill before us today does not allow us to amend the agreement. We either support it or we do not. We think that the agreement is fundamentally flawed.

Our position in the NDP is that we defend and advocate for good quality jobs here in Canada. Heck, we do that day after day in the House, which is more than I can say the Liberals have done, but we do not do that at the expense of labour rights in other countries. That is why these trade deals are so important in terms of examining what is really going on. For example, in the U.S.-Peru deal, the environment and labour sections are not side agreements but are part of the agreement. Why do we not have that in Canada? Why have we relegated them to side agreements where the compliance mechanisms are very minimal?

This is not an issue of pitting one against the other. This is saying that if we have trade agreements, we need to ensure they protect Canadian interests but, at the same time, that they do not violate the rights of workers in other countries. What kind of position is that? It is quite shocking that the Liberals are going along with this but they do have a history of promoting and advocating these kinds of agreements. We are not prepared to do that. We are prepared to say that we want fair trade agreements that respect labour rights both in Canada and in Peru.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Madam Speaker, it is an honour for me to speak to this bill. As I have already indicated, the Bloc Québécois does not support this free trade agreement, basically because it does not meet a number of criteria and objectives that are necessary when concluding trade agreements that will create fairer, more equitable trade, rather than trade that fosters inequalities.

We believe that all new free trade agreements must contain clauses requiring that minimum standards concerning human rights, labour rights and respect for the environment be met. The free trade agreement with Peru, for example, would open many doors to Canadian investments in mining in Peru, but it does not include adequate provisions to protect workers and the environment.

There is no doubt that Canada is a leader in the mining sector. The federal government uses tax credits and financial and logistical aid to support companies operating abroad. The current federal government promotes Canadian companies' activities, but does not seem too concerned about whether any particular company complies with minimum human rights and environmental standards. The federal government, with support from the Liberals, of course, refused to adopt mandatory social responsibility standards for Canadian mining companies operating abroad.

It is ironic, if not downright pathetic, to see the Liberals oppose the adoption of mandatory standards even though they are in opposition. People say that when the Liberals are in opposition, they have a New Democratic agenda, but when they are in power, they have a Conservative agenda.

On the one hand, they support this agreement, but on the other, they introduced two legislative measures this session: Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, by the member for Scarborough—Guildwood; and Motion M-283 on the social responsibility of the Canadian extractive industry in developing countries, by the member for Pierrefonds—Dollard. Despite supporting the agreements with Colombia and Peru, they have introduced motions to support and, as they put it, encourage companies to respect the environment and labour rights abroad. They introduce bills like that, then they turn around and vote in favour of agreements between Canada and Colombia or Canada and Peru. That is a major contradiction. I would like to expand on that.

Take Bill C-300, which the Liberals introduced in the House. The purpose of the bill was to ensure that Canadian mining companies behaved responsibly and complied with international human rights and environmental standards. The Liberals introduced that bill, but now they are voting for the Canada-Peru agreement and the Canada-Colombia agreement. Unbelievable. That is a basic contradiction. That is what I call political hypocrisy. It is unthinkable that a party could take such positions.

For some years now, a number of Canadian mining companies have been directly or indirectly associated with forced population displacements—it happened in Colombia—significant environmental damage, support to repressive regimes, serious human rights violations and sometimes even assassinations, as has occurred with many union members working in Colombia, for example. That is why Bill C-300 was introduced and that is why the Bloc will support the Liberals' bill.

That is why the Bloc Québécois has always defended the need to impose standards of social responsibility on companies operating abroad. But the federal government has always defended the principle of laissez-faire, preferring a voluntary approach.

I would like to point out that the Liberals have not taken a consistent position in this House. It is disgraceful for the Liberals to be voting in favour of this agreement. I would like the Liberal members to explain their logic because I have a great deal of difficulty understanding it.

They support the Conservatives and refuse to include mandatory standards in the agreement with Peru when there is clearly a need to adopt mandatory standards for the social responsibilities of Canadian mining companies. Now they are presenting these two legislative measures. It is a contradiction.

What can we say about the Liberals in this debate? I hope they will go and hide. Fortunately, stupidity and ridicule are not deadly; otherwise there would not be many Liberals left in this House. I would say they are being devious in this matter. I have been listening to them since yesterday and I am amazed.

As I was saying, rather than imposing mandatory standards, the government continues, on the contrary, to believe in the myth that Canadian companies act responsibly. It naively continues to defend the idea that a voluntary commitment is enough to guarantee that the activities of Canadian companies abroad will be conducted in a responsible manner.

It is important to remind the Conservative and Liberal members that the radical reforms imposed by the government of Alberto Fujimori between 1990 and 2000 reduced the size of the state and undermined its capacity to intervene effectively and to impose standards over its entire territory. We must not forget that.

Since then, yes there have been reinvestments, and Peru is currently in a phase of good economic growth. We must, however, consider Peru a developing country.

The Canadian government is responsible for ensuring that its legislation does not run counter to the needs of the populations concerned. Development must be sustainable, fair and equitable. It must be harmonious and respect local populations.

It is not enough just to say that our legislation creates jobs or stimulates local economies. This is why the Bloc Québécois has always favoured the adoption of mandatory standards and accountability measures with respect to the activities of mining companies in other countries.

This bill does not even reflect the recommendations by committees whose representatives had been to the field. The industry has studied the matter. By turning its back on the numerous recommendations by industry and civil society contained in the report by the advisory group to the National Roundtables on Corporate Social Responsibility, in which all parliamentarians took part and which dealt with the Canadian extractive industry in developing countries, the Canadian government has made itself complicit in the human rights abuses and environmental damages caused by the actions of certain offending companies. I cannot accept that.

This is why the Bloc Québécois is voting against these agreements. A trade system that results in the exploitation of developing countries is not viable.

Contrary to what the government may say, increasing exports through a free trade agreement between Canada and Peru will not automatically resolve the economic inequalities, social problems and poverty related to that country's development.

Including in the agreement a clause protecting investments, patterned on NAFTA's chapter 11, will allow businesses to sue the government. This clause will, I am sure, limit the Peruvian state's capacity to ensure equitable social and economic development for its population.

In this context, the free trade agreement with Peru contains some basic elements that prevent us from supporting this bill.