Canada-Jordan Free Trade Act

An Act to implement the Free Trade Agreement between Canada and the Hashemite Kingdom of Jordan, the Agreement on the Environment between Canada and the Hashemite Kingdom of Jordan and the Agreement on Labour Cooperation between Canada and the Hashemite Kingdom of Jordan

This bill was last introduced in the 40th Parliament, 2nd Session, which ended in December 2009.

Sponsor

Stockwell Day  Conservative

Status

Second reading (House), as of Nov. 19, 2009
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment implements the Free Trade Agreement and the related agreements on the environment and labour cooperation entered into between Canada and the Hashemite Kingdom of Jordan and signed at Amman on June 28, 2009.
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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:30 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, I would like to ask my colleague a question about the human rights problems in Jordan that he alluded to. I would like him to tell us how serious the human rights problems in Jordan are and to compare the situation there with the situation in Colombia, which we in the Bloc Québécois consider intolerable and unacceptable.

We are faced with two different free trade agreements. Colombia has a high and even extremely high level of human rights abuses, but we know that there are also some abuses in Jordan. I would like the member to compare the two countries.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:30 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, first of all, there are not as many disappearances and murders as there are in Colombia. As we know, in Colombia, dozens of trade unionists have been killed because they wanted to help workers improve their standard of living. People disappear every day. Hundreds of people disappear, and unfortunately, this epidemic of murders and disappearances has been getting worse for a number of years.

In Jordan, there are no cases like these, or very few. In 2008, there was not a single murder carried out by agencies linked to the government, and there was not a single disappearance case.

The member for Sherbrooke knows very well, all the reports on Colombia from human rights agencies show that the situation is absolutely disgusting. This week, I shared that with a number of my Liberal colleagues. Instances of torture by the Colombian army have gone up by 80%. Hundreds and hundreds of people are tortured every year by the Colombian army, and I know that this has made a number of Liberals wonder what we are doing establishing a special trade relationship with a regime that has so much blood on its hands.

In Jordan, they are at least trying, and there are some positives. But in terms of the issues of women and torture in prisons, a lot of work remains to be done.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:35 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, the member talked about Canada being an exporting country, which we are, and the lack of an export strategy. I would like him to explain the elements of a comprehensive export strategy that he would like to see in this country.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:35 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, that was a great question because the NDP is the one advocate in this House for a very strong export strategy that is based on what works.

Australia spends half a billion dollars promoting its products. The Australian government invests in its products right around the world. Canada spends $1 million here and $1 million there. It is very obvious that what we are doing is severely disadvantaging our export industries.

It is not a question of ribbon cutting. I know Conservative politicians love to cut ribbons. It is really about having a centred export strategy that invests the kinds of amounts that our competitors are investing. The European Union invests $125 million into its wine industry, five times more than Canada spends on everything. The United States spends twice as much on just its beef industry than we spend on everything. We are nickel and diming our export industries to death. We are not providing the supports they need at all.

The government then brings in what are often very crude free trade agreements. As I said, we can download the template and sign our own free trade agreement. The government brings in trade agreements with no real negotiations, no real sense of what we are going to lose and what we are going to gain because it never even does an evaluation or an analysis. Not a single time has the Conservatives even tried to analyze what they are signing, and that is a tragedy.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:35 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

Order. It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Gatineau, Official Languages; the hon. member for Hull—Aylmer, Health; the hon. member for Malpeque, Agriculture.

Resuming debate, the hon. Parliamentary Secretary to the Minister of Public Works and Government Services and to the Minister of National Revenue.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:35 p.m.
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Lotbinière—Chutes-de-la-Chaudière Québec

Conservative

Jacques Gourde ConservativeParliamentary Secretary to the Minister of Public Works and Government Services and to the Minister of National Revenue

Mr. Speaker, I will be sharing my time with the hon. member for Kelowna—Lake Country.

I am very pleased to rise here in the House of Commons today to speak to the Canada-Jordan free trade agreement.

It is the most recent example of the Conservative government's dynamic strategy to generate more opportunities for Canadians in some of the world's largest markets.

Along with the bill to implement the free trade agreement, we also introduced a bill containing two agreements to protect labour and the environment, which clearly demonstrates our government's commitment to increasing business opportunities in a positive, responsible way.

I encourage all members of all parties in this House to support our government's efforts and pass this bill as soon as possible.

Canadian businesses are counting on us to create new opportunities in the Jordanian market, which is what we must do, without delay.

Markets like Jordan represent an important opportunity for Canadian and Quebec businesses.

Over the years our two countries have established a significant trade relationship in a number of areas: forestry, agri-food, machinery, communications technologies and clothing.

Companies and investors in both countries have been calling for closer commercial ties between our two countries for some time now. They see enormous potential and so does our government.

Today, I would like to focus on the advantages of this agreement for my province of Quebec.

Quebec has long been looking for opportunities beyond its borders, for its well-known companies like SNC-Lavalin and Bombardier and for the thousands of small and medium enterprises that export throughout the world. Quebec plays an important role in Canada's trade with the world. Jordan is no exception.

Quebec's exports to Jordan are significant. They account for 45% of Canada's total exports to Jordan, which ranks Quebec first among the Canadian provinces or territories in terms of exports to Jordan. We are in the lead; the statistics prove it.

In concrete numbers, exports from Quebec to Jordan were valued at $34.4 million in 2008, which represents an increase over the $19.5 million in 2006. There has been marked progress in four years.

The main exports were copper products, paper, wood pulp, cardboard and wood.

Jordan is a major growth market for Quebec in these key sectors.

That is why this free trade agreement will be such a crucial opportunity for Quebec exporters over the coming year.

This agreement will eliminate Jordanian tariffs on key exports and will contribute to making Quebec companies more competitive in the long term in certain essential sectors.

Take, for example, forestry products, which include paper and cardboard. They are a significant portion of Quebec's exports to Jordan for a total of $16.3 million in 2008, or roughly 60% of Canada's total forestry product exports to Jordan.

These goods are currently subject to a Jordanian tariff ranging between 10% and 30%. Under the free trade agreement, these tariff would be eliminated within five years. This is an exceptional opportunity to help our forestry industry, which was hit hard by the global economic downturn.

The machinery sector is another good example. Exports of Quebec machinery to Jordan totalled $700,000 last year, which represents approximately 9% of Canada's total machinery exports to Jordan. These exports are also subject to a Jordanian tariff of between 10% and 30%, which will also be eliminated within five years once the free trade agreement goes into effect.

Quebec's textile industry would also benefit from this agreement. Textile goods are currently subject to a tariff of between 5% and 25%, which would be eliminated within five years once the agreement is implemented.

Pharmaceuticals represent another growth sector in Quebec and an increasing share of our exports to Jordan. In fact, exports of Quebec pharmaceuticals to Jordan have increased considerably in recent years, rising by 164%, from $280,000 in 2006 to $750,000 last year. Therefore, it is not surprising that Canada's pharmaceutical companies would like to increase their access to the Jordanian market. When the free trade agreement is implemented, the present 5% tariff will be eliminated immediately.

These are just a few of the many Quebec sectors that will benefit from lower Jordanian tariffs.

We could also talk about the shipbuilding, agriculture, cosmetics, furniture and aerospace industries. All these are vital to the prosperity of Canada and Quebec. They help sustain employment and communities throughout the country. And I believe that companies in all these sectors can compete and succeed in the Jordanian market. To do so, they must have equal opportunities.

This free trade agreement would give them the access they need to compete, to get into one of the most interesting markets and to develop new market opportunities to make Canada and Quebec more prosperous. That is why I urge all members to support the bill in order to implement this free trade agreement as quickly as possible. Our businesses need our help now. I am asking all members to help us support them.

But the advantages of strengthening our relationship with Jordan go beyond economics and trade. As we know, our government is also committed to ensuring that we do not expand market opportunities at the expense of labour and environmental rights. We must focus on both of these things at the same time.

That is why Quebeckers can also be pleased that we have introduced a bill to implement two other agreements with Jordan: an agreement on labour cooperation, and an agreement on the environment. These agreements require the two countries to enforce and protect labour principles and rights, and to enforce high standards of environmental protection.

These agreements are further proof of our government's commitment to ensuring that we do not expand market opportunities at the expense of the environment and workers.

As we know, Canada has had a record year when it comes to the creation of market opportunities for our businesses and investors throughout the world. The Canada-Jordan free trade agreement is another step in our efforts to help Canadians seize these opportunities.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:45 p.m.
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Conservative

Daniel Petit Conservative Charlesbourg—Haute-Saint-Charles, QC

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

I listened carefully to his speech, particularly when he was talking about how this free trade agreement will benefit my home province, Quebec. I think he was saying that the faster this agreement is signed, the sooner people will benefit from it.

He mentioned eliminating tariffs between Jordan and Quebec on forestry products, machinery, textiles and pharmaceuticals, among other things.

Can he provide more information? Will this agreement affect aerospace companies such as Bombardier? Can he provide further details about the removal of tariffs under this agreement?

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:50 p.m.
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Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

Mr. Speaker, I would like to thank my colleague for his attention and his excellent question.

Upon implementation of the free trade agreement, the immediate elimination of tariffs on over 99% of recent Canadian exports, by value, to Jordan will directly benefit Canadian exporters. Jordan will eliminate all non-agricultural tariffs and the vast majority of agricultural tariffs. Jordan will immediately eliminate tariffs in the 10% to 30% range on many key Canadian exports, including pulse crops, frozen french fries, animal feed, various prepared foods, certain forestry products and machinery—sectors where Canadian companies lead the world.

Canada will eliminate all tariffs on Jordanian goods immediately upon entry into force of the free trade agreement, with the exception of over-quota tariffs on dairy, poultry and eggs, which are excluded from tariff reductions.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:50 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Mr. Speaker, as we have pointed out through questions and comments, my colleague who spoke earlier and I are in favour of this free trade agreement.

However, after listening to the hon. member for Lotbinière—Chutes-de-la-Chaudière speak, I am left with the impression that we should also be heartily congratulating the government for the impact this will have on the Quebec economy. In a way, he is right. Indeed, if we look at the $34 million in forest products, including pulp, paper and cardboard, this probably does represent more than the Conservative Party has done for the Quebec forestry industry in the past several years. We almost need to thank Jordan for making more of an effort than the Conservative government in this sector in Quebec.

We heard that this was part of the Conservative government's dynamic strategy and that this was going to be a significant free trade agreement; he spoke in superlatives. As we know, it represents $92 million worth of business for Canada, including about $72 million, I imagine, in Canadian exports. However, the member mentioned that this goes beyond trade and the economy.

I would like to know what specific improvements will be made in terms of workers' rights and the environment.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:50 p.m.
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Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

Mr. Speaker, I am pleased that my Bloc Québécois colleague recognizes that the Conservative government is doing an excellent job to promote Canadian exports and Quebec exports. We are very proud of that. I am also pleased that he said in this House that the government was doing everything it could so that Quebec could export excellent products, and I thank him.

With regard to labour cooperation, under this agreement, Canada and Jordan will promise to ensure that their legislation complies with the Declaration on Fundamental Principles and Rights at Work, which was adopted in 1998 by the International Labour Organization. The declaration pertains to the right of freedom of association and collective bargaining, the abolition of child labour and forced labour and—

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:55 p.m.
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Conservative

The Deputy Speaker Conservative Andrew Scheer

Order. Resuming debate. The hon. member for Kelowna—Lake Country.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 4:55 p.m.
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Conservative

Ron Cannan Conservative Kelowna—Lake Country, BC

Mr. Speaker, I would like to thank my hon. colleague for sharing his time, for his great intervention and for providing his words of wisdom, not only on behalf of members from Quebec but across the country. This is great news for all Canadians.

As a member of the Standing Committee on International Trade, it is a pleasure to rise in the House today to add my support to the Canada-Jordan free trade agreement and accompanying agreements on labour cooperation and the environment. These agreements are the latest examples of our government's strategy to open doors for Canadian businesses and investors in these challenging economic times.

In particular, the free trade agreement will benefit a number of sectors all across Canada. In the next 10 minutes, I will outline this fact to show Canadians how this agreement benefits all sectors, including the riding of Kelowna—Lake Country, which I have the privilege of representing. In 2008 British Columbia had over 10 million dollars' worth of trade with Jordan in paper, paper board, wood and machinery. Creating jobs is definitely what we are all about in these challenging economic times.

As we move forward in these sectors, we will talk about why our trade relationship with Jordan is so very critical at this time in our history. The fact is that sectors across Canada's economy need the kind of competitive access provided by this free trade agreement. The agreement immediately eliminates tariffs on the vast majority of current Canadian exports to Jordan. To be more precise, the agreement will eliminate all non-agricultural benefits and the vast majority of agricultural tariffs on our two-way trade. That is great news for farmers, who will benefit from this agreement.

The agreement eliminates tariffs on pulse crops, including lentils, peas and beans, frozen french fries, animal feed and various prepared foods. It will also expand opportunities for Canadians in other sectors, too, including forest products, industrial and electrical machinery, construction equipment and auto parts. Our manufacturers and Canadian employers in all these sectors need every competitive advantage they can get in the globalized competitive marketplace in which they are competing.

We are trying to have a level playing field and a rules-based trading agreement. We are developing new trading partners, not increasing protectionism, which we have heard other parties opposite advocating. We are increasing partnerships, not protectionism. Through tariff elimination, our free trade agreement with Jordan will open new doors for these sectors, create new opportunities for Canadians employed in them and help our businesses succeed in the global marketplace.

Permit me to take a moment to also touch on the foreign investment promotion and protection agreement, also known as FIPPA. Signed at the same time as a free trade agreement, this FIPPA will help encourage two-way investment by providing investors in both countries with the clarity and certainty they need when investing in each other's markets. There is a mechanism in place to ensure certainty, clarity and stability in that agreement and give Canadians confidence that they are going to invest in Jordan and vice versa.

Canadian investors are discovering a wealth of opportunities in the Jordanian market. Sectors such as resource extraction, nuclear energy, telecommunications, transportation and infrastructure all hold much promise for Canadian investors. Just look at the great success the Potash Corporation of Saskatchewan has found in Jordan. It is now the largest foreign investor in Jordan. There is a long list of other Canadian companies. Earlier, my hon. colleague mentioned Bombardier and SNC-Lavalin. They have made significant inroads into the Jordanian market.

That is why the free trade agreement and the FIPPA are such great accomplishments. In a broader sense, it is only the beginning. This agreement is Canada's first ever free trade agreement with an Arab country.

A couple of years ago the trade committee had a chance to go to the Middle East. This is going to open the door to expansion for trade to the Middle East and north Africa, which is a great opportunity and very important for Canadian businesses.

This free trade agreement with Jordan gives us access to a critical market in the region. We have opened a number of significant doorways into the region and set the stage for Canadian businesses to create even more commercial links throughout the Middle East and north Africa in the years ahead.

Canada also believes that deeper commercial engagement need not come at the expense of labour standards or the environment. We think trade and investment can be a positive force for communities worldwide, which is why this government is very pleased to include parallel labour and environmental agreements as part of the larger package of agreements we have signed with Jordan.

Let us start with the labour cooperation agreement. It commits both countries to respect the core labour standards set out by the International Labour Organization. These are standards that help eliminate child labour, forced labour and workplace discrimination and that respect freedom of association and the right to bargain collectively. The agreement also commits both countries to providing acceptable minimum employment standards and compensation for occupational injuries and illnesses.

I should also add that under this agreement migrant workers will enjoy the same legal protections as nationals when it comes to working conditions. Also significant is the agreement on the environment which commits both countries to pursue high levels of environmental protection in the development and improvement of policies that protect the natural environment, a concern for all of us in the House.

Domestic environmental laws must be respected and enforced. This agreement commits both countries to this goal. It also commits both countries to ensure that strong environmental assessment processes are in place as well as remedies for violating environmental laws. This is very, very important.

Through the agreement on the environment, our government is also encouraging businesses to adopt best practices of corporate social responsibility and promote public awareness and engagement. I know Canadian businesses that are doing business around the world are leaders in CSR, corporate social responsibility, and are leading by example. These measures will help ensure that increased trade and investment does not come at the expense of the environment and that business can play a positive role in the life of each country.

This is a critical time for Canada's economy. The global economic downturn has hit all nations. We must take steps to sharpen Canada's competitive edge and prepare for the recovery. The global economy is not going away. One in five Canadian jobs depends on Canada trading in the world. That is why we have the global commerce strategy, which was embarked on with the previous international trade minister, Mr. Emerson, whom I highly respect. He is working in the private sector continuing to expand business around the world.

Now my colleague from Okanagan—Coquihalla is the Minister of International Trade. He and the Prime Minister were just at APEC, a major Asia-Pacific economic conference. They were in India and are going to China next month. We continue to expand and open doors for Canadian businesses. This is what it is all about, opportunities for our businesses and investors to thrive and prosper today and beyond the current economic downturn.

Our free trade agreement with Jordan is an important part of these efforts. Through the FIPPA and the two agreements on labour and environment, Canada needs those tools to be competitive in Jordan and continue making the links in the expanding markets of the Middle East and north Africa.

In summary, Canadians can count on our government to impose protectionism and defend free and open trade on the world stage. In less than four years our government has opened doors to Canadian businesses by concluding new free trade agreements with Colombia, Peru, Jordan, Panama and the European Free Trade Association states of Iceland, Norway, Switzerland and Liechtenstein. Upon implementation, this free trade agreement with Jordan will eliminate tariffs on the vast majority of Canadian exports to Jordan, directly benefiting Canadian exports.

Key Canadian sectors that will immediately benefit include forestry, manufacturing and agriculture and agri-food. These are sectors in which Canadian companies are global leaders. I have a strong component of agriculture and horticulture in the Okanagan and we look forward in British Columbia, the Prairies and across Canada to opening new doors.

By eliminating tariffs on imports from Jordan, this also means better prices for consumers. That is what we are here for, to give our consumers the dollar value and continue to create jobs as well. It is a win-win all around. The labour cooperation agreement commits Canada and Jordan to respect and enforce internationally recognized labour principles and rights, such as the elimination of child labour, forced labour and workplace discrimination and the respect of freedom of association and the right to bargain collectively. Canada and Jordan have negotiated an agreement on the environment that commits the parties to maintain high levels of environmental protection to effectively enforce domestic environmental laws and to not relax or derogate from such laws to attract trader investment.

I ask all members of the House to support this agreement and our government's efforts to create jobs and opportunities for all Canadians, not only for today but for the years ahead.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 5:05 p.m.
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NDP

Peter Julian NDP Burnaby—New Westminster, BC

Madam Speaker, I always like listening to my colleague from Kelowna.

The question here is pretty simple. We had the disastrous miscalculation by the Conservative government around Colombia, where the push-back from the public has been phenomenal. Canadians have simply said that they do not want to have a privileged trade regime with drug lords and paramilitary thugs. The Conservatives have felt that.

In this case, Jordan is very clearly not Colombia. There are very clear weaknesses in the approach the government takes on trade issues generally, which I outlined a few minutes ago.

Since the bill has just come before the House, would the member not agree that the international trade committee has the obligation to hear from women's groups, human rights organizations, business organizations and labour organizations? Should it not hear from all of those who are interested in coming forward to the committee to talk about the possible impacts of this agreement, since the government has done no studies to evaluate what the impact of this agreement would be on its own?

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 5:05 p.m.
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Conservative

Ron Cannan Conservative Kelowna—Lake Country, BC

Madam Speaker, it is a privilege to answer my colleague from Burnaby—New Westminster. We have been serving together for the last few years on the international trade committee. I have had the chance travel with him.

Absolutely, from a committee perspective I look forward to hearing from witnesses from across the country, from all spectrums, on how the Canada-Jordan free trade agreement will benefit Canadians.

If there are some impacts from the Jordan perspective, we want to ensure that it is a free and fair trade agreement. That is what I am absolutely in favour of, not like the fact that we have spent over 33 hours in this House debating the Canada-Colombia agreement. It is clear that even from today's committee meeting the business community is losing market share. The fact is we need to move on that agreement sooner rather than later. Time is of the essence.

We have a chance to be leaders in the marketplace, to get in first and to expand. I hope that our opposition colleagues will not go down the road of protectionism but will look at free and fair trade agreements, such as the Canada-Jordan free trade agreement.

Canada-Jordan Free Trade ActGovernment Orders

November 19th, 2009 / 5:05 p.m.
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Bloc

Serge Cardin Bloc Sherbrooke, QC

Madam Speaker, this is not the first free trade agreement to be examined at the Standing Committee on International Trade and, every time, we always ask whether an impact study has been done because we presume that the government and its negotiators have to conduct impact studies. That is a fine example because we never get an answer as to whether there is one or whether one has been done. We know full well that an entrepreneur who goes to CED for financial support has to have a business plan and long term projections of the impact this will have on their company. However, the government never seems to conduct impact studies to weigh the pros and cons of everything that might come up in the years to come.

Given that the government is cutting its teeth on a free trade agreement with a very small country, with relatively limited amounts of money, I would hope that this time it did an impact study. I would like the hon. member to say a few words about that.