Bill C-2 (Historical)

Canada-Colombia Free Trade Agreement Implementation Act

An Act to implement the Free Trade Agreement between Canada and the Republic of Colombia, the Agreement on the Environment between Canada and the Republic of Colombia and the Agreement on Labour Cooperation between Canada and the Republic of Colombia

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 Colombia and signed at Lima, Peru on November 21, 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-Colombia Free Trade Agreement Implementation Act

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Madam Speaker, I was listening to the hon. member's answer about changing the channel. I was hoping to give her a little more opportunity to answer the question that was put to her about Chavez.

[Olivia Chow, NDP, Trinity—Spadina, ON]

Madam Speaker, I thought we were discussing free trade with Colombia. I thought we were talking about whether or not the dead should vote. That is what I have noticed in those reports. The dead vote. Should we tolerate that? I do not think we should.

Should we tolerate exceeding campaign financing limits? Maybe that is a practice the Conservative Party is familiar with. Maybe that is why the Conservatives support that. There is also the use of money from illegal activities, especially from drug trafficking, to finance campaigns. Is that the kind of behaviour we should condone and the kind of government we should support? Absolutely not.

If that is happening in Colombia, we should say no to that kind of behaviour. We should not reward that kind of government. We should say no to free trade with Colombia.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

My goodness, Madam Speaker, the vigorous debate that we have here today. I am very proud to be a member of Parliament during these times. I suppose we can all just get along for a little while. I hope that my speech is not going to be as contentious as what we have heard over the past little while.

I would like to bring some facts to this debate. I would like to put them out there for a decent round of questions and comments so we can talk about this issue as it goes forward not just for us but also for the wonderful people of Colombia.

I want to start by talking about my personal opinion regarding the free trade arrangements that exist currently throughout the world and what they do not just to liberalize trade but also to increase the standard of living for people involved in the economy and the illegal economy. It allows people in all regions of a nation to better the standard of living of anyone who wants to participate. I will touch on this later in my speech.

I am a rural member of Parliament and I would like many people in the rural areas of Colombia to be engaged in this process as well.

Right now we have an economy that is global, far more global in nature than we ever anticipated. The rapid development of this global economy is intense. It is certainly intense in my riding in the traditional sectors of mining, fishing and even forestry. Many people in the rural areas of the Andean region rely on these industries as well, particularly the mining industry.

We have to analyze the three pillars by which we want to engage Colombians not just in conversation but in an arrangement that would allow them to better the standard of living not just for the select few elite, but for people in the entire region. It is part of that legal economy that we need to increase.

Fifty-six per cent of the people in Colombia engage in illegal economic activities. Through no fault of their own they are engaged in a workforce that is not legitimate for the most part. For people in some of the smaller places in Colombia, it is all that they have. They find themselves in a situation where they are desperate to make a living for their communities and for their loved ones. Those people need options.

We have created some options that they can use to increase their skills which would allow them and their children to stay within the regions they love so much. Colombians love their country. This is important for the Andean region.

We already have comprehensive agreements in place with Chile and Peru. These agreements provide a substantial boost to many people living in the rural and urban communities.

Hopefully, we can wean Colombians away from the practices taking place in other countries that do not believe in the same values, such as Venezuela, as my hon. colleague talked about.

We need to give these people options. It is not that they want to be involved in the activities we hear so much about. The narco-economy in Colombia is well developed. Destruction of that type of economy is not going to happen overnight. It has to be done piecemeal. It has to be done through steady investments, through a sense of corporate responsibility. Canada can share its sense of corporate responsibility with Colombia.

We are not oblivious to all that is happening in Colombia. My hon. colleague from Trinity—Spadina ran off a list of incidents that we would not want to ever see happen in that country. How can we give the people who live there the option to get away from that? We need to engage these people.

I have heard the criticisms made by Amnesty International and others that the Bloc and the NDP have brought out. We need to engage these people. We do not disagree with them, but why take these measures and just throw them out? This is the part that we need to understand.

We are currently working on a comprehensive free trade agreement with the European Union. I bring that up only because this deal would be a boon for people in rural communities. It would allow them to improve a currently failing industry. A prime example involves those individuals who make a living from catching and harvesting shrimp.

The European free trade agreement is going to bring about a positive deal for them for the very simple reason that it gives them options. It does not matter if they are in Belgium or Colombia, it is the options that this creates.

Sure this is a benefit for us; we do not disagree. We would never walk away from something that is only a one-sided deal, but there is also something for them.

I want to refer to what has been talked about in this debate for some time and that is the comments by President Barack Obama on this. There has been some confusion as to whether the United States does or does not agree with this. I think the principles laid down by Obama are true. He said, “I commended President Uribe on the progress that has been made in human rights in Colombia and dealing with the killings of labour leaders there, and obviously we have seen a downward trajectory in the deaths of labour unions and we have seen improvements when it comes to prosecution of those who are carrying out these blatant human rights offences”.

I do not think the President of the United States is saying the place is perfect, but he is saying it is a lot better than what it used to be.

This is part of a proactive measure that helps these people get away from the type of living where they are living from hand to mouth every week. It is not just a question of making money. They are dealing with people who are incredibly dangerous. The paramilitary groups, whether or not they are disbanded, in some instances they are regrouping under some major urban crime. That is what we have to avoid. We can do that by engaging them and giving young people options.

I have a teenage son. If my teenage son were growing up in Colombia and there was no engagement with the outside world, think about what would happen. His only option would be to engage in part of that economic activity that is completely and utterly illegal. His life expectancy would be cut in half. However, he knows that living in Canada he does not have to choose that life.

We share a bit of what we are with them. That is striving for perfection. It is the same argument I have over universal health care with people. My American counterparts sometimes say that Canada has a bad system. Well, it is better than theirs. Universality is not perfect, but at least it is worth striving for.

In this case increasing the standard of living for average Colombians, whether they are rural or urban, is certainly worth striving for. I think this agreement does this.

My hon. colleague from Kings—Hants has brought forward an amendment which goes in the direction of achieving a better standard of living, the report brought here in the House for us to vet, to look at and to debate. That is what we need, a proactive measure that actually makes this a better situation not just for those who do business in Colombia but for us.

SNC Lavalin, a successful company in Montreal, is now doing business in Colombia, quite comfortably, I might add. Brookfield Asset Management created a $400 million Colombia infrastructure fund. They would not do this if it was an absolute nightmare to work in Colombia. They are not saying it is perfect; they are just saying it is better than what it used to be. I think they like this deal as well. They certainly agree with the principles of corporate social responsibility.

The UN High Commissioner for Human Rights made these comments:

The report demonstrates how the internal armed conflict continues to pose many challenges for the country, including the complete disregard for international humanitarian law by guerrilla groups [most notably FARC]. This situation is exacerbated by violence against civilians committed by illegal armed groups that emerged after the demobilization of paramilitary organizations, links between illegal armed groups and drug trafficking, and the particularly acute impact of the internal armed conflict on indigenous peoples and Afro-Colombian communities.

There is no doubt it is there, but the problem now is that we need to make this better. That is what this agreement does.

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

Madam Speaker, I have two questions. When I listen to some of the criticisms from the opposition parties, at least from the Bloc and the NDP, on this trade agreement, they continually say that the paramilitaries are linked to the government.

There is never any acceptance that 30,000 paramilitaries have been disbanded. They never say that FARC, the communist-led insurgency in the jungle, is fed by the narco-economy and continues to feed the narco-economy. Somehow that is just left out of the equation. Could the hon. member speculate as to why?

When we look at this overall agreement and what happens to immediate jobs in Canada and in Colombia, right now our businesses are operating anywhere from a 1% to a 15% deficit. That is what the tariff is. Now they will be able to compete on equal footing with anyone else on the planet. Other countries in the world have already signed free trade agreements with Colombia, including those in the European Union and other modern countries in the world. Why would we not move in this direction?

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Madam Speaker, I mentioned something in my speech was about Peru and Chile, and I think my colleague would concur with me. We have established comprehensive trade agreements there and in other nations around the world. We need to point to that to see it is not just an issue of trade deficits and improving the economy, but also one of social responsibility.

One thing I really like about this are the side accords about labour. An issue we have in our country is workers' compensation. Workers' compensation principles are now improving around the world, thanks in part because of these trade agreements. He talked about the crime aspect. There is no doubt about that. In rural areas, when they disband these military groups, they reform, regroup and end up in major urban centres.

Once again, that exacerbates a situation where people just do not have options. Well over half of the people there are not involved in the legal economy. It is not because they do not want to be, it is because they do not have that choice. This is not entirely perfect, but it is certainly a positive step ahead for these people to get ahead and join in with the rest of the world to improve the standard of living.

[Bruce Hyer, NDP, Thunder Bay—Superior North, ON]

Madam Speaker, I cannot believe what I am hearing from the Conservatives and Liberals today. They readily admit that Colombia is a disaster in human rights, with a drug trade and lax environmental regulations. Their logic seems to be that the more problems a country has, the better it is to conclude a trade deal with it.

However, Colombia is the second most biodiverse country in the world. Ten percent of the world's species are in the forests there. There are over 1,800 birds, over 600 amphibians and over 400 mammals. The list goes on and yet deforestation has displaced four million people, according to the UN, and 50,000 hectares of deforestation have displaced 300,000 people just in 2007.

How can the Liberals go along with the Conservatives on this kind of faulty logic?

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Madam Speaker, I want to address the issue. He talks about the disaster there and gives the impression that it is becoming increasingly worse as they digress. Numbers point out that the rate of unionist homicides in Colombia between 1995 and 2008 has decreased dramatically. Basically, per 100,000 inhabitants, it was at 25 to 30 above that at the peak of 1996 and down to less than half that in 2008.

Again, it is not a perfect situation for a trade partner to be in, but it certainly has improved over the past while. Canadians have gone a long way in providing the world with decent policies surrounding biodiversity and we continue to do so. Why would we not want to engage Colombia in a conversation to do much of the same when it, too, has the renewable resources that it desires so much and that we can contribute to help save the very asset about which he talked?

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Madam Speaker, I am pleased to rise in the House today to talk about the Canada-Colombia free trade agreement, an agreement that is part of our aggressive free trade agenda at a time when Canadians need it most.

Since 2006, our government has continued to expand Canada's trade network around the world. We have begun discussions for trade agreements with the European Union and India. We have completed free trade agreements with the European Trade Association, Peru, Jordan and Panama. We have completed our free trade agreement with Colombia as part of our strategy to open doors for Canadians at a time when it is most welcome. The time to implement this agreement is now.

I would like to take this opportunity today to look at our relationship with Colombia through two different lenses, the lens of trade in services and an investment lens.

Let us start with the benefits of this trade agreement to Canadian service providers. From financial services, legal services, engineering and architecture to high technology, the opportunities are there. Canadian service providers already have a substantial presence in the Colombian market. Our service exports to Colombia are in the area of about $80 million to $85 million each year. Driving these numbers are Canadian financial, mining, engineering, petroleum extraction sectors and tourism.

Services sectors like these in Canada stand to benefit greatly from the new free trade agreement. They will be able to enjoy a secure, predictable, transparent and rules-based trading environment. It also gives Canadian service providers an added measure of confidence. They can now plan for the future, knowing that under this agreement, they will be treated the same as Colombian service providers.

Moreover, our two countries have agreed to begin discussions on mutual recognition agreements, starting with engineering, that allow for our standards and qualifications to be recognized in each other's country. This will save service providers in both nations time and money and let them get to work more quickly in each other's market.

For these reasons, our free trade agreement with Colombia provides a great opportunity to take our current trade in services to a new level in the years ahead. Our services sector is an engine of our economy. In total, it is responsible for 71% of our gross domestic product. Development of new market opportunities is our priority. Helping the Colombian government on the trade and investment front is a way to do this. For Canadians during this period of global economic uncertainty, it is important to keep markets open.

The free trade agreement with Colombia will help increase the competitiveness of Canadian exporters at a time when they need it most. The free trade agreement with Colombia will engage rather than isolate Colombia to ensure a brighter future.

These are just some of the factors driving Canadian investment into the Colombian market. Free trade accounts for three in four Canadian jobs. That is why I am so pleased to see that our free trade agreement with Colombia opens up many new doors for Canada's services sector.

We already know that this agreement gives Canadian services providers greater access to the Colombian marketplace than ever before. It is now time to ensure that Canadian service providers can take advantage of the opportunities and remain competitive globally.

I would like to look more closely at what the Canada-Colombia free trade agreement means for Canadian investors. Two-way investment is an absolutely critical driving force in today's economy. Investment links our business to global value chains and to the technology and expertise they need to forge a wide range of commercial links with our partners around the world. That is certainly the case for Canada.

At the end of 2008, Canada was a net provider of foreign direct investment, or FDI, with the overall stock of Canadian FDI valued at approximately $637 billion. The inward stock is impressive as well, with foreign-held direct investment in Canada totalling $509 billion that same year.

Investment with our partners, inward and outward, is enormously important. That is certainly the case with Colombia. The Colombian workforce is highly skilled, qualified and trained, giving global investors, including Canada, more and more confidence in the Canadian marketplace as well as the Colombian marketplace. Thanks to the dedication of the current Colombian government, we see steady improvements in the security and stability of Colombia, to the point where the stock of Canadian investment in Colombia reached over $1 billion in 2008.

We expect this number to continue to grow over the next two years, thanks in great part to Colombia's burgeoning oil and gas and mining sectors and to Colombia's great need for infrastructure.

These are just a few areas where Canada has significant interest and can offer a lot to our Colombian partners going forward. Therefore, it should come as no surprise that our investment relationship with Colombia figured prominently in our free trade negotiations.

For Canadian and Colombian investors alike, the free trade agreement offers an unprecedented level of stability, predictability and protection, one that will help us take our investment relationship to a new level in the years ahead. The agreement establishes a stable legal framework that gives Canadian investors the predictability they need and deserve.

At the same time, strong obligations will ensure the free transfer of investment capital and protect against expropriation. It also gives investors access to transparent, binding and impartial dispute settlement processes. In short, under the free trade agreement, Canadian investors will be treated, with very few exceptions, just as well as Colombian investors.

For Colombian investment in Canada, we have taken steps to ensure that we maintain full policy flexibility in key areas, like health and public education.

From the outset of the global economic downturn, our Prime Minister has been very clear that trade and investment hold the key to helping the world economy recover. That is why our government is continuing to move forward on an aggressive free trade agreement agenda that puts a strong focus on creating new partnerships with key nations around the world.

To create new commercial opportunities around the world, we need to be doing everything we can to open doors for Canadians and to work with our partners to help Canadians succeed. That includes service providers and investors. That is why I ask for all members to show their support for the Canada-Colombia free trade agreement not only on behalf of Colombians but Canadian investors and the Canadian economy.

One thing it is important for me to point out as a rural member of Parliament coming from eastern Alberta is that it is critically important for our beef livestock and pork sectors to have opportunities open up. The Minister of Agriculture and Agri-Food has done a tremendous job going around the world opening up new markets for our farmers and investors.

It is, however, difficult when we get these free trade agreements, which our own farmers and constituents say are tremendously important, people like Jurgen Preugschas from my riding, who is the president of the Canadian Pork Council. He came to the agriculture committee and said that they absolutely need this free trade agreement to be ratified and moved forward in the House of Commons. He explicitly looked at the NDP members of Parliament and said that this had to happen. It is free trade agreements like this that will continue to move not only our global economy to recovery but the Canadian agriculture sector to the recovery it needs and to expand and open up markets.

Opposition members often ask how much trade we really do with Colombia. When it comes to pork, it is essential to know the industry and the market and to understand that while these niche markets may not always be huge, they provide a very important market for us to send products that other countries do not necessarily want. They provide added value to our carcasses and farmers and the $1 or $2 extra that it adds on pork means a lot of money in rural Canada.

I know the NDP is predominantly a party of downtown Toronto and downtown Sudbury, but at the end of the day, we need to represent rural Canadians as well and we need to come to this place and get together.

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

Downtown Toronto? Working class Canadians vote for us.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Obviously, I hit a nerve. I know the member for Burnaby—New Westminster is a strong advocate of human rights, even though he does not appear to hold the same values to Hugo Chavez as he does to Colombians.

I implore members to stop filibustering and move this forward so we can all work in the best interests of our constituents and take into account rural Canadians. These kinds of free trade agreements are tremendously important to them.

I ask all members of the House to support the Canada-Colombia free trade agreement.

[John Rafferty, NDP, Thunder Bay—Rainy River, ON]

Madam Speaker, I have a very quick question.

The member talks about us filibustering, but the biggest filibuster of all was proroguing Parliament, which meant this bill had to start at the beginning. He talks about filibustering. The Conservatives do not even want this bill to go forward. I am not even sure what they are trying to do today.

Would the member like to comment on this?

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Madam Speaker, I do not intend to continue to fight past battles with these members. I came to this place hoping to move forward on important projects, important bills like the Canada free trade agreement. I am happy that this member has not supported the long-gun registry, and I look forward to seeing him continue to support the abolishment of the long-gun registry, just as Liberal members across the way have.

I look forward to our continuing to work together in the best interests of rural Canadians.

[Ed Fast, Conservative, Abbotsford, BC]

Madam Speaker, I am so pleased that my Conservative colleague from Alberta talked a bit about the agricultural prospects for Canada and Colombia that are contained within this free trade agreement. I would encourage him to expand a bit more about how important it is that Canada expand its free trade relationships around the world.

As he knows, we have embarked upon a free trade negotiation process with the European Union. We have already signed an agreement with the European Free Trade Association. We are negotiating with many other countries around the world to ensure that we have a diversity of trading relationships so we are not as dependent on the United States as we have been in the past.

I would encourage him to expand a bit on that and to also expand on the impact this agreement and other trade agreements would have on the agricultural industry, especially in his province of Alberta.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Madam Speaker, being a member of the agriculture committee, I have seen the member constantly strive to fight for agriculture in Canada, particularly the agriculture in his area. He has always been a strong proponent.

He is absolutely right. We need to continue to try to move forward on free trade agreements, bilateral free trade agreements. The European Union is tremendously important. Once again, I will go back to pork. This is an industry that has been devastated over the last several years. Romania's being included in the European Union has taken away another niche market for our pork industry that is tremendously important to value-adding for our Canadian farmers.

It is the same as Colombia. Not only would this free trade agreement with Colombia give us a niche market that is important to our farmers but it would also raise human rights standards for Colombian farmers. It would also allow them to interact on a more global basis with us in an exchange of ideas and information that would better their farming techniques.

It is important that we do not become an isolationist country when it comes to free trade and that we continue to expand that around the world.

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

Madam Speaker, the member should be aware that there is an election process going on in Colombia right now and that just recently a group of international election observers returned and detailed a report of some very bad things going on in Colombia; for example, vote buying and selling, misuse of identity documents, illegal possession of identity documents, including stolen documents, coercion and intimidation of voters, fraud committed by polling officers, and on and on.

The question is: When does this member think things are going to improve in Colombia? If we sign a free trade deal with Colombia, are things going to just turn around and Colombia is going to become a model partner in a free trade agreement? That is absolute nonsense, and he should know that.