Canada-Panama Free Trade Act

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

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

Sponsor

Peter Van Loan  Conservative

Status

Third reading (House), as of Feb. 7, 2011
(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 Republic of Panama and done at Ottawa on May 13 and 14, 2010.
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 agreements 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.
Part 3 of the enactment contains coordinating amendments and the coming into force provision.

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.

Votes

Feb. 7, 2011 Passed That Bill C-46, An Act to implement the Free Trade Agreement between Canada and the Republic of Panama, the Agreement on the Environment between Canada and the Republic of Panama and the Agreement on Labour Cooperation between Canada and the Republic of Panama, be concurred in at report stage.
Feb. 7, 2011 Failed That Bill C-46 be amended by deleting Clause 63.
Feb. 7, 2011 Failed That Bill C-46 be amended by deleting Clause 12.
Feb. 7, 2011 Failed That Bill C-46 be amended by deleting Clause 10.
Feb. 7, 2011 Failed That Bill C-46 be amended by deleting Clause 7.
Oct. 26, 2010 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
Oct. 26, 2010 Passed That this question be now put.
Oct. 20, 2010 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “Bill C-46, An Act to implement the Free Trade Agreement between Canada and the Republic of Panama, the Agreement on the Environment between Canada and the Republic of Panama and the Agreement on Labour Cooperation between Canada and the Republic of Panama, be not now read a second time but that it be read a second time this day six months hence.”.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 3:55 p.m.
See context

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of International Trade

Mr. Speaker, I think everyone in this place would recognize that the member's intervention was in stark contrast to much of what we have heard from the NDP and from the Bloc Québécois. I applaud him for the fact that he is willing to discuss this in a reasonable and intelligent manner. He contributes in a positive way at committee as well.

First, we have to get this to committee. We have to take a much more thorough and indepth look at it. I think we are all satisfied to do that.

However, what I do not understand is why the NDP members would put a hoist motion onto this trade agreement. They do not support any trade agreement, so it is no surprise they do not support this one. However, a hoist motion effectively kills the bill. It does not just set it aside for a period of time. As anti-trade as that group is, I do not understand why those members would want to kill the bill.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 3:55 p.m.
See context

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, I agree and concur with my colleague. Delaying this for six months does not make any sense. Nor is it of any benefit to Canadians and Canadian businesses. As I mentioned, there is a major expansion taking place in the Panama Canal. We want to be good partners and ensure we are part of that development.

On the six month delay, I am not sure what would be accomplished. If at the end of the day I believed that the NDP would be supportive of this after six months, then maybe I could see it as a rationale, but in reality we all know that is not the case.

I ask my colleagues to move this to where it needs to be, and that is at the committee stage, so we can hear from stakeholders. Right now we are depriving Canadians, Canadian businesses and stakeholders from all communities to come before committee. As parliamentarians, we should give them the opportunity to speak on their issues and concerns.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4 p.m.
See context

NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I listened carefully to the member's comments, giving us reason after reason why he thought there was a good economic case to be made for this trade agreement. I do not happen to agree with him, but I want to take my question in a bit of a different direction.

I am aware of the member's constituency. I have spent some time there and know for a fact that when the Canada-Colombia free trade agreement was before the House, there was a public meeting in his riding. It was co-hosted by the member for Burnaby—New Westminster and the NDP candidate in that riding, Andrew Cash. It was a packed hall of his constituents who were opposed to the Canada-Colombia free trade agreement.

One of the reasons they were opposed to it was the free trade agreements were not fair trade agreements. They do not respect environmental protection. They do not respect human rights. They do not respect social justice. In fact, even on economic grounds, as many of the speakers on this side of the House have made clear, they are not economically viable.

When the member says he wants to have consultations in committee, is he willing to have a public meeting in his constituency so he can consult his constituents who seem to share our concern that we should engage in fair trade rather than free trade?

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4 p.m.
See context

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, I want to assure my hon. colleague that I consult my constituents on a regular basis. In fact, I did that over the summer and spent a great deal of time with my constituents on a whole host of different issues. I also attended different meetings and events with them.

I am proud of my record over the years. I like to take a bit of credit. I have been elected there six times over. I believe I probably know best what is in the best interests of the community of Davenport.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4 p.m.
See context

NDP

Dennis Bevington NDP Western Arctic, NT

Mr. Speaker, I was very interested in my colleague's point about the need for opening up trade negotiations with larger countries, such as Brazil.

I am interested in that as well because Brazil and many of the countries in South America are forming a common market through Mercosur and are working toward the goals of regional self-sufficiency, national ownership of resources and those types of things.

How would the hon. member see the Conservative government negotiating, with its principles of open markets in every respect, with countries that actually want to follow an industrial strategy, which will leave them in a better and stronger position, as those countries such as Brazil are doing today?

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4 p.m.
See context

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, I have raised in our committee the importance of that very large giant in the Americas, Brazil. We have done a report on Brazil, but we also want to ensure the government pursues that relationship with Brazil to see if we can get a free trade agreement.

As the member had mentioned, it is complicated regarding the issue of Mercosur. Brazil was one of the founding and largest contributors to that common market. It is moving forward, along with Argentina, Panama and Uruguay. Now I believe Venezuela is also going to join Mercosur.

There is already a partnership and it is probably more complicated to enter, just like there are complications in Canada entering with the European Union, because we are entering it with a larger market. However, it is one that is in Canada's best interests. I would encourage the government to do everything possible with an agreement with Brazil, to see what obstacles are in front of us and if we can all work together to achieve that end goal. Brazil is an emerging market. I very much appreciate the fact that the member had also raised this issue in the House.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:05 p.m.
See context

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, this issue really is not about trade because Canada already trades with Panama. We know that because there is about $140 million of trade going on between the countries. This issue is about the concept of free trade, which is about the removal of tariffs so goods can pass back and forth between the countries without any tariffs.

My question is about comparing the labour standards between the two countries. It is my understanding that the average wage in Panama is $2 an hour. What the bill proposes to do is to let goods that are manufactured in Panama, with a labour input rate of $2 an hour, to come into the Canadian market and compete against our businesses and our labour force that have to pay a labour rate many times more than that.

Could the hon. member tell us what he says to Canadian businesses that, if the bill passes, have to contend with goods coming into their markets and competing with those with a labour input cost of $2 an hour, when they have to pay $15, $20, $25 and $30 an hour? How is that fair to Canadian businesses?

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:05 p.m.
See context

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, I understand the member's question, but I have some trouble understanding in what direction he is going. Is he proposing that Canada should only sign free trade agreements with countries that have the same salaries as in Canada or higher? I am not sure what that does for countries like Brazil. His colleague said that we should probably look at Brazil. We know that the average wage in Brazil is not the same as in Canada.

The reality is we have an opportunity to move forward with a free trade agreement with a country that is stable, that has very impressive growth rates, that can offer opportunities for many Canadian companies to export their goods and trade with that country. Why not support Canadian companies and industries that want to do more business with Panama?

If the member has concerns, he is more than welcome to attend our committee meetings and raise those concerns as well.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:05 p.m.
See context

NDP

Malcolm Allen NDP Welland, ON

Mr. Speaker, I am pleased to join in this debate. I see my friend the parliamentary secretary is here today and participating in the debate. I appreciate that. The member fromCrowfoot has been here all day.

Let me acknowledge to both my colleagues, who have said that we in the NDP oppose only the trade deals that the government brings forward, that they are right.

Let me tell the House why. First, we are not debating trade policy. Bill C-46 is “An Act to implement the Free Trade Agreement between Canada and the Republic of Panama”. It goes on to talk about environmental and labour side-agreements. We are not talking about debating trade policy from the perspective of what we want to see in that policy. We are talking about how to implement trade policy, how to nip around the edges and tinker with this piece or that piece, adding a word here and deleting a sentence there. Fundamentally, what we are looking at is free trade, full stop.

I would say to my colleagues that if they truly want to debate trade policy with New Democrats, or with me, a member who attends the trade committee 80% of the time, then I would suggest that we debate trade policy. Let us not debate implementation of free trade, which is a fait accompli. The government is not interested in talking about trade. It is interested only in talking about free trade. Free trade is one of the many aspects of trade policy: whether it is called fair trade, which I would suggest is significantly different from free trade; whether it means trade agreements like those we see in the Mercosur that Brazil has with its neighbours; or whether it is EU trade through the EU trade division. There are a great number of agreements across this globe that we have neglected to look at because are fixated on free trade.

Why we are fixated on only one aspect is beyond the comprehension of this member. Ultimately, when we look at the stats for those who are trying to work in this country, we see the poor staying as poor as they were, getting no further ahead.

Brian Mulroney said that this country would never be recognized again if we implemented free trade. So he did. He was right. We do not recognize this country.

Members can come down to Welland and take a look at where this policy, with its promise of the return of manufacturing and replacement jobs, has now taken my town. In 13 years, in terms of earnings per worker in Ontario, it has gone from third highest to almost the lowest, courtesy of free trade.

Of course, the government and the Liberals would have us believe that we were winners under the free trade model. What do we see for middle-income workers? Their income has come down 5% over the last 15 years.

I am not sure how mathematicians make minus five a plus. I know in the old days minus five and minus five gave plus 10. All I know is that when a person has a job that used to pay $22 an hour and now that person is working for $14 and the person's mortgage is still the same, that person is not better off, but worse off. If that is the minus 5%, then workers in my riding did not benefit from free trade. Yet we insist on talking about it.

The Liberals insist that we are in the way and will always vote against it. Of course we will, because it does not help workers. It does not help average Canadians. It does not help the middle class. It only helps 1% of the richest folks in this country, who are getting richer and richer by the day.

The government and the Liberals seem to have a red-blue alliance. We might call it a coalition, but they have not formalized it yet. I would encourage both parties to bring forward an open trade debate, so that we can talk about different trade policies. Let's see if we cannot find a way to make Parliament work. Let's see if we can compromise and find a trade policy that works for everyone across this country.

Ultimately, it is not about building trade policies for Panama, Colombia, Jordan, or anywhere else in this world. It is supposed to be about Canadians. We are supposed to develop trade policy that benefits Canadians. That is who we represent. We do not represent Panamanians, or Jordanians, or Colombians. Our role is to protect our citizens, and part of that protection is the viability of the economy. Canadians need work. When folks are not working, they are either unemployed, on social assistance, or out on the street somewhere. Our responsibility is to ensure that this does not happen to them.

I would encourage the blue-red alliance to come forward with a debate about trade policy. Then we can move away from this fixation of one-size-fits-all. We are told that we are all doing well. But we are not doing well at all.

The rebuttal will be that this is not true. I invite members to look at the StatsCan reports and read the quintiles, as it calls them. They show where folks are in the economic scheme of things. It is ironic that when the Minister of International Trade spoke at an event organized by the Fraser Institute, the Vancouver Sun said that the trade minister “appeared amused at the diplomatic necessity of avoiding the term “free trade” when negotiating with the Europeans”. This from a government that comes in the House and waves the flag of free trade and says all is wonderful. Yet when the minister goes to Europe, we have to call it a “comprehensive economic trade agreement”. Why is that?

If the government is certain that free trade is the be-all and end-all, then why can't the minister go to Europe and say that, although it might not translate well into French, German, or Belgian, the bottom line is that free trade is wonderful and we should simply call it what it is. Maybe it is because the Europeans do not agree that free trade is the be-all and end-all, and they want to talk about something else instead. This raises an interesting question. If this is the case for the bigger group, why not for those elsewhere?

As we look at the free trade policy, we see, starting in 1995, the gutting of manufacturing in the heartland of this country. Anyone who does not believe it should come to the auto sector today. St. Catharines had 11,000 workers in 1993; now it has 1,800. Where did those jobs go? The vast majority went to Mexico. In 1990, General Motors employed about 2,500 workers in Mexico. By the late nineties, there were some 40,000. There were less than 20,000 in Canada. It used to be the reverse.

When we opened up free trade in the North American Free Trade Agreement, we saw an outpouring of manufacturing jobs by multinationals in Ontario and Quebec. Those of us who live there, who represented workers, and who represent workers today have continued to see it. Whether it is the manufacturing of automobiles, steel, or chemicals, that is the way free trade has been for workers. If they have kept their jobs, they have seen their wages decline. They are told they must compete with Colombians, Panamanians, Mexicans, and everywhere else that fell under free trade. Companies told workers that if they could not compete with them, their jobs would be moved.

In 2008, just prior to the last federal election, a John Deere subsidiary went to workers during bargaining and said they had to deal with free trade. I know this to be true, because it is my union that represents those workers.

The company told those workers that they needed to understand that it could be moved to the States or Mexico. The subsidiary told the workers that they had to bargain a collective agreement that showed an understanding of free trade.

The Canadian Auto Workers is a responsible union. My brother from Quebec knows this; he is a Quebec director. He knows how responsible that union is.

In 2007, we bargained a responsible agreement with John Deere that said we would protect those workers. We would make sure they were not affected by free trade and that they had offsets for the company.

What did the company do in 2008? The company closed the plant, moved to the United States and Mexico, and destroyed 800 families. What did the company get in that one year period? It managed to pay lower wages, lower pensions, lower benefits. They got a cut rate for a year and then they deserted the community and the workers.

We saw the same thing at Atlas. We saw the same thing when it came to UCAR. We saw it right across the manufacturing heartland of this country.

Free trade does not work for workers, period. It does work for some folks who bleed workers dry and then discard them.

The most recent example of how free trade works is J.M. Smucker's, a big multinational company out of the United States. It just closed.

Those who like Bick's Pickles should know that as of next year a Canadian-made Bick's pickle will not be available. The plant will be closed in 2011. What will that mean for 150 workers at Bick's? It means they will have no job. What will this mean to the hundreds of farmers in southern Ontario who supply the ingredients for these pickles: the cucumbers, the tomatoes, the onions, the cauliflower? It means they will have no market for their goods. What will they do? I guess my friends on the other side will tell them that it was free trade and it was good for them.

As we move products to free trade regimes that do not have the same food inspection standards, will we know what we are buying? The CFIA's audit says we will not know what we are getting, because there is no common standard of inspection from country to country. We have equivalency inspections with a few countries in four significant areas, but pickles is not one of them.

For those who enjoy the Bick's Pickle brand, after November 2011, I would suggest they check the label. The ingredients will not be Canadian. I would suggest checking where they come from, because they might not have gone through the same inspection equivalency. That is shameful, but that is what free trade gives us.

Is that really what Canadians are asking for? In my constituency, the answer is a resounding no.

Workers get the message on free trade. They are either working for less than they did before or they do not have a job at all.

The Conservatives keep foisting this red-blue alliance on the workers of this country. The whole thrust is that free trade is good for them, when the evidence clearly demonstrates that it is not. They are worse off than they were in 1995. It is an abomination. I do not understand how anyone can stand up and try to tell us that things are better, when those of us who represent workers know that it is not true.

Why do we do this? I am not sure. I have sat on the international trade committee for the best part of a year, and I have yet to hear a compelling argument, unless we are talking about protecting the wealthiest folks in this country and allowing big corporations to do whatever they want. If that is the argument, fine. I understand that, because it works for them.

Free trade clearly works for large multinational corporations. It works for those who service them, like trade lawyers and accountants. Large corporations need a support system to keep them alive. Ultimately, those businesses are doing okay. But the workers inside those businesses are not doing well.

So in this whole sense of keeping on doing the same old, same old, one would have thought that after we got beat up on chapter 11 from a number of places we would want to strike that out. But, no, we keep leaving it in there, the old chapter 11 under NAFTA, not chapter 11 necessarily in this agreement, not the same chapter but basically the same deal. So we can have a company such as AbitibiBowater that sues us for 130 million bucks and we give it to them. Ultimately, that is what we end up with.

Let me just give folks some background about how I used to bargain agreements and what it means when we have a side deal. When the employer and the bargaining unit sit down, the reason they do a side deal is that they actually do not want folks to find it well. That is really what it is about. That is why we do a side deal, because if we were really serious about making sure it was important to us, it would be in the main body of the agreement. That is where the important stuff is, between the first page and the last page, not stuck on the back or stuck off to the side.

Yet, again, even though we had this debate with the free trade agreement between Colombia and Canada on the importance of these international agreements for the environment and with the international labour organizations about labour, as much as our entreaty to the government was that these were hugely important and they should be back in the centre of the agreement, what happened this time? They were off to the side again, with no sense that maybe it was really important and it could be put inside the agreement, built inside. Clearly they do not believe that they are important enough to include in the agreement.

I know some folks will say that it does not really matter because they are there. It does matter. That is why we do the things we do, that is why we include things in a certain order, that is why we have definitions, that is why we have collective bargaining, that is why we do collective agreements, or that is why we do contracts. Lawyers who do them will tell us that it is important where we place them.

What do we see inside the labour agreement? We actually see the ability of the corporation to get arbitration through the Patent Act. However, through the labour agreement, which is a side deal, if workers in Panama want to go to arbitration, they cannot. Think about that. As a worker in Panama, if one cannot get to arbitration, why not? It is a fundamental right, it seems. That is something that we ought to do. Yet we are still not encouraging them to follow through so workers can actually get to a place where they can perhaps seek some form of redress, some form of justice.

If that is the case, why would we not make sure that those side agreements on the environment and on labour are struck right in the middle? Fundamentally, why do we not just simply have a debate about trade? Maybe if we did that we might find some sort of an agreement, not just with the red-blue alliance but perhaps all the way through with a multicoloured approach.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:25 p.m.
See context

Conservative

The Acting Speaker Conservative Barry Devolin

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 Notre-Dame-de-Grâce—Lachine, Government Policies; the hon. member for Vancouver Quadra, Offshore Drilling.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:25 p.m.
See context

Conservative

Kevin Sorenson Conservative Crowfoot, AB

Mr. Speaker, I have been up a couple of times and have gone on about the New Democrats always saying the same things. I do not want to always say the same things, but I will perhaps just make a comment.

One of the things in my riding of Crowfoot that has been always impressed upon me, especially in the agricultural sector, is that we do not want to rely just on a few countries. We especially understand this with beef. We understand it with many of our grains and oilseeds, and pulse crops as well. We cannot just rely on one big neighbour, one big country that is a trading partner with us. We have to continue to look beyond the United States, even beyond China, and attract business of some of these smaller countries.

Earlier, one of the NDP members asked why we were spending our time with small countries. The answer is that we want to build trade with every country. We want to build trade with these countries and have side agreements where we move them forward in environment and in labour.

In this bill we are going to see many advantages for Canadian farmers. Our free trade agreements are going to be put in place and will benefit Canadians, first and foremost. In terms of the pulse industry, for Saskatchewan, which used to be a hotbed of New Democratic Party members, this would open the market, big time, for pulse crops into Panama, as it would Colombia and others.

Again, I simply want to say that agriculture is critical to our economy. It gives us another opportunity to get some of our good products into Panama.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:25 p.m.
See context

NDP

Malcolm Allen NDP Welland, ON

Mr. Speaker, I understand what the member for Crowfoot says when it comes to agriculture. I live in the middle of the Niagara Peninsula and residents know all about agriculture, albeit a different kind. It is one of the greatest tender fruit growing places, I would say, in the world and what has happened? Free trade closed CanGro. Will there be canned peaches in this country anymore? No. Will there be canned pears? No.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:30 p.m.
See context

Conservative

Kevin Sorenson Conservative Crowfoot, AB

What about the wine industry?

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:30 p.m.
See context

NDP

Malcolm Allen NDP Welland, ON

Mr. Speaker, the wine industry is doing remarkably well, but can people have peaches on their ice cream when all they grow is wine grapes? I guess that is the question I would ask the hon. member.

The bottom line is free trade took the cannery away. It is not that we could not grow the best peaches, pears or cherries in the world. We can do that. Free trade basically took that cannery away, the last one east of the Rocky Mountains. It is gone.

My friend from Crowfoot will understand, as he lives among farmers. I am not sure if he is a farmer himself, but he will know that when there is no market, it gets pulled out. That is what happened. The week after CanGro left, the peach trees were out of the ground, because they produce a canning peach, not a fresh peach.

Ultimately, at the end of the day, what does a farmer do? I agree that farmers need markets. The farmers in Niagara need markets and we need to find a way to do it, but it does not always mean that we can do it just through free trade. There are others way to do it and I would encourage the member to support that.

Canada-Panama Free Trade ActGovernment Orders

September 30th, 2010 / 4:30 p.m.
See context

NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, looking at farmers and the effect that free trade has had on some of our farming sectors as was just pointed out, in British Columbia apple and cherry growers often cannot make ends meet because, as a result of free trade, there are subsidized apples and cherries coming in from Washington state. I am wondering whether there are going to be any ramifications for the farmers of Panama, for example.

I have some points before me with regard to the Canada-European free trade agreement. We see that this agreement will basically colonize Canada for the global corporations. Farmers' ability to save, reuse, exchange and sell seed will be destroyed. Dairy, poultry and egg supply management and the Canadian Wheat Board will be at risk. We see that using farm-saved seed could cost the farmer his or her farm, that this agreement with Europe will enable corporations to obtain the precautionary judicial seizure of infringing property, land, equipment and bank accounts for alleged violation of intellectual property rights. The agreement will prohibit subnational governments from giving local contracts.

Does my hon. colleague see this kind of negative spinoff effect on countries that we deal with, when we try to impose our free trade on them?