Bill C-46 (Historical)

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 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.

Canada-Panama Free Trade Act

[Siobhan Coady, Liberal, St. John's South—Mount Pearl, NL]

Mr. Speaker, I rise to speak in support of 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.

Canada and Panama signed this agreement on May 14, 2010, and the bill has made quick progress through all stages to get to the third reading, since it was only introduced on September 23 of last year.

The international trade committee concluded its study on the bill in late December before the House recessed. After careful consultation with stakeholders, the committee concluded that the agreements were satisfactory, and now Bill C-46 has come back to the House.

Freer, more open trade with our neighbours benefits everyone. Through trade agreements, we strengthen our economy, increase wealth, protect labour and human rights and help ensure environmental protection.

Our country relies on trade. In fact, 80% of our economy depends on trading with our neighbours. That is why I support any initiative that improves market access for our Canadian businesses. Canada is a trading nation. Our trade roots date back to the 1600s. Indeed, our country is founded on trade.

This is why Liberals are concerned that for the first time in 30 years, Canada now has a trade deficit. Export amounts to 45% of our gross domestic product, so we definitely need to have a good trade relationship. We need successful trade policies that build and sustain relationships with our existing partners, while also securing opportunities for other nations.

However, it seems our country takes one step forward and two steps back. Consider the United Arab Emirates, for example. We are all familiar with the diplomatic negotiations with the United Arab Emirates over airline landing rights. The U.A.E. is an important trading partner for us, with $2 billion every year in trade. This dispute was about six extra flights every week. However, because it was so poorly handled, we were told to leave Camp Mirage, a military base in Dubai that has been our forward operating base for our mission in Afghanistan. It will cost taxpayers at least $300 million just to close it and who knows how much to set up a new base somewhere else. That is how important trade relationships are.

In emerging markets, for example like China and India, we have delayed or missed opportunities. In the coming years, China and India will generate some 900 million new consumers and spend some $4 trillion on new infrastructure. Yet in 2006 and 2007 our exports to China barely kept pace with the growth of the Chinese economy. In the same period, the U.S. increased its trade by some 60%. We are not only falling behind the Americans. Thailand, the Philippines, Germany, and Australia are all getting a bigger piece of the Chinese import market than we are.

As I stated earlier, the Liberals are very supportive of fair open trade and Bill C-46 does make progress in that direction. However, we are falling behind in securing the biggest emerging markets in the world. If we are to compete tomorrow, we must open up opportunities not only in Panama, but in China, Russia, India, Brazil, and other emerging markets.

Even though Panama is a relatively small economy, there is much potential. In 2009 Canada exported around $90 million in goods to a small country of just under 3.5 million people. The country is relatively stable. It has made important strides in recent years with its development of democratic institutions. Through the global economic downturn, Panama's GDP still managed to grow at 10.7% in 2008, making it one of the hottest economies in the Americas. It is forecast to grow 5.6% for 2010.

Most of our exports to Panama include machinery, vehicles, electronic equipment and pharmaceutical equipment. Our service industries provide financial services and engineering, as well as information technology support. The Canada-Panama free trade agreement would include open market access for goods, cross-border trade and services, telecommunications, investment, financial services and government procurement.

At the moment, Panamanian tariffs on agricultural products are around 13.4%, but in some cases they can reach as high as 260%. Removing these tariffs would generate many opportunities for the Canadian agricultural sector.

Atlantic Canada also stands to benefit very much from this free trade agreement. It accounts for 10.9% of Canadian exports to Panama.

In late January, early February of this year, 12 Atlantic Canadian companies participated in a trade mission to Panama, building on past trade missions to that country. From Newfoundland and Labrador, four companies participated in the trade mission: Blue Oceans Satellite Systems of St. John's, Cartwright Drilling of Goose Bay, Labrador, Compusult Limited of Mount Pearl and Marine Industrial Lighting Systems of Mount Pearl.

Compusult is a global leader in geospatial interoperability. Its scientific applications support environmental data gathering and management. Marine Industrial Lighting Systems was formed in 1999 and one of its Panamanian projects includes explosion proof submersible floodlights for the Panama Canal.

Panama will be expanding its strategic canal route which connects the Atlantic and the Pacific. This project is valued at over $5 billion and will provide Canadian companies significant opportunities in a wide spectrum of goods and services. The expansion of the canal will allow for increased container traffic, some of which will access ports in Atlantic Canada.

As with Canada's other free trade agreements, Chile, Costa Rica, NAFTA and Jordan, there are side agreements on labour co-operation and the environment.

The Canada-Panama agreement on labour co-operation recognizes the obligations of both countries under the International Labour Organization Declaration on Fundamental Principles and Rights at Work. It requires that each country ensure its domestic laws, regulations and practices protect fundamental labour principles and rights at work.

The Canada-Panama environment agreement would allow any person who resides in either country to request an investigation of alleged violations of that country's environmental laws.

This free trade agreement contains sufficient protections for labour and the environment, ensuring that they are not compromised for the sake of trade.

As for the future, Canada needs to focus on emerging markets, Panama and the Americas, as well as India, China, Russia and Brazil. We must do so with haste and ensure more available markets for Canada's goods and services.

I hope my colleagues in the House will join me in supporting Bill C-46 so Canadian business and the people of Canada and Panama can benefit from freer, more open trade.

[Chris Charlton, NDP, Hamilton Mountain, ON]

Mr. Speaker, the member and I are not on the same side of this issue in terms of how we are finally going to vote when the amendments come before the House. I presume we are not going to be on the same side either when the bill comes before us at third reading. However, we can agree on one thing, and that is this is another trade agreement the Conservatives have really rushed to the House.

As a result of that, would the member comment on this? Is she aware of any labour organizations, any environmental organizations, any civil society groups or any individual citizens for that matter being consulted before the Canada-Panama free trade agreement was signed by the government? Does she not believe it is equally important to hear from such labour, environmental, civil society groups and individual Canadians as it is to simply just consult with the business community?

[Siobhan Coady, Liberal, St. John's South—Mount Pearl, NL]

Mr. Speaker, I appreciate my hon. colleague's concern with this agreement. As I said in my speech, there are a number of side agreements such as the Canada-Panama agreement on labour co-operation as well as the Canada-Panama environment agreement. I am sure my colleague is familiar with this as she sits on the committee.

I assume there was an opportunity to call witnesses before committee. The bill has now come from committee and we are debating it in the House.

Like my hon. colleague earlier this morning, I also indicated that we would ensure that the side agreements on labour and the environment worked properly and effectively. The House will hold the government accountable for those agreements. The fundamental principles and rights at work will be upheld. The declaration will be upheld. Issues around the environment will be considered as well.

It is important that free trade occur in our world and that we can have access to other markets. It is important that Canada reach out and ensure that the fundamental principles around labour organization and the environment that we hold dear are also held dear in other locations.

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

Mr. Speaker, I thank the hon. member for her support of the Canada-Panama free trade agreement and the side agreements that go with it.

In listening to the criticism coming from members of the NDP Party, I am a bit perplexed. They have never supported a free trade agreement in any way, shape, or form. I do not know what they do support in the House because they seem to be against everything they talk about.

What are the advantages to the hon. member's home province of Newfoundland and Labrador in having more extensive trading relationships within the Americas?

[Siobhan Coady, Liberal, St. John's South—Mount Pearl, NL]

Mr. Speaker, Newfoundland and Labrador has only been in Confederation for 60-some years. However, the province dates over 500 years and we have had trading relations around the world.

More recently, we have had a lot more trading relationships with South America and Central America. One can look at some of the relationships we have had with Brazil around the oil and gas industry. There are a lot of Newfoundland and Labrador companies spending time in Brazil. I have named a couple of companies that are already doing business in Panama, reaching out to take advantage of some of the work that is being done on the Panama Canal. We have relationships, for example, with Chile in regard to aquaculture and the imports and exports of that trade.

From my home province's perspective, we have long since known the benefit of trade. We have long since reached out to the world. We have long since recognized that exports drive the development of our economy, businesses and employment in our community. We are certainly supportive of continuing to do that.

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, it is an honour to rise in the House to take part in such a critical debate, not just about the Canada-Panama free trade agreement but about how we move forward as a country, our relationships at the international level and how we see our role as promoters of trade and growing relationships within the Americas.

However, as I stand here, I am also very proud to be a member of a party that has stood for the kind of trade that prioritizes the concept of fairness, fair trade, a party that reaffirms its vision for a fair trade policy that puts the pursuit of social justice, strong public sector social programs and the elimination of poverty at the heart of an effective trade strategy.

In fact, when we hear Canada speak out at the international level, we hear of the concepts of mutual growth and improvement of living conditions. However, when we look at the specifics of the kinds of trade agreements that the government is promoting, we see an approach that strays from those kinds of ideas, certainly from the values that we in the NDP hold dear and go against the idea of wanting to contribute to the benefit of people in these countries, not just corporations or certain people, but people in general. That is the question in the House when it comes to Bill C-46, the Canada-Panama free trade agreement.

As my colleagues have expressed in the House, we have grave concerns that this bill has come forward in a hurried fashion, with a real desire by the government to pass it without the in-depth examination of what might be challenging pieces. Certainly there has been critical debate at committee, but there are some key points that I am sure many Canadians would be shocked to find out the government is trying to push through. They require more debate. Members deserve a chance to sit down and ask whether this really is what Canada wants to be promoting on the international stage.

We have heard much talk about the idea that this trade agreement would exacerbate the inequalities in Panama, that it would allow Canadian companies and Canada to be part of scenarios where labour rights are disrespected and abused or environmental rights are disregarded. We have heard that the fact that there are side agreements on labour co-operation and the environment is supposed to deal with these concerns and dynamics that we in the NDP think such a trade agreement would foster in a country like Panama.

The existence of such side agreements is simply not what is going to prevent such abuses from taking place or what is going to prevent such trade agreements from truly looking at how trade could make Panamanians and Canadians better off. There are a couple of reasons why NDP members feel the side agreements and Bill C-46 are inadequate in trying to reach the point of truly contributing to the well-being of Panama and Canadians.

At committee, compelling testimony was heard from witnesses regarding, for example, the tax haven situation in the Republic of Panama as well as its poor record of labour rights. It was noted that Panama has refused to sign a tax information exchange agreement, something that is troubling considering the large amount of money laundering in Panama, including money from drug trafficking.

Panama's complete lack of taxation transparency has led to the Organization for Economic Co-operation and Development to label the nation a tax haven. It has been referenced that a double taxation agreement would somehow resolve such a concern, but the double taxation agreement only tracks legal income while a tax information exchange agreement would track all income, including that made through illegal means.

The tax haven situation in Panama, as witnesses expressed in committee, is not improving conditions under the current government in Panama. A trade agreement with Canada would only worsen the problem and could cause harm to both Panama and Canada.

Another critical area a side agreement would not deal with and the source of such concern would be in the area of labour and the respect of labour rights. It is a tenet of who we are as a democracy and as a country that has believed that people's well-being depends on their freedom to organize, on their ability to be part of unions and on their ability as working people to fight for a decent wage, to fight for proper health and safety and to fight for that dignity that we would all hope for in any country around the world.

However, we recognize that these rights are not respected in Panama the way we respect them in Canada.

Another major issue is the status of labour rights in Panama and the complete failure of this trade agreement to ensure that these rights are not denied to Panamanian workers as they have been in the past.

When Teresa Healy of the Canadian Labour Congress spoke to the parliamentary committee regarding the agreement on labour co-operation, she testified that while the International Labour Organization's core labour standards are invoked, Bill C-46 is still weaker than it should be. As well, she pointed out the current Panamanian government has increasingly been harsh on labour unions and workers, especially in recent years.

It was noted, for example, that over the last few years a number of measures have come into play that have exacerbated the wealth inequalities in a country like Panama. While recording relatively high growth rates, it is the second most unequal society in the region. Forty per cent of the population is poor; 27% is extremely poor; and the rate of extreme poverty is particularly acute in indigenous populations. The country has endured extensive structural adjustment, liberalization and privatization which has not translated into economic benefits for the population.

In response to the international perception that Panamanian labour laws were rigid and a disincentive to foreign investment, President Martinelli announced unilateral changes to the labour law in the summer of 2010. The law ended environmental impact studies on projects deemed to be of social interest. It banned mandatory dues collections from workers. It allowed employers to fire striking workers and replace them with strikebreakers. It criminalized street blockades and it protected police from prosecution.

These are the kinds of measures that we are in fact not just approving of by continuing to approach this trade agreement as a positive sign and looking to side agreements as though they were going to put a stop to such an agenda put forward in Panama. Canadians would not want to think, would not want to know that we are complicit in encouraging what is fundamentally an attack on people's right to organize and people's right to speak out and fight for a decent living.

The severity of this attack on labour rights seen in Panama has been met with strikes and demonstrations. The police have been exceedingly harsh in their response and that was just this past summer. At least six people were killed; protestors were seriously injured and many were blinded by tear gas and police violence. Some 300 trade union leaders were detained before the president withdrew the labour provisions and called for a national dialogue of moderate trade union leaders and business leaders.

We are pointing out that a side agreement on labour co-operation, as it is termed, is in no way sufficient and certainly does not make a strong statement by Canada that such action is unconscionable.

The NDP is saying trade agreements must respect the tenets of fairness, but also must respect the values that we hold dear as Canadians, whether it be in terms of labour rights, transparency or on the environment. Canadians would demand nothing less.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the province of Manitoba alone employs over 1,000 people in the potato industry and processing.

Given that the Manitoba NDP government's website makes reference to Panama as consumers of our processed potatoes which provides thousands of jobs, would the member agree it would be in Manitoba's best interest to see freer trade?

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, I thank the member from my province and I welcome him into the House.

My role as a member of Parliament in the federal scene is recognizing and speaking to the values that many Manitobans hold dear, which is of free but also fair trade, something that we are not seeing as a result of this agreement. We know that Canada engages in trade with many countries around the world, including Panama. However, what we are talking about here is a deeper, certainly more developed agreement. It is an agreement that goes against the basic rights that we as Canadians would demand not just in our country, but would like to see respected in any country around the world.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, the member for Churchill ably pointed out that members of the Canadian Labour Congress appeared before committee and talked about the fact that this agreement simply did not cut it.

The member for Burnaby—New Westminster proposed some amendments and one of them would have been to protect trade union workers in Panama by offering the right to collective bargaining, as well as requiring the Minister of International Trade to consult on a regular basis with representatives of the congress.

I wonder if the member could comment on why that amendment was defeated at committee.

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, Canadians know the right to collective bargaining has existed for many years. That we would deny that right to other countries we are hoping to enter into a relationship with is not the way to move forward. It is not the way Canadians would like to see us play a leadership role. Free trade must be fair trade and these rights must be respected.

[The Acting Speaker, Barry Devolin]

I must interrupt at this time. The hon. member for Churchill will have two minutes remaining in questions and comments when the House returns to this matter.

The House resumed from February 4 consideration of 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, as reported without amendments from the committee, and of the motions in Group No. 1.

[Thierry St-Cyr, Bloc, Jeanne-Le Ber, QC]

Mr. Speaker, I am pleased to rise today to speak to Bill C-46, which would implement the free trade agreement negotiated between Canada and the Republic of Panama. First of all, I want to say that even though the Bloc Québécois is generally in favour of free trade, it will oppose Bill C-46 and, more specifically, the agreement with Panama.

I will start by providing a brief history of free trade and explain why a number of countries have signed agreements to freely exchange goods, without there being any customs duties or excessive restrictions on these goods.

The oldest major free trade agreement is the GATT, which was signed in 1947. If I recall correctly, that stands for the Global Agreement—

[Daniel Paillé, Bloc, Hochelaga, QC]

The General Agreement on Tariffs and Trade.

[Thierry St-Cyr, Bloc, Jeanne-Le Ber, QC]

That is it. I had forgotten what the letter g stood for.