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.

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

October 20th, 2010 / 4:30 p.m.


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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Madam Speaker, the fact of the matter is that Germany and France have actually been collecting a lot of the back taxes from the people who have been investing in these tax havens.

France showed us how to do it. France got its black list together of 18 countries, and scared the companies. France levied a tax of 50% on dividends, interest, royalties and service fees paid to anyone based in France to a beneficiary based in the country on its blacklist, including Panama. What France did is it scared its own companies. France was taxing them right at the source.

No one, that I know of, has ever done that before. Look at the results. Panama rushed over and signed an agreement, exactly what they wanted. Panama signed a double-taxation avoidance treaty with France in the last few months, and now eight countries are on board. That is how to get action.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:30 p.m.


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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Madam Speaker, I would argue that responsible government is about making sure that people are paying their fair share, that people are making sure that somebody is not getting a free ride.

I talked earlier about the benefits to Canadians and to corporations when everybody pays their fair share of taxes. One of the benefits they get is a qualified workforce. A qualified workforce includes first nations, and I know that first nations often come up as a topic of discussion because they are the labour force of the future.

Just imagine if those corporations were paying their fair share of taxes and children on reserve and off reserve were getting access to an education that was equal to other Canadians. Looking to the future, 15 or 20 years from now, those young aboriginal kids would be the future employees of these corporations. That is being responsible corporate citizens. That is paying their fair share of taxes to make sure that their legacy and their workforce is available.

There are examples of other countries making sure that they are collecting those taxes. Canada should look to some of those other models.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:30 p.m.


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NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Madam Speaker, it is a pleasure to enter this debate today to talk about the proposed trade deal between Canada and Panama, our neighbour to the south. It is an interesting and engaging debate, because it brings up philosophical differences between the progressive politics of the New Democrats and the anti-progressive politics of the Conservatives, when it comes to approaching trade negotiations with other countries.

It is worthy of note that New Democrats have supported fair trade deals throughout our history. We have empowered governments to say that they must trade in the world. We are a trading nation, but we must trade on terms that are ethically and morally correct, in the eyes of contemporary and future Canadians. A trade relationship with another country is an opportunity to share values, to exchange the best of both countries in the way of products, ideas, management of markets, responsible extraction of resources, and protection of the rights of workers.

We have a government in office that is interested in any trade deal, as opposed to a good one. It crows over the number of deals it has made or has in progress. However, I would suggest that a bad deal is worse than no deal at all. This can be true for both sides.

All the government seems to be interested in doing is ticking another number off on the trade-deal front. It goes into negotiations with the notion that we will make a trade deal, regardless of the terms or the net benefits to Canadians, and ignoring the grievances that will be caused to people on the other side of the deal, in this case the Panamanians.

There is a philosophy underpinning this approach. It says that any trade deal will automatically bring greater democracy and accountability to the trading nation, particularly if it is a country like Panama, which has suffered for many years under various dictatorships and foreign influences. We saw the episode with Noriega. We saw the U.S. influence through its corporate lobby pressure, using the CIA and whatnot, and the ripple effect that occurred throughout Central America.

I have worked in Panama and in various surrounding countries, and one can see the erosion of democracy at a foundational level when outside countries exert irresponsible influence. Panama, having recovered somewhat from this, still struggles with some of the basic principles of transparency and accountability.

In that regard, it shares a lot of similarities with the current Conservative government. It agrees that accountability might be dangerous for the sitting regime, it does not call ministers to account, and it feels that allegations of corruption should remain allegations, without any actual investigation. Perhaps this is why it has been able to march in step to a trade deal that does not address some of the most fundamental values of Canadians. I will go into some of them.

It is important for members to keep in mind the real impacts on constituents and working people. As a trading nation, we should always seek the most favourable terms for ourselves and our trading partner.

We must also seek terms that align with our own values and beliefs, not just the belief in trade. That is a fine and noble principle, but it is also important to leave the planet a little better than we found it. If one is part of a labour union, one's life should not be on the line. Fair wages for an honest day's work should be a principle embedded in every government policy.

We have fought and struggled for these principles in this country. Sometimes these struggles have resulted in protests, violence, and great disruption to our national fabric, but we have come out the other end. We still have many struggles to go. Pay equity is a fantastic example: working women still earn only 78¢ for every dollar a man earns doing the same job. These are struggles we must face and counter. I would suggest the current government has not devoted enough time to issues like this.

First nations, mentioned earlier by my colleague from Nanaimo—Cowichan, are still living in conditions of poverty that no Canadian, regardless of political background, should accept. We have much work to do together.

However, when we engage in trade, when we engage in the effort to deal with another country and export the best of ourselves, our ideas, our products, our innovations, and our industries, this benefits us and the country we are dealing with as well.

For the riding I represent in northwestern British Columbia, trade is inherent in who we are and what we do. From time immemorial, the first nations of our region have traded across the continent and in fact around the world. Just this past weekend I was at a celebration of the 100th anniversary of the signing of the Tahltan Declaration at Telegraph Creek, British Columbia. One of the issues that came up and was celebrated was that the obsidian arrowheads the Tahltan people have made for thousands of years have been found in Africa, Europe, and South America, traded hundreds and hundreds of years ago.

It is a natural orientation for us in the northwest. We have things that other people want. But the principle was always that we would never degrade our own environment, our own quality of life, to enable that trade. We certainly would not want to export misery and enable other places to do harm to their people through our trade. Whether we were trading fish, arrowheads, or modern minerals, the companies and the communities that I represent seek to have a true net benefit, putting people to work in our region, putting food on the table and allowing good things to happen, while enabling other countries to receive the benefit of any technological improvements.

We have come to a strange and unusual moment in the international trading market. Prince Rupert, British Columbia, for example, has been the hub of fish processing for many decades. But now we are seeing job after job lost. Fish caught in British Columbia waters are put in freezer trucks, transported on highways to another port, put on freezer ships to China, processed there, then put back on a ship and sent back to us, to be sold at 15 or 20 times the original value. Somehow, the government says this is the rational market at work. It says this is the way things ought to be: a fish steak eaten in Prince Rupert and caught 50 kilometres away goes around the world to get back to our plate. It is a kind of insanity, and it leads us to a degraded, unsustainable world. The local impacts are significant and serious.

For the mining sector, which is now undergoing a renewal in my part of the world, exploration rates are through the roof, and companies are spending more and more money seeking out those minerals. We have seen an evolution from within the mining sector itself, brought about by companies that 50 years ago maybe did not do such a great job. They left behind mines that polluted, and they treated the local first nation population with disrespect, not hiring locally as much as they should have. These companies are now signing protocol agreements with first nations. They are co-operating in revenue-sharing streams, giving guarantees of local hiring, and adopting environmental standards that go far beyond the the weak and watered-down regulations that the government has provided. These companies have come to realize that the social licence to operate is critical.

In these trade deals, there is social licence to operate. There is a social test that we have to put these deals through. We must ask governments in this trade deal and the previous ones if they are willing to commit the deal to measurement. They say these deals will open up labour markets. They say they will improve working conditions and will not degrade the environment. If they are so confident, they ought to be able to specify environmental and labour standards in the agreement itself, rather than in side agreements, and measure compliance with those standards. We need to see the before and after. Show us the benefit. Are they willing to commit to that type of accountability, that type of transparency? Of course not. That is a shame and it brings great suspicion on the deal itself.

If it is so great for the labour community in Panama, if it is so great for the environment of Panama, if it is so certain that nothing bad will come out of this, then let us measure it. If we cannot measure something, we cannot manage it. Certainly, the government is not interested in abiding by any of these principles, which I believe are fundamental Canadian values. When a government operates outside the values of the country it represents, then that government is not capable of making good deals. This is certainly not a good deal.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:40 p.m.


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NDP

Irene Mathyssen NDP London—Fanshawe, ON

Madam Speaker, I wonder if my colleague could comment on this: I remember a time when the argument for NAFTA, the North American Free Trade Agreement, was that it would lift people in the developing country out of poverty. Contrary to that, what we saw was an exploitation of these same people. Young men and women worked in factories, manufacturing clothing or car parts, and they were paid so little that they could not afford to buy the very clothing they were making. They were compelled to send their own children to work at an age that would make most of us very concerned.

What occurred was child labour and taking advantage of young people: many of the people subject to this kind of exploitation were young women. These free trade agreements did not help the people who were struggling. I wonder if my colleague would comment on the young people, the workers of Panama.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:45 p.m.


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NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Madam Speaker, the tragedy is that trade deals like NAFTA could have helped. There was an opportunity available to a previous Conservative government to put into the deal something that would result in a net benefit to both sides, to the working people of Mexico, the United States, and Canada. Instead, we saw the operation of the maquiladoras just across the border in Mexico continue at a rampant pace.

We should ask the Americans how the border is doing these days. One of the promises of NAFTA was that illegal immigration would go from a flood to a trickle after the signing of NAFTA. The Americans are building a massive fence along the border. The problems are maintained because, when we have bad trade deals, we do not actually affect the foundational problems of an economy. The foundations within the Mexican economy encourage people to leave, because they are exploited ruthlessly in some of these factories, and much of this exploitation is directed at women and children.

“Women and children first” was the old patriarchal slogan. It was not meant this way. It did not mean they could line up first for the exploitative jobs. But that is what happens, and it happens time and time again. Will it happen in Panama? Absolutely. We have seen it in NAFTA, and we saw it in the so-called softwood trade deal. It was supposed to be a benefit.

This week I will be in Bella Coola. They have virtually lost their entire forestry sector, in part because of the softwood lumber deal. Now they are also under floods and in a state of emergency, compounding the troubles the community is going through. But they are resilient. They are willing to work and they want to work. They want to work in the things that they know how to do, which is producing the resources the world wants. But they need a government that is a partner and a supporter of small resource communities across Canada. They built the country, for goodness' sake, and government after government has allowed them to erode and die slowly, town by town. That has to stop. These trade deals compound on one another. They do not achieve enough benefit for either us or our trading partners. They help only the few, the rich. It has to stop.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:45 p.m.


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The Acting Speaker Denise Savoie

Before resuming debate, 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 Etobicoke North, the Environment; the hon. member for Scarborough—Guildwood, International Aid.

Resuming debate, the hon. member for Sudbury.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:45 p.m.


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NDP

Glenn Thibeault NDP Sudbury, ON

Madam Speaker, I rise today to speak to Bill C-46, which would implement a bilateral free trade agreement with Panama.

As we do with all free trade legislation, I along with my NDP colleagues have carefully examined the details of this bill. We need to ensure that any free trade agreement we sign is progressive, that it looks closely at the treatment of labour activists and equality for women and minority groups, and that it contains provisions for environmental protection.

Unfortunately, this free trade agreement with Panama falls short on the protection of labour activists. While there are provisions for labour protection, there is no means with which to enforce this part of the treaty. It seems that the provision is there to placate critics without trying to accurately tackle the issue.

This is a real issue in Panama. July saw a massive crackdown on union members and labour leaders in Panama. New legislation was brought forward by the government, which limited the rights of workers to strike and even their freedom of association, including provisions to jail for up to two years any workers taking their protests to the streets.

These are rights that are enshrined in article 23 of the United Nations Declaration on Human Rights and in the declaration of the fundamental principles and rights at work of the International Labour Organization. Yet the Government of Panama seems happy to trample on 60 years of international law.

If this were not bad enough, when the citizens took to the streets to legitimately and democratically highlight their opposition to this legislation, the government reacted violently. More than 100 protesters were injured, some fatally, and more than 300 protesters were jailed, including the leaders of the SUNTRACS and CONATO trade unions.

The government is clearly not committed to the rights of organized labour, and its violent reaction to the protest shows that a toothless labour provision is simply not enough. If this government were serious about the labour protection, then this free trade act would have a real means to enforce the labour provisions. Without it, the provisions are worthless.

When considering this free trade agreement with Panama, we must also look at Panama's tax code. Panama is recognized both by international bodies like the OECD and by other countries as a tax haven. Tax havens allow large corporations and rich individuals in Canada to shelter their income from the government and avoid paying the tax they owe the government.

While thousands of Canadians are struggling to pay their bills, I cannot understand why this government would try to ratify a free trade agreement with a country that is allowing people and corporations to evade paying their taxes. Let us not mince words here. Those people who are avoiding paying these taxes are stealing from the average hard-working Canadian.

This government, which claims to be tough on crime, is happy to have different rules for these high-earning criminals than for the average Canadian. It claims it wants to crack down on tax evaders, but while it talks the talk, it certainly does not walk the walk.

When the government got the names of Canadians illegally sheltering funds in Europe, it offered them a voluntary disclosure program, which is nothing more than a partial tax amnesty. Sure, they had to pay some interest and penalties to the CRA, but these are not people who accidentally filed their taxes incorrectly. These are people who purposely hid money from the government for the explicit reason of avoiding paying taxes. This is not a mistake. It is criminal intent.

If someone steals a TV from your home, the police do not just get them to return the TV and give you ten bucks for your trouble. This is effectively what the government did to these tax evaders. It was an economic slap on the wrist maybe, but certainly it was very lenient punishment. They certainly were not treated like the typical criminal would be.

It is not just that this free trade agreement does not try to put in place a provision to deal with the shelter of income from the government. It is also that the free trade agreement will undoubtedly create additional loopholes, which will be exploited so that even more income is sheltered offshore.

Think of what we could do with the extra tax revenue, which we are not already losing. How can the government tell people that it cannot afford to cut the federal tax from home heating or increase payments to pensioners when it is happy to sign off on a free trade agreement that allows for so many individuals and corporations to avoid paying taxes?

The bill points to an increasingly worrying trend where the government is trying to hollow out the role of the state. It is happy to allow foreign takeovers without really studying the effects on the communities that are affected.

Look at the year-long strike that took place in my great city of Sudbury after the Conservatives approved the sale of Inco to Vale. The government refused to step in and protect the members of USW Local 6500 and the whole community, which also suffered.

When the strike was over, it loaned Vale $1 billion. Now the government is making it easier for corporations and individuals to avoid paying tax by sheltering their money illegally in Panama, and it will then use lower tax revenues as an excuse to cut important state services.

The bill does nothing to support hard-working individuals in Canada or in Panama. In fact it undermines them, in Canada by cutting the federal tax revenue and in Panama by giving the government international credibility on labour issues when it is violently and undemocratically cracking down on union members.

The bill is an insult to anyone who works hard and pays taxes while rich individuals and corporations avoid their responsibilities.

This is why I will not be supporting the bill.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:50 p.m.


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NDP

Jim Maloway NDP Elmwood—Transcona, MB

Madam Speaker, I want to thank the member for an excellent presentation on the bill.

The fact of the matter is that no fewer than 54 United States congressmen have demanded that President Obama forgo the agreement with Panama until Panama has signed the tax information exchange treaties, which by the way, France got in short order when it started taxing the French corporations that were part of the 350,000 that are operating in Panama.

The fact of the matter is that the Americans also know Panama is a tax haven. In fact the justice department of the United States says that Panama is a major conduit for Mexican and Colombian drug traffickers. Therefore it is not only a tax haven like we are normally used to but it is also a conduit for Mexican and Colombian drug traffickers, says the U.S. justice department, and money laundering activities. I do not know how much worse it can get.

Surely the government would not want to be associating with and helping to facilitate drug traffickers and money launderers when it purports to be tough on crime. Obviously when it comes to white collar crime it is very soft on crime.

The Prime Minister is off to Switzerland with cap in hand to talk to the Swiss prime minister about getting information on our people hiding money in tax havens. We give amnesty. That is how we treat people who cheat on taxes.

Yet the French government simply took the bull by the horns, got a list of 18 tax havens in the world and brought in tough tax regulations on its own companies. That caused them to start putting pressure on the Panamanians who were now going to lose business. When they saw they were going to lose business, guess what. They went to France and signed the agreement. There are eight agreements signed now just in the last few months, and Canada is not one of them.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:55 p.m.


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NDP

Glenn Thibeault NDP Sudbury, ON

Madam Speaker, my hon. colleague's question brings to mind the year-long strike we just had in my community of Sudbury with Vale Inco.

What it brings to mind is that, if we go back 40 to 50 years, we remember that the steel workers were actually out demonstrating in the streets. And they just did this; the steel workers just did this over the duration of that strike. To see what happened in Panama when the government violently cracked down on striking workers, it sends fear to think what would be happening here.

Fortunately we have been able to advance, but we need to be able to support countries like Panama to be able to advance, to move forward so people can democratically protest in the street.

We need to be progressive when we are looking at fair trade agreements. The point that my hon. colleague brought up is that this agreement is not fair. It is an open door to almost anything, tax havens and so on. There are not enough protections in the agreement for the environment; there are not at all enough protections for labour activists; and we need to continue to make sure there are protections in it for women's rights and minority groups.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:55 p.m.


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Conservative

Randy Hoback Conservative Prince Albert, SK

Madam Speaker, I was wondering why, in a period of economic recovery, the NDP is so opposed to free trade and helping Canadian businesses and families succeed. This trade agreement will actually eliminate tariffs on 90% of the products that we ship to Panama. This will help agriculture. This will help forestry. This will help the business sector grow and expand. It will help families have jobs. In fact, in the pulp and paper industry I understand that 30% more can go into Panama once this deal goes through.

Why would those members be opposed to that? It just blows my mind. I wonder if the member could explain that.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 4:55 p.m.


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NDP

Glenn Thibeault NDP Sudbury, ON

Madam Speaker, here is something that will help continue to blow the member's mind.

We are talking about fair trade, fair trade to ensure environmental protections, fair trade to ensure rights for labour activists and women's groups and minority groups. We can continue to trade.

My hon. colleague talked about the agreements that France has signed with Panama. Has the government even asked Panama to look at those similar types of agreements? Or does it just say that it is an open-door policy, so Panama can shoot and kill labour activists and destroy the environment, we can sell a few more pigs and that is great? Farmers in my community have told me they do not want blood on their hands, if we are looking at trading with places like Colombia and Panama.

The important thing we need to do here is ensure that we talk about fair trade.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 5 p.m.


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NDP

Tony Martin NDP Sault Ste. Marie, ON

Madam Speaker, I am pleased to join with my colleagues this afternoon to speak to this bill, a bill that is us causing some real concern.

New Democrats have a tremendous interest in everything fair and just. I do not see much fairness and justice in moving ahead holus bolus in the way we are. We have seen so many free trade agreements come before the House in these last few months. This is another in a series of agreements that the government has chosen to aggressively move toward signing, without really considering the long-term and short-term ramifications to workers, the environment and particularly to the people of Panama, as we challenge them to live up to some of the international accords and agreements that so many countries have signed, such as the environment, the rights of workers and that kind of thing.

I spoke on the Colombia free trade agreement not that long ago. I will make some of the same arguments tonight that I made then because it is not that dissimilar an agreement to the one in front of us.

Canada is entering into an arrangement with a country that has a questionable track record with regard to looking after its workers, protecting the rights of workers to organize and protecting the environment. Not to speak of the impact that all of this will have on the domestic economy of Canada, which is what we should be most concerned about right now.

Across Canada we are working hard in community after community, with provinces doing their bit. However, the federal government in many ways is missing in action, because it is so focused on these kinds of initiatives.

We are pulling ourselves out of the recession and are trying to find ways to create work, get people back to work and get our own local domestic economy in place. We need to rebuild communities that have been challenged, threatened and shattered so badly.

The collapse of the global economy and the financial system was in many ways affected by the rush of countries, like Canada, the United States and others around the world, to deregulate and get into global trading in a way that was not well thought out. In doing that, they forgot that the end result of anything we do, in terms of an economy and trading and work, should benefit people, communities and the country.

The free trade agreements all started by the late 1980s, early 1990s when Brian Mulroney and his government of the day delivered the North American Free Trade Agreement.

Then we saw the Jean Chrétien-Paul Martin Liberal government come into power. We thought it would revisit and rethink some of this and in fact sit down with our partners in the North American Free Trade Agreement and fix some of the obvious shortcomings. However, it did not do that. It did more, from right-wing ideology point of view, to fast-track free trade, not only with the United States but with Mexico as well.

In doing so, it got us into a vortex that has seen the lives of working men and women in Canada become less and less valued. The standard of living has been reduced. The amount of money being spent on programs to support people has been reduced significantly. The role of government has been questioned and reduced.

If we are to continue down the road of free trade agreements, and particularly in this instance of a free trade agreement with a country of questionable labour practices, we end up with is a local domestic economy in Canada that is less than it has the potential to be.

In the mid-nineties and into the late-nineties, Paul Martin moved to deal aggressively with a deficit and tried to create an environment in Canada that was more conducive to this free trade regime. As he began to see the result of that deficit fighting, the program cutting, the government reduction and an improving economy, instead of rethinking that approach to public life in Canada and reinstating some of the programs and money that flowed to provinces and municipalities to support people, he began to give huge corporate tax breaks.

We were told and bought into a way of thinking that we could reduce government spending, which is another way of speaking about reducing deficit because all governments have a deficit and they keep it in balance with the GDP, et cetera. However, as we reduce government spending and the role of government in the public life of a country and as we deregulate more and more industry and reduce the amount of taxes coming in through business and corporations, a number of things begin to happen. One is the government loses its ability to intervene, to be helpful and to support the people that it is elected to serve. However, the thinking is if we do that, we make ourselves more attractive to foreign investment. That is why we can then sign on to more of these free trade agreements. People want to come here and take advantage of some of the human resources and natural resources that are available to us in Canada. However, the rules that attend these free trade agreements are not necessarily in the best interests of the people in the jurisdiction in which the agreement is being implemented.

For example, I was up in the Northwest Territories two weeks ago at a poverty conference. People from every community across those territories gathered in Yellowknife to speak about poverty. Two members of the legislative assembly in the Northwest Territories moved a motion to introduce an anti-poverty strategy, something that six other provinces have done.

In developing this strategy and looking at the needs of the people they are trying to serve and trying to improve the lot of citizens in the communities that they work in, they are turning to their provincial governments. The provincial governments in turn, as they roll out their anti-poverty strategies, are looking to the federal government for involvement, to be engaged, to give leadership, to come to the table and provide resources.

However, the federal government is saying that it does not have the money because it has a huge deficit to deal with now because of the collapse of the economy and the difficulty in the financial world. The government of the day is putting together a plan to deal with the deficit that will be in keeping with the track record we have seen over the last 10 to 15 years our country.

Before we do anything else, before any other priority, including dealing with poverty, we have to ensure we are creating a climate—

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 5:10 p.m.


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The Acting Speaker Denise Savoie

Order, please. Questions and comments, the hon. member for York South—Weston.

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 5:10 p.m.


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Liberal

Alan Tonks Liberal York South—Weston, ON

Madam Speaker, I listened intently to what my colleague was saying. I was very interested in the case study with respect to the Northwest Territories and its legislature in developing an anti-poverty strategy. Surely he would agree that an anti-poverty strategy in an underdeveloped or developing economy is creating jobs.

If this treaty creates jobs, and there are protections in side agreements with respect to civil rights issues, human rights issues and the rights of employees, would he agree that the climate he was just starting to allude to is the kind of climate that we need to set an example of with fair trade between ourselves and developing economies? It is good for the economies of those countries and ours if it is fairly done.

Would he agree that this is the kind of climate we want to create and that this legislation is an attempt to take albeit a modest step in that direction, but one that will trickle down and benefit the people in Panama?

Canada-Panama Free Trade ActGovernment Orders

October 20th, 2010 / 5:10 p.m.


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NDP

Tony Martin NDP Sault Ste. Marie, ON

Madam Speaker, that question allows me to finish my thought.

If we are talking fair trade, I have no problem. I do not think anybody on this side of the House in the New Democrat caucus has any problem with fair trade. The problem is with the kinds of trade agreements we are and have been entering into.

The environment we seem to be creating is causing poverty like we have not seen for a long time, particularly following the collapse in the financial world over the last two years. We are trying to make Canada attractive to foreign investment to the detriment of the people of Canada.

The thinking is this. If we reduce corporate taxes, which takes money out of government coffers, reduce government spending and cut programs, then we become more attractive to foreign investors that we want to take advantage of our resources. This is what in many ways then creates the lack of resources we need to deal with some of the very difficult challenges that poverty presents in places like the Northwest Territories. That is the point I am making.