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 is from 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.

Similar bills

C-24 (41st Parliament, 1st session) Law Canada–Panama Economic Growth and Prosperity Act

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-46s:

C-46 (2023) Law An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act
C-46 (2017) Law An Act to amend the Criminal Code (offences relating to conveyances) and to make consequential amendments to other Acts
C-46 (2014) Law Pipeline Safety Act
C-46 (2012) Law Pension Reform Act

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.”.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:30 p.m.

Liberal

Martha Hall Findlay Liberal Willowdale, ON

Madam Speaker, first, I must talk about the amendments proposed by my colleague. He is asking that numerous clauses be deleted, yet he said that they are key clauses. Frankly, that is a problem.

He is asking that clause 7 be deleted, but that clause sets out the purpose of the bill. If the description of the purpose of the bill is taken out, I think that poses a bit of a problem. He is also asking that clause 10 be deleted. That clause contains institutional and administrative provisions. Without these kinds of clauses, there would be no bill.

He is also asking that clause 12 be deleted. This clause deals with panels, working groups and other people involved in administering this bill, particularly in terms of labour and the environment. I know that those topics are extremely important to my colleague. In addition, he is asking that clause 63 be deleted, but that contains the coming into force provision. Without these clauses, there is no bill, and frankly, I feel that my colleague is playing games here in the House. We have already discussed these issues in committee.

I will now say that we will not support the amendments, and I would like to take a bit more time to talk about the bill, as currently drafted.

I just briefly explained why we do not support the amendments proposed by my colleague. In effect, they were already proposed and dealt with in committee, and were they to be put into effect they would effectively destroy the bill. As much as I respect my colleague, I find this a bit of an abuse of time in the House of Commons; it really is playing games. I would rather we dealt with the substance of the legislation, the implementation of a free trade agreement with Panama. I am pleased to say that the Liberal Party is in support of this particular bill.

I will provide members with some statistics. In 2008, Panama had one of the highest real GDP growth rates in the Americas, at 10.7%. Despite the global economic downturn, Panama posted positive growth in 2009, at 2.4%, a trend that was expected to continue in 2010. We await confirmation of those numbers.

The expansion of the Panama Canal is currently under way and slated to be completed by 2014, at a projected cost of $5.3 billion. This expansion alone is expected to generate opportunities for Canadian companies in such areas as infrastructure and construction, as well as environmental, heavy engineering and consulting services, capital projects, human capital development and construction materials. Like the free trade agreements between Canada, Chile and Costa Rica, the North American Free Trade Agreement, and the free trade agreement proposed with Jordan but not yet ratified for a number of reasons, the Canada-Panama free trade agreement includes side agreements on labour cooperation and the environment.

Panama is indeed a relatively small economy. We would prefer that Canada were able to pursue multilateral trade negotiations through the World Trade Organization. Unfortunately, those negotiations have come to an effective standstill. We do support the efforts to engage in negotiations for bilateral trade agreements, including with Panama.

Although Panama is a relatively small economy, in 2009 we exported $90 million in goods to that country, which maybe is not as much as to some trading partners, but it is fairly significant for those enterprises, the agricultural, agrifood, construction, and a variety of other sectors in that country. The $90 million is a significant amount of business, and this trade deal stands to significantly increase that figure.

Panama is also a stable country that has made significant progress in recent years in development and democracy, which Canada is well placed to continue to encourage. This is a significant aspect of our trade philosophy.

Freer trade encourages a freer flow of information and a freer flow of ideas. Rather than building walls, freer trade opens windows through which light comes through, and opens doors through which Canadians can engage on all sorts of levels with others. If we isolate countries, our capacity to engage on human rights or to discuss issues, such as the one we and others have raised today, the issue of tax havens, we only reduce our ability to engage with and help those countries improve.

Panama has engaged in significant efforts through the OECD to enhance its activities and its reputation internationally. I believe we stand in a very good position to encourage rather than discourage that effort.

We support this bill. Despite concerns about the current lack of a double taxation treaty and a tax information exchange agreement between Canada and Panama, we should support this bill.

I want to emphasize the fact that the Canadian and Panamanian governments have already begun to work on a tax agreement. Panama has asked that we implement an agreement to avoid double taxation, while Canada would prefer an agreement about exchanging tax information. However, the two governments are in talks to set up a tax agreement.

Although there have been some concerns raised about the suggestion that Panama acts as or provides a tax haven and money-laundering opportunities, the Government of Panama and the Government of Canada have worked very hard so far to establish an agreement on the exchange of tax information.

In the first instance, Panama asked Canada to enter into an agreement to eliminate double taxation. Canada responded by asking instead for an agreement on the exchange of information with regard to taxes. Panama came back and said no. It said that it would prefer a double tax treaty. It should be stressed that the traditional OECD model of a tax treaty, which is the one Canada always signs, has a full article dealing with the exchange of tax information.

We support the bill for two reasons. First, it would provide significant improvements to opportunities for Canadian enterprises and therefore encourage Canadian jobs. Second, because Panama does not have a trade agreement right now with the United States, we heard a number of witnesses at committee stress how the United States is worried about Canada signing this deal because of the significant competitive advantage that it will provide to those very Canadian enterprises. I will include agriculture, agri-food and construction. Earlier in my speech, I outlined a number of the areas in which we would stand to benefit.

That significant competitive advantage for Canadian enterprises, given the lack of a similar agreement so far with the Americans, given the pressure on the American government to sign such an agreement and given the fact that the Canadian and Panamanian governments have been working toward a tax agreement of one kind or another that would provide information on the exchange of tax information, has strongly provided the basis for our support of this bill and for the conclusion and ratification of the free trade agreement with Panama.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:40 p.m.

Conservative

Mike Allen Conservative Tobique—Mactaquac, NB

Madam Speaker, I happen to agree with the member for Willowdale that deleting clause 7, which deals with the purpose of the bill, would somewhat take away from the bill. However, she also spoke about the benefits that Canada would get from this bill.

Given some of the demographics we are experiencing in Canada today, there is no question that we will need to compete very much on high value-added services. Having been an employee for SNC-Lavalin at one point in time, I do know the value of the engineering services and the $5.3 billion for the construction of the Panama Canal, plus the mine that the parliamentary secretary referred to. Could she just elaborate a little more on what this means for us in exporting value-added services and what it means for the growth of a strong workforce in Canada?

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:40 p.m.

Liberal

Martha Hall Findlay Liberal Willowdale, ON

Madam Speaker, Canadian enterprises of a variety of sorts would absolutely stand to benefit. The expansion of the canal is only one aspect. Of course that includes companies like SNC-Lavalin, but also a whole variety of other companies that engage in construction, provide construction materials and provide consulting services. Environmental technology services are in high demand and Canada is highly regarded internationally as a source of that kind of consulting service.

However, I also want to stress that we heard many witnesses at committee from the agricultural and agri-food sectors. Farmers in many regions of the country have been having a very tough time. We also know that many Canadians in the manufacturing sector have been having a very difficult time. There absolutely is benefit in engaging in greater trade with countries like Panama because the more opportunities we have to export products, services, knowledge and ideas, the more the people in Canada who are involved in producing, creating, and participating in those activities benefit. So it absolutely would be a net benefit to Canadian enterprise, Canadian farmers and Canadian jobs.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:45 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Madam Speaker, what everyone can assume is that the position of the Liberal Party is not to worry about the money laundering of dirty drug money because somehow this trade agreement will magically wave it all away.

As everyone will recall, that was the Liberal position on the Colombia trade deal and since the Liberals worked with the Conservatives to ram the Colombia trade deal through, we have tragically seen an increase in the number of murders by the secret police and military and paramilitary forces in Colombia. It is the same line that we had from the Liberals on Colombia, that somehow things magically would go away. It was false and it is false on Panama.

I would like to ask the hon. member if she would not prefer to simply come clean with the Canadian public and say that her party was wrong on Columbia and that maybe they are wrong on Panama and perhaps should vote against it.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:45 p.m.

Liberal

Martha Hall Findlay Liberal Willowdale, ON

Madam Speaker, I find it a little challenging to have an allegation that somehow we are responsible for deaths in Colombia.

In any event, I am extremely proud of the fact that my Liberal colleague from Kings—Hants worked incredibly diligently with the Colombian and the Conservative governments to add a piece to the Colombia free trade agreement specifically dealing with human rights. We are, as Liberals, extremely proud of that fact.

It is nonsense to suggest that we somehow support the idea of tax havens and money laundering. As I said in my speech earlier, the people engaged in money laundering and looking for tax havens, whether they be in the Caymans, Panama, Switzerland, Liechtenstein or any number of places, are people who break the law. These are people who will not be paying attention to whether there is a free trade agreement in place. We do not support that.

I reiterate that I am very encouraged by the efforts of both the Canadian and Panamanian governments to move forward on an agreement with respect to taxes. Canada stands in a very good place to encourage countries that are moving forward. Panama is working very hard to move forward with the OECD regulations. This is an opportunity for Canada to encourage that kind of behaviour rather than to discourage it.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:45 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Madam Speaker, I am pleased to speak on behalf of the Bloc Québécois at this stage of Bill C-46.

Amendments have been proposed, and some of our colleagues have claimed that they gut the bill. It is exactly for that reason that we support these amendments.

This bill would implement a free trade agreement with Panama, which is not a good agreement. Many people, both Conservatives and Liberals, have spoken about the economic advantages. However, we cannot deny, and I believe we must acknowledge, that Panama continues to be a tax haven in the eyes of the OECD. Panama has not been taken off the OECD's grey list of tax havens.

Apparently, Panama has taken steps to be removed from this list, but that has not yet happened. Panama still has to conclude agreements and tax treaties with certain countries. Canada would be able to verify or monitor tax evasion by Canadian citizens if it signed a tax information exchange agreement with Panama.

When the bill was being studied, we heard that the Minister of Finance or the Minister of International Trade, I do not remember which one, had written to his counterpart in Panama about negotiating and signing such an agreement. The committee asked different witnesses on a number of occasions if Panama had agreed. To date, we have not been given an answer. We even heard a representative of the Government of Panama tell us, at the Standing Committee on International Trade, that it was not in the interests of his government to enter into a tax information exchange agreement with Canada.

If it is not in the interests of the Government of Panama, why is the Canadian government so intent, despite everything, on going ahead with this free trade agreement and passing an implementation bill, when that would mean giving away all our bargaining power with respect to Panama?

It is because we have given in to Panama. We have given in and will allow it to have free rein so that Panama can tax Canadian businesses. It has said that it wants to sign a double taxation agreement, which really means a no tax agreement. Canadian businesses will be able to repatriate profits to Canada, tax-free, and pay minimum tax in Panama. That is absolutely unbelievable.

The Canada Revenue Agency cannot even say estimate how much tax revenue it will lose because of such an agreement, how much tax leakage the middle class will have to make up through their work and their own taxes.

It is absolutely incredible that we are moving forward with such an agreement. That is why the Bloc Québécois is in favour of the proposed amendments. At least some attempts have been made to improve the bill. In committee, it was proposed that Canada and the Republic of Panama ratify a tax information exchange agreement, based on the OECD model agreement on the effective exchange of tax information, that would not cause Canada to lose tax revenue.

The Conservatives and the Liberals voted against that idea. They could at least have said they want to conclude a free trade agreement with Panama. As many have pointed out, such an agreement might not be such a bad idea.

However, if we end up losing revenue and promoting tax evasion and money laundering, I think that ethically speaking, we have to ask ourselves some serious questions.

Should we continue to move forward with this? The Bloc Québécois says no. We absolutely must wait and see whether this possible agreement could be used as a negotiating tool and as a way to put pressure on Panama to get off the OECD's grey list of tax havens and sign a tax information exchange agreement with Canada. That would be fairer for Canada.

I want to come back to the testimony of Richard Montroy, a Canada Revenue Agency senior manager who testified at the Standing Committee on International Trade on November 17. We asked him whether companies could still bring tax-free profits back to Canada when there is a tax information exchange agreement in addition to a free trade agreement. He said yes.

In other words, there will always be companies bringing money back home no matter what. However, if we had all the tax information on Canadians and their investments in certain countries, we could recover some of the money that is eluding the Canada Revenue Agency.

That is not the case. The government has given up. The Bloc Québécois thinks we absolutely must support these amendments, go back to the drawing board and wait until Panama does its homework before moving forward.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:55 p.m.

Liberal

Martha Hall Findlay Liberal Willowdale, ON

Madam Speaker, I would like to remind the hon. member that, although the witness did say that it was not in Panama's interest to sign a tax information exchange agreement, what he meant was that the country would rather sign a double taxation convention. Panama has asked Canada twice to sign a tax information agreement. It is not that Panama does not want to sign an agreement but that it wants to sign a more comprehensive one.

I would like to ask the hon. member this: How will this help Canadian farmers, businesses and individuals who are currently able to export more goods to Panama? How would they benefit if the agreement were not signed?

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Madam Speaker, the hon. member raised two points. She spoke about the testimony that the representative of the Panamanian government gave in committee. Although she was there too, I do not share her opinion that the representative clearly stated that it is not in the Panamanian government's interest to sign a tax information exchange agreement. To me, it seems obvious that a tax information exchange agreement associated with a double taxation convention, or no taxation for one of the countries, is much more comprehensive. When one of the two parties involved in such an agreement refuses to exchange tax information, it is because the party in question has something to hide. It is obvious. A tax information exchange agreement would allow both countries to know the value of the investors' assets and investments. Panama has rejected this completely. To me this is obvious.

With regard to the hon. member's second question about farmers and business people, clearly, postponing an agreement gives everyone the opportunity to adapt and it puts pressure on Panama. However, that does not mean that farmers cannot continue to profit from the situation.

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:55 p.m.

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of International Trade

Madam Speaker, I appreciate my hon. colleague's input at the Standing Committee on International Trade. I disagree with his position on Panama, but I have a question on which we may be in agreement.

The issue is fairly simple. Canada and Panama are already trading substantially, hundreds of thousands of dollars, millions of dollars' worth of trade. How could it hurt to put clear rules around the trade that already exists and reduce tariffs and barriers for Canadian businesses? How could that hurt Canadians?

Motions in AmendmentCanada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 1:55 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Madam Speaker, in response to my colleague, I would say that we do not need a free trade agreement to define some clear rules. We could very easily start by creating a tax information exchange agreement and then negotiate a double taxation agreement, if necessary. We do not need to sign an agreement first.

The main problem now is that we are doing things backwards. When a country is recognized as a tax haven, we should sign a tax agreement before signing a free trade agreement. But that is not the case here.

Canada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 3:05 p.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Mr. Speaker, I am pleased to speak to this legislation, the free trade agreement between Panama and Canada.

The fact is that Canada has its trade deficits today. For the first time in 30 years, we actually buy more than we are selling internationally. That is ominous for a small, open economy like Canada has that depends disproportionately on external trade for our standard of living and our wealth as a country.

If we look at where the world is headed and where the growth will be over the next five to ten years, we see that it will be in China, India and in the Asian economies. We also see a lot of opportunities in Africa, despite the governance concerns in certain countries. We see a lot of progress in Africa and we see a tremendous amount of growth and opportunity.

Then we look at the Latin American countries and increasingly it is clear that being dependent on the traditional economies of the U.S. and Europe is not where we want to be.

The fact is that the Conservative government spent its first three years in office chiding China and ignoring India. It did more to damage Canada-China relations than any government I can imagine. In fact, it imperilled a profoundly positive relationship that goes back 40 years ago to when Pierre Trudeau, a Liberal prime minister, was the first western leader to establish diplomatic relations with post-revolution China.

We know growth will be coming from Asian economies such as China and India. We also know that growth will be coming from Africa. What are the Conservatives doing with Africa? In fact, we cannot find Africa on a Conservative map. The Conservatives have completely ignored Africa. They have ignored the important opportunity and responsibility we have to transform Canada's relationship with Africa from one of aid and dependency to one of trade and opportunity. I believe there is a tremendous opportunity for Canada to deepen its traditionally strong relations with Africa and to move forward as trade partners.

I want to speak to Latin American opportunities and specifically to Colombia because we face some very similar challenges.

There are a lot of natural resources in Latin America. We in Canada, of course, have a lot of natural resources. We have seen an ascension of our Canadian dollar from 62¢ back in the earlier part of 2002 and now it is almost at par. If we look at Latin American countries we see a tremendous rise in Latin American currencies. This is as a result of the demand for our natural resources, our commodities.

Throughout the Americas, both Canada and Latin America face a very similar challenge with Dutch disease and the crowding out of our traditional manufacturing sectors and jobs, which is why it is important that we work together to bring down the trade and regulatory barriers between our economies so that we can be more competitive and be competitive with some of the emerging economies in Asia.

In terms of FTAs with the region, we have had an FTA with Chile since 1997 and with Costa Rica since 2002. The FTAs with Colombia and Peru were ratified in 2010. We now have this agreement with Panama.

I had the opportunity last week to meet with President Martinelli of Panama. We discussed the free trade agreement and we discussed the need for our two countries to work together for the good of our citizens.

Panama is a country that has made tremendous progress. I actually shared a panel with President Martinelli at the World Economic Forum last week in Davos where we were discussing the trade opportunities within the Americas and the need to work together because the American political system and Congress right now face tremendous challenges when it comes to trade issues. The level of protectionism in the U.S. that is so pervasive in Congress right now is preventing the U.S. from playing the leadership role that it ought to be playing in places like Latin America.

This creates a responsibility for Canada to be a good partner with Latin American countries that face very similar challenges and some similar histories as Canada. The American protectionism in Congress right now creates a responsibility for Canada to act and to lead in Latin American but it also creates opportunities for our construction and infrastructure companies, our financial services sector and our agriculture sector.

One of the things we watched with the Colombia FTA was that after we ratified the FTA, American farmers are now putting increased levels of pressure on their legislators to get their FTA ratified with Colombia because American farmers are losing out and Canadian farmers are actually gaining market advantage in Colombia. The same will happen in Panama because it is clear that we will ratify this FTA, or I certainly hope so, in Canada before the Americans have the opportunity do it.

When we look at the roles that some of the Canadian companies are playing in the region, we see Brookfield Asset Management; AIMCo, the Alberta investment fund; the Bank of Nova Scotia which bought Royal Bank of Scotland's Colombia assets; Pacific Rubiales; Talisman; Canaccord; and Columbus Communications, a Canadian company that has 14,000 kilometres of undersea fibre optic cables throughout the Caribbean and Latin America. Those are some of the important roles that Canadian companies are now playing in shaping the future of Latin America and the Caribbean region, and it just the beginning.

One of the things that has emerged over the last several years in Canada is that we have become a global centre for mining. Fifty-seven per cent of the world's publicly traded mining companies are now listed on the TSX. Eighty per cent of the volume for all mining equity financing in the world is in Toronto, which is actually 33% of global equity financing in dollar terms. To put this into perspective, the U.S. markets only account for 9%.

This gives us an opportunity to lead in these sectors, not just in terms of trade and commerce, balance sheets and financial statements, and shareholder returns and dividends, but in terms of corporate social responsibility and in terms of Canadian companies helping to set the standard in terms of social, progressive and environmentally responsible behaviours.

Last week I met with President Luis Moreno, the president of the Inter-American Development Bank. He shares with me the belief that Canada can play a leadership role in helping shape corporate social responsibility throughout the Americas by working with the Inter-American Development Bank. Canada does best when our companies and our governments work together with other governments multilaterally through agencies that we support and invest in, like the Inter-American Development Bank.

I know that some concerns have been raised about the tax haven issue, but I think it is critically important to recognize that Panama has actually proposed double taxation agreements to the Canadian government. We believe it is very important to move forward with these agreements and we want to see the government do that.

Some of the concerns that some of my colleagues in the NDP have raised have been very similar to concerns they have raised about every FTA. In fact, we could simply take out of the NDP talking points the name of the country and say that it opposes the FTA with a certain country, and then just fill in the country and add the reasons, which are basically always the same reasons. There are no new reasons because it is an ideological as opposed to a practical argument against the odd duties created by traded.

One of the arguments that the NDP members used against the free trade agreement with Colombia was that there had been some level of illicit drug trafficking and money laundering in Colombia in the past. I want to address that because if we are serious about working with the Government of Colombia and the people of Colombia to reduce that drug trade, the most important thing we can do is provide alternative economic opportunities through legitimate trade. I would argue vigorously that failure to do so would make us complicit with that drug activity.

What does one expect the people of Colombia to do if we do not trade with them and we do not provide legitimate economic opportunities? Desperate people will make their livings in the only way they know how. The best way to liberate them from the tyranny of the drug trade is to provide legitimate economic opportunity.

I also met with President Calderon last week from Mexico. One of the things President Calderon and his security advisers told me was that the success of President Uribe in Colombia, in the Colombia Plan with the United States, in stamping out the drug trade has led to the drug trade growing in Mexico.

It is a multilateral issue. Canada, the United States, Mexico, all the countries in the Andean region throughout Latin America have to work together, not just to help achieve security in one country but to help achieve security throughout. We have to do it multilaterally.

A good place to start is through free trade agreements with these countries that are moving forward and enabling Canadian businesses and farmers to participate in the opportunity of helping these countries move forward and the opportunities to prosper in Canada.

Canada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 3:15 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, there are so many questions I could ask the hon. member. I am glad to see him back in the House.

The same comments the Liberals were making about NAFTA and how NAFTA was going to lift Mexico out of the difficult economic problems it was having actually led to the opposite. The removal of the tariffs has led to a meltdown in the Mexican rural economy. Tens of thousands of people have died in the drug wars in Mexico. My colleague's argument about NAFTA is contradicted by the facts as are his arguments about Colombia.

The member said that the agreement with Colombia would somehow increase human rights respect and decrease the constant and ongoing human rights violations by security, secret police, the military and the paramilitary in Colombia. Instead, tragically, in 2010, 46 trade unionists were assassinated, many of them teachers. A few days ago Manuel Esteban Tejada was killed. We are seeing an increase in the number of murders, not a decrease. We will have to surmise that if the member was wrong on Mexico and he is wrong on Colombia, he and the Liberal Party must be wrong on Panama.

The IRS has said that Panama, along with the Cayman Islands, is the worst haven on earth for drug money laundering tax havens. This trade agreement would stimulate that. Rather than a double taxation agreement, Canada asked for a tax information exchange agreement, which the Panamanian government has refused to sign. How can the member justify this agreement when the Panamanian government is refusing to sign a tax information exchange agreement?

The Liberal Party is supporting an agreement that allows the unhindered flows of capital from Canada to Panama at the exact time when the IRS is saying that Panama is one of the worst in the world for money laundering of dirty drug money.

Canada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 3:20 p.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Mr. Speaker, I always enjoy listening to the hon. member. I basically disagree with everything he says because he is usually totally misinformed. It reminds me how important it is to have a party in the House of Commons that is not right of centre like the Conservatives or left of centre in the economic hinterland like the NDP. It is good to have a good politically centrist, economically pertinent and informed and socially progressive party like the Liberal Party in the House.

I do not know where to start. It is tough.

First, in terms of Colombia, 82% of Colombians support the government of President Santos. Only 6% of Colombians voted for anti-trade candidates in the last election. The Colombian people support free trade.

Second, the murders that he is referring to have often been committed by FARC, his ideological soulmates, and by drug traffickers. If he is serious about protecting trade unionists and teachers in Colombia, he should provide legitimate economic opportunity to the people and help wean them away from those terrible drug lords and drug trade, which for many people in Colombia, in fact for 40 years, represented the opportunity.

I find it interesting that the hon. member never talks about FARC. He never talks about his ideological soulmates, the Marxist-Leninist FARC in Colombia, that has been murdering people. He never talks about the murderous Hugo Chávez in Venezuela. He never talks—

Canada-Panama Free Trade ActGovernment Orders

February 3rd, 2011 / 3:20 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I rise on a point of order. As the hon. member knows, we have denounced what violence has come from FARC. What we are talking about is the Colombian government.