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

[Bryon Wilfert, Liberal, Richmond Hill, ON]

First, Mr. Speaker, the member had better define what he means by “appalling”, because my definition and his are obviously different.

I give the example of the preferred destination status with China. If the member checks the record, in the fall of 2005 it was the Liberal government that actually had an agreement in place. There was something called an election, which obviously precluded the final signing of that agreement.

My question to the member, which I realize is a rhetorical one, is why it took the Conservative Party almost four years to get that finalized when the Liberal government had done all the work. The work was already done. In December 2005, that destination agreement existed, and we lost four years of an opportunity to really showcase Canada, because those guys over there, unfortunately, were ragging the puck.

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

Mr. Speaker, members will know that the total two-way trade between Canada and Panama in 1999 was only $132 million. Imports to Canada from Panama were only $21 million, and half of that was refined heavy oil. The fact of the matter is that members know that trade is not going to stop tomorrow if we do not implement this trade deal.

For a government that pretends to be tough on crime, it is somewhat surprising that it would be ready to implement a free trade deal with a country such as Panama that was blacklisted by the OECD in 2000 as an unco-operative tax haven. In fact, there are 350,000 foreign companies registered to hide from the tax man in their home countries.

Why would the Liberals get in bed with the Conservatives to facilitate this agreement when what we should be doing is following the American example and forcing Panama to sign tax agreements so that there can be an exchange of tax information about tax evaders? The Liberal opposition is actually facilitating the government promoting tax evasion if it supports this initiative.

[Bryon Wilfert, Liberal, Richmond Hill, ON]

Mr. Speaker, I am certainly not an advocate of getting into bed with the Conservatives, the NDP or anybody else, although I know the NDP has had experience with being in bed with the Conservatives, particularly in 2005.

I want to point out that one of the things free trade provides us is an opportunity to deal with political liberalization, et cetera. Panama has come a long way from the Noriega days. There is no question that there is continual liberalization and improvement within Panama. One of the things that at least my party believes in is engagement. There cannot be improvements unless we engage others, and this is one vehicle.

I understand the member is concerned about those issues and I would suggest to the member that the bill going to committee is an opportunity to look at some of those issues and strengthen it. That is why bills go to committee. We do not just say we do not like a bill because it is not perfect. If it is not perfect, we have to work on it, and that is why members deal with it in committee.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I want to start by saying that it seems the Liberals want to return to power. On Wednesday evening, there was a vote to improve the employment insurance system. The Liberals, who can practically taste power, have started voting against workers again.

When Prime Minister Martin was in office, the Bloc Québécois spoke out vigorously against tax shelters. Tax shelters in other countries hide money from the taxman for certain large companies, many of them subsidized by taxes paid by Quebec and Canadian workers. As a result, wealth is not redistributed to improve our health and education systems and living conditions for those who do pay taxes: workers.

How can this government and this opposition keep supporting free trade agreements that will negatively affect working conditions for Quebeckers and Canadians, agreements that will make it easier for mining and other companies to take advantage of tax shelters?

[Bryon Wilfert, Liberal, Richmond Hill, ON]

Mr. Speaker, as I indicated earlier, one of the side agreements deals with labour. If the member has legitimate concerns on the labour issue, that is where at committee with the appropriate witnesses that kind of discussion needs to go forward in terms of strengthening these provisions. But if we simply want perfection and say no, if this is not here now we are not going to engage with any free trade, then we can put up a big wall around the country and obviously we will not be doing our businesses any favours and certainly not the population. So again, it is about engaging. Obviously there are provisions we can strengthen, but we cannot strengthen the bill if we simply say we are not going to do anything because it is not there now. That is why we have these discussions and obviously why amendments are made at committee.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Mr. Speaker, over two years ago I was on the international trade committee delegation to Panama and I am pleased to see the progress and support with respect to this free trade agreement.

However, does the member for Richmond Hill believe this focus by the Conservative government on these smaller free trade agreements with smaller potential for trade impedes the ability of Canada to do more strategic larger agreements with Asia-Pacific, for example, or Brazil?

[Bryon Wilfert, Liberal, Richmond Hill, ON]

Mr. Speaker, I would point out that it does not impede it, but it is not really focusing on what the real issues of the day are in terms of what our competitors are doing, and again, much more engagement on the multilateral level with organizations that are out there. I go back to one that I am most familiar with, dealing with the Asia-Pacific region, and that is ASEAN. Obviously if we do that, we are going to have a bigger bang in terms of that approach. Although these things are helpful, we need a strong policy, a strong strategy. We need to listen to what organizations such as the Canadian Chamber of Commerce have said, which is that we really do not have that, and unless we have it, we are not going to be competitive internationally in the longer term.

In order to do that, we have to get together. We have to really start hammering out something not for this year or for the next five years, but the kind of policy that will take us 15 or 20 years down the road, because standing still is not going to help and obviously the Australians in particular recognized that when they launched their very aggressive free trade approaches in the Asia-Pacific.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I will first point out that I will be splitting my time with the member for Berthier—Maskinongé.

First of all, I would like to quickly go over the Bloc Québécois position on bilateral agreements. Make no mistake, the Bloc Québécois is not a protectionist party. Quebec exports 52% of what it produces, and our businesses, especially cutting-edge businesses, could not survive in the domestic market alone. Therefore, the Bloc Québécois supported the North American Free Trade Agreement, NAFTA, and was the first party to propose entering into a free trade agreement with the European Union. Clearly, our party supports free trade.

We believe that in order for trade to be mutually beneficial, it must first be fair. A trading system that results in exploitation in poor countries and dumping in rich countries is not viable. The Bloc Québécois will never tolerate a system of free trade that would result in a race to the bottom.

We know very well that the lack of environmental or labour standards in trade agreements puts a great deal of pressure on our industries, particularly our traditional industries. It is very difficult for them to compete with products made with no regard for basic social rights. We support a true multilateralism policy and not shameless profiteering without regard for human conditions and the environment, which all too often is the basis for these bilateral agreements that our Conservative friends and, for some time now, our Liberal friends want to negotiate. This Bloc Québécois position was eloquently presented yesterday by the member for Saint-Maurice—Champlain, and I would like to congratulate him on his apt remarks.

That said, the Bloc Québécois, as per usual, methodically examined Bill C-46, which would implement a free trade agreement between Canada and Panama. We do not support this bill because, for the most part, it does not reflect the beliefs and values of our party and Quebeckers.

Even though the free trade agreement signed on May 14, 2010, comes with a side agreement on labour co-operation, protecting labour rights remains a serious concern. Indeed, President Ricardo Martinelli's right-wing government passed Law 30, legislation that is considered anti-union, in June 2010. Quite simply, and as my hon. colleague from Saint-Maurice—Champlain explained so well, the law criminalizes workers who demonstrate to defend their rights. That cannot be justified.

We also know that Panama was shaken in recent months by crackdowns described as anti-union. Between two and six people were killed and about 100 were injured during violent demonstrations that were held after Law 30 passed in June 2010.

I have been a farm unionist for 20 years and I think we are fortunate to live here in Quebec and in Canada, in a democracy where we are not up against legislation like Panama's Law 30, which would bully us and prevent labour groups from raising their voices to improve their conditions. This is unacceptable. We are fortunate that we do not have to deal with such legislation and governments like Panama's that pass that kind of legislation in 2010.

As a member who comes from the labour movement, I naturally believe that workers' rights are universal rights, and no trade agreement—and I mean no agreement—should be entered into without absolute assurance that workers' rights will be respected.

Considering that in the present case we do not have that assurance, it is not possible for the Bloc Québécois to speak out in favour of this agreement.

We vigorously defend this position through our actions and our decisions. It is for that reason, among others, that we were able to support the Canada-Colombia free trade agreement.

Even though on August 5, the Panamanian government agreed to review this law, we nonetheless have cause for concern about the Martinelli government's true willingness to respect the International Labour Organization conventions. Why is the government in such a hurry to ratify this agreement? Should we not ensure that the Panamanian government is backing away from Law 30 before we make any commitment?

Something else that bothers the Bloc Québécois greatly is the fact that Panama is still on the OECD's grey list of tax havens. It is even on France's blacklist of tax havens.

While major European corporations are leaving this country because of its lack of banking transparency and its promotion of tax evasion, Canada wants to send its companies there. Does that make any sense?

Also worrisome is the fact that on the Finance Canada website on treaties and conventions there is no indication that Canada is negotiating an information sharing agreement with Panama.

We feel it is imperative that before concluding a Canada-Panama free trade agreement, the Conservative government, supported by the Liberals, sign an information sharing agreement with Panama. I hope the Liberals will support us on this. Nonetheless, this agreement must not exempt subsidiaries domiciled in the targeted jurisdictions from paying income tax.

In closing, without any assurance that workers' rights are respected in Panama and considering that this country is still on France's blacklist and the OECD's grey list of tax havens, unfortunately it is not possible for the Bloc Québécois to support this bill.

We will vigorously oppose any agreement, treaty or government decision that does not respect these fundamental rights.

[John Weston, Conservative, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

Mr. Speaker, I am always happy to hear Canada's name come up on the world stage, even if they are opposed to the bill introduced by our government. I have a question for my colleague.

What do the following have in common: EFTA, Peru, Colombia, Jordan and Panama? The answer is that these are all countries or groups with which Canada has entered into free trade agreements. What about India, China and Korea? These are countries with which our Conservative government has engaged in the last few years in an unprecedented way, making Canada truly the country of the 21st century.

As the hon. member weighs the labour issues he has considered, I would ask him to think for a minute about the gains Canada has made on the world stage. What does he think about how we are doing in trade and our international respect?

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I thank my colleague for his question.

As I mentioned in my speech, the Bloc Québécois is in favour of free trade and free trade agreements. We participated in the discussions on the free trade agreements with Peru and Colombia. We were against the agreement with Colombia because that country does not respect human rights.

With respect to the agreement we are debating today, I made it clear that Law 30, which is anti-union legislation, is unacceptable. Also, we want Canada to sign agreements that address tax havens. This is in line with article 26 of the OECD model tax convention.

I can assure my colleague that the Bloc Québécois will continue to do a thorough job on the upcoming agreements with China, India and Jordan.

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

Mr. Speaker, I always listen closely to my colleague's speeches. He mentioned a number of important things, including crime. The Conservative government always claims that it wants to address the issue of crime, but now it is signing a free trade agreement with Panama, a country that allows money laundering, which would increase the prevalence of this phenomenon in Canada.

How can the Conservatives be so irresponsible as to say that money laundering is allowed, that it is fine and that it is not serious, because we do not have to live with it? The government wants to sign an agreement and tell the Panamanian government that it can continue to tolerate money laundering.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Mr. Speaker, I would like to thank my colleague and say that I enjoy working with him on the Standing Committee on International Trade. We always have very good discussions.

It is unacceptable to want to sign an agreement with a country like Panama, which is a tax haven. We are not the ones saying that. Panama is on the OECD's grey list and on France's blacklist. Europeans are taking their companies out of Panama because they feel it is unacceptable to do business with a tax haven. But in Canada, the Conservatives—backed by the Liberals—are rushing to sign an agreement with the Panamanian government.

Last night, my colleague from Berthier—Maskinongé said that the Bloc Québécois is making proposals to overhaul and improve employment insurance for the benefit of our workers. The two parties are telling us that it will cost too much, but at the same time, the government is signing an agreement with a tax haven where, if things were done properly, we could reap some benefits.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I would like to begin by congratulating my colleague on his excellent speech about the Canada-Panama free trade agreement.

I was involved in a parliamentary mission to Colombia with the NDP member here and the Liberal member. We also visited Panama as members of a committee to assess the possibility of free trade.

I am keen to talk about this today because I have been following the progress of this accord for the past few years. I should reiterate that we are against this free trade agreement. My Bloc Québécois colleague made it clear that we are not against all free trade agreements. We support a free trade agreement between Quebec and the European Union. Back in the day, the Quebec sovereignty movement was very supportive of the free trade agreement with the United States and Mexico, the North American Free Trade Agreement.

I want to make it clear that we are not against all free trade agreements. I have noticed that, anytime we discuss a free trade agreement in the House, there is a lot of pressure on those who oppose such agreements, as though they were opposed to economic growth and to making Canada and Quebec more competitive in a free trade environment.

That is not the case. We support free trade agreements when they are fair for workers and the economy and when they comply with environmental standards. We oppose free trade agreements when these basic conditions are not met.

When we were discussing the Canada-Colombia free trade agreement, we told the House about the human tragedies that befall unionized workers in Colombia. We also talked about violations of mine workers' rights and environmental standards. We opposed that bill.

Even though things in Panama are not as bad as they are in Colombia, the Canada-Panama free trade agreement includes a number of unacceptable clauses, so we should not sign it.

First of all, there is Law 30. We tend to sign agreements with right-wing governments. We signed an agreement with Mr. Uribe, whom my colleagues and I met. We signed an agreement with a right-wing government that does not respect workers' rights, particularly their right to demonstrate and unionize to protect their rights. The government lets companies violate environmental standards.

The Conservative government, unfortunately supported by the Liberals, tends to want to sign agreements with such right-wing countries because it says they will generate revenue and improve our competitiveness.

Our imports from Panama are five times greater than our exports to that country. How will this free trade agreement spur our economic growth? I do not believe it will happen. We must immediately disregard this argument.

I do not think that the workers in my riding of Berthier—Maskinongé, or Quebeckers as a whole, will get rich from this Canada-Panama free trade agreement. On the contrary, without respect for labour or environmental rights, these free trade agreements put pressure on our own companies operating in Canada. In the case of mining or the production of all kinds of agricultural products, for example, they create pressure to lower standards.

We must compete against countries that do not respect labour rights. In the case of Panama, it is even said that the right-wing government condones child labour, just like Colombia. Consequently, the agreement does not improve the working conditions of our workers, and it places pressure on companies. They think that in Panama or other countries, they can engage in such activities. This agreement will allow them to set up operations in those countries, where labour is cheaper. The agreement also eliminates tariffs and promotes trade.

Panama is also recognized as a tax haven. We have discussed tax havens on many occasions, and it is important.

A number of companies here receive subsidies. Some are having serious financial problems because of this global competition. Not only do our workers have to work very hard and in very difficult conditions, but they are financing these companies through their tax dollars, to make them a little more competitive globally. Indeed, with free trade and considering the degree of competition from China, we have lost many jobs in the manufacturing sector, in the furniture sector in my riding for example.

So the workers are paying to improve our productivity in the context of globalization and, on top of that, the revenues are going into tax havens. The companies receiving subsidies are earning huge profits. They will go and set up shop in other countries that offer more attractive tax benefits and where it is easier for them to exploit workers. So they simply move and do not pay taxes. They do not redistribute this wealth or the profits they make by paying taxes in Canada and in Quebec.

As an indirect result, this leads to cuts in social programs and education. We are told there is no more money. Our current system is already under tremendous pressure, so cuts have to be made to public services and education, all because the government does not have enough money.

Quebec and Canada should at least be collecting taxes from these companies, which are earning huge profits. We could follow the example of certain other countries, which I will not name, that have chosen to put education, health, and so on first, by making taxes a priority on a national level. That money must come back. If workers are subsidizing businesses, of course the tax dollars should come back to the country.

That is why we do not support this Canada-Panama agreement. On the one hand, it does not respect labour rights—Panama passed its Law 30—and on the other hand, there are also concerns about environmental standards. Lastly, we do not believe that this agreement will do anything to stimulate the economy in Quebec or Canada. Our exports to and imports from Panama are very limited. This will not create more jobs.

We want globalization to be fair and equitable, as defined by Joseph Stiglitz—a former adviser to the President of the United States—in several books, which I invite all members of this House to read. They are not necessarily leftist readings, and I invite all members to read them.

[Alan Tonks, Liberal, York South—Weston, ON]

Mr. Speaker, the member has spent a great deal, and quite rightfully so, on the rights of workers, fair trade and fair labour conditions.

My question is related to the support in the bill for the International Labour Organization's declaration on fundamental principles and rights of work. It talks about child labour, occupational health and safety, compensation for injuries on the job and so on.

We have a commitment to the International Labour Organization's declaration by all parties to this agreement and there is a provision where a panel of last resort would be established to hold a hearing on a particular violation to the agreement.

With all the issues he has mentioned about occupational health and safety, children's rights and so on, is it not better to have an agreement that would invoke a multilateral organization, like the ILO, with a provision that there would be compensation back to those very people who he is concerned about, those who are exploited under present conditions? Would it not be better to have this agreement that would address those kinds of issues in Panama?

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I would like to thank my colleague for this question.

However, I do not necessarily agree with his position, and I will tell you why. In recent months, Panama has been shaken by a wave of anti-labour repression. I say it is recent because in 2010 there have been several deaths, between two and six depending on which source you consult, and about a hundred people injured during a violent demonstration following the June 2010 adoption of Law 30, which some are calling the “sausage law” because it contained such diverse reforms, notably to the labour code and environmental legislation.

When the public protested, the crackdown was severe. And in that context we, as Quebeckers or as Canadians, cannot sign agreements with countries that do not respect working conditions and environmental standards. This issue always comes back to haunt us, putting pressure on our own environmental laws and our own workers.

I know that the Conservative government does not seem to care about respecting the environment—