Mr. Speaker, we support sending the bill to committee, because as other members have mentioned, we think there is a lot to be discussed.
When it comes to Bill C-8 in terms of the overall scheme of world trade, it is safe to say that Jordan is not our largest trading partner. That said, it is important that we examine closely what the trade agreement is about and its deficiencies and have some discussion and further study at committee.
In August 2008 the government concluded the negotiations on what it called a comprehensive free trade agreement, and I will speak to that nomenclature later. It said that the agreement would take a look at side agreements on investment, labour co-operation and the environment. We have seen this pattern from the government on other free trade agreements, so called.
On November 17 the government tabled what was then Bill C-57 for the enacting legislation. We have seen this pattern with the government. The government introduces bills and then interrupts its own action. Bill C-57 died on the order paper because of prorogation, but it was reintroduced on March 24 as Bill C-8. If the government had been in a hurry to pass the bill, it probably would not have prorogued the House. I have talked with people on the Jordanian side and I know they were a little frustrated with that.
The agreement is the kind of model we have seen before with the foreign investment, promotion and protection agreement, FIPPA, which was concluded in June 2007. It takes the idea of the FTA and folds it into the body of this agreement, along with the side agreements that I mentioned.
There are four main components to the bill: the free market access in goods and services; the investment protection side agreement; the labour protection side agreement; and the side agreement on the environment.
In terms of trade between the two countries, as has already been mentioned by one of my colleagues, we are talking in the area of tens of millions of dollars, not hundreds of millions of dollars. We are talking about over $60 million in terms of our exports to Jordan and the reverse is roughly $20 million.
Usually these bilateral free trade agreements favour the dominant economy and will ultimately facilitate a degree of predatory access to less powerful domestic economies. When we look at the multilateral trade agreements under the WTO, they would not necessarily allow that.
I want to spend a moment on that point. Much has been said about bilateral versus multilateral. If we are looking at fair trade I think we have to acknowledge this as all parties and all members. People threw up their hands after Doha and said that it was not going to work so we should just have one-off and bilateral agreements. That is the Conservative government's strategy. That essentially says that dominant economies continue to dominate at the expense of the smaller developing economies, which do not have the capacity to protect their market interest and to protect their emerging economies.
Some would say that if we can expand our trade with Jordan and get our goods and services there, then fine. The concern is that Canada's role and reputation in the world matter. Our branding, if you will, matters. This is why we would like this bill to be examined at committee. If it is just seen as our gaining a couple more million dollars in exports, and I already mentioned the numbers and they are not significant, then the question is, to whose benefit is it? If it is just looking out for Canadians and for some niche markets, then we have to ask if it is really worth it.
We on this side of the House have looked at previous trade agreements and said that if it is a matter of just gaining some access to the prices at the producer level, the people who are producing the goods and services not only that we export but that we import, we need to pay close attention to the effects. I will not go over it in great detail, but there is documented evidence of some concerns with respect to the garment industry in Jordan regarding the abuse of workers, particularly from places like Sri Lanka and Bangladesh. They were brought in as guest workers for fairly large companies with contracts with companies like J.C. Penny and Wal-Mart.
The concern is that we might have this labour market access, but when we look at how those companies function on the ground and how labour is treated in this instance--I will talk about the environment in a minute--there are real concerns. Essentially we are tipping our hats and saying that we are not really concerned with how the products are made; we are just concerned about the access to markets and the cost, so we will bring down our tariffs on certain goods on which we agreed to trade and they will do the same and everything is fine.
The government will say that we have a side agreement on labour. Most notably, the agreements on labour and the environment are side agreements; they are not embedded and entrenched. I have to respectfully critique our friend from the Liberal Party who talked about how progressive and important the labour and human rights side agreement in the Colombia free trade agreement is. It could be argued that it is better than what they had, but when we are looking at oversight, strong rules and ensuring there will be more than reporting, we do not see that here.
It is fine to report that there has been human rights or labour abuses, but what really matters to the people who are affected, the guest workers I referenced, is that there be some regulation to ensure their protection so that they can enjoy some basic standards that we all enjoy. It is fine to have side agreements on labour and the environment, but if they are not strongly supported in terms of rules and capacity to follow those rules, they are nothing more than words.
We have seen as an inoculation to any critique of trade agreements that we will always have a side agreement on labour, on the environment as opposed to what we see in the European Union where it is embedded in their rules and laws. Members of the European Union must follow certain labour standards. It is not about having a side agreement, investigating and maybe having a report. We all know what happens to reports around here; sometimes they are read, sometimes not and often the recommendations are never implemented. That is what we are talking about.
If we are serious about trade that is fair, that it is not just predatory where we would gain access to markets that are not necessarily as strong as ours and that we can take “advantage” of that, we have to examine what that means, not just for our benefit, but for the reciprocal benefit of those with whom we trade. That is our concern when it comes to this or any other free trade agreement.
In the bill it is also important to look at clause 26 which deals with section 42.4 and how we identify goods. This is something that has been an issue going back to the GATT. It certainly was a major issue with the WTO negotiations. That is to be careful as to nomenclature.
I say that because the meaning assigned to that expression is under 42.4 of the agreement in the section identical goods and the meaning assigned to that expression is in article 514 of NAFTA and article E-14 of the CCFTA. It goes through all the other agreements with which we have been engaged.
Some have pointed out that if we do not have a clear understanding of nomenclature in our agreements with our trading partners, then we are susceptible to different kinds of abuse. If we do not agree that an apple is an apple, there are ways of changing that nomenclature. It could affect the Canadian economy and the reverse could be the same for Jordan. We could get into dumping and all sorts of other situations.
I do not think enough attention is being paid to these issues to understand that when we get into a free trade agreement, that once the document is signed and the rules established, we need people who will follow the trade agreements. This goes back to our discussion earlier about the importance of having multilateral trade agreements with fair rules and people who can follow them.
We are layering these bilateral agreements one upon the other. We are setting up dispute panels. At the same time, we see a phenomena in DFAIT where we do not increase our capacity in our trade missions overseas. In fact, we do the reverse.
Who is minding the store? How many resources do we have? What would be required to enforce a trade agreement, as small as this one is with Jordan, or for that matter with other countries? How do we ensure that things like nomenclature are monitored, that there are no abuses in terms of labour practices and environmental practices?
It is fair to say that anyone can report an abuse of a labour practice or environmental standards. However, when these things are actually implemented, it is not like someone can pick up the phone and express concern about a labour standard or an environmental practice. It requires people on the ground to monitor these things and that means Canadian resources on the ground.
Many will say that we have to do the best with what we have. Doha broke down. Multilateralism for now is dead. Therefore, we can only do bilateral agreements. We must understand what that means. It is not just about signing agreements with Lichtenstein, Iceland and Jordan. It is about establishing fair rules and oversight. If we are to engage in this strategy, as the government is with bilateral agreements, then we need to have the necessary capacity to ensure that these agreements are followed and that there will be proper oversight.
These things need to be brought up at committee. We need to hear from witnesses on some of the concerns around labour practices and other concerns when it comes to trade with Jordan. If we are to engage in trade with Jordan, we need to ask what the real advantage will be for Canada. Some of the products have already been enumerated by some other members and I will not repeat them. Let us see how much capacity we have in terms of trade with Jordan that will make a difference.
Where does this agreement fit in? The government does not seem to look at how these trade agreements will fit in with our industrial policy. It is fine to sign off on these 50 agreements and say they are good because we can access more markets, but what will it mean to everyday people in Canada? That is important. Where is this going? How will this strategy benefit Canadians in terms of our economy and our economic development?
I want to point to some other issues around Jordan and the Middle East. I refer to the fact that we seem to have some problems engaging other countries in the Middle East. We need to pay as much attention to them as we have to Jordan in terms of this free trade agreement. I am going to be very specific.
Right now the United Arab Emirates has some important issues that Canada is ignoring. I think of access it is trying to gain in terms of flights to Canada to increase mobility between the two countries. Accessing our post-secondary education system is a major issue for it. We have not paid much attention to that country. I do not have to tell members of the House about the important relationship we have with it, considering it is key in terms of our mission in Afghanistan and the flow of goods and services through that country.
We need to understand that it is more than just than these trade agreements. It is about diplomatic relations. I will paraphrase Joe Clark, the former Conservative prime minister, when he came to our committee. He said that one of the things the government and Parliament should understand was trade agreements did not buy access to the world. He said that they would give some access to a market, but more important, we needed to invest in diplomacy and in our foreign affairs. The government has not done that.
It is fine to have small trade agreements with certain countries, but he gave a very detailed overview in his intervention at the foreign affairs committee about two years ago. Joe Clark made the argument about the free trade agreements we signed onto versus investing in diplomacy. He said that it was more important to invest in diplomacy and in our embassies and our services within those embassies than it was to only look at trade agreements.
The reason is this. When we look at what Canada's role in the world is, it is not about providing products to everyone in the world. We are just not big enough. We provide our fair share of raw materials. We need to do a better job of that by doing value added and enhancing our markets. However, what we did do well in the past was we were invaluable in terms of diplomacy so countries would ask us to be involved. That was more of a benefit to our economy as well as to our reputation than signing trade agreements.
The opportunity cost here is that if we only have trade agreements bilaterally with certain countries and ignore our diplomatic relations and take away our Canadian advantage of being an invaluable partner for either peace and security issues, environmental standards, or looking at how we can enhance global relations, then we have lost in that deal. We would be better to enhance our presence overseas and our missions overseas. We would be wiser to ensure that the relationships we have in Asia, Africa and the Middle East and in Latin America will be sustained. The problem for many of us is the government seems to think that we should do trade at the cost of diplomacy and development. We lose in that equation.
As I said at the beginning of my speech, many will say that free trade with Jordan is no big thing. We need to take a look at some of the issues I mentioned, but we also need to take a wider look at multilateralism, diplomacy, development and not just a one-dimensional kind of approach and these kinds of free trade agreements.