Bill C-24 (Historical)

Canada–Panama Economic Growth and Prosperity 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 Economic Growth and Prosperity Act

[Annick Papillon, NDP, Québec, QC]

What a comment, Mr. Speaker.

We like to choose our partners. It just does not make sense to me that the Conservative government is signing free trade agreements with just about anyone, as if Canada were up for grabs.

Choosing our economic partners is the right thing to do. When it comes to Panama, I have some serious concerns.

[Lise St-Denis, Liberal, Saint-Maurice—Champlain, QC]

Mr. Speaker, I would like my colleague to explain why supporting free trade is regressive.

[Annick Papillon, NDP, Québec, QC]

Mr. Speaker, I did not say that.

What I said was that the motions moved by the NDP were rejected by two dinosaur parties. The NDP believes that a tax information exchange agreement must be signed to improve Panama's transparency.

If the Americans asked for and got one, why is this not good for Canada? Why are we going to let them walk all over us as though we did not have any rights?

We are in a position to demand such an agreement. That is not regressive, it is forward-thinking.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I am very pleased to ask my colleague a question. Her speech was very interesting and emotional. I always like to hear her speak, especially about a free trade agreement such as this one, and present the NDP's vision, which I believe is the right vision for Canada. What she said is very important.

I would like to hear her talk more about the problem created by a government or a country that has these types of economic relationships with a country that does not comply with certain basic tax rules. What message does this send to the international community?

[Annick Papillon, NDP, Québec, QC]

Mr. Speaker, we have some questions.

What message does that send? It sends a strange message that we respect certain economic partners and not others. When a country is known for tax evasion, we have every reason to be asking questions. Are we making the right choices? Are we making the right decisions in negotiating with this country?

As I said earlier, if the Conservatives were at least open to the idea of signing an initial tax evasion information exchange agreement, the government would prove that it does not agree to any old conditions when doing business with other countries. Right now, we get the impression that it does not care and that all it wants is to sign as many free trade agreements as possible, with any country. It gives the impression that the countries do not matter, as long as we are signing agreements. That is questionable.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank the member for Québec for her speech. I also congratulate her for her work on the Standing Committee on International Trade, where I think she does a fantastic job.

Yesterday in my speech, I quoted an organization that is critical of tax havens. It had a few things to say in its assessment of Panama, which I will share.

Among their findings on Panama, this is what they said about automatic information exchange, “Does the jurisdiction participate fully in Automatic Information Exchange such as the European Savings Tax Directive? Panama does not participate fully in Automatic Information Exchange”.

That is very worrisome. I would ask my colleague to comment on that.

[Annick Papillon, NDP, Québec, QC]

Mr. Speaker, first of all, I thank my distinguished colleague who also sits on the Standing Committee on International Trade. He was able to bring in all of these comments from experts, from people who are familiar with the situation. When tax experts are telling us to be careful with Panama, that is something we need to take seriously.

We would like this government to take the necessary precautions this time with this free trade agreement. I would like this government to listen to us and make an attempt to sign an information agreement so that there is more transparency.

[The Acting Speaker, Bruce Stanton]

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 Churchill, Culture; the hon. member for Charlesbourg—Haute-Saint-Charles, Employment Insurance; the hon. member for Saint-Hyacinthe—Bagot, Employment.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, it is a privilege and an honour to rise in the House this afternoon to speak to this very important Canada-Panama free trade agreement.

I think it is the third time that I have visited Panama as part of the trade committee of which I have been a member for about six and half years. Back in May 2008, we travelled to Panama and had over 60 hours of extensive debate in a variety of committees and in the chamber. I am hoping that later this afternoon we will see logic prevail and this agreement continue through the House and become an act as soon as possible for businesses across Canada so they will have a rules-based and fair-trading system in a Canada-Panama relationship.

I will first take a moment to thank all the members of the House who paid tribute to our veterans. The speeches we heard were very emotional. When we look into the eyes of our veterans, we think of the men and women who are serving today and have served. I think of the veterans in my riding of Kelowna—Lake Country. It is an honour and a humbling experience to be their member of Parliament. It is because of their dedication and sacrifice that we have the best country in the world.

Our government believes in the importance of our veterans. We also want to expand our economy to make Canada an even better place.

We are focusing on a global commerce strategy because we understand the importance of trade. In fact, one in every five jobs is dependent on trade in Canada and it represents nearly 65% of our country's income. Indeed, the importance of international trade to an export-oriented economy like Canada has cannot be overestimated. There is no doubt that trade sustains the incomes and living standards of Canadians and ensures the long-term prosperity of our country. Furthermore, integration with regional and global trading networks is essential.

As a trading nation, Canadian exporters, producers and investors need access to international markets to stay competitive. It is pretty simple: When we trade, we become more competitive. Prices for goods and services go down. wages, salaries and our standard of living go up, and businesses are able to hire more workers. In addition, internationally-oriented firms are better positioned to withstand global downturns.

Our government understands, as most Canadians do, that trade is a kitchen table issue. The Minister of International Trade is with the Prime Minister in India right now working on expanding agreements. He understands the importance of trade to help families put food on the table and make ends meet.

We have heard from my hon. colleague for Yellowhead earlier today and yesterday from the member for London West, the hard-working member for the 10th largest city in Canada, as he likes to inform us, on the importance of how we need to work together to break down these trade barriers so that Canadian businesses can be competitive.

In my own riding of Kelowna—Lake Country, Campion Marine, the largest boat manufacturer in Canada, is continually requesting that we break down barriers so that the excise taxes that are in place in other countries can be eliminated and it can be competitive. That 5% sometimes can be the difference between success and hiring more people or, unfortunately, not being competitive in the marketplace.

As I mentioned, not only does trade support the quality of life for Canadians but it provides hope, jobs and opportunities for our children and grandchildren. It would be difficult for the average Canadian to imagine a world without international trade.

Our Conservative government clearly understands that our standard of living and Canadians' future prosperity will be generated by deepening and broadening our trading relationships. That is why deepening Canada's trading relationship is rapidly growing in markets around the world, such as Panama, which is an important part of this government's pro-trade plan for jobs, growth and long-term prosperity.

Canada's exporters, investors and service providers are calling for these opportunities. Business owners and entrepreneurs want access to global markets. We heard numerous witnesses testify at our trade committee saying that they need to be competitive. Unfortunately, the opposition continues to delay this.

We heard back on October 31, just last month, that the Panama-U.S. agreement had come into place. However, we are still at the gate. Our American colleagues in the south and their businesses are out making deals while we are spinning our wheels.

We cannot stop this. We need to continue to move forward. With the co-operation of the opposition and all members of this House, we can continue to expand, establish and grow our pro-trade plan.

Since 2006, Canada has concluded new trade agreements with nine countries. They include: Colombia; Jordan; Peru; the European trade association member states of Iceland, Liechtenstein, Norway and Switzerland; most recently, Honduras; and, of course, the discussion this afternoon is on Panama.

We are also negotiating with more than 50 countries, including major economies such as the European Union, India and Japan. Last week I was with some of the trade committee members in Japan where we are working on an economic partnership agreement, which is looking very promising, to expand relationships with Japan.

A deal with the European Union would represent the most significant Canadian trade initiative since the North American free trade agreement. Such a deal could potentially boost our bilateral trade with this important partner by 20%. It could also provide a $12 billion annual boost to Canada's economy, which is like a $1,000 increase in the average Canadian family's income or almost 80,000 new jobs.

Canada has also officially joined the trans-Pacific partnership, otherwise known as the TPP. The potential benefits of this initiative are enormous. The TPP market represents more than 658 million people and a combined GDP of over $20 trillion.

By improving access to foreign markets for Canadian businesses, we are supporting the Canadian recovery and creating new jobs for Canadian workers. It is part of our economic action plan. As the Minister of Finance alluded to during question period, the importance of helping small businesses grow with a tax credit is an initiative within budget 2012.

Within our free trade agreement with Panama, we have the government's efforts to strengthen the Canadian economy once again. These are multi-prong approaches to help grow our economy and create jobs. Pursuing bilateral and regional trade agreements is essential to bringing continued prosperity to Canadians.

I understand, and it is unfortunate, the opposition NDP continues to stand in the way of our efforts to open up new markets for our exporters. I would love to see the WTO and the multilateral agreements come to completion as well, but the reality is that they are stalled. In the meantime we continue to work with bilateral agreements and multilateral with the trans-Pacific partnership.

The NDP comes up with all these excuses and says it believes in free and fair trade. We do as well, but we are also doing the trade agreements rather than just talking about them. The fact is that the NDP's anti-trade record is clear. My hon. colleague and seatmate just asked the opposition party if it could please list off the number of trade agreements it has supported over the last 20 years. It was like a deer in the headlights. Unfortunately, there was no response. The NDP members like to talk about it over there, but we are doing it. Going all the way back to NAFTA, they have consistently opposed our efforts to create new opportunities for exporters and investors. On this side of the House, we are tired of hearing all the naysayers. We will continue to move forward in creating jobs.

The anti-trade NDP's special interest backers continue to fearmonger and misrepresent the facts about trade. They believe that the global economy is something Canadian workers should fear. Our government knows that our businesses, our entrepreneurs and our workers can compete with the very best in the world and win. With a rules-based, level playing field, Canadians will be number one.

However, to compete and win, Canadians need to be on a level playing field. With the entry into force of the United States-Panama free trade agreement just last month, Canadian firms are no longer competing on a level playing field. Their American competitors are now able to sell their products in Panama at a lower cost as the result of the duty-free access they enjoy under the US-Panama FTA. This is why the implementation of this trade agreement is an urgent priority for our government. Canadian companies are constantly proving that they are competitive enough to compete and succeed in the global marketplace, but the government has a responsibility to do all it can to help those companies succeed abroad.

Governments do not create jobs. We create the framework and the environment. We minimize regulations. We have to have incentives where necessary, but ultimately it is the private sector that will create the jobs. That is why our government will fight to ensure that businesses have what they need to be successful abroad and ensure that the Canada-Panama free trade agreement is ratified and enters into force as soon as possible.

In closing, we must prevent Canadian firms from losing market share in Panama and defend the competitiveness of our businesses in this fast-growing emerging market. In a short time, we will be voting on Bill C-24 in the House. This is why I ask for the support of all hon. members for the Canada-Panama free trade agreement and the parallel labour co-operation and environment agreements. It is the right thing to do for Canadians.

[Jonathan Tremblay, NDP, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, the member said that, in the House, the NDP stands in the way of all free trade.

I do not understand how amendments stand in the way of a bill, a motion or anything else. We are talking about the role of the House, the very role of parliamentarians.

I would like the member to explain to me what democracy means to him. What is the role of a parliamentarian if not to introduce bills and debate them in order to make them better?

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, I just find it bizarre that the member even asked the question. The question was asked by my seatmate about the last 20 years and there was no response.

There will be dissenting opinions but there has to be something that the member agrees with in the trade agreement, such as the fact that NAFTA has been the best thing for both sides of the border. The U.S. is our biggest ally, 35 out of the 50 states, and Canada's number one trading partner. There is about $1.9 billion a day of trade going across the border. We are looking at expanding because we do not want to depend on one country. About 75% of our trade is done with the U.S. We need to diversify, just like our investment portfolios. That is why we are opening borders across markets.

Why would the opposition not at least say that they see the logic in creating jobs and opening opportunities for Canadians? That is what we are doing.

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

Mr. Speaker, I thank the member for Kelowna—Lake Country for his terrific speech. I would also like to recognize his work on the trade committee. The general public watching this may not know that he is also the person who put in the bill to allow wine to cross provincial borders. That was an important bill for British Columbia. It still has to be put in place by the provinces. We are hoping they will do that soon.

However, on Panama specifically, there is about $111 million of merchandise trade going from Canada to Panama. Therefore, Canadian exporters are exporting about 111 million dollars' worth of goods into Panama and are paying a duty on that. The opposition members talk about trade with Panama as if none already exists. We already have a vibrant trade between Canada and Panama.

How will this help trade that is already in place?

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, I thank my hard-working colleague, the Parliamentary Secretary to the Minister of International Trade. It is a real pleasure to work with him on our trade committee and moving forward.

While representing Kelowna—Lake Country in 1989 when NAFTA came in, there was all this fearmongering that the world was going to come to an end, so we replanted the grapes and we have some international award-winning wines now produced in the Okanagan, through Ontario and across Canada. Therefore, it has been of benefit to all Canadians.

With respect to the Panama trade agreement, the NDP have said that we need to restore our imbalance of trade. How do we do that? By opening up new markets. The fact is that we cannot have it both ways by talking through one side of our mouths and out the other. We want to open up markets. We want to expand on machinery, precious metal opportunities and agriculture.

There are opportunities for people from every province. Whether from British Columbia, the forest sector, in machinery, the agricultural community or financial services, there is something for everybody. There is a job waiting for one of your constituents if you would just stand up and support it.

[The Acting Speaker, Bruce Stanton]

Order, please. I would just remind hon. members to direct their comments through the Chair.

We have time for a short question and response. The hon. member for Saint–Jean.

[Tarik Brahmi, NDP, Saint-Jean, QC]

Mr. Speaker, to respond to the member opposite, I would say that there are many ways to make easy money. Many criminal activities can also make a lot of money.

The member opposite said that, at the end of the day, the most important thing is to do business and to make money. Would he go so far as to say to his constituents that he is prepared to engage in just about any criminal activity to make money?