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 bill is from the 41st Parliament, 1st session, which ended in September 2013.

Sponsor

Ed Fast  Conservative

Status

This bill has received Royal Assent and is now 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-46 (40th Parliament, 3rd session) Canada-Panama Free Trade Act

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-24s:

C-24 (2022) Law Appropriation Act No. 2, 2022-23
C-24 (2021) Law An Act to amend the Employment Insurance Act (additional regular benefits), the Canada Recovery Benefits Act (restriction on eligibility) and another Act in response to COVID-19
C-24 (2016) Law An Act to amend the Salaries Act and to make a consequential amendment to the Financial Administration Act
C-24 (2014) Law Strengthening Canadian Citizenship Act
C-24 (2010) Law First Nations Certainty of Land Title Act
C-24 (2009) Law Canada-Peru Free Trade Agreement Implementation Act

Votes

Nov. 7, 2012 Passed That the Bill be now read a third time and do pass.
Nov. 6, 2012 Passed That, in relation to Bill C-24, 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, not more than two further sitting days shall be allotted to the consideration of the third reading stage of the Bill; and That,15 minutes before the expiry of the time provided for Government Orders on the second day allotted to the consideration of the third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
June 20, 2012 Passed That the Bill be now read a second time and referred to the Standing Committee on International Trade.
June 20, 2012 Passed That this question be now put.
June 7, 2012 Passed That, in relation to Bill C-24, 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, not more than seven further hours shall be allotted to the consideration at second reading stage of the Bill; and that, at the expiry of the seven hours on the consideration of the second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 4:55 p.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Mr. Speaker, I appreciate the opportunity to join in the debate. Even before we started, it was pretty clear what we were going to face from the government across the way, with the help of its supporting choir in the Liberal caucus.

There is not one member of this caucus who does not fully understand and support the notion that we are a trading nation. Our survival depends on our ability to trade. The issue is not whether one believes in or supports trade. If we did not support trade, we would not have much of an economy.

When we are defining the rules of engagement for Canada in trade agreements, the question really is whether they are only going to be about the bottom line. Is that the only thing that matters? If that is the case, then the Conservative approach, supported by the Liberals, is exactly the right approach. In fairness to the Liberals, I acknowledge that once the government gets into this deal, it is going to start working magic somehow and doing things that are not in the agreement.

The Conservatives have been clear: as long as an agreement makes money, it is a good deal. We in the NDP do not agree with that attitude. We think there is more to a trade agreement than just the bottom line. We have said on many occasions that our trade policies should be based on the principles of fair, sustainable and equitable trade.

Where I come from in Hamilton, that sounds very much like Canada. That is who we are, or at least we used to be like that. When there were issues of labour rights or environmental protection, not to mention a host of other issues, it used to be that Canada was always seen as the cavalry. If we were not leading in making improvements and changes, then Canada was one of the first countries to be called upon to add support.

I have said many times that we do not have influence in the world because of the size of our economy or the size of our military or the size of our population. Our geography, both in size and in its proximity to the United States of America, makes it pretty clear that any trade agreement would have to improve our bottom line, or why bother? However, to leave it at that is not Canadian. It is not the Canadian way.

It is no longer the case. Those of us who travel to international forums and so on and run into other parliamentarians around the world are always being asked what happened to Canada. Where did the Canada that was respected go to, the Canada that was prepared to say it is not just about dollars, that there is more to it?

We do give a damn about what happens to workers in other countries that we have trade agreements with. We care equally about the environment, because there is only one, and it is not decided by national boundaries.

In my opinion, we in the NDP have taken the approach that the majority of Canadians want. We did not tell the government not to do any trade agreements. Hon. members across the way ask us to show them one trade agreement that we have ever supported; I ask them to give us one that would actually meet Canadian standards, and then we would gladly support it. We in the New Democratic Party will not just roll over and forget about human rights, labour rights and the environment. That we will not do.

I was not at committee. I am not a member of that committee. However, I do know about some of the presentations that were made, and I would like to read a couple briefly into the record.

The first was from Dr. Teresa Healy, who is a senior researcher in the social and economic policy department at the Canadian Labour Congress. Dr. Healy said:

However, the Canada-Panama agreement does not include specific protection for the right to organize and the right to strike.

If I can speak as an aside, given what is going on in this place right now with the pending legislation, it should not really surprise anyone that given the government's view of its own workers, its view of Panamanian workers would be even lower.

I will continue with the quote:

It provides instead for the “effective” recognition of the right to collective bargaining. On trade union rights then, the agreement is weaker than previous agreements.

On labour issues, fines are small; there are no countervailing duties; there is no provision for abrogation or any other such remedy; and yet again, labour provisions remain in a side agreement rather than in the body of the text.

That is for a purpose, Mr. Speaker.

The problem is, and the point that I am making about the way Canadians view free trade agreements and whether they are free or fair, suggests the government cannot just leave the issue alone. It had to come up with these side agreements.

Although I am not a lawyer, we can be assured that those side agreements do not carry more power than the main agreement. If the government were serious about protecting the rights of Panamanian workers and the right to have a sustainable environment, it would be in the main body.

Dr. Healy goes on to say:

Let me speak a bit about the context of labour rights in Panama. Panama is a country with a population of about 3.4 million people. It is currently recording relatively high growth rates, but it is the second most unequal society in the region: 40% of the population is poor and 27% is extremely poor, and the rate of extreme poverty is particularly acute in indigenous populations.

Unfortunately, that sounds familiar.

Dr. Healy goes on:

Although the country has endured extensive structural adjustment, liberalization, and privatization in recent years, this has not translated into economic benefits for the population.

In response to the international perception that Panamanian labour laws were rigid and a disincentive to foreign investment, President Ricardo Martinelli announced unilateral changes to the labour law in the summer of 2010. The law ended environmental impact studies on projects deemed to be of social intere, it banned mandatory dues collection from workers, it allowed employers to fire striking workers and replace them with strike-breakers, it criminalized street blockades, and it protected police from prosecution.

The severity of this attack on labour rights was met with strikes and demonstrations. The police were exceedingly harsh in their response—and this was just the past summer. At least six people were killed, protesters were seriously injured, and many were blinded by tear gas and police violence. Three hundred trade union leaders were detained before the President withdrew the labour provisions and called for a national dialogue of moderate trade union leaders and business leaders.

That is one quote.

I would like to read a second one if I could. This is from Mr. Todd Tucker, who is research director at Public Citizen's Global Trade Watch. He said:

I have two central points. First, Panama is one of the world's worst tax havens. It is home to an estimated 400,000 corporations, including offshore corporations and multinational subsidiaries. This is almost four times the number of corporations registered in Canada. So Panama is not just any developing country.

Let me elaborate on the first point. What makes Panama a particularly attractive location for tax dodgers and offshore corporations? Well, for decades the Panamanian government has pursued an international tax haven strategy. It offers foreign banks and firms a special offshore licence to conduct business there. Not only are these businesses not taxed, but they're subject to little to no reporting requirements or regulations.

You have to be kidding, Mr. Speaker—one minute? My, time flies when having fun. Let me then get at least--

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5 p.m.

NDP

Robert Chisholm NDP Dartmouth—Cole Harbour, NS

If there's unanimous consent, we can give him a few more, can't we?

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

I give unanimous consent for another hour. They'd never agree.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5 p.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Okay, let me put this on the record before I end my remarks.

Two of the amendments put forth in committee by the member for Burnaby—New Westminster would have protected trade union workers in Panama by offering the right to collective bargaining as well as requiring the Minister of International Trade, as the principal representative of Canada on the joint Canada—Panama commission, to consult on a regular basis with representatives of Canadian labour and trade unions.

There is that consultation again.

The government needs to start asking people what Canadians think before it starts ramming things through as it is doing here.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:05 p.m.

Oshawa Ontario

Conservative

Colin Carrie ConservativeParliamentary Secretary to the Minister of Health

Mr. Speaker, I cannot believe the pompous, arrogant view of the socialists on this issue. They actually think that they understand the people of Panama and what is better for Panama more than the Panamanians themselves.

They are talking about consultation with Canadians. Their attitude is, I think, very much in line with their leader's attitude, which is that the NDP believes that jobs are diseases. We have seen this consistently.

The member was saying that the NDP is not against trade. He should listen to the speeches that have come out of his colleagues' mouths on this issue.

We have been asking consistently if the NDP has ever supported any free trade agreement. At least this member was honest and said that he did not.

However, his colleague before him did talk about a very important agreement, called the Auto Pact, which many of us on this side who represent the automotive sector understand. The Auto Pact meant that for every job Canadians bought, they would be guaranteed to have one in relation to the Americans, so it was one for one. Ever since free trade, in the automotive sector in Canada, we have built over a million more units of automobiles than we consume here and buy in this country.

Would he please explain how a one-for-one deal would--

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:05 p.m.

The Acting Speaker Barry Devolin

Order, please.

The hon. member for Hamilton Centre.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:10 p.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Mr. Speaker, there are a lot of things I could say to that . I would be glad to answer those questions if either the member wants to ask again or somebody else wants to, but with that kind of preamble to the question, I am not responding any further than I just have.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:10 p.m.

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I am very glad that my colleague has had a chance to speak on the subject of this bill, which once again shows just how unbelievably see-no-evil the Conservatives and Liberals are when it comes to trade and international relations.

One hon. member spoke on the subject of China and tried to ensnare us with some pretty fallacious reasoning. Briefly, in reference to China, it owes its economic success to what is essentially dumping, with massive state intervention, and to making loans that end up being gifts to companies, using the banking system.

Since it is that see-no-evil approach that has devastated our industrial fabric and ultimately trapped people in undesirable, low-wage jobs, all so that we can have very low-priced goods—really, cheap goods, I would like to ask my colleague what he thinks about the approach taken by the government and the third party in the House.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:10 p.m.

NDP

David Christopherson NDP Hamilton Centre, ON

Mr. Speaker, the member is asking specifically about China. Of course, our neighbours to the south are now paying the price for that whole China approach. They decided they would do as much of their manufacturing as they possibly could over in China at a fraction of the cost of doing it in the United States. That worked really well for the first few years, until finally so many jobs were gone—and we are not immune from this at all—that they have no more manufacturing sector. Now, when the Americans are trying to rebuild their economy, where is the basis for it?

In terms of the government and what it is willing to do, let us remember that this is a government that is still prepared to send asbestos from Canada to India and other countries. I guarantee members that not one of my constituents would stand by that policy and say it is okay. They would say that it is not okay to poison people around the world in the interest of the almighty dollar. That is not the Canadian way.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:10 p.m.

NDP

Nycole Turmel NDP Hull—Aylmer, QC

Mr. Speaker, I am pleased to speak today to Bill C-24, 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.

I would like to make something clear at the outset. We oppose this bill. In the NDP, we do not want a free trade zone where workers’ rights are sold at discount prices; that is already a serious problem in Panama. Nor do we want a bill without a clear definition of sustainable development and responsible investment.

I would like to remind the House that when the committee considered the predecessor to Bill C-24, Bill C-46, it heard persuasive testimony that the Republic of Panama is a tax haven and that its record on human rights is debatable, to say the least. The situation has not changed since then.

Bill C-24 has a new title but does nothing to address the fundamental shortcomings of its predecessor. It does not incorporate the amendments moved by the member for Burnaby—New Westminster, which would have addressed the most contentious aspects of the agreement. During the clause-by-clause study of Bill C-46, the member for Burnaby—New Westminster proposed 11 amendments that would have made progressive changes to the bill.

The changes proposed by our member concerned the addition of the crucial concepts of sustainable development and responsible investment, the obligation of fiscal transparency and some provisions that would have integrated into the bill the protection of workers' rights, especially the right to collective bargaining. Other amendments proposed by my colleague would have required the Minister of International Trade to consult workers and unions, and to work with experts and human rights organizations in order to conduct analyses of the impact of the trade agreement. All these amendments were rejected by the Conservatives with the support of the Liberals.

There are many reasons why we cannot vote in favour of Bill C-24. First of all, the Canada-Panama agreement, which follows the NAFTA model, puts large corporations before people. That is unacceptable. Agreements like NAFTA were initially designed for trade between highly industrialized, developed countries, but Panama is a developing country. This trade agreement will not help Panama to grow sustainably or improve the living conditions of its people. Instead, the agreement will increase the influence of multinational firms and increase inequalities, and this will happen much faster and more definitively than it did in the case of NAFTA.

Furthermore, this trade agreement does not create a level playing field for investors and workers. Under chapter 11, investors have the right to request compulsory arbitration that they can conduct independently, however a union in Panama would not be allowed to take a case to arbitration. It can file a complaint, which would lead to an investigation followed by a report, but it would be up to the government to seek and obtain remedies.

In addition, the Canada-Panama agreement does not ensure respect for human rights. Also, while Bill C-24 appears to protect the environment on the surface, it does not implement any real measures or mechanisms to resolve disputes. We also have to wonder about the degree of Panama's fiscal transparency. It is important to bear in mind that, despite the Canadian government's requests, Panama refused to sign a tax information exchange agreement.

We believe that Canada's trade policy should be based on the principles of fair, sustainable and equitable trade that builds partnerships with other countries that support the principles of social justice and human rights, without ignoring the need to broaden trade opportunities.

The federal government needs to stop focusing exclusively on NAFTA-type free trade agreements at the expense of other options, and it should explore other ways of increasing trade, in particular by adopting a vigorous trade promotion strategy, one that would spread Canada's brand abroad the way Australia has succeeded in doing.

The NDP firmly believes that there is another, better model of trade relations that could be established with Panama or any other country, a model that would include the following in a global fair trade strategy.

First, it should include a comprehensive and rational impact analysis for all international agreements, to determine whether the trade agreements being negotiated by Canada are advantageous to Canadian families, Canadian workers and Canadian industries. The government should not sign any trade agreement that is likely to lead to a net loss of jobs. Once again, that is unacceptable.

Second, there should be a guarantee that the trade agreements Canada negotiates will strengthen Canada's sovereignty and its freedom to establish its own policies, that they will help make us a force to be reckoned with on the world stage and that they support the principles of a fair multilateral trade system.

Third, there is the fundamental principle according to which all trade agreements must protect and promote human rights by prohibiting the import, export or sale in Canada of any products considered to have been manufactured in sweatshops, by forced labour, or under any other conditions that do not meet basic international standards for labour or human rights.

Fourth, the model includes the fundamental principle according to which all trade agreements should be consistent with sustainable development, as well as the integrity of all ecosystems.

Fifth, every time the government of Canada signs a free trade agreement, the decision to adopt the enabling legislation must be submitted to a mandatory vote on whether or not the terms of the agreement are acceptable.

The current system, which consists of tabling a free trade agreement in the House for a period of 21 sitting days prior to ratification, is not mandatory and does not bind the government to accept a decision of the House.

I am now ready to answer questions.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:20 p.m.

Charleswood—St. James—Assiniboia Manitoba

Conservative

Steven Fletcher ConservativeMinister of State (Transport)

Mr. Speaker, I would like to reiterate that Panama is no longer on the grey list of tax havens as determined by the OECD. It is unfortunate that the NDP keeps repeating the suggestion that Panama has not improved itself in this regard. Panama was removed from the grey list by the OECD in July 2011 after having substantially implemented global tax standards for exchange of information. I wonder if the member would reflect on that.

We on this side of the House still have not heard if the NDP supports any free trade agreement in the history of humankind.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:20 p.m.

NDP

Nycole Turmel NDP Hull—Aylmer, QC

Mr. Speaker, I appreciate the member's question, but I remind him that all countries and all organizations are saying that Panama is still a tax haven and also a country where human rights are not respected and where working conditions are extreme.

When Canada signs a free trade agreement with another country, it should establish requirements to ensure that our rights are not violated and that people working in that country, in this case Panama, do so in decent conditions. That is what we want, and that is something that can be done. It is possible to make demands and to have free trade agreements in which all the parties will be respected.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:20 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, earlier this afternoon the member's colleague made it very clear that the only free trade agreement the NDP would ever support would be a free trade agreement put in by an NDP administration. Otherwise, it does not support free trade agreements.

Having said that, the member made reference to other options. One of the successful demonstrations of how free trade or expanding borders can really help was when former prime minister Jean Chrétien had a team Canada approach, in which he took stakeholders from industries outside the country in an attempt to sign up a wide variety of different types of contracts and so forth, thereby increasing trade. I am wondering if the member would support that sort of initiative that former prime minister Jean Chrétien took.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:20 p.m.

NDP

Nycole Turmel NDP Hull—Aylmer, QC

Mr. Speaker, I remind the hon. member that, in my presentation, I mentioned the amendments that we proposed. However, they were rejected by the Conservatives and the Liberals. Those amendments would have helped us secure free trade agreements with other countries.

The NDP is not opposed to free trade, but it supports basic human rights. It is perfectly natural to make that request.

Canada–Panama Economic Growth and Prosperity ActGovernment Orders

May 28th, 2012 / 5:25 p.m.

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I thank the hon. member for Hull—Aylmer for clearly defining the conditions under which the New Democratic Party might consider supporting a free trade agreement with one or several countries.

I wonder if my colleague could elaborate on the wrong message that Canada might send about labour rights, among other things, if we were to accept a free trade agreement with Panama under the current conditions.