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

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I did talk quite a bit about the Panama agreement and the benefits. I used the province of Manitoba as an example, whether Manitoba Hydro, or potatoes that are produced in the province and how Manitoba would benefit through this agreement. It will not create hundreds of thousands of jobs, but there are jobs there as a result of free trade with Panama. In general, free trade with other nations is what has allowed Canada to do as well as it has as a nation.

I appreciate the member's comments. He is probably more true to form in terms of why the NDP never really votes for or supports free trade agreements. It is because of things which he has listed. However, that same principle could be applied on virtually any agreement that is out there. That is the reason why the NDP does not support free trade agreements, and I respect that.

[Ed Holder, Conservative, London West, ON]

Mr. Speaker, I sit on the international trade committee and it has been my privilege to do that since I was elected some four and a bit years ago. Throughout that time, I am proud to say, our Conservative government passed a number of free trade agreements. I am really proud of that accomplishment so I would like to share some of those with members. We passed the European free trade agreement with Norway, Iceland, Switzerland and Liechtenstein. We passed free trade agreements with Peru, with Colombia and with Panama. Members also know that we passed a free trade agreement with Jordan, with all-party support.

However, the issue is not whether it was Jordan. Sitting in my committee, it has struck me that, while the members of Her Majesty's loyal opposition are not members of that committee, but certainly have opinions on it and that is their entitlement, Her Majesty's loyal opposition has been constantly and consistently negatively criticizing these deals, notwithstanding that we have labour and environment protection.

Do members know what businesses want? They want a rules-based system because we do business with every country in the world, including China.

Because I appreciate that the Liberal Party has been supportive, why does the member think there has been such vehement objection from Her Majesty's loyal opposition to every effective trade deal that we have put in place? I have made the comment about Jordan already.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I suspect it probably has more to do with a historical perspective of the New Democratic Party. I understand that the New Democrats are being more challenged in the last year or so in regard to trying to change some of their party policy. They have a history in which they have been very clear that they do not support free trade agreements and I think they have been challenged to come up with a better approach.

I recognize the number of agreements that the member has talked about and I do believe we need to start making it higher a priority, not only of the smaller economies but also to do more in larger economies. That is where ultimately there is a lot we could do, and I use India as a great example, just given the size and diversity of our ethnic—

[The Deputy Speaker]

Order, please. The hon. member for Laurentides—Labelle is rising on a point of order.

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, I am not a procedural expert, but I believe we are discussing a bill. It seems to me that the other two parties, who have always gotten along well, are now putting the official opposition on trial. I also get the impression that we are wasting our time and going around in circles. We need to get back to today's discussion topic.

[Denis Coderre, Liberal, Bourassa, QC]

Mr. Speaker, the hon. member is being very touchy. The NDP has often voted with the conservatives.

The hon. member has missed a few years of debate since he is new to the House, but I understand his point of view.

When we discuss the ins and outs of a bill, it is normal to also speak about its pros and cons; I think that is good. That being said, I do not believe the hon. member's remarks constitute a point of order.

[The Deputy Speaker]

I agree with the hon. member for Bourassa. This is not a point of order.

The hon. member for Winnipeg North has about 25 seconds.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I recognize how important it is for us to be more aggressive at looking at countries like India. Our greatest asset is our ethnic diversity. The Indo-Canadian community is one of great proportions, so much talent and amazing resources. If we tap into that, we could have additional and more trade and more jobs being created between India and Canada. The same principle would apply for any other country throughout the world, if we tap into the expertise and diversity of our ethnic country.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, before I begin my speech, I do not think the hon. member on the Liberal side will be disappointed. In the coming years we will be working on these deals. There will be many more in the making.

It is a pleasure to rise today to talk about the Canada-Panama free trade agreement. I would like to spend a few minutes talking about the concrete benefits that this trade agreement will provide to Canadian businesses exporting to Panama.

The member for Malpeque has criticized this agreement, saying that trade with Panama is in insignificant and accuses the government of exaggerating its benefits to Canadians. Apparently the $111 million worth of exports that went to Panama last year is insignificant. What that member fails to realize is that every one of those dollars directly supports our economy and Canadian jobs and that is in no way insignificant.

During the 13 years in office, the Liberals signed 3 trade deals, but in less than 6 years this Conservative government has signed agreements with 9 countries and we are negotiating with many more.

This is why I would like to share with the House the impact that this agreement will have on Canadian companies and exporters.

The Canada-Panama free trade agreement is a high-quality, comprehensive agreement that will bring tremendous benefit to our economy. A free trade agreement with Panama will give Canadian exporters, investors and service providers preferential access to a dynamic and fast-growing economy that recorded a GDP growth of 10.6% in 2011.

Once implemented, the agreement will improve market access for Canadian exports in the Panamanian market by lowering trade barriers. The elimination of tariffs will create tremendous opportunities for increased Canadian exports to Panama.

Once the Canada-Panama free trade agreement is in place, Panama will eliminate tariffs on 95% of recent non-agricultural imports from Canada. The remaining tariffs will be phased out over 5 to 15 years. This is significant considering that Canadian exports on non-agricultural products are currently facing tariff peaks of up to 81% of Panama, while the average most favoured nation tariff rate for non-agricultural products stands at 6.2%.

The elimination of the vast majority of tariffs will benefit Canadian workers from coast to coast to coast, including producers of forest products, pharmaceuticals, machinery, automotive, vehicles and parts, information and communication technology and aerospace products.

Let us look at the impact of the agreement on some specific sectors of our economy.

The pulp and paperboard producers of British Columbia will certainly benefit from this agreement. In 2011 Canada exported $5.3 million of pulp and paper board products to Panama. Though many of these products were not subject to custom duties, tariffs ranging from 5% to 15% are levied by Panama on a range of paper products. Obviously market access is not optimal. This agreement will eliminate those tariffs, which will consequently offer new commercial opportunities to Canadian exporters of goods, such as wallpaper, packaging materials, boxes and corrugated cardboard.

Another sector that will see benefits is the pharmaceutical industry, which saw Canadian businesses export $5.1 million of pharmaceutical products to Panama in 2011. According to the terms of this free trade agreement, Panamanian tariffs ranging from 5% to 8% on certain pharmaceutical products will be eliminated.

This trade deal with also benefit Canadian exports of industrial machinery and certain electronics. In 2011 Canada exported $12.8 million worth of machinery and equipment to Panama. These Canadian exporters will benefit from the elimination of Panamanian tariffs ranging from 5% to 15% on a variety of current and potential Canadian machinery exports. If Canadian businesses are able to sell their products in Panama despite these tariffs, imagine how much more successful they will be when their products have gained preferential access.

Another sector that stands to benefit from this agreement is the aerospace industry. Members of Parliament are likely aware that Canada's aerospace sector is highly competitive and has acquired a worldwide reputation for outstanding quality and performance. It is also important to note that it is a highly export-orientated sector. In fact, 80% of this sector's annual revenues are generated through exports. Panama imports some of these products.

In 2011, Canada exported $8.1 million worth of aerospace products, including various ground flying trainers, turbo propellers and airplane and helicopter parts. The implementation of the Canada-Panama free trade agreement would further those export opportunities by eliminating Panama's tariffs on aerospace products that are currently as high as 15%.

It is undeniable that by creating new export opportunities in these sectors, this agreement will help foster economic growth. However, that is not all.

One additional sector that would particularly benefit from this agreement is the Canadian agricultural sector. Canada's agriculture and agri-food sector is innovative and competitive and is becoming increasingly focused on international markets.

In 2011, Canada exported nearly $25 million worth of agriculture and agri-food products to Panama. In agricultural products, Panama currently maintains tariffs reaching peaks as high as 260%. Upon implementation of our trade agreement with Panama, tariffs will also be lifted completely on 78% of Canada's agricultural exports to Panama.

Canada's high quality agriculture and agri-food products, such as beef, pork, frozen potatoes, malt, maple syrup, pulses, canola and sunflower seeds, will benefit from immediate duty-free access to Panama. For example, producers of frozen french fries in P.E.I. and New Brunswick would no longer face Panamanian tariffs of up to 20%. Canada's exporters of frozen french fries would benefit from the immediate elimination of Panama's tariffs on this product. Between 2009-11, Canada exported an annual average of $2.7 million worth of frozen french fries to Panama.

Our pulse and cereal exporters in Saskatchewan will also benefit from immediate tariff elimination with the implementation of the Canada-Panama free trade agreement. Tariffs currently amounting to 10% to 40% respectively will be gradually eliminated with the implementation of the FTA.

Another sector that would benefit from the free trade agreement with Panama is our pork sector. Pork producers of fresh and chilled pork cuts and sausages would gain preferential access. In 2011, Canada exported about $5 million of pork products to Panama.

Canadian beef exporters would also benefit form this agreement. The FTA would result in the immediate elimination of Panamanian tariffs ranging from 25% to 30% on all of Canada's high quality beef cuts within a 200 ton tariff rate quota.

This agreement would provide significant benefits for our Canadians farmers. The Canada-Panama free trade agreement being debated here today would ensure that our Canadian agriculture and agri-food producers and exporters are fully able to compete with other preferential suppliers to Panama.

There are many more examples that I could cite but the fundamental point is that the tariff elimination driven by this agreement would create the potential for increased Canadian exports to Panama, and that is a good thing for Canadians.

Pursuing new trade opportunity is a win-win for Canada and its trading partners. Canada benefits from the jobs, prosperity and consumer benefits that come from increased trade. That is why it should not come as a surprise to the members of this House that Canadian companies are in support of this agreement. Throughout the negotiations, Canadian officials consulted with the private sector and the message was consistent and clear: Canadian companies want this deal. If Canadian companies are telling us that they want their government to implement this agreement, why should we, as elected officials, deny them those benefits?

Canadians value the real and tangible benefits that trade brings to our country and that is why Canadian companies support our government's efforts to forge new trade opportunities around the world.

Closer economic integration with Panama promises to deliver further gains for Canadian exporters, investors, consumers and the economy as a whole. By eliminating tariffs on these goods, Canadian exporters and producers will be able to compete on a level playing field against competitors from other countries, such as the United States or the European Union, that have or will soon have preferential access to Panamanian markets in the near future.

For all those reasons, I ask all hon. members to support the implementation of the Canada-Panama free trade agreement.

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, I would like to ask my colleague why the government defeated the amendment we proposed in committee, which stated that before entering into an agreement with Panama, Canada would require a tax information exchange agreement, like the U.S. did. Indeed, the U.S. required Panama to sign such an exchange agreement before the U.S.-Panama free trade agreement could be signed.

Why will Canada not do the same? Was there no time to think about it, despite all the years we spent working on the agreement?

I would like my colleague to comment on that.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, if I heard the question correctly, the member made reference to the American free trade agreement with Panama. He is correct that there are ongoing discussions and, more than that, Canada and Panama are currently engaged in negotiations for a tax information exchange agreement. However, the Americans have ratified their agreement. His premise that the Americans were in the act of doing this and, therefore, we should too, does not exactly add up since the Americans have already ratified their agreement. We feel it is also imperative and important. Those negotiations will take place, as well as the tax ramifications.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Mr. Speaker, I thank my colleague for all the work he has done on the international trade files working with the minister.

I want to make a comment and get my colleague's opinion. History shows that Canada is and always has been a trading nation simply because we can produce far more goods and services than we could ever consume in this country. Therefore, it has always been in our best interest to be a trading nation and to aggressively seek trade arrangements with other countries around the world. Canada has built itself through trade with other countries.

As time goes on, there is more competition for the trading dollar and, therefore,Canada needs to stay current and to always be seeking ways to improve trade arrangements with other countries. Maybe the member could give us some reinforcement on how this global trade continues to enhance our economy and how important it is to creating jobs and benefiting our economy.

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, I also thank the hon. member for his fine work and for his tutoring as well. I might add that, since I arrived here, the hon. member has been my neighbour and many times we have had discussions.

It is fairly obvious, as he correctly stated, that as a nation we need to trade and we are good at it. The other thing we need that is absolutely essential is a level trading field. I believe that if Canadian companies, manufacturers or those involved in the service sector, whatever area in which they are involved, including farmers with their produce, can trade on a level trading field, we will be able to trade with any nation. Canadians will always rise to the occasion and be able to compete. The end result is that there will be more employment in this country and more products produced. It is the spinoff to the rest of Canadian society that will benefit us all.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, almost 100 per cent of my Conservative colleague's speech was about the financial side of the agreement. He briefly mentioned Canadian workers but did not say anything about the rights of Panamanian workers or measures to protect Panama's environment. But that is what fair trade is all about.

Do the Conservatives not know what fair trade looks like? Or is it that they have no intention of going that route?

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, free trade is fair trade. With respect to the member's concern about labour co-operation, there is a labour co-operation agreement that contains strong and enforceable provisions to protect and promote internationally recognized labour rights. These measures are entrenched in this as well too.

Is it perfect? No, it is not perfect. If we look at what labour laws are in a lot of the developing countries, they have a long way to come. The way to do that is to encourage them, trade with them and, through the labour unions here, show them how by exchanging ideas. Ultimately, when we continue to grow that trade flow and as economies continue to grow, then we can continue to better the lives of those very people who the hon. member is talking about. Those opportunities would be gained as they have opportunities as well to trade with us.