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

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I am pleased to again enter into the discussion on Bill C-24.

Bill C-24 would implement the free trade agreement and the related agreements on the environment and labour co-operation entered into between Canada and the Republic of Panama, done in Ottawa on May 13 and 14, 2010.

We have said previously that the Liberal Party is supportive of this legislation and we remain so. However, we maintain the concerns we raised previously with respect to the fact that as the government is pursuing new agreements, it has been neglecting our relationship with our largest trading partner, the United States.

Pursuing new trade agreements is certainly worthy of support. However, we have to keep these agreements in context. I have raised questions in this House several times, that while the minister is travelling all over the world talking about trade here and trade there, the government is ignoring our most important trading partner.

The government is also ignoring another trading partner, and that is Korea. Hog producers and beef producers have been in my office over the last few weeks. They are very concerned about the South Korean market. We have an established market of over $1 billion of trade on beef and pork. It is a growing market. However, now that the United States has moved ahead and signed a trade agreement with South Korea, the tariffs will be coming down for the Americans. We are their most important competitor, and we will be left uncompetitive in that marketplace. We will in fact lose that market rapidly over time.

What seems to be the problem with the government in so many areas is that rather than being about results, it is very much about spin. It wants to be able to say that it has signed nine trade agreements, or has had 15 or 20 or 40 discussions, when in reality it is the results that matter. Again I emphasize that we are very concerned about the fact that the government is ignoring some of our largest trading partners while it talks and signs agreements with others around the world. The new agreement does not add up to the losses we are facing as a result of the government not emphasizing the agreements we already have in place.

While the Conservatives have proclaimed the promotion of trade, it has been under their watch that the mismanagement of the file in terms of trading relationships has resulted in trade deficits for the first time in over 30 years. Let me emphasize that. We hear the minister talk about all the great things the government is doing. Last year for the first time in 30 years, Canada had its first merchandise trade deficit. That tells me the results are far different from the spin we are getting from the Minister of International Trade.

With respect to the United States, we have seen the government surprised by increased United States protectionist actions. It was surprised by the initial buy American provisions in the 2008 United States stimulus package. It was again surprised in 2011 when the new buy American provisions were returned by the Obama administration. Those buy American provisions in fact will affect Canadian jobs and will hurt both the U.S. and Canadian economies.

The Conservative administration was also surprised by the announcement by the United States Federal Maritime Commission at the instigation of United States senators of an investigation into U.S.-bound container traffic being diverted to Canadian ports and whether to impose fees or tariffs as a result of this diverted trade. This would be another potential fee placed on Canada.

The government was also surprised when the United States government, in signing the U.S.-Colombia free trade agreement, withdrew the exemption Canada had of $5.50 per individual in terms of sea and air entry into the United States.

I was in Washington, D.C. over the last few days where I met with senators and congressmen about a number of issues between our two countries. They too seemed to be caught by surprise in terms of that clause in the U.S.-Colombia trade agreement that took away Canada's exemption. After my visit to the United States, I am now more concerned by the fact that we had a lot of allies in the U.S. Senate and House of Representatives but the government failed on its watch to pay attention to that serious issue which puts another fee on Canada.

The importance of the U.S.-Canada relationship is in the value of trade, and that exceeds about $1.4 billion to $1.6 billion a day. The government is very much ignoring our most important trading partner.

I want to emphasize again in the House that while the government is pursuing Panama, Jordan, and others, it is ignoring our most important trading markets. I have to outline this point with the minister.

Will the minister get on the ball and get on a trading relationship with South Korea? We need a free trade agreement signed with South Korea, or we are going to be displaced as a result of being uncompetitive with the United States which has signed a trade agreement. I cannot emphasize that enough. That is worth $1 billion in trade.

In spite of the global economic downturn, Panama's GDP grew to 10.7% in 2008, one of the highest in the Americas. In 2010, Panama's GDP growth stood at 7.5%. Panama is Canada's largest export market in Central America.

Panama is an important market especially for folks in my province of Prince Edward Island. We export fish, shellfish, french fried potatoes and other agricultural products. It is very important to producers in Prince Edward Island. We need this agreement.

The bilateral trading relationship has grown 61% since 2009, reaching $213 million in bilateral trade in 2010.

As I said, the primary Canadian merchandise exports to Panama include machinery, vehicle electronic equipment, pharmaceutical equipment, pulses, frozen potato products and other agricultural products, and shellfish. Canadian service exports include financial services, engineering, information and communications technology. These are also important. We import precious stones from Panama and a number of fruits and nuts, fish and seafood products. The relationship is important.

I do have to point out what remains a concern to us within the Liberal Party. The tax haven issue with Panama has not been addressed. The President of France talked about that at the G20. The tax haven issues that a number of countries have around the world have to be addressed. In particular, the Canadian government has to work harder with Panama to address that issue.

The bottom line is that we support this trade agreement. We especially want to see the labour, environment and tax issues addressed in it though.

The House resumed from February 29, consideration of the motion that 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, be read the second time and referred to a committee, and of the motion that this question be now put.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I do want to express my amusement, I guess is the best word, at the opposition House leader's great interest in the democratic process in the Senate. Of course, his party's position is that body should be abolished. The one benefit is that if he had his way, Bill C-10 would already be law today. That is something we hope will happen very soon.

Let me begin by thanking the hon. member for asking for the business of the House in the upcoming week. I am happy to provide it to you, Mr. Speaker, to him and, indeed, to all Canadians. This afternoon we will continue debate on Bill C-28, Financial Literacy Leader Act.

Continuing our week focused on jobs and economic growth, because that is what this week is about, tomorrow morning we will resume debate on Bill C-28, the financial literacy leader act, and in the afternoon we will debate the Canada-Panama economic growth and prosperity act, Bill C-24. That bill implements a free trade agreement that was signed almost two years ago, which will create new jobs for Canadians by opening new markets for Canadian exporters and workers. The bill was studied and passed by the international trade committee in a previous Parliament and has been debated on numerous days at second reading in this Parliament.

Monday will be the fifth allotted day, when I understand we will debate an NDP motion. I know members of the House would appreciate it if the opposition House leader could tell us what motion we will be debating at that time. I know I am certainly interested.

On Tuesday afternoon, we will begin debating the protecting Canada's immigration system act, Bill C-31. I also understand that the safe streets and communities act, Bill C-10, will be returning from the other place very soon. We will consider Senate amendments on Tuesday morning and Wednesday. The amendments relate to the civil remedies for terrorism portions of the act, which I understand enjoy support from all parties. Thus I would invite the opposition to agree to move quickly on those items that we all support, so that we can get those provisions into law as soon as possible.

As the House knows, the government committed to passing this bill within 100 sitting days, and we will keep that commitment. Thursday, March 8, will be the sixth allotted day of this supply period, which will also go the NDP, I understand.

Canada-Panama Economic Growth and Prosperity Act

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

Mr. Speaker, I would like to start by talking about the NDP approach to fair trade issues. As members know, we have come forward in the House for years and offered some of the best existing practices on trading issues around the world. We have come into the House and talked about the binding social obligations of Mercosur, for example, by social democratic countries in South America that have come together and put in place binding social obligations to reduce poverty. When we have raised that in the House, the Conservatives, not wanting to have anything to do with any sort of progressive fair trade agreement, have always said no. We have brought forward the progressive and binding human rights components that the European Union signed with countries outside of the European Union, again a product of a strong social democratic practice and principles, to make sure that those trade agreements actually include binding human rights obligations. The Conservatives and the Liberals have said they do not want any part of that.

We have pointed to some of the social democratic innovations. Australia, for example, has said that it would not put in place investor-state provisions because these override democratically elected governments. In an almost Flintstonian approach to trade taking us back centuries, the Conservative government continues to say, “Even though we're the only country in the world with these right wing investor-state provisions, we're going to keep them, Fred Flintstone. We're just going to keep pushing these bad components, primitive components, that every other country has moved away from, including the United States”. After the United States signed the NAFTA, it moved away from the investor-state provisions which these Conservatives hold so dear. We have offered that innovation and the Conservatives again have consistently said no.

We have offered all of these progressive fair trade approaches. These are the kind of trade agreements that are actually catching fire around the world, but every single time the Conservatives have said no. They have never seen a progressive fair trade agreement they cannot say no to every single time.

We have offered examples like the auto pact that we strongly supported in the past, a pact that actually helped to sustain and build up our automotive sector. The Conservatives say no to that type of progressive fair trade agreement. The Conservatives have never seen a fair trade agreement they like. They have never wanted to move forward with any type of progressive legislation on trade. They continue with their Fred Flintstone approach to trade with an antiquated, 30-year old infrastructure and template coming out DFAIT.

Conservative members might say that although it is antiquated and is Fred Flintstonian, it creates jobs. Let us look at the facts. Let us look at the impact of this type of Conservative approach to trade over the last few years. I know members are aware that we have the worst, the most horrendous, merchandise deficit in our history in this country. That means we are not exporting manufactured goods any more but importing them. We are creating jobs in other countries of course, but the result in this country has been a hemorrhaging of manufacturing jobs, good family-sustaining jobs, which used to sustain families right across this country. Nearly half a million manufacturing jobs are gone because of the government.

The government might say that it is exporting natural resources and, of course, the jobs go with them hand over fist. However, if we look at the overall balance, the current account balance of Canada's balance of payments, it is at its most horrendous deficit in Canadian history too. Even there we see a massive failure by this government to actually manage trading relationships in such a way that we would actually create jobs in Canada.

We have biggest most horrendous merchandise deficit and the biggest and most horrendous current account deficit in our balance of payments. Those facts speaks for themselves. There is not a single Conservative who is able to stand up and address that. It is a massive failure. The Conservatives just have to wave the white towel and say they have failed. I can see some of them smiling and nodding: they understand they have failed on this issue.

What has been the result? Of course, we have seen that hemorrhaging of manufacturing jobs. What has replaced them? I will come back to the Conservatives' bogus job figures in a moment, but when we actually look at what they have done to the economy, they have lost jobs, and the jobs they have created have been part time and temporary. Most tragically, the jobs the government has managed to create pay on average $10,000 a year less than the jobs they have lost.

After six years in power, we have seen the Conservatives attempt to bring forward a very misguided and antiquated template dating back to another century and there has been a lack of follow-up. From that they have managed to create an economy where we are throwing the good jobs away and, at best, getting part-time and temporary jobs paying $10,000 a year less.

What has the impact been for the average Canadian family?

I know that members and the people listening to this debate are aware that the average Canadian family over the last year has lost about 2% in real wages. Real wages have been tumbling. The decline has been serious and has had an impact not only on families but also on small- and medium-size businesses across communities and, as a result, on whole regions and provinces. It has an impact right across this country. We are looking at a 2% real wage fall for our middle class and hard pressed, poor Canadian families. We are seeing Canadians living through a substantial problem.

Tragically, the result is that Canadian families across this country from coast to coast to coast are now living with a record level of debt like we have never seen before in Canadian history. This level of debt has a stupefyingly significant impact on the average Canadian family. Families are already earning less and less because of some deliberate economic and trade policies of the government, and because of that level of debt, families are being more and more constrained.

These are the economic results we have to look at when we talk about what the government has done after six years in power. The results are the worst merchandise deficit in our history, the worst current account deficit in our balance of payments in our nation's history, and the worst level of indebtedness in our nation's history. That is Conservative economics.

Now the Conservatives will say they have created some jobs. Their jobs poor quality, part-time jobs, but they say they have created those jobs nonetheless. However, the reality according Statistics Canada data is that since May 2008, the government has actually created a quarter of a million jobs short of the level required just to maintain the same percentage of the labour force employed. Some 450,000 Canadians have come onto the labour market since May 2008, and only 200,000 of them have found work. That was even before we entered the catastrophic last six months under the current government.

We have seen job closures, factory closures. We have seen White Birch Paper, Electro Motive Diesel, and a whole litany of closed manufacturing facilities. At the same time, we have seen 60,000 full-time jobs evaporate, that is, 60,000 families losing a breadwinner. That is the record of the Conservative government.

The Conservatives say that their trade policy accentuates job creation, that somehow, magically, by signing these trade agreements, it will lead to job creation. However, in virtually every case where Canada has signed a trade agreement under the Conservatives, the exports to those markets have fallen after the agreements were signed.

There is only one exception and that is Mexico. I will not return to what my colleague from Surrey North mentioned, the catastrophic meltdown in rural Mexico that has led to ongoing drug wars that have killed tens of thousands of people. That in part has been due to the economic policies of the Mexican government, as well as the removal of the tariffs that has destroyed much of rural agriculture in Mexico.

What we see in every case is a fall in exports to those markets, in real terms, which Conservatives do not use when they bring out the figures. Then, when they have put together such a catastrophic list of trade deals, where in virtually every case our exports to those markets goes down, what are the Conservatives doing wrong, aside from the Fred Flintstonian approach to trade templates from 30 years ago, stuff that has been disregarded by most of the progressive world? The other aspect is Conservatives simply do not walk the talk on providing support for export industries.

On research and development, we have the worst level of public investment among industrialized countries, the worst level of patent development among industrialized countries, the second worst level of Ph.D. development among industrialized countries. The reality is, even before we get to the research and manufacturing capacity, when we look at what Conservatives put out there in exports, it is tiny. It is pennies compared to what our major competitors are putting out to support product promotion and product support in those export markets. Australia spends half a billion dollars. Canada spends $13 million.

I have met trade commissioners, as I have travelled around the world with the trade committee and other committees, who do not even have the budget to buy a cup of coffee for a potential client of Canadian goods and services. The Conservatives have simply not walked the talk. They have starved that needed support for export industries for product promotion.

This brings us to Panama. The Conservatives failed on the trade strategy. They have not walked the talk on actually providing support for our export industries. For the third time they bring forward a bill, Bill C-24, on an agreement with Panama.

What is the problem with an agreement with Panama? We talked about this earlier. The state department in the United States has very clearly declared that Panama is one of the worst countries in the world for the money laundering that comes from illegal drug activity.

The government does not think about the impacts. It never does. There is never an in-depth study of the impact of signing a trade agreement with any country, which is part of the Fred Flintstonian approach of the Conservative government on trade issues. It does not do an evaluation before it enters into a trade agreement and it does not do an evaluation afterward. In fact, those figures I cited, in real terms, about export development did not even come from DFAIT. We had to get those figures ourselves. Nobody on the Conservative side of the House is even monitoring what happens after a trade agreement is signed.

What we have is an agreement that the government has signed, in complete denial of what is a fundamental problem with Panama, and that is the fact that Panama does drug money laundering on a significant and ongoing massive scale. It has been cited by a number of organizations, the IRS in the United States, the U.S. State Department and the OECD, all of which have said that this is a tax haven for drug money, for illegal drug gangs in Colombia and Mexico.

The government, so panicked by its lack of economic performance, throws this agreement onto the floor of the House and does not even have the decency to do its due diligence before it gives it to members of Parliament to evaluate.

On this side of the House, the NDP caucus does thorough evaluations. We read through the bills. We take the government at its word and read every word to find out what the actual impacts are. Since the government does not do any due diligence and has no evaluation of what the impacts of the agreement are, we have to surmise and look at the impacts of the agreement.

Very clearly, from the outset when the government put forward this idea, we said that there was no way we should sign a trade agreement with Panama unless there was a solid and binding tax information exchange agreement in place. In a very real sense, we should not be importing from Panama the drug money, money laundering that takes place in Panamanian financial institutions. We said that very clearly when the government talked about negotiating an agreement. We said from the very outset that we needed a tax information exchange agreement.

To its credit, the government sent a letter to the Panamanian government. In the letter, the government said that it thought the Panamanians should try to close out the drug money, money laundering. It said that tentatively. The member for Prince Albert said earlier that the Conservatives did not want to lecture to drug gangs. I am sorry but on this side of the House we believe that when there are drug gangs involved, we should be cracking down on them. We should be more than lecturing, but the Conservatives may disagree.

We are talking about pretty fundamental economic policy but, more important, it is a reflection of Canadian values. It is also this idea which, on our side of the House, is something we take very seriously. We believe in walking the talk. When we talk about economic development, we believe in putting in place the mechanisms so Canada can grow and prosper economically. When we talk about fighting drug gangs, we do not say that we will try to fight the drug gangs in Canada, but that it is okay if they are in Panama laundering money and then sign a trade agreement that has no provisions to stop that money laundering in Panama from coming to Canada. We believe in walking the talk and being consistent.

We said that the tax information exchange agreement needed to be signed. We made that very clear from the beginning.

We heard testimony from a wide variety of people who came to the trade committee to talk about the trade agreement. It is important for members of the House, particularly on the Conservative side, to understand what the witnesses said about this agreement and the advisability of signing an agreement without any mechanisms to prevent money laundering.

Mr. Todd Tucker, who is the research director for Public Citizen's Global Trade Watch said:

—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....According to the OECD, the Panamanian government has little to no legal authority to ascertain key information about these offshore corporations, such as their ownership. Panama's financial secrecy practices also make it a major site for money laundering from places throughout the world. According to the U.S. State Department, major Colombian and Mexican drug cartels, as well as Colombian illegal armed groups, use Panama for drug trafficking and money laundering purposes. The funds generated from illegal activity are susceptible to being laundered through Panamanian banks, real estate developments, and more.

As well, Dr. Teresa Healy, the senior researcher from the social and economic policy department at the Canadian Labour Congress, talked about the context of labour rights currently in Panama. She said:

In response to the international perception that Panamanian labour laws were rigid and a disincentive to foreign investment...[there were] unilateral changes to labour law...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.

She was talking in 2010. She went on to say, “At least six people were killed, protesters were seriously injured, and many were blinded by tear gas and police violence”.

These are the kinds of issues that were brought forward to the trade committee, concerns that were raised about Bill C-24.

On the other side of the House, Conservatives say that there are export markets to be had. However, the reality is when we look at the practices and we look at the record of the government, in every case, save one and that case over the past few years was one that was not signed by the Conservative government, following the signing of those agreements, we have seen a decline in our export markets.

We are facing a serious situation: a decline in manufacturing capacity, a decline in jobs, a reduction in real income and a profound level of indebtedness in our country that we have never seen before. We need a fresh, new approach on trade, not a Fred Flintstonian approach from 30 years ago that has clearly failed. A new NDP approach on trade could really bring jobs to Canada and could bring a new prosperity to our country.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I am pleased to rise here in the House today to talk about the Canada-Panama economic growth and prosperity act.

Our government recognizes that trade and investment are the cornerstone of our economic success as a nation. In Canada, 60% of our GDP and one in five jobs depend on trade. While our economy has outperformed much of the world in recent years, we cannot take our success for granted. Hard-working Canadians are counting on us to continue to expand markets and open doors for our businesses to succeed around the world. That is what our pro-trade plan is all about. It is the most ambitious plan of its kind in Canada's history.

The Canada-Panama economic growth and prosperity act being debated here today is yet another step this government has taken to help Canadians compete and succeed in the global economy. Canadian businesses have long been asking for closer ties with Panama. This government will deliver.

Panama is an innovative, dynamic and rapidly growing economy that offers huge commercial opportunities for Canadian firms. According to a recent report published by the CAPA Centre for Aviation, Panama is the fastest growing economy in all of Latin America. It is expected to be the fastest growing economy in Latin America for the next five years. In 2010, Panama's real gross domestic product growth was 7.5%. It is expected to expand at an equivalent rate in 2011.

This growth, driven by the expansion of the Panama Canal and other major infrastructure projects, represents tremendous opportunities for Canadian businesses. It is important that Canadian firms establish an early presence in this emerging market and build solid relationships that will provide them with a competitive edge. However, the remarkable economic phenomenon that is taking place in Panama is not the only reason this government seeks to forge closer economic ties with this regional partner. Panama holds a unique and influential position in the global trading system, thanks to the Panama Canal. Panama represents an entry point for the broader region, thereby enabling access to neighbouring markets. Canada and Panama enjoy positive and expanding relations built on shared values. Our policies and objectives in the region are well aligned. Panama is a like-minded partner that has demonstrated its commitment to aligning its laws and regulations to international standards.

For example, Panama has made significant strides with respect to transparency in the area of taxation. In recognition of these improvements, in June 2011, the OECD formally placed Panama on its list of jurisdictions that have substantially implemented the international standards for exchange of tax information. This is an important milestone. It demonstrates Panama's progress in fulfilling its commitments to combat international tax evasion.

The Canada-Panama economic growth and prosperity act would mark a new chapter in the Canada-Panama relationship. We have negotiated a high quality and comprehensive free trade agreement. It covers everything from market access for goods to cross-border trade in services, to investment and government procurement. This agreement would help Canadian businesses and workers compete and win in the Panamanian marketplace. It would help forge an even stronger bond between our nations in the years ahead.

The Canada-Panama economic growth and prosperity act would create new opportunities for Canadian businesses and producers by removing the major tariff barriers that Canadian goods face when entering the Panamanian market. Currently, Panama maintains an average most favoured nation applied tariff on non-agricultural goods of 6.2%, with tariffs of 10% or more on a number of products of export interest to Canada.

Panama has agreed that it would eliminate the tariff on 89% of non-agricultural imports from Canada. The remaining tariffs would be phased out over the next 5 to 15 years. This would be a significant reduction in trade barriers expected to benefit a wide range of sectors across the Canadian economy, including fish and seafood products, paper products, vehicles and parts, construction materials and equipment, and industrial and electrical machinery.

Canadian agricultural exports would also benefit from this agreement. Currently, Panamian tariffs of Canada's main agricultural exports to Panama, which are pork, pulses and Christmas trees, range from 0% to 70%. Once this agreement enters into force, 89% of Canada's agricultural exports would receive immediate duty-free access. The Panamanians would be buying their Christmas trees without tariffs. That is great news for the Christmas tree sector, along with the pork sector and the beef sector.

Products such as beef and pork, frozen potatoes and pulses would receive immediate duty-free access. Other Canadian agriculture exports would see tariff reductions and eliminations over 5 to 15 years.

That is not all. The Canadian services sectors would also benefit from the Canada-Panama economic growth and prosperity act. This agreement would provide Canadian service providers with a secure, predictable, transparent and rules-based environment which would facilitate access to Panama's $20.6 billion services market. Panama is a services-oriented economy offering opportunities for Canadian service providers, in particular for financial, engineering, mining and petroleum extractive services, construction, capital projects and environmental services.

On investment, the free trade agreement would grant investors access to transparent, binding and impartial dispute settlement through international arbitration. The strong obligations in this agreement would ensure the free transfer of capital related to investment, protection against expropriation without adequate and prompt compensation, and non-discriminatory treatment of Canadian investments. Panama is an established destination for Canadian direct investment abroad, particularly in the banking, financial services, construction and mining sectors. This agreement would serve to further promote this bilateral investment flow.

Among the key priorities for deepening our trade relationship with Panama are the remarkable procurement opportunities that exist in the Panamanian market.

In addition to the ongoing $5.2 billion Panama Canal expansion project, the Government of Panama has numerous infrastructure projects either under consideration or already in progress to build and improve roads, hospitals, social housing, bridges and airports. They are part of the $13.6 billion strategic investment plan from 2010-14. Among these projects is the Panamanian government's plan to construct a metro system in Panama City at an estimated cost of $1.5 billion.

The opportunities are out there and more are on the way. Under this agreement, Canadians suppliers would be granted non-discriminatory access to a broad range of government procurement opportunities including those under the responsibility of the Panama Canal Authority. Canadian firms possess the expertise in the areas that Panama is looking to develop. This agreement would enable them to bid competitively in pursuit of such opportunities.

However, it is important to note that many of these projects are already under way. If we delay implementing this agreement, Canadian companies risk losing out on major procurement contracts because they would not be able to take advantage of the government procurement provisions contained in the FTA. It is therefore critical that the Canada-Panama economic growth and prosperity act be implemented without delay.

I know some hon. members have raised concerns about the potential impact of pro-trade agreements on workers. The benefits of this FTA are clear. Canada needs more growth and more jobs. But let me assure the House, this government believes that growth and jobs cannot come at the expense of workers' rights or the environment. That is why the Canada-Panama economic growth and prosperity act would also be accompanied by an important side agreement that demonstrates our joint commitment to corporate social responsibility, the rights of workers and preserving the natural environment.

In parallel to this free trade agreement, the government has signed robust environment and labour agreements with Panama. I know that some members of Parliament here today think that Bill C-24 should be debated at length and ask why this government is in such a rush to pass this bill. The Canada-Panama economic growth and prosperity act was concluded and signed nearly two years ago. We have already lost tremendous opportunities by waiting to implement this agreement.

A bill to implement the Canada-Panama FTA was introduced in the 40th Parliament. The legislation was debated for 15 days and almost 30 hours. The Standing Committee on International Trade thoroughly studied this trade agreement in the previous Parliament and reported the bill back to the House without amendments.

At this point, I sincerely hope the hon. members of the House will work together to complete the debate at second reading on an expedited basis. We cannot continue to lose tremendous opportunities by waiting to implement this agreement. It is time to get the bill through the House.

It is important to note that Canada is not alone in its efforts to forge a closer economic relationship with this economy. Other countries are taking notice of Panama's potential and they are looking to gain first-mover advantage into this strong and growing market.

We in Canada cannot afford to sit on the sidelines while other countries vigorously pursue trade deals to secure market access for their products and services in Panama. Panama has an active and ambitious pro-trade agenda that includes FTA negotiations with a range of partners. Panama's FTA negotiations with the European Union were conducted in May 2010. This free trade agreement is expected to be signed later this spring and could possibly enter into force by the end of 2012.

Even more important to Canada, however, our main competitor in the Panamanian market, the United States, has completed an FTA with Panama. The United States Congress has already approved this agreement. The United States-Panama trade promotion agreement could very well come into force this year. If the House does not act swiftly and decisively, Canadian companies will be at a significant competitive disadvantage. Canadian firms will lose market share in Panama if U.S. firms benefit from preferential access to the Panamanian market while Canadian products continue to face duties.

We must act now to ensure Canadian companies compete on an even playing field and remain competitive in the Panamanian market. Closer economic ties with Panama promise to deliver further gains for Canadian exporters, investors, consumers and the economy as a whole. The benefits of a pro-trade agreement with Panama are clear. An agreement with Panama would support more Canadian jobs by enhancing our ability to export more goods and services into this market.

One of the associations I work with is ParlAmericas. I had the chance to go to Panama to speak with the diputados there about this agreement and what it means to them. This past summer I spent some personal time there with one diputado, who took me around to some of the high-risk communities that are in very poor suburbs in Panama City. He showed me just how much they rely on trade. They view trade as the ticket for the four-, five- and six-year-olds, who came running up to us looking for baseball bats or toys. Their parents and families want good jobs. They say they would have opportunities if they were allowed to compete in the world. They asked me why Canada will not sign this free trade agreement and what is taking so long.

The people of Panama understand trade. They are not scared of it. They understand that trade would bring benefits to their country just as it would to our country. That is why this is such a fair trade agreement and why the Panamanians have been asking us for so long to get this through. The ambassador for Panama here in Canada has been working around the clock trying to make sure that all members of the House understand how good this agreement is for Canada and Panama. This is a positive step forward. This is important for our companies and businesses.

When we talk about growth in Canada and our position in the world, we need to keep making trade deals like the one we have created for Panama. We also need to keep making trade deals like the trans-Pacific partnership agreement in areas like India and Korea. We have to be willing to allow our companies to compete with fair and unfettered access. That is what this government is doing.

I want to credit the Minister of International Trade for the action he has taken in this regard. This is a minister who gets it. He understands the importance of trade. He gets it because he talks to Canadian business people. He asks what he can do to help them grow their businesses, to make their businesses stronger and to ensure they continue to employ people. They tell him they want market access to Panama, Colombia and the United States. They want to make sure that when they have market access and have disputes, they can settle them. They say they simply want fair market access. Canadian companies are willing to compete and love to compete.

In my riding there are a lot of pulses grown. I have an agricultural riding and the pulse growers are ecstatic about this. They see a tremendous opportunity to sell pulses into the Panamanian market. They view Panama as a good stepping stone into the entire Latin American region for the pulse sector. They are not scared to compete. In fact, the Panamanians look at the quality of the pulses that Canada produces and the protein that comes from them. They say it is great and they are excited. If we do not have the FTA in place, another country will fill that market.

Do not think that other countries are standing still. Other countries look at the strategic importance of Panama and say they need to be there, that they cannot let the Canadians beat them there. What has Parliament done? It has delayed, delayed and delayed. There have been elections and other things that have delayed it, which are no fault of any parliamentarian, but in the same breath, there is no reason to delay now.

We need to move forward now. We need to see this agreement come to fruition. We need to allow our businesses to go down there and build those relationships in Latin America, especially in Panama. One thing we have to understand when we are dealing with Panama or any of the countries in Central America and South America, is that they deal based on relationships. Canadian companies need time to go down there and build personal one-on-one relationships with partners they can work with down there. They need the time. Canadian companies need this agreement passed so that they can go down there and take advantage of all these economic opportunities that I have talked about. That is just the tip of the iceberg.

We only need look at the growth potential of Panama, its location, the Panama Canal, the airport in Panama City, where Copa flies into, which is to be an international hub for every country in Central America and South America. There is so much potential. I would sure hate to see us delay our businesses from taking advantage of this potential.

That is why I would strongly encourage all members to look forward and talk to their constituents. The reality is that we need to get this agreement done as quickly as possible and get the bill through committee.

I would remind members it has already been vetted at committee. There is no reason for the committee to take a whole lot of time before bringing this back to the House. The committee should be able to look at previous testimony and understand the issues.

I would also remind the House that it did come back to the House from committee with no amendments, not one amendment. I would also remind the House that occurred during a minority government situation. It was a committee that had the involvement of all parties to push it through.

I would encourage my colleagues to use that co-operation as they did before to push this bill through, in order to allow Canadian companies to take advantage of the Panamanian market and allow Panamanians to experience the products Canadian companies have to offer.

Our businesses will benefit. Jobs will be created. Canada's economy will get stronger. Our constituents will thank us for that.

The House resumed from February 27, consideration of the motion that 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, be read the second time and referred to a committee, and of the motion that this question be now put.

[Megan Leslie, NDP, Halifax, NS]

Mr. Speaker, I am rising today to speak to Bill C-24 on Canada-Panama trade.

However, earlier today I was up on my feet talking about Bill C-7 on Senate reform. I know we have moved on, but during the debate on Bill C-7 I pointed out that I was hard pressed to name the senators from Nova Scotia and noted that they were politically absent from the scene in Nova Scotia. I received an email from a constituent who was at home watching. He wrote:

Excellent points. Here's a note: since 2008 I have been periodically emailing Nova Scotia Senators...in relation to various political, environmental, or other issues. If memory serves me correctly, in those four years I've never received a response from any of them. I've never met any of them. You're right: they're absent from the Nova Scotia political landscape.

I know it is off topic, but it is the same day and I am hoping for a little latitude on this.

Getting back to Bill C-24, I would love to give a little shout out to Meghan Lawson who is working in my office through the parliamentary internship program. She has helped me greatly in doing research on the bill and for this speech.

I am pleased to rise today to speak to this piece of legislation. As with many other pieces of Conservative legislation, the title of the bill tries to paint a pretty rosy picture of a quite troubling proposal. The bill's long name is 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, otherwise known as the Canada–Panama economic growth and prosperity act and the protecting Panamanians from childhood predators act. That last part may not be part of the title, but the point is that we have a short title painting a rosy picture of something that just does not exist.

It is a very worrying piece of legislation. I think it jeopardizes Canadian growth and overlooks distressing concerns when it comes to Panama's record on environmental issues and workers' rights. We will hear this as a theme in many NDP speeches, because those are two things that we hold dear to our heart: the planet and the rights of people who are working. It is about the rights of the environment and the rights of people.

We think that Canada's trade policy should be based on the principles of fair, sustainable and equitable trade. Canada should build trading partnerships with other countries that support the principles of social justice and human rights while also expanding our business and economic opportunities.

If we just pursue these NAFTA-style deals, we are adopting legislation with a one-size-fits-all mentality. They overlook the fact that some of these countries we are negotiating with are not on the same footing, which is the situation here: Canada and Panama are not on the same footing.

We are taking the NAFTA template designed to function between large industrialized nations and are applying it to Panama, a global south community or a “developing nation”. Instead of helping Panama to grow in a sustainable way, this trade deal is really just about benefiting big multinational corporations. It would actually promote further inequity and inequality within Panama. Instead of these shortsighted bilateral deals, we need multinational trade deals that are going to benefit all trading partners both now and in the future.

As I pointed out, bilateral trade deals usually favour the dominant players. They facilitate a degree of predatory access by large corporations to less powerful domestic economies, in this case Panama, not us. If this legislation passes, we risk failing not only countless Canadian workers but also countless workers and families in Panama. They will be subject to increased inequality, and possibly a decreased quality of life.

According to the UN, a third of Panama's population lives in poverty.

Some of my colleagues discussed testimony that was submitted to committee by witnesses. Teresa Healy, a senior researcher at the Canadian Labour Congress, appeared before the Standing Committee on International Trade this past December and gave some interesting testimony. She stated:

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

We need trade deals that promote sustainable growth for all partners, not ones that put big business before people. Remember that tag line, “big business before people”, because I will shortly talk about a company in Nova Scotia that specifically talks about people and the planet before profits.

The glaring shortfalls of this trade deal do not actually stop there. Although Panama refuses to sign a tax information exchange agreement, the Conservative government is still going ahead with this deal. This is really troubling considering the large amount of money laundering that takes place in Panama, including money from drug trafficking, as we know. According to the U.S. Department of Justice, Panama is a major financial conduit for Mexican and Colombian drug traffickers' money laundering activities. Both local and international corruption watchdogs also rank Panama really low in terms of its transparency.

Panama's complete lack of taxation transparency has even led the OECD to label the nation a tax haven. As another parentheses about tax havens, we have recently seen the U.S. trying to crack down on tax havens. It loses about $100 billion a year to offshore tax evasion and avoidance. Canada loses about a tenth of that or $10 billion a year. The U.S. is trying to crack down on these tax havens by making sure that people are tax compliant and introducing new legislation like FATCA, for example. The problem is that they are actually scooping up the wrong people. They are not going after the folks who are tax avoiders or are ferreting off this money and trying to hide it, but are hitting ordinary citizens, like ordinary Canadians.

In my riding of Halifax, there are many people who have immigrated to Canada from the U.S. and are dual citizens, as well as people who are American by accident, whose parents were American citizens and whose offspring are therefore considered American citizens for tax purposes. They did not know they had to file taxes over all these years and are now finding out that they may face tens of thousands of dollars' worth of fines. The phone was ringing off the hook in my constituency office from these folks calling and saying that they were scared, too scared to find out what their rights were and too scared to find out if they are considered U.S. citizens and do not know what to do.

As a result, we held an information session on rights and filing obligations, how the amnesty works, and those kinds of things. Myta Blacklaws in my Halifax office organized this information session. We booked a room for 60 people but when we managed to fit 125 people into that room, we started putting people into a second room. It was unbelievable. It was standing rooms only, as it were. This information session was led by a woman named Blair Hodgman, an immigration lawyer, and some tax accountants were also present.

It is really stressing people. People are scared and under a lot of pressure. Yet the NDP has been asking the Conservative government to take action to start discussions with the U.S. about what is going on, why regular folks are being penalized and that this is not what we are going after with the tax haven legislation, that this is not the intended effect and that we should be reasonable.

We have not seen action from the government on this issue. I know it is the opposite situation that we have in Panama with tax havens, but the track record on tax havens by the government has been pretty appalling, so I cannot imagine that it is going to try to enact anything when it comes to Panama as well.

Anyone who has been in the House for any period of time knows my colleague from Burnaby—New Westminster and his passion for international trade and for fair trade. He has spoken to this many times in the House. He has done a lot of dedicated work on many pieces of international trade legislation and free trade deals, including this one. He actually proposed that the Canada--Panama trade agreement not be implemented until Panama agreed to sign a tax information exchange agreement. That sounds reasonable. We can do that. We can say that Panama only gets this if it does something. We can offer up a good faith piece that we can work with.

My colleague brought this up I think at committee. His motion was defeated by the Conservatives and the Liberals who argued that the double taxation agreement that Panama agreed to was satisfactory. The problem with the double taxation agreement is it only tracks legal income. We heard that Panama has some pretty big issues when it comes to non-legal or illegal income. What my colleague proposed would actually track all income, including income made through illegal means. As the OECD has noted, having a trade agreement without first tackling Panama's financial secrecy practices could incentivize even more tax dodging. We could be making things worse by having this agreement in place. Why would we not try to avoid making it worse, but also mitigate the problem in the first place? I think he came up with a really good solution. Considering Panama's history and reputation on these matters, it is pretty clear why this kind of agreement is absolutely necessary before signing a trade deal.

This deal also fails to take real action on addressing Panama's record on the environment and workers' rights.

First, let us look at the environment. I am the environment critic. While this deal includes an agreement on the environment, as we saw with the free trade agreement with Colombia which has a separate agreement on the environment, it actually provides no enhanced environmental protection or resources for affected communities. Given Panama's lax environmental regulations especially when it comes to mining, this oversight is extremely worrying. Let me illustrate.

One current proposal from the Canadian mining corporation, Inmet Mining, includes plans for an open pit copper project west of Panama City. This plan would see 5,900 hectares of mostly primary rainforest deforested. According to media reports, the controversial presence of another Canadian mining corporation, Corriente Resources, on indigenous lands has spurred protests from civil society groups and indigenous nations in Panama. Earlier this month reports surfaced of protesters being killed in violent clashes with police.

We know full well the devastating impact of deforestation, especially in that area of the world. Instead of taking real action to address the current and impending threats to Panama's precious natural resources, the Canada--Panama trade agreement risks encouraging a race to the bottom on environmental protection.

Why is the government so willing to ignore huge threats to Panama's environment? All trade agreements, including this one, should respect sustainable development and the integrity of all ecosystems. That is another carrot and stick idea. We could say we are not going to enter into this agreement until we see action, but we are not seeing any action on that.

Lack of concern for labour rights in this trade agreement is also deeply troubling. As Teresa Healy pointed out in her testimony before the Standing Committee on International Trade, this agreement is weaker than previous agreements when it comes to workers' rights.

This agreement does not include specific protection for the right to organize and the right to strike. It provides instead for the “effective” recognition of the right to collective bargaining. The Conservatives appear to assume that the free flow of trade and investment automatically leads to better wages and working conditions, but we know that is not the case, whether it is in Panama, Canada, or wherever.

The fact of the matter is that the agreement fails to ensure that labour rights are not denied to Panamanian workers as they have been in the past. In effect, this agreement creates a free trade zone that belittles the rights of labour. This is a serious problem that already is prevalent in Panama.

I have heard some comments from the other side that the NDP is at it again, that we are against trade. That is not the case. The reality is that fair trade should be the overarching principle, not just an afterthought, of any trade negotiation. It is possible. We see these winning examples in our local communities.

For example, in Nova Scotia there is a company called Just Us!, which in 1997 became the first certified fair trade licensed coffee roaster in North America. It is actually in the riding of Kings—Hants but it does have a coffee shop in my riding. It was the first in 1997 which was not too long ago. Now there are 250 licensed fair trade companies just in Canada. They are in communities all over Canada. They recognize the need for sustainable development, the need for relationships with communities in the global south, and the need for fair trade.

The motto of Just Us! is “People and Planet Before Profits”, but mark my words, it is a profitable company. It is doing very well. It has expanded. It has a museum of fair trade in its coffee shop in Wolfville. It has two coffee shops in Halifax. The company keeps getting bigger and bigger. It is all based on the principle of fair trade. This is an idea that came from our local communities and it is working.

I also note that behind the chamber's curtains there is a little area where we can have a cup of coffee or a glass of water. I note that the coffee there is fair trade. It is good enough for parliamentarians, but somehow it is not good enough for Canada, not good enough for Canadians, not good enough for our trade agreements. I do not understand how that works.

Canadians need an agreement that supports our sovereignty and the freedom to chart our own policy, an agreement that supports our ability to be a competitive force on the world stage. We need an agreement that upholds the principles of a multilateral fair trade system, but instead we have an agreement that shows complete disregard for corruption and money laundering practices that are rampant in Panama, not to mention the country's glaring environmental and labour rights records.

We need an agreement that puts people before big business.

[Jamie Nicholls, NDP, Vaudreuil—Soulanges, QC]

Madam Speaker, I rise to speak to Bill C-24, a bill that troubles me because of its weaknesses in addressing many issues, including tax havens, possible money laundering, lack of fairness provisions and a seeming lack of responsible policy making.

The lack of leadership of that milk toast government troubles me when I see other countries, like Australia, showing true leadership on fair trade, innovation and building an economy for the 21st century, not only for the sake of their own people but for all global citizens.

The process of this bill began in October 2008 and here we are four years later. This is a government that is interested in policy making by template, resting on its laurels. Most troubling is the blind eye that the government is willing to show toward tax havens.

I will not hide my allegiance here. The member for Outremont in our party would like to see a smarter tax system, one that eliminates illegal tax havens and ensures that our economic players play fair, in other words, that everyone who is an economic player in Canada pays his or her fair share of taxes and does not use tax havens to hide money from respective governments for personal enrichment.

Panama is a country that has refused transparent measures to ensure that money laundering by organized crime and drug traffickers does not happen. Therefore, it pains me that the government puffs its chest continually about cracking down on crime, while permitting laundering of drug funds, through tacit approval of Panama in this area, by engaging in a trade agreement with a country that permits money laundering of proceeds of drug trafficking, of illegal activity, of organized crime. The hypocrisy is pretty evident in this position.

Conservatives elsewhere in the world understand this fact of not promoting tax havens. Recently French President Nicolas Sarkozy, in a speech made at the end of a G20 conference in Cannes in November, named certain countries, such as Antigua, Barbados, Trinidad and Tobago, among eight others, and he included Panama in the list of countries that were troubling tax havens. Sarkozy threatened that countries that remained tax havens would be shunned by the international community. Apparently Canada does not want to participate in the international community that shuns these tax havens.

Social democrats elsewhere in the world understand. Australia's Labour government has a comprehensive policy on tax havens. That is one of the reasons why the work of that government has been recognized worldwide. Wayne Swan, its minister of finance, was named the best finance minister in the world recently, making social democrats worldwide proud of our achievements.

As the opposition, we have made propositions in the past to improve this agreement. During the clause-by-clause review, we proposed 11 amendments that would have made progressive changes to the bill. These included the addition of crucial concepts of sustainable development and sustainable investment and, most important, we proposed a requirement for taxation transparency. All of our proposed amendments were voted down by the Conservatives with the help of the third party. That shows where those two dinosaur parties stand on proper, responsible tax policy.

If we look in the past at former Prime Minister Paul Martin and Canada Steamship Lines, anybody in the know will know of the former prime minister's actions to avoid paying proper taxes. We see examples where members of both parties used loopholes for their own personal enrichment and to avoid paying their share of taxes.

Even worse is the Conservatives' protection of big-time organized criminals, the real drug traffickers, the big guys, the big players, by supporting Panama. Cocaine and heroin dealers can find a good partner in Panama to launder their money and the big profits they have made off the backs and misery of the cocaine and heroin addicts of this world. Meanwhile, the government is planning on punishing the small-time guy while letting the big-time organized criminals go. It leads to questions about our ports and the government's real willingness to prevent the importation of hard drugs.

For instance, the talks for this process began in October 2008, under the Torijjos government. Torijjos put Manuel Noriega's old team in place. Members of a certain age in this room will remember Manuel Noriega. He was apprehended by the Americans for complicit activities and drug trafficking. The Torijjos government put Noriega's old boys back into key positions.

Colonel Daniel Delgado Diamante, the minister of government and justice, is another example of people Noriega had worked with in the regime when the Conservatives started talks with the Panamanian government. Anyone sufficiently schooled in politics would know that it is never just a single actor who contributes to corruption, crime or criminal activities but always a team.

Trade agreements are an opportunity to brand Canada. Instead we see that the government does not understand this concept. Australia, our Commonwealth partner, understands. On November 8 last year, in the biennial Sir Alan Westerman lecture delivered by Australian Minister for Trade Hon. Dr. Craig Emerson, he asked whether free trade can be fair. His answer was that free trade can be fair. We in the NDP agree.

The Australian government knows its brand. Dr. Emerson said:

Australia's future is as a high-skill, high-wage country. It is in the interests of working Australians that we compete in the production of goods embodying high levels of skills and innovation, not on the basis of low skills and low wages.

Furthermore, he said:

The existence of people struggling on very low wages is not unfair to rich countries; it is unfair to them and the families they are trying to support. For them, free trade is fair and if we have any compassion for them we should agree.

One would think this would support the Conservatives' bill. Not at all.

Dr. Emerson talked about the World Trade Organization. He said:

Members are protected from unfair practices by other members, but non-members enjoy no such protection. The philosophy of the WTO is free trade conducted under fair rules; there's no inherent conflict between the two. But the world trading rules are far from perfect in ensuring fairness. Some countries have high tariffs while others have none. Some countries have tough quota restrictions while others have none. Some countries have many nasty non-tariff barriers in place behind their borders while others have few. Some countries have big subsidies on domestic production of agricultural and manufactured goods while others have none. Some countries dump their surplus products onto export markets at below-cost prices while others do not. Some countries heavily subsidise their offshore fishing industries--contributing to fishery depletion--while other countries do not.

Clearly, the WTO's rule book contains loopholes and has pages missing, such that trade is neither free nor fair, though it is freer and fairer than would be the case if there were no rules. The objectives of both free trade and fair trade are best served by applying rules to everyone and making sure the rules cover all unfair practices.

The idea is not to close our eyes and say everything is fine, but to propose improvements. Instead, we face the laziness and complacency of the government that sees no problem using a template from 1988 repeatedly. Free trade can be fair trade. In the words of our former leader, Mr. Jack Layton, “Don't let them tell you it can't be done”.

Here are the kinds of things that we proposed. The first was regarding sustainable development. The amendment would define sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs, as set out in the Brundtland report published by the World Commission on Environment and Development.

The second amendment was regarding the definition of sustainable investment. The amendment would define sustainable investment as investment that seeks to maximize social good as well as financial return, specifically in the areas of the environment, social justice and corporate governance in accordance with the United Nations Principles for Responsible Investment.

The NDP has consistently opposed NAFTA-style trade templates that focus on the interests of multinational corporations and ignore workers and the environment. These trade agreements have increased inequality and decreased the quality of life for the majority of working families. That is not fair. That is not fair trade and we need to be future forward on trade. We need to look to the future.

We strongly believe in proposing an alternative and better form of trading relationship such as the one that could be established with Panama or any other country, if we are willing to make the changes to the legislation. We need an overall fair trade strategy that provides a comprehensive common sense impact assessment on all international agreements that demonstrates that Canadian negotiations are beneficial to Canadian families, workers and industries.

The government does not sign any trade agreements that would lead to a net job loss. Here we can look at what Air Canada did with Aveos and how we are bleeding jobs now because of this agreement that was made with a foreign company. Also we can look at the fundamental principle that all trade agreements must promote and protect human rights by prohibiting the import, export or sale in Canada of any product that is deemed to have been created under sweatshop conditions, forced labour or other conditions that are not in accordance with fundamental international labour standards and human rights.

We will not be supporting the bill, not because we are against trade, but because it is weak on trade. It is weak on fairness and it will only serve to legitimize the activities of organized crime groups. It will fail to help the workers of Panama. Furthermore, as long as the government continues with its lazy template, we will continue to oppose free trade deals that are not fair trade deals as well.

[Joyce Murray, Liberal, Vancouver Quadra, BC]

Madam Speaker, I am pleased to speak 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 co-operation between Canada and the Republic of Panama. As members of the House are aware, the Liberal Party supports this bill. The Liberal Party supports free trade and free trade agreements, and has provided leadership in that regard over many decades.

This has been an interesting bill on which to prepare my thoughts. Yes, this is a free trade agreement and we support that. In addition, Panama is the largest market for Canada in Central America, and that is significant.

It should also be noted that the Panama Canal, which is essential to international trade, is undergoing expansion to the tune of $5.3 billion. This work will create significant opportunities for Canadian companies working in construction, environmental engineering and major project consulting services, among other things.

There are some opportunities here. I want to keep in perspective in this debate that in 2009 Canada's exports to Panama totalled about $90 million. That $90 million is important to those companies that sell goods and services to Panama. I do not want to minimize that, because $90 million is $90 million. That amount could grow 30%, 50% or 100%, in which case it would be $180 million.

We support the Canada-Panama free trade agreement. It is a small positive step forward. However, I want to frame that by looking at the purpose of the free trade agreement and whether it is a good choice for Canada's resources compared with other things the government, the civil service and parliamentarians could be doing to accomplish those same objectives. My conclusion is no it is not. It is a distraction. This is yet another free trade agreement with a minor trading partner. We have seen the Conservative government ratchet up numbers with other minor trading partners to say there is another free trade agreement. It appears to be optics over substance.

I would contend that what the government needs to accomplish as its goal is a vital thriving economy that provides jobs and benefits for Canadians. That objective is not being met by the Conservative government. It is spending its time signing many small, minor free trade agreements. Where is the strategic thinking? There has been no strategic thinking. It is all optics.

The objective should be to have a strong thriving economy that creates jobs and benefits for Canadians. However, the facts clearly show that the Conservative government has a history of mismanaging our economy. For example, the government greatly increased government spending while reducing government revenues which threw the country into a deficit situation even before the onset of the recession. The government did not recognize when the recession was upon us. In fact, the government said that Canada was not in a recession and would not be in a recession. There has been a record of mismanagement by the government. One of the unhappy effects of that mismanagement is that today, Canada still has 525,000 fewer net full-time jobs than it had before the recession.

Members opposite have been throwing around job growth numbers, but they have been measuring that from the trough of the recession, which is not a metric that represents the kind of progress Canada wants to make. From before the recession to today, we want to see a country that is building jobs, building its economy and having the kind of fundamentals that allow Canadians to have jobs and feed their families.

There are 525,000 fewer full-time jobs thanks to the government's policies at a time when our population has increased by more than one million. Not surprisingly, the unemployment rate is much higher than it was when the Conservative government first took office. In fact, the unemployment rate is 7.6%, which is two percentage points higher. We are seeing somewhat of a jobless recovery. How is the free trade agreement with Panama going to help that?

Canada had $90 million in exports to Panama. What was the total exports of Canadian goods and services from Canadian businesses in and around 2009-10? It was $339 billion worth of exports, so $90 million versus some $339 billion. The exports to Panama turn out to be something like 3/100th of a percent of our total exports, which is $3 on every $10,000 that Canadians export.

Should we not be signing free trade agreements? No, that is not my point. My point is whether we are focusing on the key success factors for our economy and the job creation that is the goal of this? I see spending some three years negotiating a free trade agreement with Panama as being destructive to some of the much more significant things the government could and should be doing to accomplish that goal.

Unfortunately, we are going backwards with many of the government's policies. I will mention one other one which is the impact of the government on small and medium size businesses, which has not been positive. Industry Canada's analysis shows that in its last 20-year analysis of job creation it was not only the small and medium size businesses that created the jobs. On a net level, they created all of the net new jobs in Canada. In fact, large 5% of the jobs created by large businesses were lost on a net basis in that 20-year period up to 2003 which, as far as I know, was the last analysis of a 20-year period that Industry Canada has done.

What does that tell us? If we want jobs in Canada, we need to work with the small and medium size businesses. What has the Conservative government done? Unfortunately, it has done the opposite. The tax rates for large businesses have gone down from 22.5% to 15%, the ones that are net job losers. What has been the corresponding reduction in tax rates for small and medium size businesses? Actually there has been no reduction. There has been an increase in their costs through an increase in the EI payroll tax rate. Although the Liberals, the business community and the economists across Canada argued that taxing employment was the wrong thing to do at a time of economic challenge, in a recession, the Conservative government went ahead and did just that and added $1.2 billion in EI payroll tax increases.

We have a situation where we have a jobless recovery and we have the job engines, the small and medium size businesses, being ignored by the government. Industries that are big job creators, like tourism, have been mismanaged, unfortunately, by the Conservative government.

Tourism is an incredibly vital and important industry for the small and medium size businesses but we are falling behind. Even though Canada is recognized as the number one tourist destination, we have fallen from being seventh in the international competition for overnight visitors to fifteenth. We are losing market share dramatically. During the Conservative government's six years, we have seen a lot of that market share decline.

Why is that declining? The tourist industry representatives have some answers to that, and it is the policies of the Conservative government for the most part. Yes, there are some factors that have been outside the government's control but the government did control its decision to slap a visa on Canada's fastest growing tourist market, Mexico, with no consultation, upsetting an important trade partner and reducing the number of Mexican tourists substantially, by some 35%, through that act.

The government has been told time and again that its fees and taxes at airports make air travel uncompetitive and drives tourists to airports in the United States. It is very costly to businesses along the border in Canada. As far as I know, nothing has been done to address those cash grabs through the airports. In fact, we are seeing another addition to the cash grab at the Vancouver International Airport with an additional $5 being added to the airport improvement fee that all travellers will be paying.

In the skills and trades training, we know there is a serious mismatch between the kinds of skills and trades training happening in Canada for the jobs of today and in the future. Some of the key analysts on this issue are telling us that within about five years Canada will likely have 1.5 million jobs without people who are suitable to fill them and 1.5 million people without jobs. Where is the overall strategy to address that?

Unfortunately, the government is ideologically against having a hand in providing leadership on issues like this. It is leaving it to the provinces to solve. The government says that each of the 13 provinces and territories can battle it out themselves. The present federal government does not want to provide leadership or some kind of a framework to address a national problem that impacts national productivity and undermines Canada's prosperity, our economy and the jobs that a thriving economy can produce.

Given those challenges that the government is facing and has created, its answer is a free trade agreement with a country to which we sell $3 out of every $10,000 of our export goods and services? I would argue that if that same time and energy had been put into managing more effectively the relationship that Canada has with our most important trading partner, the United States, there would be a far greater return on effort.

We need to look at what is happening with our relationship with the United States in terms of trade. Our trade with the U.S. exceeds $1.4 billion every day. That compares with $210 million on both sides of the ledger between Canada and Panama in a year.

One would think that we would be focusing on the United States and our trade relationship, really being present where decisions are made in the United States, ensuring that our case is understood, using the department's resources that instead are doing free trade agreements with countries like Colombia, Jordan and Panama, and focusing on where it can really count. When organizations want to achieve a result, they focus on the key factors that will drive that result.

We have a government that wants to notch up some more numbers by saying that it has more free trade agreements than other governments have had. It is as if that will deliver the result that Canadians need, which is a thriving economy and jobs.

Eighty per cent of Canada's economy depends on access to foreign markets, and our largest partner, of course, is the United States; that is 75% of Canada's merchandise exports go to the United States. Panama is not even on the list if one looks at the top countries of importance for Canada's exports.

How are we doing with our U.S. exports? Canada's share of United States' imports have fallen in a great number of sectors. In furniture, we used to have a 25% share and it is down to 9.1%. In electrical equipment, we used to have a 10% share of U.S. imports and we now have just over half of that, 5.4%. In textiles, we used to have a 6.8% share that the U.S. imported and now it is down to 2.2%. Printing has fallen from 30.3% down to 17%. Fabricated metal used to be at 18% and has now dropped down to 10%. Rubber and plastics used to be at 31%, and are now down to 19.9%.

What has been happening? We have been losing market share with our biggest trading partner that accounts for 75% of Canadian export sales.

The government has had its talented people running around and organizing a free trade deal with Panama. What was the rush? Why did it not spend that time working on recovering some of our market share in the other core markets and the other core products and services?

The Prime Minister insulted the United States president and its people who wanted to take the time they needed to properly study a potential thousand kilometre pipeline on American soil that would run through some environmentally sensitive areas. Did we say that we would respect the right of Americans to study the costs, benefits and risks and make a decision? No. The Prime Minister postured and basically insulted our largest trading partner by saying that if it did not take our crude oil without any questions, we would sell it somewhere else. That was very diplomatic. That will really help. Canadians need the United States to be a co-operative trading partner. However, the government is essentially amateur hour when it comes to trade, and that has been shown from day one.

The Prime Minister has been blindsided by U.S. protectionist policies. The Conservatives were surprised by the initial buy America provisions in the 2008 stimulus package. They negotiated a solution to that, which lasted all of a year, and then buy America was back, which surprised the Canadian government's administration again.

The Prime Minister and his minister were taken off guard by the surprise announcement of a maritime commission. The commission will do research and could potentially impose fees and tariffs on U.S. goods coming through Canada at our ports. Canadians will have to pay a new border tax. These costs undermine our trade with America but we are busy doing a free trade agreement with Panama.

The complete and utter amateurishness of the Prime Minister with respect to the government's relationship with China has put Canada back about four years in terms of getting its assured destination status. This was important for tourism and we lost about four years of that tourism boost.

As a result of the kind of insults that the Prime Minister has delivered in public to the Chinese leadership, our trade with China has been languishing. Other countries are taking advantage of the great growth and the economic well-being of China while Canada has been stagnant. Canada has a four to one trade deficit with China. For every $4 that we spend buying goods from China, we only receive $1 from selling our goods to that country. Have we had a strategy focused on that key success factor for Canada's trade? No, we have not. We are busy negotiating free trade agreements with Panama and posturing about our natural resources.

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

Madam Speaker, it is an honour for me to rise in this House to discuss a government bill that involves much more than simply entering into an economic agreement.

Bill C-24 is an example of a bill where one questions what benefits there will be for Canadians and Panamanians and what problems it could cause. It is quite obvious that Panama has, unfortunately, a long history of money laundering. It is not the only problem with the country's reputation, but it is the most visible. Panama is famous for the huge amounts of money laundered there in order to escape the taxman and law enforcement authorities in other countries.

One has to ask what Canada will get out of this treaty with Panama. The government wants us to approve this process. The core problem is that Bill C-24 proposes a treaty without sufficient guarantee that Panama will go to the effort required to improve its situation and become a good partner from a trade, political and social standpoint. In short, a country that is making progress for its population and for good order in the world. Panama is a far cry from that.

Throughout my speech, I am going to provide facts on Panama and the relationship that it has with Canada. I am going to put things into perspective to demonstrate the dangers that this government could expose us to by entering into this kind of agreement.

Just like my colleague, the member for La Pointe-de-l'Île, I serve on the Standing Committee on International Trade. Over the course of the last few months, having observed the manner in which members of the governing party have acted, I have been surprised, and even disgusted, by the government's bad faith. The government is trying to lecture us, ram through measures, and short-circuit the process of consideration without giving us an opportunity to act as equals and carefully study the issues we face. The government is trying to silence us on every issue we deal with. The government is trying to reassure us, as my colleague said previously in her speech, by telling us that it is going to negotiate in the best interests of all Canadians. The government is asking us to blindly accept what it is doing.

The elected representatives in this House and I cannot simply give this government a blank cheque. If the government really wants at least minimal approval from us, it should be amenable to debate. And I am not necessarily referring to criticism. My colleague from La Pointe-de-l'Île expressed it well.

On principle, the New Democratic Party is not opposed to pursuing free trade agreements. However, as regards all the free trade agreements examined in this House, and in all the debates that have taken place here, the New Democratic Party has always made observations on various fundamental aspects that affect the interests of all Canadians.

We are certainly not asking for any preferential treatment, or anything like that. We are simply asking for a respectful debate as equals between all members from all parties, whether in committee or here in the House of Commons.

I have been watching the behaviour of government members for a number of months. The government is running away from the issues to avoid facing the real challenges, its own turpitude and the problems it is creating on a large scale. That is not too strong a statement. By running away and signing all sorts of free trade agreements with countries with which we have limited trade, compared with Canada's overall trade activity with the world's nations, the government is trying to hide the fact that it is leaving Canadians to fend for themselves.

I would remind the House that, in my riding, I was the victim of the government's reprehensible abandonment when the management of White Birch Paper brutally shut down the Stadacona plant. Now, there is a possibility that management and the workers may reach a respectful agreement as equals and that the plant will resume operations. However, through its inaction or, rather, its desire to run away from the reality of Canadians and go all over the world to engage in marketing operations, the government is putting the weight of all these new treaties on the shoulders of officials from the Department of Foreign Affairs and International Trade. Unfortunately, we recently learned that there is a bottleneck. The government does not even care about the impact that these free trade agreements, which are multiplying for no good reason, could have. That is very disturbing.

The problem is that the government wants us to approve a free trade agreement with a country that has a very bad reputation but that seems—yes, “seems”—to want to clean up its act. Unfortunately, Canada seems content to rubber-stamp the agreement without insisting on guaranteed outcomes. France did not hesitate to criticize the Republic of Panama, and it signed a tax information exchange agreement, but Canada did not. Canada wants to sign a partnership with another country without protecting itself and without knowing what it is getting itself into or whether the Government of Panama is truly making an effort to improve the situation and become a respectful and respected member of the international community.

The absence of a tax information exchange agreement is a problem to begin with, but in the context of this agreement, it can be interpreted as an agreement to protect investors. I must say that I cannot support the government in this folly. Let me be clear. I want Canadian investors to benefit from a certain degree of protection when they do business in Panama, but how is it in Canada's interest for a Panamanian investor to be protected by this kind of clause? This kind of clause in NAFTA, in chapter 11, was really bad for us. In Canada, the rule of law prevails, and all investors, like all Canadians, can rest assured that their rights will be protected if they have been wronged.

The problem is that this type of provision to protect investors creates two classes of citizens. We have seen this with our American and Mexican trading partners and, unfortunately, we risk seeing it if we sign an agreement with our European partner. On one hand, there are the average Canadians for whom the normal legal protections are in place if ever their rights are violated and if they have the means. In fact, that is another problem—whether a person has the financial means, the perseverance and the moral capacity to use the court system. All Canadians are protected in that sense. On the other hand, there is the investor class, who have extraordinary powers to take the Canadian government, or a province or municipality, to court if they feel their rights have been violated by legal provisions legitimately passed by the House.

What is this perspective, this direction that the government wants to commit to taking? Based on this provision alone, the New Democratic Party absolutely cannot support Bill C-24. Nevertheless, it is far from being the only problematic provision. Quite the opposite, in fact.

I mentioned another problem earlier: when an agreement such as this is signed with a country like Panama, we find ourselves in a position where, to some extent, we are directly supporting that country's practices and reputation. We are telling the whole world that Canada believes that everything is going very well, or at least rather well, in Panama and that, ultimately, we do not see any problem with supporting the government's practices and we are prepared to live with the consequences if things ever go awry.

It is important to remember that this type of agreement will create strong ties with Panama—very strong ties—and that the government of Panama stands to benefit very handsomely. Such an agreement is far from benign because Canada has already signed many other international agreements, whether it be human rights agreements or agreements against illegal money laundering and tax evasion.

Canada has already made commitments to all the countries in the world, or at least with all those who have signed this type of agreement, to say that it finds certain practices to be unacceptable.

This means that, by passing this bill, Canada could find itself practically committing perjury, to use a legal term. It would be perjuring its signature, its commitment to defend rights, justice, and good behaviour and to oppose bad behaviour.

Coming from a government that claims to defend victims and uphold law and order, if this were not such a serious subject, such antics would almost be funny. However, this is definitely no laughing matter. Indeed, this means that Canada is going to earn a bad reputation by association. Any time Canadians are travelling abroad, whether for business or pleasure, wand showing off Canada's savoir-faire, they may find themselves accused of supporting tax evasion, money laundering and repressing workers who are simply asserting their right to respectful, egalitarian negotiations. Those are rights that workers in Panama unfortunately do not have.

Then, Canadians will have to say that there is no problem—it is business as usual—and that this agreement is important because of business and trade worth $149 million in 2008, which really is peanuts. Too bad for our reputation, because the important thing is that we enter into this free trade agreement. I can clearly see the media scrum with a staff member of the Minister of International Trade, where this agreement will be described as “fundamental”. We are talking about $149 million. I know that trade, without free trade agreements, is increasing significantly, but this really is a small amount. It is an insignificant fraction of all of Canada's economic activities. Are we willing to sell our reputation for next to nothing for this? To use the biblical terms, in the end, Canada will sell its birthright for a mess of pottage. This is very worrisome. I do not agree with this.

As a legitimately elected representative of all Canadians, I want to maintain that reputation. Canadians have quite often said they are proud of having a reputation that until recently was practically above reproach. We see the government frantically running, out of breath, to conclude free trade agreements with Panama and Jordan, without any serious studies, without any serious guarantees that everything will go well. At the end of the day, those countries, which have very serious domestic problems, will make no effort to correct those problems. I am sorry, but Canada is positioning itself for a future role as a has-been in the community of nations. That is not an exaggeration.

I have been interested in matters of international relations for a very long time now. I even studied international relations at Laval University. Let us not forget that in the community of nations, in terms of international relations, the actions of a country are very closely observed. I know—I am convinced—that this agreement the government is trying to conclude too quickly will forever alter Canada's reputation. Indeed, a very large number of countries, upstanding ones and good partners to Canada, are going to react quite negatively to this.

The government is on notice. It cannot count on our support and I will continue to denounce this type of hastily concluded agreement.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I rise here today to speak to Bill C-24 regarding the free trade agreement between Canada and the Republic of Panama.

I am very pleased to speak on behalf of the interests of the people of my riding, La Pointe-de-l'Île, I would like to thank them once again for placing their trust in me on May 2. I continue to work hard every day on their behalf.

It is important to mention that the NDP does not oppose free trade agreements, despite what the Liberals and Conservatives often like to say. They say that the NDP has always been against free trade and that our party opposes all free trade agreements. That is false. We do not oppose free trade agreements; we are simply saying that Canadians must benefit from them.

I would like to commend the important work done by our former international trade critic, the hon. member for Burnaby—New Westminster. Most free trade agreements do not benefit Canadians and we can see the result of that. Every time Canada has adopted a free trade agreement, our exports have declined and our trade balance has become increasingly negative. For instance, since the Conservatives came to power in 2006, the trade deficit has gone from about $16 million to $81 million. This proves that free trade does not create jobs in Canada; instead, jobs go elsewhere, to other countries.

That was my introduction.

By way of context, since the failure of the Doha round on freer trade, the Government of Canada, in all its wisdom, has decided to negotiate a great number and variety of free trade agreements, especially bilateral agreements, without any clear strategy and without taking into consideration the possible consequences for Canadian workers of adopting multiple free trade agreements. It has not taken into account the consequences that freer international trade would have on Canada's domestic markets.

We often hear the parliamentary secretary say that one job in five relies on trade, but there are still four jobs out of five that do not and therefore rely on commerce within Canada. Those are the jobs we are talking about here.

The government is trying to copy the strategy of the United States because to this government, any American idea is a good one. It seems that the government did not take certain essential factors, such as resources, into consideration. In the same breath as the government is making cuts to the public service, it is asking the departments of Foreign Affairs and International Trade to simultaneously negotiate 14 different agreements, with Morocco, the European Union, the Caribbean common market, Ukraine, India, Singapore, Guatemala, El Salvador, Honduras, Nicaragua, Korea and the Dominican Republic. Exploratory talks are also under way with Japan and Turkey.

In terms of the negotiations under way with the European Union alone, a number of stakeholders are saying there is a major risk for Canada because we are in the process of negotiating an agreement that will have a direct, major impact on businesses here. No serious impact assessment has been made by the government or, if it has, the government certainly does not want to share the results with us. While the government is struggling to create jobs in Canada, it wants to export jobs abroad. That is irresponsible.

We might also talk about the trade balance, as I mentioned earlier. It is further proof of this government's inadequacy and of the Conservatives' failure to do a satisfactory job. In 2008, we had a positive trade balance of $50 billion. Since 2009, we have had a negative trade balance of approximately $5 billion.

The government should think seriously about creating jobs here before negotiating free trade agreements that, as we know, do not promote job creation in the Canadian marketplace.

The lack of a strategy is not this government's only shortcoming. A denial of the democratic process also seems to be this government's wont. The entire negotiation process is but a farce. It makes a mockery of the democratic process if the content of what is being negotiated is, quite simply, unknown. Everything is shrouded in great secrecy and the government’s true intentions are kept secret from Canadians. We find out the details once the treaty is being ratified.

How do we expect members—who are supposed to represent the interests of their constituents—to do their job if the government keeps everything from them? There are no studies, no consulting of members, no opportunity for members to simply get information on the key negotiating points of the treaty. No information is provided. It is almost as if members had to go and ask members of the European Parliament, for example, for information on the negotiations. The government refuses to give members this information. It makes no sense whatsoever.

I am afraid that this will be a recipe for disaster and that the final product will reflect the interests of the major lobbyists, the multinationals and, of course, that small segment of the population, the top 1%. We are quite familiar with that concept.

Once again, it will be the workers who pay the price for this government's policies; they will have to pick up the tab for the caviar and champagne that the CEOs crack open when it comes time to celebrate the ratification of these free trade agreements. These individuals will in no way whatsoever take into consideration the thousands of people who will lose their jobs.

A report published by the Canadian Centre for Policy Alternatives, the CCPA, says that the treaty between Canada and the European Union will lead to a deepening of the Canadian trade deficit and massive job losses.

Economist Jim Stanford modelled three scenarios in order to study the socio-economic repercussions of such an agreement. In each of the scenarios considered, the model indicated a worsening of the current situation. It is important to understand that Canada already has a large trade deficit with the European Union of approximately $20 billion, of which $15 billion involves trade in goods and approximately $4 billion, trade in services.He estimates that this deficit already amounts to approximately 70,000 jobs that have relocated to Europe.

Based on the scenarios reviewed, a free trade agreement between the two regions could lead to the additional loss of somewhere between 28,000 and 150,000 jobs. According to Jim Stanford, this deterioration is due to the fact that Canadian tariffs are currently higher than European tariffs. This means that an agreement would first adversely affect Canadian products.

Is there a plan to correct this discrepancy, yes or no? The government refuses to tell us. Personally, I do not think there is one.

Unfortunately, the government does not stop there. The House is currently dealing with Bill C-24 on the implementation of the free trade agreement between Canada and the Republic of Panama.

Again, not only is the government not creating jobs, but it is sending our money to a tax haven. Could it be that tax havens serve the middle class? Tax evasion is not something to be taken lightly.

Panama is a tax haven, and not just any tax haven: it is one of the most active, one of the least co-operative and of the most integrated with organized crime. When large corporations and rich people transfer their assets to tax havens, it means that huge tax revenues are lost for Canadian taxpayers. None of this will benefit workers, whether they are from Panama or Canada.

Let me summarize. Our jobs are being transferred to Europe, our revenues are going into Panamanian banks, corporations are not paying taxes, billions of dollars that should be reinvested in education, health and infrastructure are lost, and I see no plan to help Canadian families make ends meet, and no plan to help the Canadian economy improve.

A fair tax system is based on everyone paying a fair share of taxes. The Government of Canada is losing $9 billion annually because of these tax havens. Does this mean that, in order to make up for this shortfall, it will have to increase the tax share paid by citizens and by small and medium size businesses? Or will it have to reduce the tax rates for big companies even more, to induce them to continue doing business in Canada? This will not change anything at all. They will continue to send their money to tax havens.

The government would have us believe that cutting taxes for big corporations will stop them from putting their money in Panamanian banks, which costs Canadian taxpayers billions of dollars, but that is not true. How can this government claim that the economy is its priority? Its real priority is exporting our jobs and our money and raising individual and small business taxes.

At the same time, the government is cutting services. Take, for example, Service Canada and employment insurance, a vital service that helps people who have lost their jobs put food on the table. One of my constituents lost her house because she waited three months for her first cheque even though claims are supposed to be processed within 28 days.

The government says that this agreement is good because Panama is an established market for Canadian exports and because there is significant potential for long-term growth in bilateral trade and investment. Some large Canadian companies have sensed good business deals in the making and believe that an agreement will facilitate trade with Panama, which has a dubious tax reputation. But what will be the cost to Canadians? That is the real issue the government should keep in mind during negotiations, not the interests of its big business buddies.

There are no restrictions on capital entering or exiting Panama. Transactions are protected by banking secrecy, and financial activity is not monitored. The Organisation for Economic Co-operation and Development—the OECD—which is nevertheless fairly accommodating when it comes to evaluating how co-operative tax havens are, did not remove Panama from its grey list until July 2011. The grey list includes countries that have not signed a series of agreements to comply with international standards. The OECD Secretary-General, Angel Gurría, stated, “Panama has worked hard to achieve this milestone and has made remarkable strides toward complying with the international standards in a very short time.” However, he cautioned that the global forum must still evaluate whether Panama's domestic laws will allow for effective availability, access to and exchange of information. He said, “The global forum will follow up to make sure they work as intended. It is important that Panama continues to work to fully implement the standards.”

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. It offers foreign banks and firms a special offshore licence to conduct business there. Not only are these businesses not taxed, but they are subject to little or no reporting requirements or regulations.

The Canada-Panama trade deal would only make the tax haven problem worse. As the OECD has said, having a trade agreement without first tackling Panama's financial secrecy practices could incentivize even more offshore tax dodging.

As the member for Windsor West, the critic for international trade, has said, when we want to get into a fair trade deal, we need to have access to the same types of conditions and strategies as our competitors. These tax havens give advantages on trade arrangements that do not favour Canadian exporters, and that is why we have seen the trade surplus diminish under the current government and a trade deficit emerge and become the norm.

Our manufacturers and our workers abide by international and Canadian standards that prevent them from competing with corporations that are able to use subsidies or tax havens to reduce their costs and become more competitive, and so the relationship becomes unfair and unequal. The trade deal will not only increase tax haven abuses but will also make fighting them that much harder.

The NDP is calling for an agreement with Panama to transfer tax information. The United Kingdom, the United States, France, Italy and the Netherlands have already signed such an agreement. How can the government not respond to this demand? If the government really had the interests of Canadians and the people of Panama—who gain nothing at all from this transaction—at heart, it would stand up today and tell this House that it commits to requesting that an agreement to transfer tax information be included in the Canada-Panama free trade agreement.

In 2007, the Auditor General of Canada mentioned that she had expressed concerns about the fiscal arrangements for foreign subsidiaries on several occasions in the past. The June 2008 study by the Université du Québec à Montréal concluded that the five Canadian banks avoided paying $16 billion in federal and provincial taxes by means of their offshore subsidiaries between 1992 and 2007. I would call that a hemorrhage of tax dollars.

Statistics Canada reported that $88 billion in assets of Canadian corporations were transferred offshore, that is to tax havens, in 2003. The secrecy of financial transactions in Panama makes it a major site for money laundering. According to the U.S. State Department, major Colombian and Mexican drug cartels, as well as illegal Colombian armed groups, use Panama for drug trafficking and money laundering purposes. The funds generated from illegal activity are susceptible to being laundered through Panamanian banks, real estate developments, and more.

Because money laundering consists of using illegal investments to covering up the use of money obtained through crime, the Canada-Panama free trade agreement will promote, in Canada, the illegal transfers of these black market funds. Conversely, the Colombian and Mexican mafias, which are very active in Canada, will view the agreement as a series of formalities facilitating the reverse transfer of proceeds of crime.

The Canada-Panama agreement will foster illicit activities in that country and increase tolerance for such activities. Although the importance of dealing with problems caused by tax havens was highlighted at the 2009 G20 meeting in London, Canada is moving in the opposite direction and is creating a new means of facilitating the flight of capital. This type of strategy is irresponsible. Do we really want to foster money laundering and drug trafficking? The Conservatives, who like to pass repressive bills, should be outraged.

Let us be clear. The government is negotiating an agreement at the expense of Canadian workers. This agreement will lead to the loss of millions of dollars in tax revenues. This proves that a small country like Panama can dictate Canada's policy on tax evasion. If the Government of Canada cannot stand up to Panama, how will it defend our country's interests when negotiating with the United States or the European Union?

The House resumed from December 12, 2011, consideration of the motion that 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, be read the second time and referred to a committee, and of the motion that this question be now put.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, perhaps I did not hear it right. I thought this was a question about the House agenda. In any event, I will answer a couple of the questions.

First, with regard to the management of the House business, I will renew once again my invitation to the NDP to give us the number of speakers and the length of time they wish to speak on any of the bills before this House. They have yet to ever provide me an answer on that. I have asked in the past here and elsewhere and I will continue to ask.

I appreciate that the Liberal Party has been somewhat forthcoming in that regard. If we see the same from the NDP, we will be able to actually come to co-operative arrangements. However, barring that, it is clear that the NDP agenda is simply to run up the score and compel the government to utilize the resources available in the Standing Orders in order to ensure that we actually do come to decisions and take votes in this House.

Today we will continue with the opposition day. Tomorrow we will be having a debate to take note of the Standing Orders before, as I understand, the Procedure and House Affairs Committee takes on a more extensive and detailed study of proposed changes to the Standing Orders. Following the constituency week we will begin on Monday, February 27, with debate on Bill C-7, Senate Reform Act.

On Monday afternoon, we will continue debate on Bill C-24, the Canada-Panama economic growth and prosperity act. Tuesday, February 28, will be the fourth allotted day, which I understand is to go to the Liberal Party.

On Wednesday, we will continue debate on the Canada-Panama Free Trade Act. On Thursday morning, we will continue debate on Bill C-23, the Canada-Jordan Free Trade Act.

On Thursday afternoon, we will begin debate on Bill C-28, the financial literacy leader act.

As the House can see, this will be a jobs and growth week. Jobs and growth remain our government's top priorities.

As we have seen with the North American Free Trade Agreement, free trade creates jobs and economic growth for Canadian families and businesses, and this is true of the two free trade bills that we have before the House. Like the Canada-Jordan free trade act, which, I would point out, in the previous Parliament went to committee after only a few hours of debate, we would hope that we could get the same agreement from the other parties to do so here. I invite them to do that.

I can also say, from my own personal experience, that the Canada-Panama free trade agreement has been around for a long time. I recall two and a half years ago being in Panama with the Prime Minister as negotiations concluded on this agreement. I remember, as Minister of International Trade, introducing in the House on September 23, 2010, for the first time, the bill to implement the free trade agreement. It is about time that it passes into law to benefit Canadians, exporters and workers.

Bill C-28 would create the position of financial literacy leader to help promote financial literacy among Canadians. This is something for which I think all parties have expressed support. I am sure we should be able to come to an agreement on how to proceed. I proposed a motion to the House that laid out a reasonable work plan for Bill C-28 but, sadly, that motion was not supported. I encourage the opposition House leader to get together with us again to try to work on a reasonable work plan.

I do look forward to seeing some progress as we continue the hard-working, orderly and productive session of Parliament we are in. Rather than trying to run up the score and compel time allocation to be used, I would encourage the official opposition House leader to work with all parties in this place to make progress on the bills before us.

On that note and in the spirit of co-operation and working with my colleagues across the way, I have one further addition regarding tomorrow's debate. I thank my colleagues for this suggestion, which I believe, Mr. Speaker, you will find unanimous consent for. I move:

That, notwithstanding any Standing Order or usual practice of the House, the motion “That this House take note of the Standing Orders and procedure of the House and its Committees”, standing on the Order Paper, be amended by adding the following:

“; that the Standing Committee on Procedure and House Affairs be instructed to study the Standing Orders and procedures of the House and its Committees, including the proceedings on the debate pursuant to Standing Order 51; and that the Committee report its findings to the House no later than May 18, 2012”; and

that the motion, as amended, shall not be subject to any further amendment; and when debate has concluded, or at the expiry of time provided for Government Orders on the day designated for the debate, as the case may be, the motion, as amended, shall be deemed adopted.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, thank you for the opportunity to give my last Thursday statement of 2011. The fall has been a productive, hard-working and orderly session. It has been capped by results that we have seen in the House during delivering results month since we returned from the Remembrance Day constituency week.

Of particular note, this fall the House passed Bill C-13, the keeping Canada's economy and jobs growing act; Bill C-20, the fair representation act; Bill C-18, the marketing freedom for grain farmers act; and Bill C-10, the safe streets and communities act.

Other things were also accomplished, from the appointment of two officers of Parliament to the passing at second reading of Bill C-26, the Citizen's Arrest and Self-defence Act. I would like to thank the opposition parties who made these accomplishments possible. Nevertheless, the House has a lot of work to do when it returns in 2012.

The things I am looking forward to in 2012 include, after 48 speeches so far, returning to Bill C-19, the ending the long-gun registry act; after 75 speeches so far, continuing debate on second reading of Bill C-11, the copyright modernization act; after 73 speeches so far, continuing debating the opposition motion to block Bill C-4, the preventing human smugglers from abusing Canada's immigration system act from proceeding to committee; and, after 47 speeches so far, continuing debate on second reading of Bill C-7, the Senate reform act.

This winter, the government's priority will continue to be economic growth and job creation. We will thus continue to move forward with our economic agenda by debating legislative measures such as Bill C-23 on the implementation of a Canada-Jordan free trade agreement; Bill C-24 on the implementation of a Canada-Panama free trade agreement; Bill C-25, which is designed to give Canadians another way to plan for retirement through pooled registered pension plans; and Bill C-28 on the appointment of a financial literacy leader.

Needless to say, I am looking forward to the 2012 budget, the next phase of Canada's economic recovery, from the Minister of Finance, and I am looking forward to what I am sure it will deliver for the Canadian economy. This will be the cornerstone of the upcoming session.

With respect to the precise business of the House for the week of January 30, 2012, I will advise my counterparts in the usual fashion in advance of the House returning.

In closing, Mr. Speaker, please let me wish you, my fellow house leaders, all hon. members and our table officers and support staff a very merry Christmas.

In particular, I want to thank the pages, many of whom, as we know, spent their first significant amount of time away from home with us this fall. I wish them a pleasant time back home with family over Christmas. Perhaps we have provided some good stories for them to tell around the dinner table.

Merry Christmas, happy new year and all the best for the break. Here is to a productive, orderly and hard-working 2012.

Merry Christmas and happy new year. May the members of the House rest up in preparation for the hard work to come in a productive and orderly 2012.

Canada-Jordan Economic Growth and Prosperity Act

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

Mr. Speaker, it is a great pleasure to rise in the House today to begin debate on Bill C-23, the Canada-Jordan free trade agreement. Our government is committed to securing and deepening access to traditional markets, like the United States, and broadening and expanding access to more markets, like Jordan.

Trade accounts for over 60% of our annual GDP and, with one in five Canadian jobs generated by trade, it is a matter of fundamental importance to the financial security of hard-working Canadians and their families.

Our focused pursuit of new free trade agreements helps to demonstrate our government's commitment to helping Canadian workers and businesses compete in markets abroad, as well as our commitment to creating more jobs and economic growth for Canadian workers.

We continue to see fierce competition in the global marketplace, with emerging economies and global players continuing to climb the value chain and establishing themselves in a wide range of sectors.

This government will do everything it can to ensure that Canadian workers and Canadian businesses have the tools and opportunities to build the links needed to succeed in today's global economy. Our government is committed to bringing continued economic prosperity to Canadians by pursuing bilateral and regional free trade relationships. Negotiating and implementing trade agreements with our international partners will also help to level the playing field for our companies in an increasingly complex and competitive environment.

Pursuing free trade agreements sends a clear signal that protectionism is not the right way to achieve increased global stability and prosperity. In these challenging times, deeper trade ties are the best way to create jobs and economic growth. Our government will get that done. That is why we have an ambitious, job creating, pro-trade plan. The Canada-Jordan economic growth and prosperity act is a key part of this plan.

The Canada-Jordan free trade agreement also demonstrates Canada's support for an Arab state that, like Canada, supports peace and security in the Middle East.

We will recall that in 2007, the Rt. Hon. Prime Minister joined His Majesty King Abdullah II in a commitment to take our commercial relationship to the next level. The Canada-Jordan free trade agreement, along with related agreements on labour co-operation and the environment, signed in 2009, are a direct result of this commitment.

Canada's economy is export driven. Canadian families understand that trade is a kitchen table issue that provides jobs and helps put food on the table. We know it is in our best economic interest to seek out new opportunities for our producers, workers and exporters in as many foreign markets as possible.

Moreover, negotiating free trade agreements allows for Canadian firms to specialize and increase their comparative advantage in the global marketplace. By improving access to foreign markets for Canadian workers and businesses, this government is keeping its commitment to support economic growth and create new jobs for Canadian workers.

In a number of countries, Canadian firms are at a competitive disadvantage because their foreign competitors have preferential market access under some form of a free trade agreement. The Canada-Jordan free trade agreement addresses this serious issue by leveling the playing field with key competitors who are already benefiting from free trade agreements with Jordan, namely competition from the United States and the European Union.

Through the Canada-Jordan economic growth and prosperity act, our government is ensuring that Canadian workers and firms are on equal footing to compete with firms from across the world in the Jordanian market. Opening doors to trade and investment is the right approach for creating opportunities for Canadian workers and businesses in global markets.

The Canada-Jordan free trade agreement would create new export opportunities and strengthen bilateral ties between our two countries.

The free trade agreement with Jordan would benefit both Canadians and Jordanians by giving Canadian and Jordanian exporters unprecedented access to our respective markets and eliminating tariffs on a number of key products. World leading Canadian sectors, like forestry, manufacturing and agriculture and agri-food would benefit.

Over the years, Canada and Jordan have built a strong, mutually beneficial relationship. This free trade agreement continues to build on that important start. It is a relationship grounded in common aspirations, like peace, stability and prosperity for our citizens. This new free trade agreement would help to move these aspirations forward.

Despite the recent economic downturn experienced by the global economy, our bilateral trade with Jordan increased to $85.9 million in 2010 from $82.5 million in 2009, indicating that the longer-term trend of our trade relationship is one of growth.

For example, Canada's 2010 merchandise exports to Jordan of $66 million were more than double the $31 million total in 2003. This free trade agreement would provide the opportunity to further enhance this trend of upward growth.

Jordan's current average applied tariff is 11%, with peaks of up to 30% applied on some Canadian exports of interest. In fact, 67% of Jordan's tariff lines, covering over 99% of Canadian exports, will be eliminated when the agreement is first implemented. This is a huge step forward in the growing economic partnership between Canada and Jordan and will help to ensure that Canadian firms remain competitive globally. Jordan's remaining tariff reductions will then take place over three or five years.

Let me give a better idea of the specific sectors that will benefit if the Canada-Jordan economic growth and prosperity act is quickly moved through the House.

Top exports in 2010 included paper and paperboard, vegetables, wood, vehicles and machinery. In 2010 Canada imported some $20 million in goods from Jordan, including both knit and woven apparel, inorganic chemicals, precious stones, mainly jewellery, and vegetables, cucumbers.

Our trade relationship has clearly been growing, despite Jordan's most favoured nation applied average tariff of 11% and peaks of up to 30% on many key Canadian exports.

The Canada-Jordan free trade agreement aims to remedy this situation and promote continued prosperity for Canadian workers, producers and exporters. Once this agreement is brought into force, Canada will immediately benefit from duty-free access for over 99% of current Canadian exports by value.

What does this new agreement mean for individual exporters? Permit me to run through some specific examples, starting with the agricultural sector. Canadian exporters of pulses, lentils, chickpeas, beans and peas will benefit from the immediate elimination of Jordan's tariffs of 5% to 10% on these products. Of Canada's $7 million of vegetable exports to Jordan in 2010, the majority were lentils and chickpeas, which currently face a 5% tariff, and peas that are subject to a 10% tariff, both of which go to duty-free access immediately upon implementation of the agreement.

In 2010 exports of frozen potato products to Jordan totalled some $88,000. These exporters will benefit from the immediate elimination of a 20% Jordanian tariff and place them on a level playing field with competitors in the U.S. and the E.U., which currently benefit from duty-free access to the Jordanian market.

Canadian beef exporters will benefit from the immediate elimination of Jordanian tariffs, which range from 5% to 23% on all beef products, including fresh chilled frozen and preserved meat and offal and processed products such as sausages and jerky.

Jordan lifted its restrictions on Canadian beef products in February 2009, which will allow this sector to benefit from these lower tariffs.

Animal feed will also benefit from the elimination of Jordanian tariffs of up to 23% and some of these are currently subject to an additional 10% tariff that will be eliminated immediately upon implementation of the free trade agreement.

The Canada-Jordan free trade agreement is certainly more than just agricultural products. The elimination of Jordanian tariffs, ranging from 15% to 30% on certain wood products, could benefit Canadian exporters of doors, frames, joinery, shakes and shingles and other building materials.

Canadian exporters of paper goods, such as toilet paper, paper towels, facial tissues, envelopes, stationery, wrapping paper, boxes and corrugated cardboard, will benefit from the elimination of Jordanian tariffs ranging from 10% to 30%.

With $9.7 million in exports in 2010, mainly light passenger vehicles, Jordan is a growing market for Canadian auto and auto parts exports. The elimination of Jordan's tariffs ranging from 10% to 30% will help Canadian exporters to further expand into this market.

Canada exports a variety of mechanical and electrical machinery to Jordan, $9.2 million in 2010, including heavy construction and mining equipment, communications equipment, filtration or purification devices, pumps, machinery and components. The elimination of Jordanian tariffs, ranging from 10% to 30% on a variety of current and potential Canadian machinery exports, will certainly help our machinery manufacturing sector.

Canada's exports of pharmaceuticals to Jordan totalled just shy of a million dollars in 2010, of which 80% were subject to a 5% Jordanian tariff. That will be eliminated upon implementation of this free trade agreement.

Although Jordan is currently a small market for Canadian fish and seafood exports, the elimination of Jordan's 10% to 30% tariffs on fish and seafood could help Canadian exporters expand their presence in the Jordanian market.

I have to admit that I have covered a lot of numbers, but numbers matter to Canadian workers, producers and exporters. In an increasingly competitive world, lower tariff numbers can make the difference for exporters who are considering whether to expand or enter into a new market.

This growing trade relationship is just one of many reasons why our government continues to work with Canadian businesses to ensure closer commercial ties to the Jordanian marketplace. Our government's work to support Canadian firms doing business in Jordan has been recognized by the business community in Canada and has been met with support from a wide range of businesses, including the Forest Products Association of Canada, the Grain Growers of Canada, the Canadian Cattlemen's Association, as well as the Canada-Arab Business Council, all of which appeared before the Standing Committee on International Trade.

Members will remember that our free trade agreement was just one of the agreements we signed with Jordan in 2009. We also signed a bilateral job-creating foreign investment protection and promotion agreement, which came into force on December 14, 2009. This job-creating investment agreement establishes clear rules for investment between our two countries.

Canadian investors are particularly excited about opportunities in Jordan's resource, extraction, nuclear energy, telecommunications, transportation, manufacturing and infrastructure sectors and this job-creating investment agreement provides Canadian and Jordanian investors with the predictability and certainty they need when investing in one another's markets.

I am sure members will agree that this free trade agreement and the 2009 job-creating foreign investment protection and promotion agreement with Jordan are no doubt complementary.

We are living in very challenging economic times and the economy remains our government's number one priority. In order to ensure that our economy continues to grow and continues to be competitive in the global marketplace, trade barriers must be broken down all across the world, through new free trade agreements.

Protectionism is never the answer. Our government believes that Canada's ability to continue to recover from the global economic downturn depends, in large part, on the global trade and investment partnerships that we pursue. That is why we are moving so ambitiously on free trade negotiations with our global partners.

Since 2006, Canada has concluded new free trade agreements with nine countries, most recently, an agreement with Honduras that was announced August 12. Canada is also in discussions with many more countries, including the European Union and India, two of the largest, most promising markets in the world.

This government is dedicated to ensuring that the Canadian economy remains strong through pursuing trade relationships that work for Canadians. This ambitious pro-trade plan is important for Canada.

Passing the Canada-Jordan economic growth and prosperity act will allow for the quick implementation of the free trade agreement with Jordan in order to help Canadian workers and Canadian businesses compete.

Earlier this week, the Canada–Panama economic growth and prosperity act was debated. Unfortunately, the NDP opposed the Canada-Panama economic growth and prosperity act. This should not come as a surprise, as its record is very clear. The NDP has opposed all trade agreements.

Unlike the NDP, our Conservative government is focused on broadening and deepening our trading relationship, as it protects and creates jobs and economic growth for Canadian workers and their families.

I reach out to the NDP and the Liberal Party. We need their support to pass these free trade agreements in the House. They are important for the Canadian economy. They are especially important in these trying economic times. Unfortunately, every time we reach out, we hear the same things in return. The NDP continues to represent some very narrow special interest groups. It continues with its job-killing, anti-trade agenda. It continually invents any reason at all not to support free trade agreements. On Monday, at the end of the day, the NDP said that, once again, it would oppose this agreement.

While we are focused on protecting and growing Canada's economy through our job-creating, pro-trade plan, we continually have to deal with opposition parties that obstruct this. That is the last thing we need. I would urge all my colleagues in the House of Commons to give support for a quick passage of this bill so the international trade committee can begin its work.

We have seen a very clear position come down on the side of the NDP. I do not expect that to be the position of the Liberal Party, the third party in the House. We would hope we do get its support on this bill.

However, let me assure Canadian workers and their families that our Conservative government will be strongly supporting the Canada–Jordan economic growth and prosperity act to ensure we continue to create jobs and economic growth. It is now time to move ahead with the legislation.

Our government and our party will send a clear message to Canadians that continued prosperity for Canadian workers and Canadian businesses is a priority, not just for the Conservative Party but for the House of Commons. The best way to do that is through ensuring a speedy passage of Bill C-23, Canada–Jordan economic growth and prosperity act.

This is important legislation. It was before the House in the last Parliament and it is before the House again. I urge my colleagues to send this to committee as quickly as possible and then send it back to the House post-haste.