Bill C-20 (Historical)

Canada-Honduras Economic Growth and Prosperity Act

An Act to implement the Free Trade Agreement between Canada and the Republic of Honduras, the Agreement on Environmental Cooperation between Canada and the Republic of Honduras and the Agreement on Labour Cooperation between Canada and the Republic of Honduras

This enactment implements the Free Trade Agreement and the related agreements on environmental and labour cooperation entered into between Canada and the Republic of Honduras and done at Ottawa on November 5, 2013.
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 entered into between Canada and the Republic of Honduras.
Part 3 of the enactment contains coordinating amendments and the coming into force provision.

(The House divided on the motion, which was agreed to on the following division:)

Vote #79

Canada-Honduras Economic Growth and Prosperity Act

[The Speaker, Conservative, Andrew Scheer]

I declare the motion carried.

The House resumed from January 29 consideration of the motion that Bill C-20, An Act to implement the Free Trade Agreement between Canada and the Republic of Honduras, the Agreement on Environmental Cooperation between Canada and the Republic of Honduras and the Agreement on Labour Cooperation between Canada and the Republic of Honduras, be read the second time and referred to a committee.

Second Reading

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, at the onset, I would like to inform you that I will be splitting my time with the hon. member for Red Deer.

Mr. Speaker, today I would like to speak about what our government is doing to support prosperity for all Canadians and how the Canada-Honduras free trade agreement would be part of the bigger picture.

The Canada-Honduras free trade agreement would be another step in fulfilling our Conservative government's ambitious pro-trade plan. International trade is critical to the Canadian economy. We need to ensure open borders for our exporters. One in five Canadian jobs is related to exports. Freer, more open trade would ensure that we could support domestic economic growth and new jobs. Our Conservative government has always been a supporter of free and open trade. For this reason, our government made it a priority to diversify our international trade negotiations agenda and place increased focus on concluding regional and bilateral trade agreements, such as the Canada-Honduras free trade agreement we are discussing today. These agreements would be complementary and, in fact, would strengthen the important work of the WTO.

It may surprise many Canadians to learn that, in 2006, Canada only had free trade agreements with five countries. Our government recognized the situation was not good for Canadian companies, especially small and medium-sized enterprises, which depend more and more on international markets for their success. Lack of competitive access to global markets was putting Canadian exporters, investors, and service providers at a competitive disadvantage. This was especially apparent when key competitors from the U.S. and the EU were already enjoying preferential market access.

It was clear that the Government of Canada needed to act. That is why we introduced the global commerce strategy in 2007. The global commerce strategy was focused upon expanding our global trade network, strengthening Canada's competitiveness in established markets, while also expanding into fast-moving, emerging economies. The strategy supported Canadian company participation in international markets; in particular, helping them to seize opportunities as part of global value chains. It has also identified markets in which Canada should focus its trade negotiating capacity.

Our Conservative government has concluded new free trade agreements with nine countries, which is something to celebrate, beginning with the European Free Trade Association member states of Iceland, Liechtenstein, Norway, and Switzerland, followed by Colombia, Jordan, Peru, Panama, and of course, most recently, Honduras, which we are debating today.

Of course, there is the landmark Canada-European Union comprehensive economic trade agreement, which once ratified, would mean that Canada would have free trade agreements with 42 nations.

The CETA with the EU took some time to negotiate. The Europeans, having brought together 27 countries—now 28 with the addition of Croatia less than a year ago—have extensive experience in negotiating agreements, as they brought this coalition of 28 countries together. Therefore, for Canada, it is a tremendous credit to our Department of Foreign Affairs and International Trade and our own minister, the hon. member for Abbotsford, that we have developed tremendous capacity and experience in advancing trade agreements.

This is a major achievement, but we will not rest on our laurels. We recognize the success of the 2007 global commerce strategy, and in the 2012 economic action plan, we confirmed our intention to build upon success.

It is important to us that we respond to the evolving needs of Canadian companies. We do not deliver strategies in a vacuum. We get out there and talk to business. That is one of the reasons why our low tax regime is so important to Canadian businesses.

The hon. Minister of Finance is reported by some to be the best finance minister in the world. We give him credit for helping to keep taxes low in Canada, which creates an environment for business to prosper and for Canadians to do well. I am sure members will remember that, because of the more than 160 tax cuts we have brought in since forming government, the average Canadian family is now saving $3,400 every year. That is a tremendous accomplishment.

Bloomberg business magazine recently said that Canada is the second best country in the world with which to do business. That is something to brag about.

The work is not done. There is a lot more to do. It is a competitive world. These agreements are about creating opportunities for our small and medium-size businesses, as well as large enterprises, to engage with the world and for countries like Honduras to engage with Canada to expand and strengthen the family of nations through trade.

We have conducted consultations right across Canada. We have engaged with around 400 business and industry stakeholders. They were not just large corporations but also small and medium-size businesses, which are the lifeblood of the Canadian economy. That is why we are proud of the global markets action plan we launched in November 2013. It is not some bureaucratic exercise. It is a concrete plan for Canadian businesses, developed with Canadian businesses.

The global markets action plan focuses on our international economic engagement by identifying priority sectors and markets. It also underscores the importance of economic diplomacy. It aims to help Canadian small and medium-size companies expand their global reach.

Through this government's initiatives, we want to support Canadian companies, whether they export goods or services or want to invest to be competitive in new markets.

Speaking of new markets, our government has long recognized the growing importance of the Americas. The Prime Minister confirmed this when he made the region a foreign policy priority in 2007. Increased trade and commercial engagement are part of the Prime Minister's vision for a more prosperous, secure, and democratic hemisphere. It makes economic sense to Canadian businesses too. Total trade between countries in the Americas and Canada increased 32% from 2007 to 2012, not to mention that Canadian direct investment was up 58.6% over the same period. That is why we want to deepen trade relations with countries in the region, such as Honduras. Our government realized that we needed to get results faster for Canadian companies, so we moved to bilateral negotiations with our most ambitious partner, which is Honduras.

In August 2011, the Prime Minister was able to announce the successful conclusion of our free trade talks. The Prime Minister recognized the importance of this agreement. He confirmed that the Canada-Honduras free trade agreement was a key part of our government's agenda to open new markets for Canadian business, to create new opportunities for our workers, and to contribute to Canada's future prosperity.

This free trade agreement would provide numerous benefits to Canadian companies that are active or interested in Honduras. Not only would it eliminate the vast majority of Honduran tariffs, but it would help raise the profile of Canadian businesses in the country, and further deepen and strengthen Canada's commercial and economic relationship with Honduras.

The Canada-Honduras free trade agreement would also make us competitive with players from the U.S. and the EU, which already enjoy free trade with Honduras, not to mention giving Canadian companies a secure and predictable framework for business.

In responding to a question earlier, the minister commented on one Canadian company with 20,000 employees that is employing Hondurans and helping to raise the standard of living for them.

In my remarks, I have highlighted how this Conservative government is proactively addressing the needs of Canadian business, both globally and in the dynamic region of the Americas. It is also clear that the Canada-Honduras free trade agreement would create new opportunities for Canadian companies in the Honduran market. Moving this agreement forward would respond to the needs of Canadian companies. It would be yet another step in support of our growth and prosperity agenda.

For these reasons, I hope all hon. colleagues will support the ratification of this free trade agreement with Honduras.

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

Mr. Speaker, to the great shame of Canadians, the government is busy promoting a free trade agreement by hiding behind so-called job creation and economic activity. In the meantime, there is no mention of the murders that occur every day all across that very small country, or the repression or human rights offences there.

Let us not forget that since the 2009 coup d'état, that country has never gotten out from under its democratic deficit. It is absolutely incredible that in addition to completely muzzling us, the government is denying us our right to speak, claiming that it wants to accelerate the process for adopting this type of agreement.

How can my colleague defend this type of behaviour?

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, I think the member, typical of the NDP, is opposed to trade agreements in general.

What the member fails to appreciate is the fact that part of our north-south agreement is to help develop governance capacity in the nations with which we are engaging. We are investing through our aid programs and helping to build justice, train them in justice, train police forces, and help build governance capacity. These are all important measures in helping to stabilize any country.

By providing employment and creating employment opportunities for Canadian businesses to interact, we want to help establish best practices to help them understand how proper labour arrangements work and what stable employment can provide for people in terms of economic opportunity to create a stable society. That is what free trade arrangements are about. If we waited for countries to be perfect, well, a lot of countries would miss an opportunity to get a hand up to a better level of life.

Canada has had a very successful democracy. There are people who think we do not have it quite right yet. It is a work in progress, but we are trying to help those who are further behind to come up to a better level.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I listened to the speech that was just given by a government member.

How is it that, after signing a number of free trade agreements under this government, Canada has gone from having a $26 billion trade surplus to having a $62 billion trade deficit?

How can the government continue to sit back and do nothing as businesses close or outsource jobs? Why is the government doing nothing while foreign state-owned enterprises are buying up our natural resources?

Why is the government still promoting these agreements?

[James Lunney, Conservative, Nanaimo—Alberni, BC]

Mr. Speaker, the reality is that exports create about 35% of the economic opportunity and employment in Canada. We see this as an opportunity, which our friends opposite fail to appreciate, unfortunately. Creating opportunities for our Canadian companies to engage in other parts of the world, in fact, expands trade.

NDP members were opposed to the North American Free Trade Agreement. On that side of the House, they are opposed to every free trade agreement we bring in. They said it would be a disaster and terrible for Canada. However, in fact, NAFTA brought great opportunity to Canada, and so has every other trade opportunity.

I just mentioned in my speech that our trade with the north-south axis has increased 32% in the last few years. That creates opportunities, and opportunities are what we need in a very competitive world.

That is why on our side of the House we support engaging with other nations. It is one of our best opportunities to help them with governance capacity, to help them with aid, and to help them develop economic opportunities in their own nations. We want to share Canada's expertise with the world and create opportunities for our own businesses at the same time.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, it is a pleasure to speak today about the Canada-Honduras free trade agreement.

I have been very fortunate, in having been part of ParlAmericas, to go to Central America and meet with different leaders from various countries and to talk to them about the issues they have. This issue on trade is certainly extremely important. As a result of this experience, I am confident that members will also see the benefits of this partnership, for Canadian exporters, service providers, and investors alike.

Our Conservative government is focused on the priorities of Canadians, that is, creating new jobs and new opportunities. We continue to work hard to ensure the competitiveness of Canadian businesses and exporters in the global marketplace.

This free trade agreement with Honduras is about more than just trade and investment. Our Conservative government is committed to taking action on environmental issues that matter most to Canadians. We have been consistent in demonstrating that trade liberalization and environmental protection go hand in hand. For that reason, as part of this comprehensive free trade agreement, Canada and Honduras are committed to striving for good environmental governance, while at the same time opening our borders to the benefits of increased economic activity.

Canada and Honduras recognize the need to implement this FTA in a manner that is consistent with environmental protection and promoting sustainable development. That is why in concluding this free trade agreement, Canada and Honduras also signed a parallel agreement on environmental co-operation. The parallel agreement commits both countries to encouraging high levels of domestic environmental protection to foster good environmental governance and promote transparency and public participation.

This follows the approach we have taken in this regard with previous free trade agreements, such as those with Peru, Colombia, Jordan, and Panama, all building on the approach that Canada, the United States, and Mexico took together in negotiating environmental provisions alongside the North American free trade agreement.

With the growth of economic, environmental, and social links between our two countries that will follow from this free trade agreement, Canada and Honduras recognize the desirability of pursuing policies that promote sustainable development and sound environmental management.

This agreement on environmental co-operation, like others that Canada has signed, would commit Canada and Honduras to effectively enforcing our environmental laws and ensuring we do not relax or weaken those laws to encourage trade or investment. This agreement would commit both countries to pursuing high levels of environmental protection and continuing to develop and improve their environmental laws and policies.

In recognition of the substantial benefits of international trade and investment, and with a view to strengthening our mutual economic and environmental objectives, this agreement includes a commitment to encouraging voluntary best practices of corporate social responsibility. It also includes a key commitment that both countries maintain appropriate environmental assessment procedures. These are also commitments to promoting public participation and transparency to promote public awareness of environmental laws and policies.

Similarly, the agreement includes mechanisms that would allow residents of Canada and Honduras to ask questions of either party about the obligations under the agreement.

The agreement would also commit Canada and Honduras to ensuring that domestic proceedings are available to provide sanctions or remedies for violations of our respective environmental laws.

In addition, the agreement would also put in place a framework for Canada and Honduras to work co-operatively in support of the environmental objectives and obligations of this agreement. To this end, Canada and Honduras will work together to develop a co-operative work program to address mutual environmental priorities and enhance overall environmental management capacities.

Points of co-operation will be determined once the agreement is in force, and could include working together on such priorities as environmental enforcement, climate change, migratory species, conservation of biodiversity, and protective areas management. In order to oversee implementation, a committee on the environment would be established, which would be comprised of government officials from both Canada and Honduras.

Importantly, we have set out a bilateral consultation mechanism in the agreement to address any differences that may come about through the implementation of this agreement. Our dispute resolution approach focuses on facilitating dialogue and building environmental management capacity rather than increasing the administrative burden.

To complement the commitments in the environmental co-operation agreement itself, the Canada-Honduras FTA has a principle-based environment chapter that sets out the relationship between the FTA and the agreement on environmental co-operation. The FTA also includes other important environment-related provisions in relation to the importance of environmental protection and conservation and the promotion of sustainable development. Among these, the text of the free trade agreement ensures that certain multilateral environmental agreements with trade-related provisions would prevail over the FTA in the event of an inconsistency.

With the Canada-Honduras agreement on environmental co-operation and the related text in the FTA, Canada has again taken steps to ensure that increased trade does not come at the expense of the environment. Together with Honduras, we have set out an agreement that commits us both to striving for good environmental governance in order to protect the environment, while realizing the benefits of increased economic activity flowing from liberalized trade.

Our Conservative government is committed to increasing opportunities for mutually beneficial commerce and investment, including with our partners in the Americas, in order to generate inclusive and sustainable economic growth and prosperity. This new partnership with Honduras is a great example. The Canada-Honduras free trade agreement, and its parallel environment agreement, will contribute to new opportunities for Canadian businesses, exporters, and investors, while working to ensure positive environmental outcomes for both countries.

For these reasons, I urge all members to support the Canada-Honduras free trade agreement.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I listened very carefully to the speech just given by a government member.

Although I do not want to call into question his sincerity when it comes to agreements and respecting the environment, I would like to express my doubt—with a capital “D”—about the government's sincerity and intentions when it comes to protecting the environment.

However, that is not what my question is about. I would like the government member to tell me truthfully what Honduras is going to buy. What products is Canada going to sell to this country? What Canadian products is Honduras interested in buying?

Trade involves purchases and so forth. What is Honduras going to buy from Canada to help us regain our trade balance? Right now we have a significant deficit.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, I thank the member very much for the question. It gives me an opportunity to go through a list for each and every province, and I will certainly start with Quebec. Honduran tariffs in sectors of export interest, first of all, chemical production, would see the elimination of tariffs that range up to 15%. The industrial machinery sector includes articles of iron and steel. There is pork. There is maple syrup. These are some of the areas that should be important to the member and the people she represents.

In Ontario, there is industrial machinery, plastics, textiles, pork, as well as live animals. To go to my own province, the exports we have there are beef, furnitures, textiles, and construction equipment.

I have had the opportunity to be in Central America, as I mentioned earlier in my speech, as part of my parliamentary duties with ParlAmericas. I have had chances to speak to members of the Honduran government. They look to Canada as a leader that can help to bring them out of the difficulties and issues they have. We need that.

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

Mr. Speaker, the government's claims are nothing more than wishful thinking.

Although I have very little free time, I make time each night before going to bed to read for a little while. I am just finishing up an essay written by French-American economist Esther Duflo, who is now an advisor to President Obama.

In the part of the essay I am reading right now, she clearly establishes that a country needs strong institutions in order to prosper in an environment free of corruption and political and social dysfunction. However, such is not the case in Honduras.

That being said, can my government colleague provide specific examples to back his claim that supporting a stronger economy in Honduras will automatically and magically result in democracy for that country?

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, what principles can we put in place? What principles are there? The suggestion was that there has to be a strong infrastructure together before we even try. That is so unfair.

If an individual were to go to Central America and look at some of the issues that countries such as Guatemala, El Salvador, and Honduras deal with, they would see the things they have managed to do and what they are asking of Canada. We have been able to deliver on the justice issue and as far as democratic capacity. These are the things that we bring, because of our nature, because we are Canadians, and because we care about helping those throughout the world. That is the thing we should be looking at.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I am pleased to have an opportunity to participate in the debate. I only wish that the government had not come forward with a time allocation motion because I know a lot of my colleagues would like the opportunity to engage in this debate. Contrary to what the members opposite love to talk about, New Democrats are not opposed to trade, not in the least, but we want to make sure that the trade Canada participates in is trade that is not only good for Canada and Canadians but is also good for the countries and the people we trade with, and that it is done under the principles we consider important to us as Canadians.

We have had concerns about some of the deals that the government has pulled together. This agreement, for example, came as a result of the fact that the Conservatives were unsuccessful in putting together a multilateral deal in Central America, dealing with a number of countries on the basis of some of those principles. As a result, we are now dealing with a bilateral trade deal that New Democrats have some concerns with, as we did with the deal with Colombia.

Before I wade in any further, let me indicate that I will be splitting my time with the member for Esquimalt—Juan de Fuca, as he has some important messages to share about this deal that are relevant to his constituents and Canadians whom he represents.

Let me reiterate what my colleague, the NDP trade critic, has indicated before. New Democrats look at every and any trade deal on whether it meets three criteria. Number one, does the proposed partner share Canadian values that include respect for democracy, human rights, and does it have adequate environmental and labour standards? Number two, does the proposed deal offer significant or strategic value to Canada, Canadians, and our economy? Number three, are the actual terms of the agreement in themselves satisfactory? We have looked at the deal. We should understand that this deal, like everything else the government does, has been negotiated in complete secrecy, behind closed doors, without any consultation or discussion with Canadians about what they were doing, what the impact was, and so on.

I have heard Conservative members somewhat piously, frankly, talk about what great things they are doing for the poor people of Honduras. What I would rather see the government do is use its influence on the government of Honduras to start recognizing true principles of democracy and honouring and respecting human rights and the right of law. That is not what the government has done and that is certainly a problem that New Democrats see with the Government of Honduras.

It is not about whether we are able to help the country and the people of that country. If our development agencies, such as Democracy Watch, and other NGOs are able to work with likeminded organizations and communities within Honduras, that is a good thing. Unfortunately, those people, whether they be labour activists, environmentalists or journalists, are under threat as a result of the activities of Honduras and officials who represent either the government or the police. Therefore, the question of human rights abuses is a very serious one that the government should be taking into consideration before it tries to engage in any type of activity.

We have heard from a number of international organizations that as a result of the military coup in 2009, there is a government in place that does not respect the principles of democracy and human rights. Honduras has the highest murder rate in the world. It is considered one of the most dangerous countries for journalists. It is a major drug-smuggling centre, and it is considered to be one of the most corrupt countries in Central America.

What would this deal do about these issues? What would this deal do to try to make sure that the people are protected from what their government is doing?

Frankly, by participating with the government and with the major corporations in Honduras, we would be saying that what they are doing is okay. We would be saying that what they do to their people is okay. What they do to their environment is okay. We just want do business with them.

Let us not forget that Honduras is currently Canada's 104th export market. It is not high on the list in terms of value to Canadian exporters. In 2012, we exported $38 million and imported $218 million of merchandise. That is a similar kind of trade balance that we recognize that the government has been responsible for in each and every sector that we see in our economy.

The concern we have, again, is that if we are going to participate as a country in the world, whether it be in trade issues or in human rights and democracy, whatever it is that we do, the way we walk on this earth, we want to do it based on those principles of respect, understanding the role of human rights and the law, protecting the environment, and the rights of labour so that people can come together collectively and represent themselves. That is what we believe. We want it so that those practices are allowed to continue. We should be a model for countries around the world. We should be participating with countries that reflect those same principles so that they can be enforced.

Countries like Honduras that do not follow those practices and do not seem to have the same kinds of principles will look at Canada and say that they would like to trade with us and participate with us in an economic fashion, so what is it going to take? What are they going to have to do to make that happen? It would be very clear that there has to be a recognition and a respect for democratic rights, human rights, the environment, and the law.

That is what Canada needs to do. That is why we have been opposed, because we do not feel that the Government of Honduras is an example of a country that we should be participating with.

Do we want to help the people of Honduras? Absolutely. Do we want to try to make sure that their government respects their rights, their environment, and the rule of law? Absolutely. However, participating in a trade deal without demanding that certain practices change is not the answer. All that would do is make sure that the behaviours that we find reprehensible will continue.

We can do better in this country. There are other nations that we need to be participating with. For example, Brazil, Japan, and South Africa are countries that we should be negotiating deals with. It is time that the government started to recognize countries that would make true partners with our nation and people, and move forward in that direction.

[Earl Dreeshen, Conservative, Red Deer, AB]

Mr. Speaker, while listening to the hon. member's speech, I heard him make a suggestion that these were pious pronouncements by members opposite, and of course I was the one who was just speaking prior to that. I do take some offence to his thoughts that we would be thinking about this in a callous way.

I would like to talk a bit about the NDP trade critic being quoted in Huffington Post as saying that Honduras, along with Colombia, Peru, Chile, Costa Rica, and Panama are “...not key economies with any kind of strategic value for Canada”. There was no discussion about human rights; just “no strategic value for Canada”.

The NDP member for British Columbia Southern Interior has written that “trade agreements threaten the very existence of our nation”. There was no discussion about human rights as far as Canada is concerned.

Then he mentioned that trade agreements are job destroying.

We look at those situations and then they stand and say that they are the defenders of human rights and as long as we have the kind of country that has our unions with labour and everything else, that is what is important and then we can talk about it.

I just wonder how Canadian businesses can be protected from the anti-trade rhetoric.