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.

Canada-Honduras Economic Growth and Prosperity Act

[Pierre Jacob, NDP, Brome—Missisquoi, QC]

Mr. Speaker, I thank my colleague for her very compelling speech.

The Economist, which does not seem to be particularly left-leaning, says that Honduras is the most violent region on the planet.

Could my colleague comment on that? Is trade with a country that is considered so violent a good thing?

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, as I said, I would think that one of the preconditions for entering into a preferential trade agreement would be to provide some level of assurance. Once we sign off on that deal, we would be sending signals to Canadian investors that this is a safe place, a good place to invest their dollars.

We have yet to have the government come forward and show us how the Government of Honduras is addressing the erosion of rule of law and the erosion of democratic processes, and frankly, I think credible Canadian investors would also want to look to the issue of human rights abuses.

No, I do not see that the government has brought forward a credible case for the signing off and the voting in favour of Bill C-20.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Mr. Speaker, I congratulate my colleague for her speech.

Honduras is a country with many repressive and undemocratic policies. The NDP does not want to foster or promote trade agreements with these kinds of countries. We prefer to promote agreements with countries where there is respect for human rights, policies are democratic and we have something to gain.

What does my colleague have to say about that?

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, in response to my colleague's question, I would simply share what the Canadian Council for International Co-operation's Americas Policy Group has said:

We have long maintained that under the right conditions, trade can generate growth and support the realization of human rights. These conditions simply do not exist in Honduras. ...until there is a verifiable improvement in the country's democratic governance and human rights situation. ...the Canada-Honduras FTA will do more harm than good.

[Kellie Leitch, Conservative, Minister of Labour and Minister of Status of Women]

Mr. Speaker, I will be splitting my time with the MP for Northumberland—Quinte West.

As members know, our government has been focused on what matters to all Canadians: jobs, economic growth, and long-term prosperity. That is why we are currently pursuing the most ambitious trade expansion plan in our country's history. In less than seven years, Canada has concluded free trade agreements with 9 countries and is negotiating with 30 more. Consider this: one in five Canadian jobs are dependent on exports. That is 20% of all Canadian jobs. Our prosperity hinges on opening new markets for Canadian goods, services, and investments.

The Canada-Honduras free trade agreement would have a tremendous impact on Canadian businesses and workers in the fields of agriculture, professional services, value-added food processing and manufacturing, and commodity- and resource-based industries. This agreement would open up significant opportunities for Canadian companies in Honduras, as well as the broader region. The free trade agreement between Canada and Honduras would also further Canada's foreign strategy of deepening our engagement in the Americas and support the vision of enhancing economic integration in the hemisphere.

On the other hand, the NDP's anti-trade record is very clear. Going all the way back to the Canada-U.S. Free Trade Agreement in 1988, New Democrats have opposed every single free trade agreement Canada has ever signed into law. They believe that the global economy is something hard-working middle class Canadians should fear. Their vision for Canada to be a country that turns inward out of insecurity: a Canada that cowers, a Canada that lacks confidence, and a Canada that actually cannot compete. Our government categorically rejects this view. We know that Canadians can compete with the best in the world and win.

In November 2013, I signed the Canada-Honduras agreement on labour co-operation, which was negotiated in parallel with the Canada-Honduras free trade agreement. Our government strives to demonstrate on the international stage that a competitive economy includes safe, healthy, and productive workplaces. We expect all of our trading partners to ensure safe working conditions consistent with international standards. That said, this agreement would help ensure a level playing field for Canadian workers and employers when competing internationally for trade and investment in the context of our expanding economic relationship with Honduras.

Our government is pleased to work with our partner countries in the Americas to ensure mutual prosperity within the region and achieve greater levels of international co-operation on labour issues. This free trade agreement would increase export and investment opportunities for Canadians by creating a potential preferential and more predictable trade and investment environment. At the same time, the labour co-operation agreement would ensure that these economic advances are not made at the expense of workers' rights. The labour co-operation agreement between Canada and Honduras would help protect labour rights and maintain productive and healthy labour environments in both countries.

This agreement will create jobs and contribute greatly to Canada’s continued economic growth and prosperity. As a Canadian, I want to see my country prosper. As Minister of Labour, I am happy to say that while we are working hard to advance our historical trade agenda, our government is ensuring that international labour rights and obligations are respected.

As Minister of Labour, I am happy to say we will be working hard to advance our historical trade agenda, and our government is ensuring that international labour rights and obligations are respected. It is of vital importance that prosperity does not come at the expense of workers' rights. That is why the free trade agreement with Honduras is accompanied by a parallel labour co-operation agreement. This agreement includes strong and comprehensive provisions for the enforcement of labour rights and a transparent complaint and dispute resolution mechanism.

Under the terms of this labour co-operation agreement, Canada and Honduras have committed to ensure that their laws respect and embody the International Labour Organization's 1998 Declaration on Fundamental Principles and Rights at Work. The declaration covers the right of freedom of association, the right of collective bargaining, the abolition of child labour, the elimination of forced and compulsory labour, and the elimination of discrimination in the workplace. Through these provisions, we demonstrate our shared commitment to improving labour standards and protecting workers' rights.

In the Canada-Honduras labour co-operation agreement, both countries have committed to protect workers' health and safety on the job, as well as provide compensation in cases of work-related injuries or illnesses. Both countries have further committed to establishing and maintaining minimum employment standards, including standards with respect to wages and overtime pay.

Finally, we have also agreed to provide migrant workers with the same legal protections as those afforded to nationals. This prevents discriminatory working conditions and protects some of the most vulnerable workers.

Canada recognizes Honduras' ongoing efforts to bolster its enforcement of national laws and fundamental labour rights, and encourages its efforts to continue along this path.

It is clear that Honduras is just as committed as we are to the success of this accord. In fact, when I met with my Honduran counterpart in November 2013, we reaffirmed our commitment to the effective implementation of a high-quality labour co-operation agreement. However, as one can appreciate, the commitments we make in these agreements are only credible if there is a means of enforcing them. That is why I am pleased to say that the Canada-Honduras labour co-operation agreement includes a strong dispute-resolution mechanism that is transparent and easy to use.

If either Canada or Honduras should fail to respect internationally recognized labour rights and principles or not enforce domestic labour laws, they could ultimately face financial penalties. As part of the Canada-Honduras labour co-operation agreement, the Canadian government has agreed to work with Honduras to improve its labour standards and better protect workers.

Our government recently provided funding for various technical assistance projects that are strengthening the capacities of the Honduran Ministry of Labour to enforce domestic labour laws. These have focused on key issues including workers' rights, improving labour inspections, promoting more vibrant and constructive dialogue between government workers and employer representatives, and encouraging the development of sound occupational health and safety practices.

Our government has been clear that trade liberalization and labour rights go hand in hand. Canada has more to offer the global market than just the robust quality of its products and services. We also have a reputation for honesty and reliability. We keep our promises and we play by the rules. That is why the Canada-Honduras labour co-operation agreement is important, and I am confident that this agreement would help create well-paying jobs for Canadian workers, as well as making sure that those workers in Honduras are seeing a higher standard for the labours that they are embarking upon at home.

I ask my fellow parliamentarians to support Bill C-20 to implement the Canada-Honduras free trade agreement and the parallel labour co-operation and environment agreements. This legislation would further strengthen Canada's economy and provide a foundation for future trade opportunities. It would also promote and ensure fair and productive workplaces that would benefit both countries.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I notice in the minister's comments she skirted completely around the erasure of the former strong mechanisms for ensuring sustainable development and protection of the environment.

Perhaps the member would like to speak to why her government has decided not to build on the base provided by the North American Agreement on Environmental Cooperation, which actually provides forums for dialogue not just between the governments of Honduras and Canada but between the peoples of Honduras and Canada, the workers of Honduras and Canada, and the communities of Honduras and Canada on what implications further economic development or Canadian investment might have.

Could she speak to why they have removed all the forums that would have been provided had they followed the model of the North American Agreement on Environmental Cooperation?

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, as I mentioned in my speech, our focus—and I think it is a very important one—is about creating jobs and prosperity. With that there are equal chapters—one on the environment and one on the labour co-operation agreement, which I spoke to—that are about making sure that those individuals in both countries are well supported.

While there may be a desire by the opposition members to find the reasons why they may not want to support a free trade agreement in the future to make sure there is prosperity here at home, as they have with every other free trade agreement that has been brought before them, not being willing to step up and support those Canadian workers and Canada's opportunities abroad, we are moving forward, making sure free trade agreements are a reason to increase prosperity here at home and create more jobs; and also, quite frankly, I think it is going to provide great benefits to individuals in Honduras.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to pick up on the minister's comments about job creation. This is something that we in the Liberal Party have been raising for a number of months. The government has dropped the ball quite significantly on job creation and the impact of overall trade on our middle class in Canada. At the time the Conservatives inherited the reins of governance in Canada, we had a huge trade surplus. The Conservatives have turned that trade surplus into a trade deficit at a substantial cost to the middle class, a substantial cost in terms of the number of jobs here today.

So yes, we have given tentative support to this agreement and the bill today. However, one of the concerns has to be this. why has the government done so poorly in terms of overall trade? When does the minister believe Canada will once again be on the plus side of trade? The Conservatives have demonstrated that they have been successful at negotiating some trade agreements, but the bottom line is that we have a net trade deficit, and that is something we have only had under this particular majority government.

[Kellie Leitch, Conservative, Simcoe—Grey, ON]

Mr. Speaker, I am delighted to speak about jobs, as the member has raised, because we have worked with the business sector and Canadians to generate more than one million net new jobs in Canada, over 80% of them full-time and over 80% of them in the private sector. So this government is doing its job. We are out creating jobs, working with industry and with Canadians to ensure that they can have long-term prosperity, unlike the opposition.

Unlike the opposition party sitting at the far end of the House, we are focused on what matters to Canadians: ensuring that Canadians have jobs. That is why we are so proud of having signed over nine agreements, working with more than 30 countries. It is something that the government of the past, one that the Liberals had well before 2006, was unable to accomplish.

I encourage the members opposite to feel free to support this agreement. I am delighted to hear that they will be doing so, because it is the right thing. This government is moving forward in creating free trade agreements. We are going to continue to do that and to create jobs, something that that government was unable to do.

[Rick Norlock, Conservative, Northumberland—Quinte West, ON]

Mr. Speaker, I am pleased to speak today in support of the Canada-Honduras free trade agreement and our government's goal of creating prosperity for all Canadians.

Our government is in the midst of the most ambitious pursuit of new and expanded trade and investment agreements in Canadian history. We will not sit on the sidelines while other countries vigorously pursue trade deals to secure better market access for their products and services. Indeed, the Canada-Honduras free trade agreement is yet another step this government is taking to help Canadians compete and succeed in the global economy.

No government in Canada's history has been more committed to the creation of jobs and prosperity for Canadian businesses, workers and their families. Deepening Canada's trading relationship in dynamic and high-growth markets around the world is key to those efforts.

In 2006, Canada had free trade agreements with only five countries. Since then, Canada has concluded free trade agreements with eight countries: Colombia; Jordan; Peru; the European Free Trade Association member states of Iceland, Liechtenstein, Norway, and Switzerland; Panama; and has signed a trade agreement with Honduras. Last fall, we also announced that an agreement had been reached with the 28-member European Union.

That is not all. We are, of course, intensifying our focus on Asia.

On March 11 of this year, our Prime Minister and President Park of South Korea announced the conclusion of negotiations for a Canada-South Korea free trade agreement. This landmark achievement constitutes Canada's first free trade agreement in Asia.

The Canada-Korea agreement will strengthen economic ties with a key partner in that fast-growing and dynamic region of the world and generate significant benefits, jobs, and opportunities for Canadians. The agreement is projected to boost Canada's gross domestic product by $1.7 billion and increase Canadian merchandise exports to South Korea by about 32%. It will also provide substantially improved access for Canadian businesses to South Korean markets, a key gateway to other markets in Asia.

Canada and South Korea are committed to bringing the Canada-South Korea free trade agreement into force as soon as possible.

It does not end there. Canada is actively pursuing an agreement with 11 other Asia-Pacific countries through the trans-Pacific partnership negotiations, which Canada joined in October 2012. With its current membership, the TPP represents a market of more than 793 million people and a combined gross domestic product of $28.1 trillion.

Canada sees this agreement as a leading mechanism for regional economic integration and a critical tool for positioning Canadian businesses in the fast-growing Asia-Pacific market.

Negotiations are also well under way for major agreements with large dynamic economies, including Japan and India.

A Canada-Japan economic partnership agreement would strengthen access to the world's third largest economy. An agreement could increase Canada's GDP by $3.8 billion and boost exports to Japan by 67%.

Just recently, the Prime Minister announced during his visit to Israel the launch of negotiations to expand and modernize the Canada-Israeli free trade agreement.

This Conservative government continues to update our existing agreements in order to maximize benefits for Canadians.

Let us not forget that 2014 marks the 20th anniversary of the North American Free Trade Agreement. Twenty years ago, trade within the North American region was somewhere around $372 billion. In 2013, the total trilateral merchandise trade reached over $1.1 trillion. That is nearly a fourfold increase.

Canada is now the top export destination for 35 U.S. states. Of course, the U.S. remains by far the top export destination for all provinces. Over eight million U.S. jobs depend on trade and investment within Canada; and over 2.5 million Canadian jobs, that is one in seven, depend on exports to the United States of America.

NAFTA has provided a solid foundation for Canada's future prosperity and is an agreement that Canada continues to build on to advance North American trade and competitiveness.

Deepening Canada's trade relationships in rapidly growing markets around the world, such as Honduras, is an important part of this government's pro-trade plan for jobs, growth, and long-term prosperity. The Canada-Honduras free trade agreement is a key part of our agenda to open new markets for Canadian businesses, create new opportunities for our workers, and contribute to Canada's future prosperity.

Free trade would provide numerous benefits to Canadian companies active or interested in Honduras. Not only would it eliminate the vast majority of Honduran tariffs, but it would also 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 United States and the European Union, who already enjoy free trade with Honduras, not to mention giving Canadian companies a secure, predictable framework for business. Keeping pace with Canada's main competitors is just one reason that we need to move forward on this deal.

There are other benefits to the free trade agreement as well, which I would like to reiterate. It would help a variety of Canadian companies in sectors such as chemical products, wood, pulp and paper products, vehicles, auto parts, as well as fish and seafood. It would also be advantageous to Canadian agricultural producers in areas like beef, pork, and processed potato products.

Canada's service providers would enjoy enhanced commitments in export sectors that are of interest to Canada, such as natural resources, professional services, and information and communications technology. Clearly the Canada-Honduras free trade agreement would create new opportunities for Canadian companies in the Honduran market.

Thanks to the actions taken under our government's free trade leadership, Canadian workers, businesses, and exporters now have preferred access and a real competitive edge in more markets around the world than at any other time in our history.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Mr. Speaker, I keep saying that we do not understand why this government across the way wants to do business with this country that is known for violating human rights and as one of the most corrupt countries on the planet. Furthermore, as far as any benefit Canada might derive from entering into this agreement is concerned, Honduras ranks 104th on the list of countries we trade with.

Taking all that into account, what makes Honduras so attractive to the Conservatives when we know of all its human rights violations? Journalists are not well received in Honduras. They are treated very poorly there. The relationship Honduras has with the international community and journalists often gets tangled up in violence. Accordingly, this is hard to understand. Canada could forge trade relationships with many other countries. Why insist on concluding an agreement with Honduras?

[Rick Norlock, Conservative, Northumberland—Quinte West, ON]

Mr. Speaker, I know that the member was listening intently when the Minister of Labour was giving her speech.

The member will recall that the minister referred the House to the labour agreement she signed with Honduras, and she will recall that the minister mentioned some of the environmental aspects included in this free trade agreement.

I guess the best example I would suggest to the member is the history of Canada. Some 60 to 100 years ago, we had everything from child labour to persecution for the right of association, which is the right to organize labour unions, et cetera. How did that change? It changed because there were jobs for people. People organized. People were able to mature into this democracy we share today, with its respect for human rights.

We cannot allow countries such as Honduras to remain isolated, to not have free trade agreements with us, and to not offer their people an opportunity to provide a living for themselves and their families.

Eventually that country will mature into a country, hopefully, like ours. By signing the labour and environmental agreements associated with the free trade agreement, we are going to be assisting that country. We are going to be pushing it along and helping the very people the member talks about to have a better life. That is why we are in favour of free trade.

I could mention some of the things said by other members in her party, but I do not think it is constructive to take a negative attitude. I would like the member to think positively, as this is the first step on the road to Honduras becoming a country like ours, with respect for human rights. It can only do that when it has trade agreements that have written into them human rights and labour regulations, laws, and rules.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I have had the opportunity to express some thoughts and ideas in regard to the Honduras trade agreement.

I indicated that the Liberal Party wanted to see this agreement continue to go through the process. I made reference to the importance of trade.

The member made reference to Korea and the trade agreement with Korea. It was the first in Asia. As the member was talking about that I thought of the Philippines. The Philippines is a country that contributes immensely to Canada's immigration today. It was ranked in the top three over the last few years in terms of the number of immigrants who come to Canada, not to mention the number of workers, students, and so forth.

I want to ask the member if he would provide some comment in regard to the Philippines. Does he believe that his government is currently working to develop trade negotiations with that country?

[Rick Norlock, Conservative, Northumberland—Quinte West, ON]

Mr. Speaker, from a trade perspective and from a trade agreement perspective, we are going to leave no stone unturned.

We are not only helping, as I previously mentioned to the NDP member, to bolster the lives of the people in that country. We have to be a little on the selfish side here. We have to think about the jobs Canadians depend on.

Whether it is the Philippines or Korea or any country, we will engage in free trade agreements with the rest of the world. We will write into those agreements labour and environmental agreements that will go to not only improving the lives of Canadians, through the jobs and benefits that derive from free trade, but to the benefits and jobs and human rights issues we have talked about in this House. We will only get there when we improve the livelihoods of everyone in the world. I believe that free trade among countries and bringing other countries closer to our standards will do that very thing.

[Pierre Jacob, NDP, Brome—Missisquoi, QC]

Mr. Speaker, I rise to speak to Bill C-20, which would implement a trade agreement with Honduras.

In 2013, when I sat on the Subcommittee on International Human Rights, we studied what was happening in Honduras at length. I believe I know enough of the facts to oppose this bill.

The despotic regime that reigns in Honduras is characterized by its anti-democratic practices, its corruption, its failed institutions and its history of human rights violations.

Canada should not be signing a free trade agreement with that country. I do not understand how some of my colleagues from the other parties dare support such a treaty, considering what we know about Honduras.

In my view, when it comes to considering a trade agreement, we must determine whether the partner respects democracy and human rights. That is absolutely not the case here, as my NDP colleagues demonstrated earlier. I will add to the debate what we learned in the Subcommittee on International Human Rights.

Honduras has a poor record on rule of law, as we know. Human rights are being trampled there. There are many cases of murder and corruption, and they go largely unpunished. Professor Gordon of Wilfrid Laurier University, who testified before the committee, said that the possibility of a free election needs to be called into question. Some members of the opposition parties have been assassinated, others have been threatened and so on.

Violence and repression have reached new highs since the coup in 2009. In 2013, there was an average of 10 killings a month. According to Professor Dana Frank from the University of California, 80% of crimes in Honduras go unpunished. According to the Committee of Relatives of the Disappeared in Honduras, there were more than 10,000 complaints of human rights violations by security forces in 2010. The legal authorities did not follow up on these complaints.

Human Rights Watch published a report in December 2010 that mentioned that the state does not co-operate in investigations. There are widespread doubts about whether there is judicial independence. Another report published in February 2013 criticizes the fact that no progress has been made.

The NGO Freedom House ranks Honduras as the second most dangerous country for journalists. According to the National Human Rights Commission in Honduras, 36 journalists were killed between 2003 and 2013, and 29 have been killed since President Lobo took power.

In June 2013, Anibal Barrow, a TV news anchor, was kidnapped from his car and killed. No suspects were convicted.

Furthermore, a handful of companies with ties to the government own most media outlets. Self-censorship is common. It is alleged that journalists are corrupted and advertisements are manipulated to ensure that coverage is positive and to silence opponents. A recently passed law penalizes anyone for criticizing a company or unfairly criticizing the government. These conditions make it difficult to assess the real situation in the country.

These issues caught the attention of the U.S. Congress last summer. In June 2013, 24 American senators signed a letter to express their concerns about human rights in Honduras. In addition, 94 members of Congress urged the U.S. Department of State to cease all military assistance to Honduras in light of the violent repression.

Furthermore, there has been some criticism of the charter cities that Honduras wants to create. These charter cities would give foreign companies unrivalled and exclusive access to cheap labour and natural resources in Honduras. Basically, they want to create nations within Honduran territory. In all the areas where the charter cities are proposed, there are significant land issues that have been going on for decades.

The most significant area is in the Aguán valley. That area has been allocated for a potential charter city. It is also an area that has seen huge investments in tourism. There has been a significant amount of protest against the charter cities, once again because the communities where these cities will be built are being excluded from any sort of dialogue.

The individual who proposed the charter city project, an economist named Paul Romer, has since pulled out of the process, complaining that there is no accountability or transparency. This has raised a significant amount of controversy in Honduras, and yet the trade agreement we are currently debating seeks to take advantage of those charter cities.

The second criterion to take into account when assessing trade agreements is whether the agreement has any strategic value to Canada. Well, I have no idea, because this agreement was negotiated without any transparency.

Despite repeated requests, the Government of Canada refused to make the text of the agreement public during the negotiation process. I have to wonder how some members of the House can support a trade agreement without knowing the details, especially when we are well aware of the human rights situation in that country.

This agreement is stained with the blood of Hondurans. If we enter into a partnership with such a regime, we run the risk of tarnishing Canada's reputation on the international stage.

In 2011, the people of Brome—Missisquoi elected me to this place with the hope of building a different Canada. Considering the facts that I just outlined, I cannot support Bill C-20, and I encourage anyone who is still undecided to oppose it.