I apologize. I was trying to make sure I didn't take more than my ten minutes. I'll slow it down.
It is critically important that the protection of investment stability agreements is negotiated into the FTA, including existing agreements being afforded the same protection as new investments.
With respect to the specific investment provisions that Canada negotiates as part of the FIPPAs—the foreign investment promotion and protection agreements—and the investment chapters in our bilateral FTAs, some of our members have serious concerns about the protection that these agreements afford. Our standard provisions include a number of carve-outs meant to protect Canadian defensive interests here at home that result in Canadian companies investing abroad enjoying less protection than their competitors from some other countries. In some instances, these weaker protections have led Canadian companies to actually route their investment abroad through non-Canadian companies, which means that the taxable income from these investments is outside of Canada.
We have raised this issue and continue to work with our officials at International Trade Canada, and we urge the Government of Canada to move quickly on the needed changes so that they can be incorporated into the FTA negotiations.
Beyond investment protection, a free trade agreement with Colombia offers many benefits to Canadian exporters. While most of the products we import from Colombia actually enter Canada already duty-free, Canadian products entering Colombian markets can face significant tariffs. For example, one of our main exports to Colombia—cereal, such as wheat and barley for the very important agricultural community—faces duties of around 15%.
Other leading exports to Colombia include agricultural products, potash, paper, machinery, and equipment. As the Colombian economy expands, there will also be additional opportunities in some areas in which Canada has true strength, such as financial services.
Concluding and ratifying an FTA with Colombia is important to ensure a level playing field is afforded for Canadian companies.
As I am sure you are aware, the U.S. has negotiated an FTA with Colombia. Although not yet passed, the implementing legislation has been sent to Congress, and while it is unclear when this agreement will be voted on, many commentators and our contacts in the United States have stated quite clearly that they expect this to pass. In addition, the EU is in intensive negotiations with Colombia, with three negotiating rounds planned between now and October.
Canadian industry has been harmed again and again as other countries sign and implement FTAs ahead of us. Here is an opportunity for Canada and Canadian jobs to get an early move or advantage. Canada's FTA with Colombia can also be seen as part of a defensive FTA to prevent Canada from being shut out of this market. This is consistent with the recommendation made by this very committee in its report on trade policy in the last session.
Concluding and ratifying an FTA with Colombia is also important for Canada's credibility as an FTA negotiating partner. Our recent FTAs with the EFTA and Peru are the first we have concluded in more than six years, and they have yet to be implemented. By contrast, the United States has completed and implemented ten FTAs since 2004.
Now that we are seeking to negotiate and complete FTAs in a more timely fashion, we are having significant difficulties getting other countries to take us seriously and show interest in negotiating with us. Even some small countries are reluctant to engage. So we must not forget that how we approach the FTA with Colombia can have real consequences on our ability to negotiate FTAs with other larger partners, including, for example, the very important European Union.
I would now like to briefly address the foreign policy grounds for the FTA with Colombia. The federal government has committed to re-engage with the Americas to advance security, prosperity, and democracy. These are lofty and important goals. An FTA with Colombia is one of the pieces that will help achieve this objective.
While it is true that Colombia can be a very violent and dangerous place, unfortunately, for far too many of its citizens, President Uribe and the Colombian people desperately want to achieve peace, stability, and prosperity. Significant progress has been made. Since 2002, murders have dropped by 40%, kidnappings by 83%, and terrorist attacks by 76%.
As a result, trade and investment is increasing, the economy is rebounding, and the number of people living in poverty has fallen by 20%. These are truly remarkable achievements for a short five-year period.
As well, working conditions are improving, and the International Labour Organization has recognized that union legal rights in Colombia meet its highest standards. Indeed, Canadian companies operating on the ground in Colombia report that they see real progress first-hand.
In my recent visit to Colombia in June 2007, I saw first-hand the positive attitude that Colombians had towards the dramatic turnaround by their president. The common view of Colombia held in Canada is very outdated. While we understand why some parties would use the opportunity that's been afforded by these negotiations to highlight some of the challenges remaining in Colombia, we draw your attention to the amazing progress that has been made in recent years and the significant support the Colombian people have given to their government.
In short, by quickly signing an FTA with Colombia, we can be true to our word and support the causes of peace, stability, and prosperity while ensuring our own commercial interests. This will contribute to the new-found stability of a progressive government. A stronger government will be in an even better position to do more for its people, including strengthening human rights--on which they freely admit there's more to be done, and they're willing to work on it--or we can just let this agreement flounder for reasons that will only strengthen those who actually commit the human rights abuses, and in turn deal a severe blow to the progress being made in Colombia.
The Canadian Chamber of Commerce and our members believe it makes sense to support our friends, our allies, and our bottom line.
I will close with those comments.
Thank you very much. Merci beaucoup.