International Trade Committee on Nov. 29th, 2010

[John Cannis, Liberal, Scarborough Centre, ON]

But you've not been to the mine. You have just heard...?

[Jamie Kneen]

We visited the community before the mine opened, and I have never been back since then.

[John Cannis, Liberal, Scarborough Centre, ON]

I have some friends I heard from as well, and they told me the opposite.

Anyway, you talked about the provisions. You spoke to certain provisions—the current structure, you don't see the evidence, you don't have a problem with it; you said it's a question of what you believe ideologically or philosophically. I'm quoting you. Therefore, in my view, and I think in the view of any logical individual, no matter what the provisions, I would conclude that if you don't believe in it ideologically or philosophically, it doesn't matter. And it's my understanding, and correct me if I'm wrong, that your coalition doesn't believe in it.

So from one side you say that these provisions are welcome—that's what you said—but they have not been tested. What is this telling us? It's telling us two things, I think: they haven't been tested because maybe everything's okay, or two, we're condemning these without even having to actually access them.

Does that make sense?

And my last question, Mr. Chairman, is this. Is there an agreement anywhere that your coalition has supported? You come here, you say you don't support it, but you never really provide solutions or conditions whereby you would support an agreement if certain provisions were inserted.

So you've made a great statement, but you haven't given us any proposals.

[Jamie Kneen]

Can you provide me an example of a free trade agreement that does not have those—

[John Cannis, Liberal, Scarborough Centre, ON]

No, I'm asking you the question. You're the witness. You tell me which agreement you have supported.

[Jamie Kneen]

We have not supported any free trade agreements that contain these provisions.

[John Cannis, Liberal, Scarborough Centre, ON]

That's because ideologically or philosophically you don't support it.

[Jamie Kneen]

No, it's because we have repeated cases of abuse arising from those provisions, and the protections that have been provided—

[John Cannis, Liberal, Scarborough Centre, ON]

Why would you say—

[Jamie Kneen]

—are not tested—

[John Cannis, Liberal, Scarborough Centre, ON]

Why would you say, and this is your quote, that you “welcome these provisions, but they've not been tested”?

[Jamie Kneen]

It strikes me as problematic that we are collectively putting all our eggs in the basket of this one clause, which goes against the established pattern of investor-state provisions—

[John Cannis, Liberal, Scarborough Centre, ON]

But if you have a provision, Mr. Kneen, that is there to address a concern, and that provision is never accessed, that means the problem has never arisen—yes?

[Jamie Kneen]

No, the preventive provision has been recently implemented. It's in the Canadian model, FIPA.

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Chair, my colleague, who is a guest, has only one question, and I beg you, sir; she's a guest and she has one question.

[Jamie Kneen]

Mr. Cannis, if you're not interested in hearing the answer, that's fine. Go ahead.

[John Cannis, Liberal, Scarborough Centre, ON]

I'm finished.

[Jamie Kneen]

You've made your point; if you'd allow me to make mine, I would appreciate it.

[John Cannis, Liberal, Scarborough Centre, ON]

Please.

[The Chair, Conservative, Lee Richardson]

I really don't think we have time. I think Mr. Cannis made his point. I'm not sure he really did want an answer.

In any event, do we have Mr. Clarke back?

Mr. Clarke, can you hear us in Panama?

[Technical difficulty--Editor]

[The Chair, Conservative, Lee Richardson]

Well, I'm sorry, we're not going to be able to get the conclusion to your question either, Mr. Keddy, so that's one each in which we're not going to be able to have the witnesses conclude the final questions.

In any event, we're going to sign off with these witnesses and thank them. I'm sorry we didn't have time to complete them, and we had other questioners who wanted to ask questions as well.

With that, I'm going to thank Mr. Clarke, whether you can hear me or not, for your participation today.

Also, Mr. Kneen, you can carry this on, I'm sure, in the corridors. Thank you.

[Jamie Kneen]

Thank you.

[The Chair, Conservative, Lee Richardson]

We'll just take a moment while we bring in the next witnesses.

[The Chair, Conservative, Lee Richardson]

Ladies and gentlemen, we will resume our discussion of Bill C-46, 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.

As our next witnesses we have two groups, and I'm sorry we don't have more time, but we will get to them immediately.

From the Canadian Association of Importers and Exporters, Joy Nott is the president--welcome--and Carol Osmond is the vice-president of policy.

From the Canadian Foundation for the Americas, FOCAL, we have with us again Carlo Dade, the executive director--it's a pleasure to have you back--and researchers Marina Connors and Mark Richards joining Mr. Dade.

I'm sure you're all well aware of the format, so I'm going to let you begin.

I'm going to start with Ms. Nott, if you'd like to have an opening statement.

[Joy Nott, President, Canadian Association of Importers and Exporters]

Thank you very much, Mr. Chair and members of the committee.

My name is Joy Nott, and I'm the president of I.E.Canada, the Canadian Association of Importers and Exporters. With me today is Carol Osmond, our vice-president of policy. We'd like to thank you for the opportunity to appear here today to express our support for Bill C-46, the Canada-Panama free trade agreement.

With respect to who we are, I.E.Canada has been a leading voice in the trade community since 1932. Our members consist of small, medium, and large enterprises from across Canada. Our membership is made up of manufacturers, importers, exporters, wholesalers, distributors, and service providers to the trade community in a broad range of industry sectors, including professional services firms, such as legal and accounting firms, customs brokers, and transportation companies.

I.E.Canada was formed as the Canadian Importers and Traders Association, in 1932, in the face of a resurgence in tariff barriers and protectionism at that time. While a significant percentage of our members continue to describe themselves primarily as importers, an even larger percentage are both importers and exporters. Our current membership is reflective of today's reality.

Global business has become ever more integrated as companies around the world strive to remain competitive and productive. Traders at home and abroad are constantly seeking new, cost-effective sources of supply, whether it be finished goods for sale to consumers or parts and components for their manufacturing operations.

Canadian consumers benefit from greater choice of products and lower prices, while our manufacturers are able to remain competitive as they search for new and emerging markets for their products. As an association representing both importers and exporters, I.E.Canada is an advocate for liberalized trade as well as trade facilitation. We also aim to provide businesses with information and tools they need to remain competitive internationally.

I.E.Canada and its members support the Canada-Panama free trade agreement and the speedy passage of Bill C-46. While Panama is a relatively small market overall for Canadian exports, as others have testified before this committee, for individual companies or sectors, Panama is a significant market and promises to be an even more important one with the implementation of this free trade agreement.

Panama's economy is primarily service-driven. It is also one of the fastest growing economies in Latin America. As such, it presents opportunities for Canadian exporters. For example, with the current construction boom in Canada, the Canada Mortgage and Housing Corporation and Export Development Canada are both bullish about opportunities for Canadian suppliers of building products. Large infrastructure projects, such as the Panama Canal expansion project, investments in the Panama-Pacific special economic area at the former Howard air force base and in tourism projects, and the demand for residential housing, fueled by rising incomes, creates demand for a broad range of quality building products, most of which will be imported.

As you know, SNC Lavalin and its partners were recently awarded a major engineering contract by the Minera Panama S.A., a wholly owned subsidiary of Inmet Mining Corp. of Canada, for the development of a copper mining project in Panama. This project will also provide opportunities for Canadian exporters of building materials as well as mining equipment.

Of course, the Canada-Panama free trade agreement is but one element of a broader strategy to promote trade between Canada and Latin America and to diversify Canada's export markets. We were pleased to see, for example, the passage of legislation to implement the Canada-Peru Free Trade Agreement during the last session of Parliament and the Canada-Columbia Free Trade Agreement during this session. Given Panama's strategic location, it can serve as a jumping off point for Canadian companies wishing to access markets throughout Latin America.

Recent economic events in the United States have served to remind us, in a dramatic fashion, of the need to diversify our export markets in Latin America and elsewhere and that we need to reduce our economic dependence on our neighbour to the south. By implementing a free trade agreement with Panama in advance of the United States, we also have the opportunity to give Canadians a head start to possibly capture market share from their U.S. competitors. However, that window of opportunity may be closing. It was recently reported that the United States and Panama are about to sign a tax information exchange agreement that could pave the way for congressional approval for the U.S.-Panama free trade agreement in the United States.

The signing of a free trade agreement is not simply about reducing duties and lowering trade barriers. It immediately raises the profile of each party to the agreement of the other's country. It also fosters closer ties between the governments and between their respective business communities and citizens. At the same time, signing the agreement and passing the necessary implementing legislation by itself is not enough. To ensure that Canadians fully benefit from this and similar agreements, the government, working with the private sector, must promote opportunities to Canadian companies through information and outreach sessions, trade missions, and other similar activities. We view the recent opening of an office in Panama by Export Development Canada as an important step in that direction.

In summary, I.E.Canada and its members support the Canada-Panama free trade agreement, and we urge members of Parliament to proceed quickly with the passage of Bill C-46.

On behalf of the members of I.E. Canada, we would also like to thank you for the opportunity to appear here today, and we would be pleased to respond to your questions when appropriate.

Thank you.