Evidence of meeting #3 for International Trade in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was panama.
A recording is available from Parliament.
11:05 a.m.
Conservative
The Chair Conservative Rob Merrifield
I call the meeting to order.
We want to thank the Department of Foreign Affairs and International Trade for coming to dialogue with us with regard to questions we may have on free trade deals with Jordan, Panama, and India. We want to thank you for coming.
We have the ADM for trade policy negotiations, Mr. Stephenson.
You have a team of people with you. I will let you introduce them and give you the floor to make introductory remarks, and then we will move on to questions and answers.
11:05 a.m.
Don Stephenson Assistant Deputy Minister, Trade Policy and Negotiations, Department of Foreign Affairs and International Trade
Thank you, Mr. Chair.
It is my pleasure to introduce my colleagues and let them do all the work.
I will be answering your questions.
Kirsten Hillman is the director general for trade policy negotiations bureau. We have Barbara Martin, who is director general, Middle East and Maghreb bureau. Ken Macartney is the director general for South and Southeast Asia and Oceania. Neil Reeder is the director general for Latin America and the Caribbean.
If there is an order in which they wish to make their brief remarks, I wasn't advised of it, so Kirsten, you have the floor.
11:05 a.m.
Kirsten Hillman Director General, Trade Negotiations Bureau, Department of Foreign Affairs and International Trade
Thank you very much.
11:05 a.m.
Director General, Trade Negotiations Bureau, Department of Foreign Affairs and International Trade
Thank you, Mr. Chair and members of this committee, for the opportunity to speak to you today.
As Mr. Stephenson said, I am the Director General of the Trade Negotiations Bureau at the Department of Foreign Affairs and International Trade.
In my presentation today, I will provide some general information on the Canada-Panama FTA and the Canada-Jordan FTA.
I will also touch on the parallel agreements on labour cooperation and the environment that were negotiated at the same time as these agreements.
First, let me turn to Panama.
Panama has had one of the fastest-growing economies in the Americas. Its real gross domestic product growth in 2010 was 7.5%, and its real GDP is expected to show further growth in 2011. Two-way merchandise trade between Canada and Panama reached $213.7 million in 2010.
Panama is also a strategic hub for the region. It processes approximately 5% of the total global trade and is recognized as an important platform for commercial activity throughout Latin America. Against that backdrop, Canada sought and obtained a high-quality, comprehensive FTA with Panama.
Once in force, this agreement will provide important commercial gains for the Canadian economy by offering Canadian workers and businesses preferential access to this dynamic and growing market. Specifically, upon implementation of the FTA, Panama will eliminate tariffs on 99.9% of recent non-agricultural imports from Canada. Panamanian tariffs on 88% of agricultural imports from Canada will also be immediately eliminated. This significant reduction in trade barriers will directly benefit a number of sectors that are already established in Panama, including agriculture and agrifood products, pulp and paper, machinery, and others.
In the area of investment, the FTA will lock in market access for Canadian investors and provide them with greater stability and protection for their investments.
The FTA will provide enhanced access for services sectors of interest to Canada, including professional services, engineering, mining, construction, and environmental services.
Government procurement is an area in which Canadian workers and companies stand to benefit the most. The government procurement provisions in the Canada-Panama free trade agreement guarantee that Canadian suppliers will have non-discriminatory access to a broad range of procurement opportunities, including the ongoing $5.3-billion Panama Canal expansion and its associated projects.
But Canada is not the only country with which Panama has negotiated a free trade agreement. It is expanding its global reach through the negotiation of trade agreements with countries such as the United States and markets such as the European Union. So it's important that we implement this agreement to ensure that Canadian companies remain competitive in the Panamanian market and do not compete against their competitors on an uneven playing field.
I'd now like to turn to the Canada-Jordan free trade agreement. Jordan is a growing market for Canada. In 2010, two-way merchandise trade between Canada and Jordan reached $85.9 million. Our exports to Jordan have more than doubled in the past seven years, and it's clear that Jordan's economy provides promising opportunities for Canadian workers and businesses.
Jordan is also a key partner in the Middle East. As Canada's second free trade agreement with a Middle East country, the Canada-Jordan free trade agreement will help improve market access, but it will also provide a platform for expanding commercial ties and raising Canada's profile in the broader Middle East.
The Canada-Jordan free trade agreement was signed in June 2009. Negotiations were concluded after just three rounds.
Upon entry into force of this agreement, Jordan will eliminate tariffs on over 99% of recent Canadian exports. This is very significant, because Jordan's current average applied tariff is 11%, with peaks of up to 30% in their applied tariffs.
Key Canadian sectors will benefit from duty-free access, including forest products, machinery, and agricultural exports such as pulses, frozen potato products, and beef.
Once implemented, this agreement will level the playing field for Canadian exporters vis-à-vis competitors in the global marketplace. In fact, the U.S. and the EU currently have free trade agreements with Jordan.
Now I would like to turn to the labour cooperation and environment agreements that were negotiated in conjunction with these two free trade agreements.
We have signed labour cooperation and environment agreements in parallel with the free trade agreements with Panama and Jordan. The parties to the labour cooperation agreements have committed to ensure that their laws respect the 1998 International Labour Organization's ILO Declaration on Fundamental Principles and Rights at Work, which covers the right to freedom of association, collective bargaining, the abolition of child labour, elimination of compulsory labour, and the elimination of discrimination.
The agreements on the environment commit parties to maintain high levels of environmental protection, to effectively enforce domestic environmental laws, and to not relax or derogate from such laws in order to attract trade and investment.
In conclusion, the Canada-Panama FTA and the Canada-Jordan FTA will create jobs and economic growth for Canada, and will also contribute to greater prosperity for all three nations.
These FTAs also have the support of key exporters and investors across Canada, and will directly support the government's ambitious pro-trade plan and policy to help Canadian companies access new markets in this competitive global economy.
I would like to thank the committee for the opportunity to speak to you today about these important agreements, and I would be pleased to answer any questions you have on these initiatives.
11:10 a.m.
Conservative
11:10 a.m.
Barbara Martin Director General, Middle East and Maghreb Bureau, Department of Foreign Affairs and International Trade
Thank you, Mr. Chairman and members of the committee, for the opportunity to speak today.
My name is Barbara Martin. I am the director general of the Middle East and Maghreb bureau of the Department of Foreign Affairs and International Trade.
Today I'll provide you with some information on Jordan's economy, and on Canada's bilateral and commercial relations with Jordan.
As one of the smallest economies in the Middle East, Jordan is a lower-middle-income country with a young population. It faces certain structural challenges, including limited water, oil, and agricultural land, as well as chronic high rates of poverty, unemployment, inflation, and a large budget deficit. Reducing poverty and increasing employment opportunities will be crucial to Jordan's long-term stability.
The global economic slowdown has depressed Jordan's GDP growth. Although growth rates were in excess of 7.5% from 2006 to 2008, growth fell to 2.3% in 2009, and 3.1% in 2010. Export-oriented sectors such as manufacturing, mining, and the transport of re-exports have been hit the hardest, although Jordan's financial sector has been relatively isolated from the international financial crisis.
Since assuming the throne in 1999, King Abdullah has implemented significant economic reforms, such as opening the trade regime by becoming a WTO member and further opening markets to imported goods and services, privatizing state-owned companies, and eliminating most fuel subsidies.
Over the past few years these reforms have encouraged economic growth by attracting foreign investment and creating some jobs. The government's privatization efforts in the industrial, telecommunications, and transport sectors have opened up industries such as potash, phosphates, and telecoms. Jordan has several free trade agreements in effect with other countries, including the U.S.
Canada and Jordan have enjoyed solid bilateral relations for many decades, based on shared interests and values, and people-to-people links that include approximately 7,000 Canadians with Jordanian ancestry. As a moderate Arab state with a constructive foreign policy, Jordan is a natural partner for Canada and an effective interlocutor on issues of concern to the Arab world.
In the context of the Arab Awakening, Canada commends Jordan’s commitment to peaceful reform and development, and we are encouraging the government to continue implementing the political reforms that respond to the needs of citizens, and economic reforms that will underpin growth and job creation.
For Canada, Jordan presents a small but stable and transparent market. Its rising importance as a regional shipping and transportation hub have made it increasingly interesting to Canadian companies. Jordan is already a key market for numerous Canadian businesses and producers. For example, the Potash Corporation of Saskatchewan is a major investor through its partnership with Arab Potash Company. Canadian companies such as Research in Motion, Bombardier, SNC-Lavalin, Four Seasons Hotels, Second Cup coffee shops and many others are active in Jordan.
Our close relationship with Jordan is also exemplified through strategic assistance provided by the Canadian International Development Agency. Canada has become a leader in international support to Jordan's education and skills for employment sectors, with annual bilateral disbursements averaging $7 million. This bodes well for a more knowledge-based economy and greater potential to do business with Canada.
The Canada-Jordan free trade agreement, along with related agreements on labour cooperation and the environment, was signed in June 2009 by the Honourable Stockwell Day, former Minister of International Trade, and his Jordanian counterpart. The Jordanian government has since announced that they have completed ratification of all these agreements. Once Canadian legislation to implement the agreement is passed and receives royal assent, the Canadian government will work with Jordan to implement the agreements as soon as possible.
The Canada-Jordan FTA is a win-win proposition for workers and businesses in both countries. It's a catalyst for increased business operations and expanded two-way trade, and it will contribute to improving relations with a number of our key partners in the Middle East.
I would like to thank the committee for the opportunity to speak, and I would be pleased to answer questions.
11:15 a.m.
Ken Macartney Director General, South, Southeast Asia and Oceania, Department of Foreign Affairs and International Trade
Good morning.
I'm Ken Macartney, the director general for South and Southeast Asia and Oceania.
It is my pleasure to be here today to speak to the committee on the topic of India. I am joined today by my colleague Don Stephenson, Chief Negotiator for the Canada-India comprehensive economic partnership agreement.
This afternoon, I propose to provide to you a general overview of Canada-India bilateral relations as well as share with you our plan for the coming months with regard to several initiatives currently underway. I would be pleased to answer any of your questions following the presentation.
Don Stephenson will answer questions specific to the Canada–India comprehensive economic partnership agreement.
Just a word about bilateral relations.... Canada–India relations continue to grow deeper and stronger. Committee members may be aware that 2011 is the Year of India in Canada, an initiative of the Indian government. This year-long series of events has successfully raised awareness in Canada of India's rich cultural heritage and its bright future. We too have engaged in many advocacy efforts in India.
This summer Toronto hosted both the International Indian Film Academy Awards and a major diaspora event, the Pravasi Bharatiya Divas, or the Day of Overseas Indians, which showcased Canada to many Indians.
Engagement is also increasing in the realms of science, technology, research, and academic exchange. In addition to the bilateral science and technology agreement already in place, budget 2011 provides $12 million over five years for a Canada–India Research Centre of Excellence.
The past year has witnessed reciprocal visits by dozens of university and college leaders from both countries. The number of Indian students to Canada surged last year to record numbers. All of this bodes well for much-expanded bilateral cooperation in the knowledge economy. Official consultations and agreements provide an expanding framework for relations.
On the commercial side, we’ve had regular, expert-level dialogue through annual trade policy consultations. Last fall we had the first of what is intended to be an annual ministerial dialogue on trade and investment. This event provides a platform to further advance our trade relationship and will help us reach our goal of tripling trade by 2015.
We're working to conclude the foreign investment promotion and protection agreement, and we're finalizing the last details of the Canada–India social security agreement.
Canada and India have signed a nuclear cooperation agreement that will allow for Canadian companies to participate in commercial civil nuclear power opportunities. We look forward to the conclusion of the administrative arrangement that will allow our nuclear cooperation agreement to be fully implemented.
We are beginning to cooperate more intensively on energy issues. Canada can share expertise in areas such as hydroelectric power and clean coal technologies, and learn from India in areas where it is a world leader, such as in wind and solar power technology.
As you know, India is a priority market for Canadian commercial engagement. Its rapidly growing economy, with growth rates maintained at 6% to 7% and in fact 8% even through the global economic crisis, is predicted to be the world's fourth-largest by 2025 and the third-largest by 2050. India is expected to become the world's most populous nation by 2050, and its growing middle class, estimated at between 150 million and 250 million, is estimated as a $400 billion market.
Canadian workers and businesses have yet to seize the full potential that the Indian market has to offer. Two-way merchandise trade reached $4.2 billion in 2010. India is our 13th-largest destination for merchandise exports, and our 19th-largest source of imports. Our goal, as mentioned, is to reach $15 billion in two-way trade by 2015.
Most encouraging is the two-way flow of foreign direct investment between Canada and India. In 2010 two-way direct investment reached a record level of $7 billion, the majority being Indian investments into Canada.
The Canada-India commercial relationship is not limited to traditional trade and investment only, as India is becoming an integral part of the global supply chains. Canadian companies such as Bombardier, Sun Life, and SNC-Lavalin have a long history of partnership in India, while Indian companies such as Essar, Tata, and Birla are equally active in the Canadian market. Our goal is to triple the number of companies that are active in India over the next three years.
Prime Minister Stephen Harper and Prime Minister Manmohan Singh of India announced the launch of comprehensive economic partnership negotiations during the G-20 summit in Seoul on November 12, 2010. Following the launch, negotiating rounds were held in November and July. The negotiations with India are a high priority, and we will seek to complete negotiations in 2013, as indicated in the 2011 Speech from the Throne. The committee will be interested to hear that a recent joint study estimated that a free trade agreement between the two countries has the potential to boost Canada's economy by $6 billion to $15 billion, creating jobs and prosperity for Canadian workers and for businesses of all sizes in every corner of the country.
On September 23, the Minister of International Trade, Ed Fast, held his first face-to-face meeting with Anand Sharma, India's Minister of Commerce and Industry, in New York City.
Both ministers conveyed their shared commitment to continuing to broaden and deepen our economic and social ties, and agreed the next round of negotiations aimed at producing a comprehensive economic partnership agreement between Canada and India should take place in October in Canada.
At the conclusion of their meeting, Minister Fast, on behalf of the Government of Canada, personally invited Minister Sharma to visit Canada again at his earliest convenience to personally continue their productive dialogue and progress. Minister Fast also committed to personally visiting India for the same purpose in the near future.
To conclude, Canada is well positioned to partner with a growing India. We share democratic traditions and legal frameworks, our growing official ties are bolstered by significant people-to-people links and regular high-level interaction, and companies in both countries are becoming more aware of the opportunities for trade and investment, facilitated by a network of trade commissioners in eight Canadian missions throughout India.
If I could, I'd like to take a moment to thank Mr. Keddy for opening our trade office in Calcutta a couple of years ago. It was much appreciated.
I'd be pleased to answer questions that you might have on Canada's trading relationships with India, and of course Don Stephenson is also here to answer questions.
Thank you.
11:25 a.m.
Neil Reeder Director General, Latin America and Caribbean, Department of Foreign Affairs and International Trade
Thank you for inviting me to join you today.
My name is Neil Reeder, director general, Latin America and Caribbean.
Let me also thank Mr. Keddy for his contribution to our trade programming in Central America. His visits to the region led to progress, certainly in the case of Panama and Honduras.
I'd like to talk today a bit about the bilateral commercial relationship between Canada and Panama. Once approved by Parliament and ratified, our FTA with Panama will become an important element of that bilateral commercial relationship and provide new opportunities for increased commercial activity between our two countries.
Panama and Canada already maintain close bilateral relations and our policies and objectives are well aligned in the region. Our two countries continue to work together to strengthen and promote freedom, democracy, human rights and the rule of law throughout the Americas.
By strengthening our trade and investment ties with Panama we are supporting the government's Americas strategy, as well as our broader efforts to promote market liberalization, combat protectionism, build bridges to global markets and support a more prosperous hemisphere.
Latin America and the Caribbean is an economically dynamic region which presents significant opportunities for commercial partnership with Canada. We have already seen a 50% increase in Canada's two-way trade with Latin America and the Caribbean in the last five years.
Panama plays a prominent role in our regional engagement, not only as a vital logistics artery but also now as the fastest-growing economy in Central America, with a GDP growth of 7.5% in 2010. Panama received the fifth-highest score in Latin America last year in the annual World Bank ratings of countries for ease of doing business. The country welcomes international commerce and is committed to providing a facilitative environment for trade and investment.
Panama is also our largest export market in Central America. The bilateral trading relationship has grown 61% since 2009, reaching $213 million in bilateral trade in 2010. We believe there is great potential for further expansion. Increased engagement will help maintain our exporters' competitive position, which is challenged by the recent signing of a bilateral FTA between Panama and the United States.
Some Canadian companies have already established a strong investment presence in Panama. Scotiabank, for example, is now the fifth-largest commercial bank in the country. SNC-Lavalin is also active, and Export Development Canada recently opened a regional office in Panama City.
Canada is also poised to play a very prominent role in Panama's mining sector. Toronto-based Inmet Mining is developing a copper mine proposal with an investment valued at $4 billion Canadian. This project is now under environmental review by the Government of Panama.
In June of this year Minister of International Trade Ed Fast welcomed Panama's Minister of Industry on an official visit to Canada to celebrate the first direct flight from Panama City to Toronto by Panama's Copa Airlines. Copa is now flying four times per week between Panama and Toronto, and we anticipate this engagement will facilitate travel and tourism between the two countries.
Canada has also improved its visa services procedures in Panama to facilitate visa issuance for legitimate travellers, which will make international travel and people-to-people ties easier between the two countries.
Panama is an established and growing market for Canadian workers and exporters. Canada is among the largest foreign investors in the country, just at a time when the country is becoming more appealing as a destination for investors from around the world. Strengthening our partnership and interactions with Panama is a solid approach to build on Canada's presence in the region. It will support the creation of new opportunities for Canadian exporters and investors, giving Canadian workers and businesses a needed competitive boost in the market.
Thank you very much. Je serais très content de répondre à vos questions dans la langue officielle de votre choix. Merci.
11:30 a.m.
Conservative
The Chair Conservative Rob Merrifield
Thank you very much for that snapshot of our free trade agreements. It gives us an idea of where we're at.
We'll open up for any questions the committee might have, starting with Mr. Chisholm, for seven minutes.
11:30 a.m.
NDP
Robert Chisholm NDP Dartmouth—Cole Harbour, NS
Thank you, Mr. Chairman, and thank you to the presenters.
Seven minutes doesn't give me nearly sufficient time to inquire more. I'm fascinated by the work you've been doing. We'd certainly like to know more. Maybe through the good graces of the minister we could agree to meet at some other time so I could learn more about the details of your projects.
Where to begin? Let me start with Panama and I'll share my seven minutes with my colleague, Mr. Ravignat.
I think I heard you say, Madam, that there was an agreement on labour and environment with respect to the ILO standards protocol. I think that's really good. Maybe you could explain how that's being monitored, and if need be, what any enforcement mechanisms might be to ensure that Panama is fulfilling those requirements.
11:30 a.m.
Director General, Trade Negotiations Bureau, Department of Foreign Affairs and International Trade
Thank you for the question. I'd be happy to give you the information.
The free trade agreement itself has a chapter on labour that is a general commitment to the labour principles under the ILO convention to which Canada and Panama are both parties. At the same time as we concluded the free trade agreement, we concluded the labour cooperation agreement.
Under the labour cooperation agreement, the parties agree to abide by the commitments under this international treaty. There are also monitoring mechanisms in the labour agreement, and a mechanism for follow-up, let's say, and consultation if there are concerns that the labour standards are not being met.
It's a graded system, such that at the most extreme end of this monitoring system there is the possibility for monitoring and decision-making--I would say adjudication, but maybe that's a bit strong--including the imposition of what are called monetary assessments. Monetary assessment is a financial contribution that the country deemed to not be abiding by the commitments would be required to pay into a fund. The fund would be held in trust to be disbursed for purposes of promoting abiding by labour standards or labour programs.
That's an overview of the agreement.
11:30 a.m.
NDP
September 29th, 2011 / 11:30 a.m.
NDP
Mathieu Ravignat NDP Pontiac, QC
The committee meetings of November 3 and December 6 focused on tax havens and Panama, more specifically in terms of the laundering of drug trafficking money.
A follow-up request was made. We requested a letter or some dialogue, at least. We haven't received an answer yet for the December 6 question. As for November 3, the minister wrote to his Panamanian counterpart and we were told that no answer has been received yet.
Since I am new on the committee, perhaps I do not have all the information. I am wondering whether there has been any follow-up and whether any progress has been made.
11:35 a.m.
Director General, Latin America and Caribbean, Department of Foreign Affairs and International Trade
I will take note of the hon. member's question, since I don't know whether we received a formal reply from Panama. But I will look into that and let the committee know the answer or the status.
However, within the OECD, we have seen that Panama has started to do what is necessary to move from the grey list to the white list, so to speak. A great deal of progress has been made. Let us remember that Panama signed 11 tax information exchange agreements and it signed an additional tax information exchange agreement. So it entered into 12 international agreements, including a tax information exchange agreement with the United States.
Based on the OECD criteria, Panama has concluded the minimum of 12 agreements in order to be recognized as a country that is taking the right steps to address questions about the movement of money and tax information exchange programs.
So Panama has come a long way. We communicated with the Panamanian government and expressed our intent to also sign a tax information exchange agreement. There are good things happening, but I am going to come back to the letter.
11:35 a.m.
NDP
Mathieu Ravignat NDP Pontiac, QC
Do any of those 11 agreements deal with drug trafficking and money laundering?
11:35 a.m.
Director General, Latin America and Caribbean, Department of Foreign Affairs and International Trade
I cannot say what's in those types of agreements. It is not really my area of responsibility, but I have to tell you that, based on what I have seen, the OECD representatives were pleased with Panama’s progress over the past year.
I think they are on the right track. But we still have to acknowledge that, because of its location, Panama is also a conduit for cocaine and money from South America all the way to North America. That’s a given. At the same time, we are working with them bilaterally to move ahead with plans against crime and drugs in Central America, including Panama.
11:35 a.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Thank you, Mr. Chairman.
Welcome to our witnesses.
I want to start by keeping most of my remarks based to Panama and to Jordan, with respect to Mr. Macartney.
I would like to say to my colleagues across the way that when we get a chance to travel as a committee you'll get to meet our trade officials on the ground in various countries around the world and you'll really be able to better understand their understanding of the countries they are in, and the great work they do on behalf of the Government of Canada.
I did get to cut a ribbon in India, but I only got to cut that ribbon because of all the background work that the international trade people and our officials had done on our behalf.
With that segue, I'll go back to Panama primarily. It's part of our Americas strategy. It is not only a transit country for much of the Americas, but it's also a transit country for 5% of the global trade that is traded around the world. So the future of Panama should be terrifically positive and strong. The fact that they're managing to keep a GDP at 7.5% in these tough economic times I think is even more incentive for us to get this free trade agreement to the House and through the House.
Mr. Reeder, my question for you is on the future of Panama. When do we expect to see the final twinning of the Panama Canal, which is a huge project, and how much will that further advance their ability to carry a huge proportion of the world trade?
11:35 a.m.
Director General, Latin America and Caribbean, Department of Foreign Affairs and International Trade
The Panama Canal project is about a $5.5 billion expansion. Basically, what they're doing is deepening the canal further to allow it to take bigger container ships.
Since it was developed, of course, the volume of containers and the size of container ships has grown significantly, and the big, big ships have to go down around Chile, around the bottom of South America rather than through the canal, because of limitations on size. This expansion will generate a tremendous increase in flow through the canal.
Canada is one of the major users of the canal, of course, because of goods transiting the canal coming up, for example, from Asia across to Atlantic Canada. In that respect, we're very interested in the canal expansion. The focus is primarily to allow it to take the latest container vessels through the canal, transiting without risk, because right now it's still quite small.
We were there a few months ago. Essentially, it's a parallel canal, which will be much, much deeper, through which they'll divert the big vessels.
On the timeline, I can't say. I'd like to say three to five years, but I'm not certain. However, what they're doing is very impressive. It's also very impressive that since Panama retained sovereignty over the canal after the end of the Panama Canal treaty with the United States, they're actually increasing the revenue significantly above what was done under the United States. It has become a kind of point of national pride that they've managed the canal well and are making more money out of it than was the case under the U.S. administration. But it certainly is a very impressive project.
11:40 a.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
Thank you very much.
The other point I'd like to make for my opposition colleagues is that when we bring these trade agreements to the House and you have a chance to question witnesses on behalf of your party, you have to realize we already are trading with Panama, we're already trading with Jordan. What we're trying to do is put clear and transparent rules in place that will allow that trade to grow in a responsible fashion.
I'll give you a for-instance. I have a small company in my riding in South Shore, Nova Scotia, that manufactures oil and gas equipment. They are manufacturing equipment right now in Mexico, so they can avoid an 18% tariff in Panama. If we sign this deal, they'll be able to make 18% more on their investment on a product that we're building in Canada and shipping to Panama.
I know I'm running low on time.
11:40 a.m.
Conservative
Gerald Keddy Conservative South Shore—St. Margaret's, NS
I've got a couple of minutes. I'm doing better than I thought.
I want to switch over to Jordan for a moment, because much of what applies to Panama would also apply to Jordan, as a transportation hub, as a fairly modern country in the Arab world, and with huge potential, not only for Canadian investment but for investment worldwide. When the Americans signed their agreement with Panama, their two-way trade with Panama increased 200%. Can we expect that same type of increase with Canadian trade...sorry, to Jordan?
No wonder you were looking at me. Hang on, wait a second.
When they signed their agreement with Jordan, their two-way trade increased by 200%. I would expect we should be able to look for the same type of increase in trade between Jordan and Canada.