International Trade Committee on March 20th, 2013

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Listen, when we came to government in 2006, there was no Americas strategy. We implemented an Americas strategy, recognizing that Canada hadn't had the presence in Central and South America that we felt we should have. We felt it was an important part of the world. There are a lot of Canadian companies doing business with all of the nations down there. We had a long-time free trade agreement with Chile, but that was the only South American country we had a free trade agreement with, and we went about negotiating these bilateral agreements.

When talking about trade imbalances, the opposition members need to look at the numbers. We exported $4.2 billion worth of goods and services to Peru. Peru exported $4.4 billion worth of goods and services trade to us. That's a pretty equal trading balance. Our growth in this period of economic downturn has been outside of the continental United States; it has not been with the continental United States. Our trade with the U.S. has shrunk. So thank you for doing business with us.

I'm going to get to a question in a minute.

I want to drill down into the political dialogue and the free movement of peoples and the full integration of the Americas, because surely even the opposition could agree with that concept, that we should treat one another as equals, that we should recognize each other's educational qualifications, that we should be doing business on a larger and different scale than has traditionally been done in the past.

I'll go back to my original statement. Why would we not want to be part of the tenth largest—actually I said eighth, but eighth, ninth, and tenth are almost tied—trading bloc in the world? I can't for the life of me think why we wouldn't join this group or ask to join this group. I think you guys, the four founding countries, have done a great job at starting this, and our job now is to work with you in a positive way.

[The Chair, Conservative, Rob Merrifield]

Do you have a question?

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Yes, what is the immediate benefit for Peru and the immediate benefit for Canada?

[José Antonio Raymundo Bellina Acevedo]

Is this regarding if Canada joins...?

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Absolutely.

[José Antonio Raymundo Bellina Acevedo]

First of all, it's the start of a full integration process in many, many ways, including security matters. That is very important because there is a security element in the alliance of the Pacific regarding all these threats we have in common. Terrorists, narco-traffic, etc. That is one of the important matters. We have to consider more than trade, education, or the environment. We have to have the framework to talk more openly with Canada on all these matters that affect our hemisphere.

For me, I would say, it is music to my ears to hear that Canada wants to be involved in the hemisphere, wants to be more involved in the Americas, especially in Latin America, and particularly in South America, because we work for that. I have to say that in my three years here I see the political decision to move in this direction. Canada is really interested in South America, in the problems of South America and the solutions of the problems in South America. Right now for us, it's easy to work with Canada. I have to say you have a wonderful embassy in Lima—wonderful for the cooperation, for the EDC, for the democratic office that you have to strengthen democracy in Latin America. We are working with the CCC. We are working with all the agencies of the Canadian government right now.

Also, Canada is working for our benefit. We just signed an agreement on defence, an MOU, one month ago. It means that for us the immediate reaction is not going to be an accountability. It's going to be a political decision that is going to be very important for us, because the support of Canada in this kind of process is an accomplishment.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

So often when we talk about environmental issues, you only ever hear the negative. When we became the government, we increased the national parks system and protected lands in Canada more than any other government had done in the history of this country. We have more land under protection today than Canada has ever had, almost to the point of being doubled.

In Peru, you've managed to protect 35% of the Amazonian rain forest. I've never heard that number before. Congratulations. Those are the good stories and those are the types of things that I think we have a mutual respect for and that we can work together on. I'm talking about the environment.

[The Chair, Conservative, Rob Merrifield]

Please be brief.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Canadian mining companies, which are very active in Peru, play a role in environmental stewardship. it's not an easy issue. People look at a mine site and they see a hole in the ground. They don't look at the benefits and the education that have come about as a result of that hole. But reclaiming those mine sites is how we're doing—

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Chairman, this is going far over. I'm sorry, I have to object at this point.

[The Chair, Conservative, Rob Merrifield]

Okay, go ahead if you have any response to that.

[José Antonio Raymundo Bellina Acevedo]

Regarding environment matters, we try to do our best. It's difficult because there are a lot of requests for the government to do more modernization and development. But we have to keep in mind that we are only 30 million people in a big country in South America. You have the Amazon forest, and we work really close with Brazil in this regard. Brazil, for many years, did not have a clean policy on the Amazon. But right now they have a strong policy. We do a lot of work with other countries in the Amazon Cooperation Treaty. But it's not only the Amazon. Also, we need to keep our sea. Peru is the first fish country in the world—more than Japan, more than any country in the world. We have a very strict policy regarding fishing. It's difficult because sometimes we have fleets from other countries that try to operate in our sea. That is why we have a big navy, maybe. We need it. We have over 2,300 kilometres of coast.

[The Chair, Conservative, Rob Merrifield]

I appreciate that.

The bells are going to go in a minute or two, but I'm going to ask the committee's indulgence for my using the chair's prerogative to ask a question or two that I think have been overlooked a little.

Last Friday, Japan formally asked to be part of the TPP. The Ambassador of Colombia was here just before you. Colombia is not part of TPP, but Peru is and so is Canada. The indication was that TPP might have some struggles in getting to an agreement, but we're working as hard as we can. I think your country and our country, all of us, want to see that succeed. But I want your perspective on the success of the TPP and where it's going, and then the potential hurdles it may face and whether there might perhaps be fewer hurdles with the Pacific Alliance, as you see it, and its success were Canada to join it.

[José Antonio Raymundo Bellina Acevedo]

The TPP is only a trade and investment agreement; it's not a process of integration. They are going to move, because APEC cannot move. APEC has big meetings, but it really doesn't move too much because it includes a lot of countries with different approaches to trade and investment. The TPP consists of countries that are openly free market countries that have decided to move forward. I think they are not going to contradict your objective for the Pacific Alliance, because we are working in a process of integration larger than the TPP.

[The Chair, Conservative, Rob Merrifield]

So you're saying that the alliance has a more comprehensive agenda.

[José Antonio Raymundo Bellina Acevedo]

Yes, of course, the alliance of the Pacific is more comprehensive.

[The Chair, Conservative, Rob Merrifield]

I think that's what we needed to get cleared up.

In your hypothesis, or let's say your projections of the success of the TPP and the timeline, would you be so bold as to...?

[José Antonio Raymundo Bellina Acevedo]

It's very difficult, because there are a lot of negotiations between the members—even Canada right now. I don't know very much about that, because there are experts in my headquarters who send some reports that are very difficult for an old-fashioned diplomat to read. But in any case, I think all of these processes are good; everything that supports free trade and free investment is good for our countries. Peru was one of the countries that offered a lot of support for Canada to be a full member of the TPP. This is the kind of relationship we have right now with Canada.

[The Chair, Conservative, Rob Merrifield]

I appreciate your being here and appreciate your perspective. I want to thank you, Your Excellency, for your time this afternoon and the committee for its great questions.

With that, we will adjourn.