International Trade Committee on Feb. 13th, 2018

[The Chair, Liberal, Mark Eyking]

Good morning again. Welcome, everybody, on this cold Ottawa February morning.

Welcome to the Standing Committee on International Trade. My name is Mark Eyking, the chair. We have three parties on our committee: Liberals, Conservatives, and NDP.

We are very fortunate to have the ambassadors and their supporting staff from four countries here with us here this morning.

As everybody knows, we're doing a study of Canada and the Pacific Alliance countries, and the future trade agreement. This is probably our third or fourth meeting and today we're looking forward to hearing from the ambassadors.

We usually only have five minutes for each presentation, but we're not going to be strict on that. We're going to allow the ambassadors or their support to say whatever they want and to be up front and clear in whatever they want to say. Then we'll just have dialogue with the MPs and we'll do one round.

Mr. Marisio, go ahead, sir. You have the floor.

[His Excellency Alejandro Marisio, Ambassador of the Republic of Chile to Canada]

Thank you very much, Mr. Chair. It's a pleasure to be here.

Thank you very much for inviting us to give a presentation.

For all of us it is very important to be here sharing with this committee.

In my case, I will present the points of view of Chile on a potential agreement between Canada and the Pacific Alliance. If you will allow me, I will make my presentation in English. Then I'd be pleased to answer some questions in Spanish, if it's okay with you. I'm certain there will be many coincidences with my fellow ambassadors in this regard.

As ambassador of Chile, I would like to say that we enjoy an excellent relationship with Canada. Politically we work very closely in many areas. In trade, Chile celebrated last year the 20th anniversary of a successful bilateral free trade agreement with Canada. At that time, we signed its modernization. For Chile, Canada ranks among the most important foreign investors in a crucial sector for our development, and that is mining.

Why is it important that Canada reach an agreement with the Pacific Alliance when it already has free trade agreements with each one of its members? The bloc is a market of 225 million people. It represents 55% of Latin America's foreign trade and 44% of the region's foreign direct investment. If the alliance were a single country, it would be the eighth-largest economy in the world, with a combined GDP of over $2 trillion U.S. These figures help illustrate the size of the Pacific Alliance as a trade market and potential partner.

The alliance brings together, as you can see, Chile, Mexico, Peru, and Colombia, which are all politically and economically stable countries within our region. It has been implemented in an agile and pragmatic fashion, building around common themes. This approach has allowed the alliance to grow beyond only trade. It now has technical groups working on education, tourism, people mobility, gender, environment, and labour, to name a few, seeking to coordinate this effort and taking advantage of existing synergies in these areas.

From the trade standpoint, we believe the strategic perspectives of an agreement are advantageous. The four members of the Pacific Alliance and Canada can accumulate “origin”, a procedure that will facilitate the entrepreneurs of our countries to exchange product with tariff advantages, thus encouraging our insertion into the regional value chain. In addition, the trade negotiation process between the alliance and Canada presents a great opportunity to advance a certain homogenization of norms and to move forward jointly on the agenda trade issues that go beyond the tariff aspects.

Nevertheless, there is another very important aspect. Today we're facing a complex moment at the international level. Both Chile and the Pacific Alliance are determined to demonstrate their commitment to economic trade opening and regional integration. In the Pacific Alliance we want to turn current challenges into opportunities, to build an international trading system based on clear rules and aimed at building resilient and sustainable societies. Chile believes that moving forward in creating legal frameworks through these regional agreements constitutes a higher and more strategic stage, since it creates a broader reference point to continue fostering greater integration and synergy among countries with common development ambitions.

For our countries, it is difficult to demonstrate the benefit of this agreement only through economic figures. The result will not be seen in absolute terms because there is not only the tariff reduction, but the sum of several factors that the creation of an expanding space of integration brings, like the one we're building through this process.

Furthermore, reaching an agreement with Canada—and also, with Australia, New Zealand, and Singapore—with the same type of negotiation, will take the bloc a step farther in fulfilling one of its fundamental objectives, which is to become an area of trade integration and projection to the Asia-Pacific. We have to be reminded that, just recently, South Korea has expressed formal interest in starting a dialogue with a view to achieving associate state status.

In March 2017, the Pacific Alliance indicated its willingness to start trade negotiations with countries or blocs of the Asia-Pacific region, as long as they are translated into quality agreements with a high standard of trade disciplines and that they conclude in a short time. To date, we have had two negotiation rounds with Canada and Chile is prepared to host a third round from March 3 to March 9. Chile has aspired to an alliance, that is not only a framework for Latin America integration, but also opens the door to new agreements and new strategies to link us with other countries beyond our borders. These times require it and we are convinced that together, we're stronger and we will be more prosperous.

Thank you.

[The Chair, Liberal, Mark Eyking]

We'll move over to the Embassy of Colombia. We have Mr. Vargas, the minister-counsellor.

Go ahead, sir. You have the floor.

[Juan Camilo Vargas Vasquez, Minister-Counselor, Commercial Trade, Mines, Gas and Petroleum, Pacific Alliance, Embassy of the Republic of Colombia]

Good morning, Mr. Chair and honourable members of the committee. Thank you for inviting the Embassy of Colombia to share our government's view on the potential agreement between Canada and the Pacific Alliance.

As most of you know, the Pacific Alliance, after receiving statements of interest for deepening trade ties from Canada, New Zealand, Australia, and Singapore, is currently in the midst of negotiations that should lead to agreeing upon a series of FTAs that the Pacific Alliance will eventually have with each potential associate member.

Indeed, the Pacific Alliance is a market of more than 220 million consumers and is the world's seventh-largest economic bloc. It accounts for 34% of the GDP of Latin America and the Caribbean, and concentrates 41% of the FDI in the region.

The figures corresponding to Colombia speak for themselves. In 2017, bilateral trade amounted to $1.1 billion U.S., and Canadian investment in Colombia in 2016 was the largest by a foreign investor that year. In fact, Colombia's foreign investment in 2017 continued to increase for the seventh straight year.

It is important to note that the objective of negotiations is the association of the candidates to the Pacific Alliance and that the Pacific Alliance mandate is not to divert from the framework of its integration mechanism and existing trade protocols. Having said that, I would like to briefly touch on how the Pacific Alliance, by expanding trade opportunities and promoting deep integration, brings benefits that are very much aligned with Canadian views and priorities.

Let's start with gender. Since its creation in 2012, the Pacific Alliance has been committed to including gender as a crosscutting element, establishing a working group that incorporates gender in all the programs of the mechanism. For instance, under the trade promotion component, the alliance has a very successful businesswomen's forum as well as a community platform for female entrepreneurship.

From the Colombian perspective, a benefit to be gained, for example, is the effective integration in global value chains. We consider that cumulation of origin in sectors like textiles and apparel would not only increase trade but would also provide more opportunities for women in targeted regions highly affected by the conflict in Colombia.

With respect to environment, Canada and the Pacific Alliance members have advanced in domestic ratifications of the Paris Agreement. Canada is well known for its global leadership at home and abroad to fight climate change, which means that we all share the same concerns. This represents an opportunity to create a space for dialogue and debate on specific actions and strategies for regional economic integration in a sustainable way. Co-operation and lessons learned from Canada to embrace climate change will be beneficial for the region.

There are other benefits for Canada. The Pacific Alliance has accomplished a very ambitious agenda in a very short time. In addition to tariff elimination, the alliance is moving towards financial integration, pension mobility, and fiscal transparency among the four countries. The creation of the Pacific Alliance venture capital fund facilitates financing for SMEs.

In this context, existing Canadian co-operation is focused on strengthening the export capacity of SMEs, especially in the agriculture sector. From the Colombian point of view, Canada is already deeply involved in several initiatives that aim at helping market-driven co-operative development among farmer organizations. These initiatives promote governance, better opportunities, and higher income for small farmers, especially in communities and areas greatly affected by the conflict.

To conclude, I would like to refer to a recurrent topic in discussions about Colombia. After more than four years of negotiations of a peace agreement, the Colombian government is putting an end to a 50-year conflict that caused 220,000 deaths, of which more than 80% were civilians. During the past 50 years, more than six million people were displaced, 25,000 were kidnapped, and 27,000 went missing.

Although sometimes the news might not be encouraging, the final agreement signed with the FARC strengthens and improves the legislation and institutional efforts undertaken by the state to ensure the protection of human rights through public policy, reparation of victims, protection measures, and fight against impunity. In fact, Colombia's homicide rate is at a 40-year low.

Thanks again for the opportunity to share this information with you.

[The Chair, Liberal, Mark Eyking]

Thank you, sir.

We're going to move over to the Embassy of Peru, and we have Minister Molinari.

Welcome, sir. You have the floor.

[Carlos Gil de Montes Molinari, Minister, Deputy Head of Mission, Embassy of the Republic of Peru]

Good morning, Mr. Chair, and members of this committee.

Thank you for your kind invitation. It is a pleasure to be here to talk about a very important topic: the study of a potential agreement between Canada and the Pacific Alliance.

Peru considers that the Pacific Alliance has to frame its efforts in compliance with the 2013 sustainable development goals in order to allow its members to efficiently immerse themselves in the globalized world. In this sense, the regional integrational mechanism's vision is to promote initiatives that combat poverty through strategies that favour economic growth and target various social needs like education, health, employment, climate change, and the protection of the environment, along with strengthening its international projection.

The Pacific Alliance should make efforts to consolidate itself as a mechanism of integration that promotes commercial openness, growth, and competitiveness, as well as the protection of fundamental liberties. In this sense, Peru considers that the 2030 vision should have in mind four components.

One, building an area of deep integration. The four liberties that seek this mechanism—goods, services, capital, and persons—should help position the Pacific Alliance as an active participant and a solid partner in the region, consolidating itself as an investment and commercial hub and as a mechanism integrated in the global economy. The Pacific Alliance exhibits distinctive characteristics, specially linked with the observance of rules and of international institutions, as well as compliance with the rule of law, democracy, respect for human rights, and, as stated in article 2 of the framework agreement, the separation of powers. The Pacific Alliance should generate confidence and advance its international reputation through the construction of strategic alliances with countries and regions that lead to economic and social development in the world.

Two, a bridge to the Asia-Pacific. Taking advantage of the participation of its members in various integration schemes and their diverse geographical features, the Pacific Alliance aspires to become an important bridge—economic and commercial, cultural and political—between Latin America and the Asia-Pacific region through mechanisms of co-operation between regions.

Three, international projection. The Pacific Alliance will promote tangible results in accordance with sustainable development goals. It is expected that it will provide pragmatic answers and solutions to world problems. In this sense, it will work in the design of mutually beneficial actions with new associate members and other global actors such as ASEAN the EU, and APEC, as well as with regional mechanisms that could help the alliance to attain its objectives.

Four, a tool for increased well-being. The Pacific Alliance is focused on coordinating efforts that have a direct effect on civil society—attaining better social welfare and overcoming economic inequality. The Canadian economy, with its ample and diverse natural resources, has a structure similar to that of Peru, in which the mining, energy, and forestry industries stand out. Canada has been successful in transferring developments in these industries to other industries such as communications, energy, transport infrastructure, and financial services. Moreover, Canada is now positioned as one of Peru's major mining investors, distinguishing itself by the active participation of private companies in projects with a social development component, projects that are having a positive impact in our rural communities. In this context, the Pacific Alliance, and Peru in particular, can profit from Canada's experience in how to use natural resources as a stimulating agent of the economy.

Canada is an active observer state that has a privileged relationship with the Pacific Alliance, backed by the Joint Declaration on a Partnership between Canada and the Members of the Pacific Alliance, signed in 2016, which established a specific agenda on co-operation. In that framework, a series of co-operative projects is being implemented, accounting for more than $18 million U.S. in areas like education and skills in extractive industries, small and medium-sized enterprises, and the environment.

The next step identified by the alliance to deepen its relations with this important partner has been the negotiation of a high-standard agreement that deepens commercial and economic relations between Canada and Pacific Alliance members. Such an agreement will allow Canada to become an associated state in the Pacific Alliance.

Peru is a long-time partner of Canada, having a free trade agreement that entered into force in August 2009, among other important international conventions. Both countries are also part of those that have concluded the negotiations on TPP-11. These two agreements are a milestone in the integration process that the Pacific Alliance countries want to establish with Canada and with the rest of candidate countries that are interested in becoming associated states.

In that sense, it was natural for the Pacific Alliance to reinforce areas where there is already co-operation with Canada and to search for new commercial opportunities and diversified markets. This is the added value that our countries wish to attain in the negotiations that are being held with Australia, Canada, New Zealand, and Singapore. Two rounds of negotiations have already been held in Cali, Colombia and Gold Coast, Australia, while the third is expected to be carried out in Santiago, Chile, and the fourth round in Ottawa.

In these negotiations, Peru and its Pacific Alliance partners wish to build on the commercial agreements signed in order to reap tangible benefits for society as a whole.

Apart from the commercial impact and the consolidation and projection of the Pacific Alliance as one of the most dynamic regions in the Asia Pacific, the relationship with its associate members will allow it to connect to four of the world's top 10 most innovative ecosystems in terms of science, technology, and innovation.

In this process, communications with the private sector and civil society will be of great importance for the advancement of the negotiations between the Pacific Alliance and its associate states.

Each free trade agreement constitutes an opportunity to improve, even for a country like Peru, which, as has been said, links its foreign policy with compliance to the 2030 sustainable development goals. In that sense, the negotiations with the candidate states are a tool that should contribute to fighting poverty; benefit the most vulnerable sectors within them, such as small and medium-sized enterprises, and indigenous people; and provide equal opportunities for women and men, among others.

Thank you very much.

[The Chair, Liberal, Mark Eyking]

Thank you, sir.

We're going to move over now to the Embassy of Mexico, and we have His Excellency Ambassador Dionisio Pérez Jácome Friscione.

Welcome, sir. Canada and Mexico are in very challenging and exciting times right now, dealing with trade, as you're well aware.

Before you start, I would just like to say that we had a very good meeting in Washington with your chief negotiator for NAFTA, Kenneth Smith Ramos. He had a very good presentation with us, and we were on the same page, to say the least.

As I said, our committee just finished up a study on NAFTA, but we're here to talk about the Pacific Alliance, and we welcome you very much. Thank you for taking time in your busy schedule to be here with your staff today.

Sir, you have the floor.

[His Excellency Dionisio Pérez Jácome Friscione, Ambassador of the United Mexican States to Canada]

Thank you very much, Mr. Chair.

Good morning to all of the distinguished members of this committee. On behalf of the Government of Mexico, I would like to begin by thanking the committee for the invitation to participate in today's hearing. Alongside my colleagues, I am delighted to be here with you in this honourable house, to share Mexico's vision regarding the Pacific Alliance, and the potential trade agreement between Canada and the bloc.

Canada and Mexico are allies and close partners on many fronts. Our relationship continues to strengthen and enrich itself, year after year, not only through dialogue at the highest level but also in the day-to-day operations in which interactions between entrepreneurs, investors, tourists, students, retirees, scientists, and temporary workers have grown exponentially. In terms of trade, Mexico is Canada's third-largest partner, and we work closely with our Canadian friends in other fora, such as the North American Free Trade Agreement or the comprehensive and progressive trans-Pacific partnership.

Since 2012, Canada has been actively working with the Pacific Alliance, first as an observer country with significant investments in sectors such as mining and energy, and now as one of the first nations to seek the status of associate state of this regional and strategic platform. In this regard, Mexico welcomes the negotiations between Canada and the Pacific Alliance, which will without doubt deepen our relationship and reaffirm our common interests, and the potential for an even greater economic complementarity and integration of our productive chains, further strengthening the international and regional regulatory frameworks in which we conduct business every day.

Since its establishment, the Pacific Alliance has allowed for a successful regional integration of its member countries. The pragmatic spirit that guides the Pacific Alliance is one of the principles that have made it possible to achieve the objectives set, always by consensus, and with greater development and growth for member countries. This mechanism has progressively allowed us to consolidate a higher economic integration through four pillars.

First is the free movement of goods and services, which has translated into the elimination of 92% of our customs tariffs and the establishment of provisions on financial, cross-border, and air services. Second is the free movement of capital, through which we strengthen the largest stock market in Latin America, known as MILA. Third is the free movement of people, eliminating visa requirements for tourists and business people, while promoting a mobility platform for students and academia. Fourth is a pillar on co-operation.

The Pacific Alliance seeks integration beyond trade and investment. We collaborate in key common interest areas through technical groups on issues such as the environment and climate change; social development; science, technology, and innovation; and small and medium-sized enterprises. These aspects would certainly be enriched with a deeper involvement of Canada.

The success of the Pacific Alliance is shown through the interest of the international community, with over 50 observer countries across the world. For Mexico, it is a priority to promote stronger ties with observer countries and other international organizations due to the potential they offer in the development of mutually beneficial co-operation projects.

Chile, Colombia, Mexico, and Peru share democratic principles and values. We have a dynamic and globalized market that provides favourable conditions for businesses and investments to flourish. According to the World Bank's “doing business” indicators, in 2016 the Pacific Alliance member countries ranked the highest in the ease of doing business among Latin American and Caribbean nations.

The countries of the Pacific Alliance represent a market of over 200 million consumers, with a combined GDP of approximately 39% for Latin America. It would represent the eighth-largest economy and the seventh-greatest export power worldwide, accounting for about half the total of Latin American exports. In this context, the negotiations currently taking place with Canada, Australia, New Zealand, and Singapore prove that the Pacific Alliance seeks to become a more diverse economic and trade integration platform, with special attention to one of the most dynamic regions in the world, Asia Pacific.

The potential treaty between Canada and the Pacific Alliance would provide a more robust and updated framework for trade and investment and trade disciplines between our countries, as well as further the diversification of Canada's economic relations. Furthermore, it offers unique opportunities for Canadian companies to connect to larger supply chains in other regions of the world.

During early February, the second round of negotiations in Australia allowed our teams to move forward regarding market access for goods, services, and investment; public procurement; and temporary entry of business people, among other topics, including the willingness of all parties to work in regulatory co-operation to facilitate trade across different sectors.

The Mexican government looks forward to continuing the productive meetings during the upcoming third round of negotiations in Santiago de Chile, and in Ottawa during May. It is our hope that sufficient progress will be achieved during these negotiations before this year's Pacific Alliance leaders summit, which will take place in Mexico towards the end of July, and to reach a successful agreement by the end of the year.

Let me conclude by saying that it has been through its vast network of trade agreements that Mexico has reaffirmed its commitment towards free trade, productive integration, and the mobility of capital and people. Since Mexico's incorporation to the GATT in 1986, and subsequent trade agreements, we have experienced a very productive transformation of the economy which has convinced us that free trade is a great catalyst for growth.

In our view, the advancement and growth of the Pacific Alliance is an important step in this direction. In this regard, we welcome Canada's decision to transit from a very active observer country to a candidate to become an associate state of the Pacific Alliance.

Ladies and gentlemen, thank you for listening.

Muchas gracias.

[The Chair, Liberal, Mark Eyking]

Thank you, sir. Canadians are not only familiar with your Mexican goods. We're very familiar with your beaches and hospitality. That's another big factor we have going with each other.

Without further ado, we're going to have dialogue with the MPs. I'm not going to be too strict with the time. If an ambassador has to finish up their thoughts, I'm going to let it go. Just keep in mind we try to get as many people as possible to get their questions in. I would like to wrap up probably in about 40 minutes.

Mr. Allison, you have the floor.

[Dean Allison, Conservative, Niagara West, ON]

Thank you very much, Mr. Chair, and to our ambassadors, counsellors, and diplomats at the head of the table.

I think as MPs we are afforded rare opportunities because of our jobs and our positions to see different things. One of the most memorable events for me was sitting on this trade committee back in 2008 and 2009, when we headed to Colombia. Our trade committee had a chance to meet with President Uribe at the time. We remember that you were trying to get a free trade deal. People were saying, “You have human rights issues.” ...“Should we do it or shouldn't we do it?”

I remember sitting around a table with President Uribe, and his minister said, “Do you see these people here? There's not one in my cabinet who hasn't been affected by violence in FARC. It's so important that we get a free trade deal. We need Canada to move forward because we're trying to get a deal with the U.S., and the U.S. is not moving forward.”

I remember at the same time there were troops showing up in Venezuela, at the border of Colombia; and the U.S. would say, “Listen, what can we get you? Can we get you military arms?” President Uribe said, “No. Get us a free trade deal. It's so important for us.”

These moments burn into your head. I was there a year and a half ago, on foreign affairs, as you went through the peace process. Talk to us about how that process is going, how important trade is, and why it's important for us to continue to engage. It's great that eight or nine years later we're actually talking about how we can strengthen trade, not whether a country should be allowed into a deal because of what's going on. How important has that been to your country in terms of trying to diversify from the challenges you have had, and how does that relate to the peace process going forward?

[Juan Camilo Vargas Vasquez]

I'd like to begin by saying that perhaps the most important thing that this government has done in the area of human rights is the peace process with the FARC that began four years ago.

President Santos, from the beginning of dialogue, put the victims at the heart of negotiations. That meant focusing on human rights and on individuals. For Colombia, the peace process was the first process in the world that began with looking at the victims, and a commission on truth. It lasted over 50 years and there were eight million victims.

Sadly, we have the highest rates of land mines as well. Over 60,000 people have disappeared. Many statistics have put Colombia in a bad position on the international stage in the area of human rights.

What is important to note is that Colombia's efforts in the area of human rights have focused on four aspects. The first is public policy. Colombia has had a human rights policy since 2014. It is for the period 2014 to 2034, the post-conflict period, where we'll be focusing on human rights. Human rights are included in the national development plan. The 32 ministries of Colombia have included human rights in their development planning, which means that efforts will be from the national to the municipal level.

We have provided reparations to over 600,000 victims since 2013, and Colombia has made impressive efforts in the area of protection. It has increased the budget for protection for victims.

Finally, there is the fight against impunity. Colombia is attempting to look at impunity for those who have violated human rights. In 2016-17, 50% of cases have gone through the justice ministry and the UN to improve investigation protocols. Of course, there is another 50% to clear up, but I think the conditions are there in Colombia. After 50 years of conflict, with deep social and economic wounds, this is an important advancement.

I'd like to conclude by saying one more thing. Colombia, as you know, like Canada, joined the human rights process of the UN. Last year Colombia was the first non-European country of the 14 that have presented an action plan in the area of human rights.

Just to mention an aspect that Colombia has looked at in this area, we have demonstrated to the international community that Colombia is doing things well, that it has the support of the UN for the ratification of the peace process, and that it has the support of the international community.

As Dean Allison has said, today, eight years later, you want to explore the possibility of increasing trade between our two countries, so I think that's a good signal.

Thank you.

[The Chair, Liberal, Mark Eyking]

Thank you, sir.

We're going to move over to the Liberals now.

Mr. Fonseca, you have the floor.

[Peter Fonseca, Liberal, Mississauga East—Cooksville, ON]

Thank you, Mr. Chair.

I want to thank their excellencies and the representatives from the various Pacific Alliance countries who are here to speak to us today. Thank you very much.

There is a lot of skepticism today around trade agreements; be it here in Canada, or around the world, especially from the public. We've made a concerted effort in Canada to consult in a wide and deep way with the public, with stakeholders, etc., to be able to find what is the best path forward.

This is open to any of the presenters. Can you tell me what you have done in your countries to be able to inform your public, your stakeholders, the government in regard to a trade agreement like the Pacific Alliance?

[Alejandro Marisio]

I'd like to talk about what Chile has done in discussing this and putting it forward for the consideration of the business sector, civil society, and all stakeholders who have something to say in the agreements that Chile takes part in.

Chile has 24 free trade agreements; that's over 60 economies with which Chile has open trade without tariffs and with nearly total liberalization. To reach this point, we've had to hold talks and we've had to listen; that's done regularly.

It's not just the executive, the government does this. As with this committee, in Chile there are bodies within Parliament that need to provide their approval to agreements. Hearings are held, as is done here, but at the negotiating table when Chile participates, we talk about all the sectors that would be participating: civil society, the business sector, and the government entities as well. They provide their opinion throughout the whole negotiating process.

With free trade agreements, in some areas there are more benefits than in others. Of course that's where we need to look at how we can protect or help the industries when it's necessary to redirect their capacities and efforts. Regarding the Pacific Alliance, as my colleague the ambassador for Mexico mentioned, it's an extraordinary tool. It has been very successful, not only because I'm speaking as the ambassador for Chile, but because it's clear that a free trade agreement with the existing market of the four countries of the Pacific Alliance is very beneficial. Now no one is opposed to it.

The same thing happened with the TPP, which was called into question at the beginning. However, through these systems that I've described to you, Chile has gone forward with these agreements without any major opposition. We try to correct those cases where people could be more negatively affected in one area of the economy.

Thank you.

[Dionisio Pérez Jácome Friscione]

I don't want to repeat what my colleague the ambassador for Chile has said. In the case of Mexico, with the Pacific Alliance, as with any other international trade agreements in which Mexico participates, consultations are led to hear points of view, opinions, areas of opportunity, and challenges at the government level and at the legislative level through specialized committees of the Senate and the House of Commons. There are forums as well with specialists so we can study these areas and have ongoing participation and communication with different stakeholders, including the private sector. They interact with the government and negotiators to be informed of advancements and challenges, to have the available information, and the best opportunities to present the best options.

Thank you.

[The Chair, Liberal, Mark Eyking]

We'll move over to the NDP now.

Ms. Ramsey, you have the floor.

[Tracey Ramsey, NDP, Essex, ON]

Thank you, your excellencies, ministers, and diplomats, for being here today for this important conversation. I think what you are bringing forward today is a really critical piece to our study that we're doing on the Pacific Alliance.

Something that was mentioned is labour. Certainly, working people have been discussed by previous witnesses who have come before this committee. The Canadian Labour Congress has been before this committee, and it presented to us that no positive labour changes have been implemented or effected thus far by free trade agreements. I know that labour is top of mind in the NAFTA negotiations right now, and I heard several of you mention it in your presentations today.

For Canadians and our labour community, it's really about seeking a level playing field for working people. I wonder if you can speak to what you see in the Pacific Alliance agreement that would address this important issue for working people, and to any advancements that you've seen or that could be possible in this partnership for labour.

I'll open it to everyone because I'd like to hear from everyone.

[Juan Camilo Vargas Vasquez]

I'd like to highlight that we're talking about trade negotiations between the Pacific Alliance and Canada. The focus is on trade, but that doesn't mean that labour is not part of it. There are mechanisms like working groups. There's a working group within the Pacific Alliance on labour issues and on everything that has to do with improving labour standards for workers.

In addition, Colombia and Canada have a bilateral dialogue, a complementary FTA, that seeks to increase communication to see how we can improve labour standards in the area of trade. I can't speak too much to this because currently there are negotiations under way between Canada and Colombia for an action plan, but I can say that co-operation between Canada and Colombia in the area of labour has been significant.

Colombia has moved forward tremendously over the past four years. It has increased its budgets for inspections. It's much more efficient in imposing fines against companies that are not conducting proper hiring processes, and it's much better at recovering those fines. The justice department has set up a special working group, a task force, with protocols in order to fight against union violence in Colombia.

Thank you very much.

[Carlos Gil de Montes Molinari]

I'd like to add a comment.

I'd like to highlight what Colombia has said. Peru has a labour co-operation agreement that it signed in 2009 as a complement to the free trade agreement between Peru and Canada. The goal of that agreement on labour was to increase the economic opportunities of the FTA by developing human resources, protecting the human rights of workers and the co-operation between workers, and increasing skills on an ongoing basis. The goal is also to ensure the basic rights of workers, to strengthen co-operation in the area of labour, and to move forward on international commitments on Peru's and Canada's parts. This agreement sets out periodic meetings of a council to discuss areas of common interest in the area of labour.

Thank you.

[The Chair, Liberal, Mark Eyking]

Do you have a comment?

[Dionisio Pérez Jácome Friscione]

I'll be quick. I don't want to be repetitive of what my colleagues have mentioned. I will not refer to what Mexico has done since that was not the direct question.

I would say that, in terms of the Pacific Alliance, the work has begun. There's a group on labour. We have a reference, for example, in TPP. It is an interesting reference that I'm sure will allow us to get to some of the issues in terms of labour rights, protection of rights, standards, and some of the issues that have been mentioned by my colleagues. We view it very positively. Certainly, whatever ends up being agreed on with regard to this topic will be beneficial to all the countries.

[The Chair, Liberal, Mark Eyking]

Thank you.

Madame Lapointe.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you, your Excellencies, and welcome.

You said that you drew inspiration from the chapter on labour rights in the TPP. In the negotiations between the Pacific Alliance and Canada, are you looking to any specific agreements for guidance?

[Dionisio Pérez Jácome Friscione]

In the case of Mexico, we're convinced of the advantages of free trade. As I said in my presentation, since 1986 we've been part of GATT, and we've been building capacity and finding out more about free trade.

In this round of negotiations, in terms of the modernization that we're seeing, and going through with the CPTPP, and all of the negotiating experience in the area of free trade, we're able to update our knowledge in different areas.

We're looking at the different aspects that are necessary to negotiate in all areas. I wouldn't summarize this in just one or two agreements, but it's our general expertise, and our knowledge of free trade and confidence in it.

We've been putting it forward in different negotiations. We have the Pacific Alliance and the CPTPP, but we're also negotiating with Europe to modernize our agreement. We're deepening our trade relations with countries like Brazil and Argentina. We have a full agenda in the area of trade diversification, and our negotiators are strengthening our capacity.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you.

No one brought up e-commerce. The various agreements do address the issue, but no one brought it up. I would like to hear from each of you on the subject.