International Trade Committee on Feb. 13th, 2018

[Juan Camilo Vargas Vasquez]

Now to speak on behalf of Colombia, there are three things I'd like to say, the first on institutionality. We have a secretariat for women's issues, and that's where we discuss all issues that have to do with gender equality. Second, as mentioned in the peace accord, we focus greatly on the victims, especially female victims of the conflict, and we incorporated multiple methods to help them return to society, to launch businesses, to encourage entrepreneurship, and Canada has helped us greatly in these areas. We've done a lot to afford that.

Finally, there's an initiative with our labour department and the United Nations for a project called Equipares. It's our first initiative in Colombia in public policy to ensure that, when it comes to entrepreneurship, there is greater equality between men and women. It has to do with hiring, development, salary, and inclusive language.

Thank you.

[The Chair, Liberal, Mark Eyking]

Mr. Carrie.

[Colin Carrie, Conservative, Oshawa, ON]

I want to thank the witnesses for being here.

I'm going to get right to it, because I only have three minutes, don't I?

[The Chair, Liberal, Mark Eyking]

If you ask a question for all panellists, it varies from five to eight.

[Colin Carrie, Conservative, Oshawa, ON]

I wanted to talk a little bit about regulatory coordination and coherence. Whenever you have trade agreements, it so important, I think, that you look at regulations, because sometimes, if you don't get it right, they can become non-tariff barriers. I was just wondering if you could comment on how important it is when you're looking at regulations, how it affects modernization, standardization, customs procedures, things along those lines, and how important it is to make sure that it's addressed in these trade agreements.

[Dionisio Pérez Jácome Friscione]

These are extremely important issues. As I mentioned in my initial remarks, in the Pacific Alliance, the member states have increased the facility of doing business in the region, which shows that we desire to make these procedures more flexible so that businesses can grow.

Now, for Mexico, we're seeing that throughout all of our negotiations. It's crucial to ensure that there is compatibility and standardization of regulations.

In the Pacific Alliance, I think if Canada joined us, we would have the opportunity to share best practices, which would allow us to go further in that direction.

[Alejandro Marisio]

The advantage of these negotiations is that our countries and Canada already have FTAs, and so we have already discussed and thought about these issues.

For Chile, for the modernization of our FTA, we will include the whole issue of origin. We will perfect our SPS measures. We are going to clarify procurement and include an investment chapter. We've already done that. In fact, on a bilateral level with Canada, that's already been done.

Harmonizing the issues among all five countries is just around the corner, because we know that that will allow us to broaden our markets.

[Carlos Gil de Montes Molinari]

I think that my respected colleagues have summed up this issue quite well.

I would just like to mention that in the 20 technical working groups of the alliance, there is a specific group that discusses regulatory improvements.

[Juan Camilo Vargas Vasquez]

I would add that our committee for the facilitation of trade is one of our technical groups, and we also have a committee that's working on a one-stop shop system for regulatory issues.

[The Chair, Liberal, Mark Eyking]

Ms. Ramsey.

[Tracey Ramsey, NDP, Essex, ON]

It's no surprise that mining has been top of mind, and a part of many of our conversations. We know that in 2015, 28.7% of all Canadian mining assets abroad were in Pacific Alliance countries. I heard Minister Molinari speak to this earlier, and it's talking about the balance that needs to be achieved in mining with human rights, the environment, and Canadian companies being in all of your countries.

Can you speak a little to the provisions in a Canada-Pacific alliance that would help develop extractive sectors, but in a manner that could be characterized as socially and environmentally responsible?

[Alejandro Marisio]

That's an excellent question. Naturally, I'm mainly speaking on behalf on Chile, but this applies to the other countries in the alliance. For us, protecting the environment is critical, and we need to ensure that our institutions work well. We've drawn lessons from the past. All businesses, not just foreign businesses but also Chilean businesses, need to respect our standards, so that today, no corporation should feel that it's being discriminated against simply because it is foreign.

If this system didn't apply equally to all companies, we wouldn't be seeing all the foreign investment that we have in Chile. I believe that foreign businesses have seen that in Chile. We insist that our environmental standards be met and that we respect international standards. These standards don't come from the executive, but ultimately, it's the communities that are actively involved in these authorization processes, and get to have their say. That also comes to labour issues.

Ultimately, in the Pacific Alliance, we are going to establish standards that protect our resources, but that also enable us to ensure that business gets done in the best possible way.

[Carlos Gil de Montes Molinari]

I'd like to add to what the Chilean ambassador said.

In my presentation, I mentioned how the Canadian mining sector ultimately made other sectors more dynamic as well. There are many opportunities in the mining sector for co-operation, for example, with technology, innovation, best practices, and environmental management.

I would like to specifically mention a skills development project for education and professional competencies that is provided by Canada in the extractive sector. This project is focused on professional development, and it's one of the biggest areas of co-operation between Canada and the Pacific Alliance.

[Juan Camilo Vargas Vasquez]

Very quickly, I'd like to mention that in Colombia we have a method for environmental management. We understand the importance of the Canadian mining sector. From 2005 until 2016, the investment from Canada was over $10 billion, so ultimately, we have an instrument that considers both the environmental and social effects.

There's something important that stood out for the communities being consulted. We signed an agreement with indigenous communities, which means that we have specific commitments in terms of consulting communities ahead of time. The national government is leading a project before congress to improve standards in the areas of consultations on costs, time, methods of participation, and making things more efficient.

[Dionisio Pérez Jácome Friscione]

Very briefly, in the bilateral area, mining is very important for Mexico: 50% of foreign direct investment in mining in Mexico is from Canada. At the bilateral level a lot is being done through the Canada-Mexico alliance. One of the eight working groups is on mining and a lot of progress has been made in the area of standards and skills. We've explored the possibility of temporary workers.

For the international area, for the Pacific Alliance, we've talked about different disciplines: strengthening the environment and labour, all the topics that have been discussed in the area of social skills, and it will be strengthened to ensure that all the standards are met in these areas so that both countries are meeting the highest standards.

[Yvonne Stinson Ortíz]

As you know, social responsibility is an important topic, the environment as well. In the first free trade agreement with North America there was a side deal. Now with NAFTA 2, we'll have an area on labour and on the environment. The model that's existed for the past years are side deals in NAFTA. Now we have the TPP, which will be signed very shortly in Chile by 11 countries. The agenda has moved forward in the area of free trade.

There has been development in these social areas, so I think in the Pacific Alliance, as has been done with the CPTPP, adding labour and the environment, this will be taken as a model for the alliance. Currently, it's not mandatory. It's focused on in the working groups. As I said earlier, in many of the disciplines we're used to looking at with the CPTPP, NAFTA, CETA, the Mexico-Europe agreement, the Pacific Alliance has taken a little time. Canada will help it advance more quickly.

Thank you.

[The Chair, Liberal, Mark Eyking]

Thank you.

We have just a couple of minutes left. Parliamentary Secretary Goldsmith-Jones, do you have a quick question?

[Pam Goldsmith-Jones, Liberal, West Vancouver—Sunshine Coast—Sea to Sky Country, BC]

I have two compliments. First, the global south certainly led in including a gender chapter in trade agreements. After Chile and Uruguay did that, Canada was very pleased to join with Chile in that. Thank you.

Second, the work in the Colombia peace process has been very instructive for Canada's understanding of women, peace, and security, and it contributed a lot to our feminist foreign policy, so thank you for that.

Minister Champagne has just appointed a Canadian ombudsperson for responsible enterprise. I wonder if you would care to comment on the effect that may have on mining in your countries.

[Dionisio Pérez Jácome Friscione]

Very briefly, this was an announcement that demonstrates Canada's willingness to move forward in this area, to bring the progressive agenda to the forefront. We'll be looking to provide support, when it's necessary, for this new position that's been created.

[Juan Camilo Vargas Vasquez]

Colombia is very pleased with this new position. Previously, you had a strategy for businesses in the extractive industry that operate outside Canada's borders, and there's the counsellor for corporate social responsibility in the extractive industries. We see this as part of the evolution. This new position will doubtless help us with Canadian companies in our countries. It will help them operate as good corporate citizens, respecting the environment and human rights and everything that has to do with sustainability.

[The Chair, Liberal, Mark Eyking]

Very good. It has been a very active morning, with good dialogue. I hope everyone got their points across, and I hope all members of Parliament got the questions in that they wanted. As you can see with the time sheet, it's all over the place, but that's what we wanted this morning, that good dialogue and the good understanding back and forth.

Unless there's something that the ambassadors or representatives want to say, we will close this meeting.

The ambassador from Chile.

[Alejandro Marisio]

Mr. Chair, thank you for this opportunity that you've provided. The members of the committee would be very welcome to visit us in the spring. For Chile's part at least, we hope to be able to support them in preparing their visit, the trip they will be making to our four countries.

Thank you very much.

[The Chair, Liberal, Mark Eyking]

Mr. Hoback.

[Randy Hoback, Conservative, Prince Albert, SK]

On a point of order, this is a formal meeting and it's good; unfortunately, it's never long enough. I'd strongly suggest that you have an informal meeting where you serve some lobster and invite these gentlemen back and we'll have a chance to get to know them even better on a more personal basis.

[The Chair, Liberal, Mark Eyking]

I'll try to get the lobsters, if you can bring some good steaks from out west.