Mr. Speaker, I appreciate the opportunity to be involved in this debate. First, I would like to thank the hon. parliamentary secretary for the extensive outline of not only the benefits but the concerns with regard to Bill C-5.
I would also like to thank the Minister of Finance for the co-operation of his staff in providing information to us as a caucus, not only on this bill but on other bills as well. The staff responded very quickly and briefed us well in an open manner and presented us with a very good case for and against the bill and we were able to make a judgment as a caucus.
As we well recognize, the purpose of Bill C-5 is to extend Canada's general preferential tariffs for developing countries from June 30, 1994 to June 30, 2004. That is a major commitment we are making as Canadians to the needs of other countries in terms of industrial and social development, in our attempt to bring their economic base closer to what we enjoy as Canadians. In terms of a world responsibility as Canadians we are to be well commended for taking that approach.
The Reform Party, after examining this bill and going over the presentations that were made to us, supports the bill. We feel that it is right in principle and that it is an obligation we should take on as Canadians.
There were some very positive qualities of the general preferential tariff that we felt should be noted at this time in our presentation to the House. First, it will lower import barriers, a concept we support as the Reform Party. Second, the lower tariffs will stimulate economic growth in developing countries. Third, it is very wide ranging in terms of its unconditional nature as to how it can assist these countries. More than 180 developing countries and territories qualify for lower Canadian tariffs. That is certainly a benefit.
Another reason for our support is that while in a sense Canada loses in terms of bookkeeping some $156 million because of the lower tariffs, we recognize as Canadians that we benefit because the general preferential tariff will also enable us to have lower prices in terms of goods as consumers in this country. That certainly is a direct benefit in that sense. However, we do have some concerns.
First, while businesses in our country can benefit from lower input costs under this system, there are some questions with regard to savings that may actually be passed on to consumers.
We would be remiss in our responsibilities if we moved into the marketplace and said that we should implement some type of legislation to prevent that. I think more supervision by government, more public servants to do that which would cost us as taxpayers more money, or more interventionist actions are certainly not the way.
We must have confidence that the forces of the marketplace will take care of that concern. It may not in all cases but I think if we let the marketplace work properly, it certainly will.
Second, while this system will help developing countries, I believe we should go one step further by using this opportunity to encourage a responsible government in those nations. We certainly want to give disadvantaged nations a chance to grow economically.
However, we want to ensure, and I am sure we all feel this as parliamentarians, that these countries uphold a major standard of human rights such as we enjoy here in Canada. It is part of the obligation and part of the message that I think we want to send indirectly through this bill to those nations that are benefiting from our compassion here as Canadians.
Third, we should ensure that rebates to developing countries are not part of the deal. The government should ensure that countries only benefit from the reduced tariffs. I am sure the government will keep a watchful eye in that area.
Fourth, we as a government must prevent any kind of dumping of cheap imports into other countries as that may strain relations with our trading partners. For example, a commodity should not be imported into Canada at a reduced tariff and then dumped into the United States to cause a distortion in the American marketplace.
In summary, as I said before, we support the bill and encourage the government to move quickly in this direction. It was explained in our briefing sessions that if changes need to be made quickly, regulations can be changed and are in place and they can be amended to protect any industry that may be adversely affected by these tariffs.
Those industries have the right to appeal and to make presentations. If the government in its wisdom following those presentations sees that there is a negative effect which affects our industries or our businesses, it can act very quickly by changing those respective regulations. I think that is a good addendum to this bill.
If we take these points into consideration I believe we will be upholding Canada's trading interests, a goal that we certainly want to strive for. I encourage Parliament to support the bill and proceed with it as quickly as possible.