Mr. Speaker, the Bloc Quebecois supports the principle of Bill C-54, which is meant to offset the extraterritorial effects of the Helms-Burton legislation on Canada and Quebec. In fact, we support the action by the Canadian government to protect businesses and corporations in Canada and Quebec, against retaliatory measures taken by foreign countries.
Unfortunately, we see that our neighbours the United States resort more and more often to threats of retaliation against businesses in third countries, even against friends like Canada, in order to isolate countries they have differences with.
The present case involves a political dispute between Cuba and the United States, which is deteriorating into a trade war with extraterritorial consequences. Furthermore, the Helms-Burton legislation could jeopardize the efforts of many countries, including the United States, to further free trade. Finally, we cannot tolerate any country dictating the foreign policy of another.
Bill C-54 is certainly the first step in a reply to the American legislation, but the Minister of International Trade and the Liberal government still have a lot to do in this matter.
Let us see what factors brought about Bill C-54 so that we really understand its scope, utility and shortcomings. The President of the United States signed the Cuban Liberty and Democratic Solidarity Act, commonly called the Helms-Burton legislation, into law in March 1996.
This law is aimed at stopping foreign businesses that own or use American nationals' properties or interests that were expropriated by Cuba from doing business in that country, on pain of retaliation by the United States. Canada, as well as Quebec, and many countries and organizations such as the OECD, the European Union and the Organization of American States, have already positively opposed to this law, which imposes American jurisdiction outside U.S. territory on non-American businesses and people.
The Helms-Burton law contravenes the principles of international law and the sovereignty of countries on their own territory. The Bloc Quebecois believes the American government would vehemently oppose any form of external interference in the conduct of its affairs. The same applies to Canada. It is therefore important to counter the Helms-Burton law so that the principles established by trade practice relating to disputes between states be respected.
Through Bill C-54, the Liberal government proposes to amend the Canadian Foreign Extraterritorial Measures Act of 1985 to counter the effects the Helms-Burton law would have in Canada and in Quebec. But we must ask ourselves if this response will be sufficient. Will Canadians and Quebecers doing business with Cuba be able to find in it the means to protect themselves against potential American legal action?
To answer this question, let me comment on the titles of the American law that are prejudicial to businesses in Canada and in Quebec, and the measures proposed in Bill C-54 to counter them.
There are two titles in particular in the Helms-Burton law which affect Canadian and Quebec interests: titles III and IV. Title III allows American citizens whose property was expropriated during the Cuban revolution to bring legal action against anyone, American or not, who has invested in the properties they used to own in Cuba. This title was to come into effect on November 1, but the U.S. president has decided to suspend its application until February 1997. Nearly 6,000 lawsuits in this connection are already pending, a good number of them, no doubt, involving Canadian or Quebec companies.
As for Title IV, which came into effect this past August 1, it blocks entry into the U.S. of any person who has invested in expropriated American properties in Cuba. In Canada, the directors of a Toronto firm, as well as their family members, have already been refused entry into the U.S. under this section.
We feel that the problem lies in the fact that the amendments to the Foreign Extraterritorial Measures Act proposed in Bill C-54 are not complete and are a bit late in coming.
I have just referred to the fact that two specific titles of the Helms-Burton law threatened Canadian and Quebec interests: titles III and IV. Although Bill C-54 addresses the effects of title III, implementation of which is suspended until after the U.S. presidential elections, it proposes nothing to help the cause of Canadians and Quebecers affected by title IV, which is the one that has already caused problems to some Canadians.
The Bloc Quebecois wonders why the Canadian government refrained from taking any action to deal with the ban on entry and residence in the United States, which, as you know, penalizes the executives and shareholders of these companies as well as their spouses and minor children. Why did the government fail to react to this section of the Helms-Burton law?
We all condemn the U.S. Helms-Burton law and deplore the unfortunate impact it may have on the good relations we have with our U.S. neighbours.
We must not forget, however, that this law was not passed yesterday, and that is the problem. It has been one year and seven months since the red flag went up, so the government knows what will happen if it does not act promptly.
In February and in the fall of 1995, the Helms-Burton bill was introduced in the Senate and the House of Representatives. In March 1996 the Prime Minister finally expressed his opposition to this legislation, and it took six more months for him to transform his verbal opposition into a bill.
We are familiar with the delay involved in the NAFTA process for dispute settlement. However, today it is clear there is no excuse for waiting any longer. That being said, the U.S. election should not prevent the government from taking action. That is why we urge the Minister for International Trade to ask for a special panel to be charged with settling this dispute under the auspices of NAFTA. If it refuses to take action to have the U.S. law invalidated under the auspices of NAFTA, the Liberal government will continue to expose Canadians and Quebecers to the adverse effects of the Helms-Burton law, especially title IV.
After expressing its opposition verbally during the past six months, it is perhaps time for the Liberal government to starts some concrete action towards the invalidating the U.S. law.