Mr. Speaker, I am pleased to participate in the debate this evening. I am splitting my time with the member for Vancouver Quadra.
Let me begin by saying that in my riding of Etobicoke—Lakeshore there are many who have expressed concerns about this agreement and this summit and I hope these concerns will be addressed in the discussion tonight.
As we know, the Prime Minister and other heads of state will be discussing the FTAA at this very important summit. The FTAA is indeed a good news story. I think this is a good news story that we hear tonight from the members on this side of the House and others: the expanding of trade and investment and those advantages which will allow Canadian companies to grow, to innovate and to create better jobs.
However, much has also been said about the FTAA and the knowledge that the Canadian public has about the agreement and its potential impact on communities, and especially for some of my constituents, and smaller states. The discussion this evening is one which I hope all those who have expressed their concerns to me are watching and participating in with us.
The idea of the free trade area of the Americas was brought to the fore at the first modern-day summit of the Americas, held in Miami in 1994. At that summit, all countries, including Canada, agreed to conclude an agreement by 2005. At the Quebec summit, Canada will engage in negotiations with over 30 heads of state and government to bring this to fruition. The free trade agreement of the Americas will build upon and strengthen existing bilateral and subregional free trade agreements with countries in the hemisphere.
As we know, democracy and the expansion of free markets around the world are transforming the Americas. Canada has been playing a leading role in responding to the challenges of economic and social change.
At home, the government is committed to creating opportunities for Canadians in global markets and will work to foster favourable environments in which Canadians can take advantage of opportunities. Canada has a vested interest in the economic development of the hemisphere and will demonstrate leadership where it can to strengthen and integrate relations in the Americas.
We have heard from our Minister for International Trade that the small economies will be given assistance to participate not only in the summit but in regard to further participation in the discussions, which will go on until 2005.
Canada's economy depends on trade, which constitutes 40% of our gross domestic product and creates or sustains one Canadian job in three. The people of Etobicoke—Lakeshore should know that on a daily basis more than $2.5 billion worth of business occurs in two way trade with the world.
Today over 90% of Canada's trade is with the Americas, including the United States. Canada's foreign direct investment in the Americas reached $182 billion in 1999. Over the last 10 years, the value of trade has increased more than 170%.
These are advantages for us, but again we pose the question, what about the small economies? The summit of the Americas is about more than just free trade. It will be a forum where heads of states and ministers will engage in discussions around three broad themes: strengthening democracy, creating prosperity, and realizing human potential. Those three broad theme areas are where the small economies can see themselves moving forward and benefiting from whatever agreements are made.
Canada's position on strengthening democracy in the hemisphere is based on the premise of consolidating democracy, protecting and promoting human rights and enhancing human security.
In any trade liberalization agreement, democratic development has a place. It allows economies to become more open and countries to prosper, and it compels nations to create rules and institutions needed for global governance. The small economies need help in that specific area.
Creating prosperity for Canadians and the citizens of the hemisphere entails addressing issues such as poverty and promoting equality of opportunity. This principle is emphasized in the summit plan of action on key social initiatives that would support education and the acquisition of needed skills, improve the health of people, advance gender equality, promote cultural diversity and expand access to new technologies.
I am putting emphasis on those areas because I think of the islands of the Caribbean and the other states to which some improvements and some advantages could be given.
These initiatives will help the citizens of the Americas to live with dignity, realize their full potential and contribute to the economic and social development of their communities. These three themes are juxtaposed against several issues of concerns as raised by civil society and the small nations.
At the Standing Committee on Foreign Affairs and International Trade deliberations, my colleagues and I had the opportunity to hear the sentiments of Canadians on the implications of the FTAA on such matters as environment, labour standards and income disparity. Many witnesses appeared before us and spoke to those issues. From these hearings was a growing consensus that the FTAA could not ignore environmental and labour standards.
Canadians are concerned about economic disparities and the competition will make worse already poor environmental and labour standards among smaller countries in the hemisphere. The majority of these countries are at a disadvantage since they do not have the capacity to develop sustainable development strategies on the environment or improve upon standards of labour.
I can think of instances in Mexico where the results of NAFTA have come under intense scrutiny for problems relating to the environment and declining labour standards. I know we have benefited from those experiences and it is the hope that whatever negative was done will not be repeated here. Careful consideration must be given to these issues so that we will not repeat some of the challenges that NAFTA created.
Canada and other countries in the hemisphere must work to ensure that these issues are reconciled and that they are incorporated into the FTAA. I am encouraged to hear that the summit will provide an opportunity for environment and labour ministers to address these very important issues.
I would like to turn to the issue of income disparity. There is no doubt that the FTAA will have to raise the standard of living in the hemisphere. However, large income disparities between countries will make it difficult for small ones to implement the FTAA.
We must be conscious about how the benefits will be distributed. There are over 800 million people in the hemisphere, the majority in smaller states.
The issue of tariffs is of importance when we talk about income disparities. Economies of smaller states rely on tariffs as their main source of revenue. Social programs and debts are paid from tariffs. The elimination of tariffs as proposed by the FTAA could force small nations to introduce income tax systems in order for them to participate in the agreement. Many simply do not have the technical expertise to do so.
Small countries must have some kind of assurance that they too will benefit from the elimination of trade barriers and should be provided with the necessary assistance to help them to deal with the challenges of tariff elimination. I know that technology and connectivity are very important to those states and the Canadian minister has assured us that some assistance will be given to those small states.