Mr. Speaker, I am pleased to rise following the member for Saint-Hyacinthe--Bagot.
Today, the focus of my remarks will be to show my solidarity with the workers and the management of the Lantic Sugar refinery located in my riding, not very far from my office, on Notre-Dame street. I will have the opportunity to explain further during my speech. It is a world-class refinery, and people there are extremely concerned about the liberalization of the sugar industry that will result from the bill before us today. Before getting to the central part of my speech, I would like to make some preliminary comments.
First, never ever should one believe that the members of the Bloc Quebecois, or the rest of the sovereignist family, are against free trade. Everyone knows that Quebec played a leadership role in the first free trade agreement that was signed in 1988. Quebecers are essentially in favour of free trade. Nearly half of Quebec's production is exported to the United States, to the Canadian market or to other destinations. So there is no question that Quebecers support free trade.
We know full well that any bilateral or multilateral agreement Canada enters into can generate economic growth over time. We are not questioning that.
What is troubling with the way the government acts is that we are being confronted with a done deal. One must not think that today, when two sovereign states sign a treaty that will have an impact on trade, it will only affect the manufacturing sector or the business community. The liberalization of an industrial sector may affect culture, financial institutions in the short term, medical equipment and, consequently, the viability of businesses and the maintaining of employment. What is particular with the way the government acts is that we are being confronted with a done deal.
The Minister for International Trade, who is very self-confident, as we know--the least we can say, as Jacques-Yvan Morin put, is that he thinks he is the cat's meow--came to the House saying “I signed an agreement, I have committed the executive and I ask parliamentarians to ratify this agreement without prior debate”.
One could also use the same logic for the bills introduced by the hon. member for Mercier: we want treaties involving the executive and, ultimately, parliament, to be submitted to the House before their final approval. The same applies to treaties on foreign policy. Unfortunately, our demands have fallen on deaf ears: the government has not listened to us. This is deplorable.
Signing a trade agreement is not an isolated, rare, and marginal phenomenon. We can even say that it is increasing at an incredible speed. Some 28 bilateral and multilateral treaties signed by Canada came into force in 1997, 44 in 1998 and the forecast is for that number to be over 50 in the years to come.
I believe one cannot talk about valuing the role of members of parliament, of striking a better balance between the executive, that is to say the government, and the legislative, which is the parliament, if we are only a rubber stamp and are not involved in the making of treaties before they are ratified.
With regard to the implementation of the free trade agreement between Canada and Costa Rica, there are a few issues of concern that I would like to talk about.
The free trade agreement Canada signed with Costa Rica, which of course is a multi-dimensional agreement involving several sectors of the economy, raises concern regarding a particular sector, namely the sugar industry.
It must be known that the free trade agreement with Costa Rica will totally eliminate tariffs on refined sugar. This is one of the main problems we, as parliamentarians, see in this agreement.
More to the point, there is an agreement with Costa Rica. As we know, this country is tiny albeit beautiful. I went there on my second honeymoon. As one can easily imagine, I had the opportunity to see Costa Rica in very romantic terms. This small country is politically stable, its agrifood industry is extremely important, and of course it is very interesting for its fauna as well as the way it welcomes tourists.
It must be said that the agreement between Costa Rica and Canada could be used as a model, and be a prelude to freer trade with four other countries in Central America. I refer of course to Guatemala, Honduras, El Salvador and Nicaragua.
The spokespersons for the sugar industry, be they on the workers' side or the management side, are worried. They are wondering whether the free trade agreement between Canada and Costa Rica is a sign of freer trade in the sugar industry among El Salvador, Nicaragua, Guatemala and Honduras.
If that is the case, then we have a problem. Let me put it very simply: if the same model were to be used to liberalize trade with four other countries, then whole segments of the sugar industry would collapse.
As we know, the sugar industry is extremely fragile, not only because the profit margin is not very high, but also because--as the hon. member for Saint-Hyacinthe--Bagot reminded us--in the 1970s, an international cartel made up of a number of countries tried to fix the price on the world market, something which caused significant price increases at one point in time.
The governments then decided to subsidize the sugar industry to ensure that the product could be sold on the world market at a very competitive price per tonne. We then found ourselves in a situation where the U.S. generated a dramatic drop in the demand for sugar products, which resulted in an extremely low demand price.
The hon. member for Saint-Hyacinthe--Bagot reminded me that we are not immune to the schemes of another cartel. At such a time, I am sure that I will find the input of the member for Longueuil very useful.
I would like to get to the core of the issue and say that I fully support the workers of Lantic Sugar Limited, in the riding of Hochelaga--Maisonneuve, and the management of that company. This is not a dispute between the union and the management.
This is very interesting and I am proud to say that when this Canadian sugar company had to streamline its operations and choose a location to carry on its production, it opted for Hochelaga--Maisonneuve. This was made possible because the union agreed to review existing collective agreements and sign a new long term collective agreement. This is a very good example of industrial peace where both the workers and the management at Lantic Sugar made compromises to ensure the survival of the company and to protect jobs in Montreal's east end.
Lantic Sugar is a world class refinery. It is at the very top of the world's leading sugar refineries.
As we are speaking, the company operates at 90% of its regular capacity. In 1999 and 2000, it invested $100 million to modernize its operations.
It is with regret that I must say that while the city, the Quebec government and local stakeholders developed a plan to rescue the company, the federal government did not invest one penny in that plan to save Lantic Sugar.
This is another example which shows that, when it comes to regional development, particularly in Montreal, it is extremely difficult to enlist the federal government's co-operation.
The Lantic Sugar refinery, which is a world class company, currently employs 345 people. Imagine what it would mean for these workers if there was a sudden drop in the demand for sugar products at the international level. When we look at the negotiations conducted by the Minister for International Trade, we truly get the impression that the sugar industry was not considered at its fair value. The possible threat facing the sugar industry was not taken into consideration, as it should have been, following an early and unfavourable liberalization process, as I will show later on.
This means that if changes are not made and if the government intends to use this model for negotiations to come with four other Central American countries, we could lose tens of jobs. But rest assured, because the Bloc Quebecois will not let this happen.
A business employing 345 workers has made major investments, to the tune of $100 million, on the east side of Montreal, which means essentially from Papineau street to the end of the island. Mr. Speaker, I believe that you spent part of your childhood in Montreal, as we have discussed before, so you know the city pretty well.
As I was saying, investments were made in that business that provides $28 million worth of salaries and benefits. That business also needs supplies and services for its day-to-day operation and has a list of 200 suppliers. This represents investments totalling $40 million.
What is interesting is that Lantic Sugar does not provide just any type of jobs; it provides interesting jobs for blue collar workers. We are not talking here about people with university degrees, but they are honest workers who do their job well and who have received serious on-the-job training.
I asked what the average salary was at Lantic Sugar. Members will not be surprised to know that it is $20.67 an hour. This is very interesting for workers to have businesses offering these kinds of jobs in a neighbourhood like Hochelaga--Maisonneuve.
Now let us go to the heart of the issue. As we all know, the Minister for International Trade is bursting with self-confidence. He is proposing a treaty with Costa Rica that will liberalize trade in one particular industry, without really thinking about the impact this could have on people's lives.
At the present time, Costa Rica does not produce refined sugar, which is primarily produced by Lantic Sugar. Costa Rica will be permitted to export 20,000 tonnes to Canada, starting next year, in 2002. Costa Rica's access to the Canadian market will be progressively increased from 20,000 tonnes in 2002 to 40,000 tonnes in 2009.
Canada, in turn, will be permitted to export 3,528 tonnes to Costa Rica beginning in 2002, and this will increase to 6,990 tonnes in 2009. Why am I giving these figures? Because the public needs to understand that when the Minister for International Trade negotiates with Costa Rica to liberalize trade, there is some give and take involved. One has the impression that the sugar industry was sacrificed to the benefit of other sectors. That is what is unacceptable.
I hope that the minister's parliamentary secretary, who is nodding his head, will give us guarantees that not only will the signing of this agreement not be used to implement other agreements with four other Central American countries, but that there will be no loss of jobs in the sugar industry. That is my concern as the member for Hochelaga--Maisonneuve, because of the importance of Lantic Sugar.
In this agreement, Canadian exports are based on the country of origin rule, so that it will only be possible to export products containing sugar produced in Canada to Costa Rica.
As for raw sugar--not refined--there will be no tariff. Right now, there is no tariff on raw sugar. In the four countries of Central America, imports of raw sugar rose from almost nothing in 1995 to 275,000 tonnes in 2000.
It is interesting to note--I hope that the Minister of Agriculture and Agri-Food, who has been kind enough to be in attendance for this debate, is aware of this--that, in relative terms, the countries of Central America and Costa Rica have been given ten times the access to the Canadian market than they have to the United States.
This adds to the concerns of manufacturers because--as I will point out--the U.S. sugar market is much more protected than the Canadian sugar market, although it is ten times larger.
I note that the agriculture minister is nodding. I am not convinced that these considerations were taken into account in the Costa Rica-Canada agreement.
I therefore have a few raw figures I will try to refine somewhat during my speech.
In Canada, the tariff on refined sugar products is $30.86 a tonne. Let us understand clearly that the rate for the Central American countries is far higher than that. For example, it is 160% in Guatemala, or 20 times the Canadian rate. The two countries wish to give access to the market in the same proportions, but they do not start with the same basic reality because of the different levels of market protection. What have the consequences of this been?
Refined sugar imports from countries in Central America are constantly increasing. This is not hard to understand. For example, Guatemala exported almost nothing over the past five years, but in 2000 exported 3,200 tonnes of refined sugar to Canada. This is a situation of considerable concern for those working in the industry and for their company management.
What needs to be done? What the industry is calling for, both employees and management, is that the sugar market not be freed up with a single country, and that any liberalization not take place until discussed in a multilateral forum.
There will be other WTO negotiations in 2005, held in Latin America in fact. People are saying “Why not look at the type of freer trade we want with a number of countries?” Allowing the sugar industry to be placed in a negotiating or competing position with countries that have historically protected their market to a far greater extent than Canada has been able to does not seem fair. I am being told my time is up, so I will close.
I call upon the minister and the parliamentary secretary to be very much aware that, should the agreement in place for Costa Rica ever be applied and then used as a model for four other Latin American or Central American countries, we would be placed in a situation where there would be considerable risk of job losses in the sugar industry. And that we will not accept.