Mr. Speaker, it is a pleasure for me to rise today on Bill C-23, An Act to implement the Free Trade Agreement between Canada and the Republic of Colombia.
People might be inclined to think that the purpose of this agreement is basically to facilitate trade between Canada and Colombia. As with all trade accords, it should have been signed first and foremost for the purposes of trade. The fact of the matter is though—and I will explain why a little later—this agreement is intended more to protect big Canadian mining companies and shield them in various ways.
Discussions were started in 2002 with various Latin American and Andean countries: Peru, Colombia, Ecuador and Bolivia. It was not just yesterday, therefore, that the negotiations were undertaken with these countries to facilitate trade and sign a free trade agreement. Canada recently decided to focus on two of the countries, Peru and Colombia. More formal discussions were held, leading to negotiations in 2007 with these two countries. On November 21, 2008 the Canada-Colombia free trade agreement was finally signed.
As I was saying, people might think that Canada signed this agreement in order to reduce tariffs and facilitate trade between our two countries. If we look a bit more closely, though, at the wording of the agreement, we soon realize that it is intended more to protect big multinationals and ensure they can continue to make profits while disregarding the basic rules of democratic societies, such as human rights, workers’ rights, and the protection of the environment.
First of all, the agreement contains a chapter on protecting investment that is basically intended to facilitate the lives of Canadians who invest in Colombia, especially in the mining sector. This finds concrete expression in the Free Trade Agreement between Canada and the Republic of Colombia.
We should remember that the so-called mining codes were overhauled more than 10 years ago in order to give a lot of tax and regulatory breaks to the foreign companies that came and set up operations in developing countries. That was all funded several years ago by various international organizations, including CIDA and the World Bank. So Canada did not wait until 2008 to give tax breaks to its companies. It used its international tentacles—the World Bank but CIDA as well—to finance the changes to the codes and therefore to the laws that these countries were passing.
Whether in Africa or Colombia, Canadian tax dollars were used to help revise their domestic legislation, reduce environmental protections, and provide major tax breaks to the companies that came to explore for and exploit the mines.
The Free Trade Agreement between Canada and the Republic of Colombia has one major advantage therefore: it facilitates the lives of Canadian investors who decide to put their money into the Colombian mining sector.
The most regrettable aspect of this agreement is the fact that the chapter on investment protection is drawn right from chapter 11 of the North American Free Trade Agreement, NAFTA, which aims to protect major investors and enables them to circumvent legislation approved by parliaments to protect workers and the environment. This is what is wrong with this agreement. It does not aim to improve trade between two countries, but rather to protect investors and multinationals. It gives them the right to take to court governments that have decided to introduce environmental legislation or laws to protect workers. That is unacceptable.
The Bloc has always advocated promoting international trade agreements to facilitate trade between countries, but never to the detriment of workers' rights, environmental protection or human rights.
However, this is not what this government has done. It should have drawn on certain chapters in the Canada-U.S. free trade agreement, the FTA, such as chapter 16, which did two or three things while protecting investments.
First off, this chapter provided for the creation of a dispute resolution mechanism. We have seen the results. No case has gone to an arbitration tribunal. Chapter 16 of the FTA, which the government might have drawn on in the agreement between Canada and Colombia, is not included. However, this chapter of the FTA led to a 41% increase in Canadian investment in the United States. This shows that there is a way to protect investments while providing guarantees in international trade agreements.
The government, in Bill C-23 and the agreement between Canada and Colombia, decided instead to draw right from chapter 11 of NAFTA. It did so in order to take advantage of Colombia's unimaginable resources. The mining and energy resources are considerable and include gold, nickel and coal. Thirty-one per cent of our imports from Colombia come from natural and energy resources. So the government tried to extract resources from a country with a unstable social situation in order to enrich the multinationals. Nothing is more irresponsible in social terms at a time when corporate social responsibility is increasingly a topic of discussion.
This agreement is unacceptable. Unacceptable too is the government's use of chapter 11, which among other things provides that, when legislation cuts into investors' profits, the government of this country is at risk of being sued. So, environmental and worker protection are scaled down. The constant violation of human rights is condoned. In the case of Colombia, the government is supporting the argument that paramilitaries or organized groups can be in collusion with a government that exploits rural populations where natural resources are found.
As a political party, we cannot accept this. And it is one reason we oppose this agreement. We oppose this agreement, which socially destabilizes a people already socially destabilized.
In 2006, 47% of the population was under the poverty line and 12% of the population and 68% of that poverty were found in rural areas. Why is it so important to talk about poverty in rural areas? It is because that is where the natural resources are and where Canadian companies, particularly mining companies, will go. Poverty is endemic in rural areas. Organized groups expropriate land and drive out local people, who have tried many times to get guarantees when the mining code was amended. We are now telling Canadian companies to go there and that we will condone bad social behaviour. That increases poverty, violence, and inequalities when here, in this House, we should talk about responsible and fair trade. We must conclude that the government does not understand what fair trade means.
Human rights are fundamental. We must remember that in July of 2007, the Prime Minister visited Latin America. Just before he left, unions, the CLC and Amnesty International too, clearly asked him not to forget that an agreement was under negotiation between Canada and Colombia and that he should not sign it if that agreement lead to an erosion of human rights. The Prime Minister went there nonetheless. He ignored the demands of workers and groups that work in developing countries. He decided nonetheless to visit Latin America and later, in 2008, he decided to sign the agreement that in the end will penalize the most destitute peoples, who are also victims of violence.
As we know, in 2008, crimes were committed by paramilitary groups, the ones I was talking about, which were in collusion with the government in place, those that pushed, forced and threatened rural populations to leave their traditional homelands to make way for the development, exploration and extraction of natural resources. In 1988, the crimes committed against such populations by paramilitary groups rose to 41% from 14% the previous year. Earlier, the hon. member for Davenport said that the situation had changed in Colombia, that that was no longer the case, that there was no longer any violence, that everything was fine and the situation has improved. In one year, the crimes committed by paramilitary groups increased to 41%, from just 14% the previous year. How is that an improvement? More violence, more human rights violations. Worse still, the rights of workers are increasingly being affected.
Since 1991, over 2,000 union leaders have been killed. Some 90% of all union leaders in the world who are assassinated are killed in Colombia. The Liberal member for Davenport tells us that the situation has improved, that everything is fine and that we should take this agreement, and study it in committee and sub-committee. I think the numbers speak for themselves. We do not need to go to Colombia, as my colleague has said, to see that human rights are being violated. There is no need to study this agreement any further. We have seen the proof: these human rights violations, workers' rights violations and violations of environmental laws are taking place in Colombia.
These mining advantages are significant, since, as I said, the mining code has been reformed in recent years. What purpose did those reforms serve? Basically, the reforms were meant to create more favourable conditions for mining companies.
The legislation from 1991 was looked at and revised in order to improve conditions for Canadian companies so they could go to those countries in order to explore for and exploit nickel, coal and gold deposits, all at the expense of rural populations. Canadian taxpayers' money was used. The Colombian government received assistance through CIDA and the World Bank. It was given money to help change its environmental legislation in order to be more accommodating and more favourable for mining companies.
How? First of all, the legislation was revised, making it possible to grant a mining company a single permit to allow for both exploration for and exploitation of a mineral deposit. Second, mining companies were giving a timeline of 50 years and that timeline is even renewable. How was that done? I urge the members to read a very interesting case study completed by the Halifax Initiative. It states:
Through its Energy, Mining and Environmental Project, the Canadian International Development Agency (CIDA) provided technical and financial support to redraft Colombian mining legislation. The revised 2001 Mining Code..., which was adopted without consulting with potentially-affected indigenous communities, created investment conditions that are extremely favourable to foreign companies. The Code weakened a number of existing environmental and social safeguards and created significant financial incentives including dramatically reduced mining royalty and tax rates.
Indigenous groups in Colombia argue that the lack of consultation on this new legislation contravened International Labour Organization Convention 169, which was ratified by Colombia and formally adopted into national legislation in 1991. They argue that the Code places limitations on the concept of indigenous territory that violate the Colombian Constitution. Moreover, the legislation eliminates prior requirements that local communities receive economic benefits deriving from mining activity.
What does this mean? It means that Canada started redrafting legislation and, with public money through CIDA, funded revisions to legislation and mining codes before signing the Canada-Colombia agreement.
Now, after amending the legislation, they have created fiscal and regulatory benefits for the mining companies in place by making sure that, I repeat, “ the legislation eliminates prior requirements that local communities receive economic benefits deriving from mining activity”.
Local communities and indigenous peoples are having their land expropriated and are being told that they cannot receive royalties for mining activity. The government changed the codes and regulations using public money and, to top it all off, signed a Canada-Colombia agreement to protect investors and even enable them to go to court and challenge regulatory amendments that would protect the environment, human rights and workers.
The Canadian government quite simply conspired with the mining companies to create an iron-clad system at the expense of the local people.