Mr. Speaker, I am speaking in the House of Commons today to denounce Bill C-2, the implementation of the Canada-Colombia free trade agreement. There are many reasons why I disagree with this bill as it has been introduced by the Conservative government.
My colleague from Berthier—Maskinongé made some good points about human rights and spoke about the ineffectiveness of parallel agreements. In my speech I will touch on these issues as well.
For Quebeckers and the citizens of Vaudreuil-Soulanges, certain arguments have come to the forefront of this debate: environmental protection, respect for workers' rights and respect for the most fundamental human rights of the Colombian people.
I would like to explain why I am worried that Bill C-2 will pass. The Canadian government's main motivation is not trade. It is looking to make life easier for the Canadian investors, particularly in mining, who will invest in Colombia. The desire to protect Canadian investments abroad is legitimate. However, it seems obvious to me that this must not be done at the expense of the fundamental rights of Colombians.
I am worried that this agreement would be detrimental to the development of the people of Colombia. We must understand that increased trade should not be the government's only motivation. An agreement such as this must also contain provisions that allow us to establish a position of strength and, through negotiations, to work toward both implementing social measures that would benefit Colombians and establishing rules that respect the environment and laws that improve the living conditions of workers.
Judging by all the investment protection agreements Canada has signed over the years, the one that would bind Canada and Colombia seems ill conceived. All these agreements contain clauses that enable foreign investors to sue the local government if it takes measures that reduce the return on their investment.
To be more specific, we feel that these provisions could be harmful for a country where labour laws, environmental laws and respect for the people are uncertain at best. While attempting to protect our investments, the Canadian government is putting itself in a situation where it could increase the risk of delaying social and environmental progress in a country in great need of such progress.
I would like to point out that my colleague from Longueuil—Pierre-Boucher referred to some of the organizations that have reported on the situation in Colombia. I thank him for doing that. Colombia's human rights record is one of the worst in the world and certainly in Latin America.
The government of Colombia has the right to adopt, and should adopt, legislation to protect its environment and improve the quality of life of its people. We must determine whether it has the means to implement such measures and the means to fulfill its ambitions.
Yes, this regulation could cause companies that have invested in that country to lose some profits. We need to have some protection against nationalization without compensation, I do admit, but we also must include some provisions that will allow Canada to put pressure on the Colombian authorities.
The Bloc Québécois cannot support the implementation of the Canada-Colombia free trade agreement, as it stands.
Under no circumstances should the Canadian government swap its ability to pressure the Colombian government to respect human rights and protect the environment for guaranteed profits from investments by Canadian companies abroad.
I would point out that ratification of the U.S.-Colombia free trade agreement is also being delayed, particularly because they are trying to clear up concerns over human rights abuses. It is a matter of justice.
I consulted a number of people in my riding of Vaudreuil-Soulanges. I cannot support the bill in its current form until Colombia brings in stricter legislation to protect minimum labour standards and the union movement, as well as stricter legislation to protect the environment.
The advantage of establishing a trade agreement with a country lies in the ability to develop a partnership with it. When economic barriers are reduced, trade between the two countries can increase. That is what one would hope to achieve with an agreement between Canada and Colombia. The likelihood of that happening in the near future is pretty low, though, considering the means being used.
When we look at the figures for imports and exports between Canada and Colombia, we can see that, not surprisingly, the vast majority of Canadian investments are in the excavating industry, specifically in mining. In 2007, imports in that sector accounted for nearly 31% of all imports from Colombia. In dollar figures, this represents almost $138 million. Canada buys only primary commodities from Colombia. We import $155 million worth of coffee, $72 million worth of bananas and $62 million worth of cut flowers. Adding agricultural and agri-food products brings the total to $387 million. Foreign direct investment in Canada is approximately $1 million, while Canadian investment in Colombia is approximately $1 billion.
Here are the aggregate trade data. In 2008, Canadian imports were rising and totalled $644 million, as were Canadian exports, which totalled $704 million. The pace of growth is quite varied, just as we predicted during the debate in the last session. In Quebec, imports amounted to $88 million. That is a 0.5% decrease from 2007. Quebec imports into Colombia represented about 14% of Canada's total imports. Exports amounted to $120 million in 2008 and accounted for about 17% of Canadian exports to Colombia. Quebec exports increased by a little less than 2% between 2007 and 2008.
Canada has other trading partners in Latin America and the Caribbean that rank higher than Colombia. In recent years, trade between Canada and the other Latin American countries has increased considerably, which has meant a smaller share of trade with Colombia than with other countries in the region.
Foreign direct investment (FDI) in Colombia is growing exponentially. To create a predictable environment and ensure that foreign investors will not be dispossessed of their property or have it nationalized without compensation, countries conclude treaties protecting investment. That is standard procedure and the Bloc Québécois is in favour of this kind of treaty.
The Free Trade Agreement between Canada and the United States had a chapter on protecting investment—chapter 16—and was the first agreement in the world to include a dispute settlement mechanism which both countries could use. The FTA worked very well. No cases of discriminatory measures against foreign investors were reported and none were taken to the arbitration panel. During the five years the FTA was in effect, the value of Canadian investments in the United States increased by 41%.
However, things went downhill with chapter 11 of NAFTA. By virtue of chapter 11 on investment, foreign investors can go directly to international courts, bypassing the filter of the public good that governments would apply. The concept of expropriation is so broad that any legislation that might have the effect of reducing an investor’s profits can be interpreted as expropriation and give rise to a lawsuit. In addition, the amount of the suit is not limited to the amount of the investment and includes all potential future profits. It is completely abusive.
This chapter has been decried by everyone. As soon as legislation, for example to protect the environment, is passed and reduces a foreign investor’s profits, the government is exposed to astronomical lawsuits. Over the years, Ottawa signed several bilateral agreements that basically copied chapter 11 of NAFTA. There was so much criticism, however, that the Liberals stopped signing these kinds of agreements. It is very hard to understand their about-face in this regard, and I hope they will review their position and vote against the present agreement.
Under the Conservatives, Ottawa returned to its old ways and negotiated many such agreements. In the case of Colombia, the Conservative government has ceded to multinationals the task of determining the common good.
The Bloc Québécois opposes the bill to implement the free trade agreement with Colombia because it contains clauses copied wholesale from chapter 11 of NAFTA. The Bloc wants the government to return to the previous approach used in treaties, which did not amount to a charter for the multinationals at the expense of the common good.
The displacement of communities is a serious problem in Colombia. There are several reasons for this human disaster, including internal conflicts within the government, paramilitary groups and guerrillas.
The arrival of extractive industries is also a major reason for forced migration.