Mr. Speaker, as a member of the international trade committee, I am pleased to speak on behalf of Bill C-46, the Canada-Panama free trade agreement. As we will be studying the bill in committee, I think it is very important to listen to the debate and the concerns of members in the House. However, it is also important to get the bill to the committee so that we can hear from our constituents, from the communities that are concerned, and from different stakeholders. I think the appropriate way to deal with issues of concern in the House is to have the committee study, consult, meet with our stakeholders, and have a full discussion. That is why I am supportive of the bill, but there are also many things I believe very strongly we should be pursuing as we move forward with this particular agreement, which Canada entered on May 14, 2010.
As we are all aware, Canada is a trade dependent nation. Although 70% of our trade is with the U.S., there is a growing need for us to diversify our trade with our partners throughout the world. The Americas are a growing market. They are our neighbours, and it is an area we have to focus on. We have, over the last few years, been focusing on the Americas.
Mr. Speaker, 80% of our economy depends on access to foreign markets for Canada's exports. I support this initiative, because I think it will improve Canadian businesses' access to these different markets.
In 2009, we exported about $90 million in goods to Panama, and we imported about $40.7 million. Bilateral trade in total was about $132 million. It is small. Panama is a country of a little over 3.3 million people, and it has a relatively small GDP of about $38 billion. However, it is an important country in that region, and not just because of the strategic importance of the Panama Canal and the investment that has been made in the Panama Canal. It is also a hub for business in commerce. It is a stable country and is a partner with Canada.
We have to recognize the fact that Panama, given its long, turbulent history, has become, over the years, a very stable and progressive economy, and it is looking for partners throughout the world. Certainly other countries have made inroads into Panama. It is only fitting that Canada, as well, would want to be a partner in that economic growth.
I would say that the growth in Panama has been nothing but phenomenal. The GDP grew by about 10.7% in 2008. That was one of the highest in the Americas. The projected rate of increase for the GDP this year is about 5.6%. These are impressive numbers given what has happened globally during the incredible economic crisis facing the world. We see a country that has really withstood the recession and the economic crisis and has moved beyond and exceeded most developed countries. We are very pleased to see that a country like Panama, in which we have taken an interest, is doing extremely well. It bodes well for the future of Panama and for our trade agreement, which can grow and provide our businesses in Canada with access to Panama.
I just want to focus on some of the issues that will be of concern and that need to be raised, particularly in terms of the issues that will be affected by this particular trade. The primary Canadian merchandise exports to Panama include machinery, vehicles, electronic equipment, pharmaceutical equipment, pulses, and frozen potato products. Canadian service exports include financial services, engineering, and information and communication technology services. Merchandise imports from Panama include precious stones and metals, mainly gold; fruits and nuts; and fish and seafood products.
There are a variety of different products we would engage with. As I said, it is a relatively small economy, but it is one that is growing. We need to ensure that we are part of that growth and that Canadian businesses share in the profit from that growth.
The Panama Canal is at the moment going through a major investment. It is a passageway for thousands of vehicles each year and plays a tremendous role in international commerce and the world economy. It is a vital, strategic canal that is expanding. It is slated to be completed in 2014. That project alone is an $5.3 billion expansion.
It is expected to generate opportunities for Canadian companies in construction, environmental engineering, and consulting services for capital projects. We have a great opportunity to play a major role in the expansion of the canal. Canadian companies can have a stake and would profit from this particular expansion.
Some of the issues that will be covered by this free trade agreement with the Republic of Panama include market access to goods and cross-border trade in services, telecommunications, investment, financial services, and government procurement. These are some of the basic issues we will be dealing with.
The deal will have the added benefit of eliminating about 99% of tariffs on current imports from Panama. It will also address non-tariff barriers by adopting measures to ensure non-discriminatory treatment of imported goods and the promotion of good regulatory practices, transparency, and international standards.
As several members in the House have stated, there are also side agreements on both labour and the environment. These agreements would be signed with the Republic of Panama. They will cover issues such as the right to freedom of association, the right to collective bargaining, the abolition of child labour, the elimination of forced or compulsory labour, and the elimination of discrimination. These provisions in the side agreements that would be signed by the two countries would in many ways ensure that both Canada and Panama have a stake in the development of human rights and labour rights in that country. We would be a partner to make sure that they were in compliance with those international obligations. Canada would not just be signing a free trade agreement with Panama. As a country, we would also have a duty and an obligation to make sure that the particular provisions that specifically deal with labour and environmental issues are, in fact, enforced. This is not just a moral obligation; it is a legal obligation on the part of Canada to ensure that if this agreement is enacted, those provisions will be looked at.
Although I support where this is going, I think we need to move forward with more robust and comprehensive free trade agreements with some of our larger partners, and not just the European Union, with which we are presently negotiating. The European Union is a very important market, and there is probably very broad support in the House to move forward with that agreement.
There are also countries that play a major role internationally. Two I would like to speak about are Brazil and India. They are important partners for Canada, and we need to move forward with some type of free trade agreements. Brazil, as we know, is a dynamic and growing economy in our hemisphere. It has a very young population and a large and growing middle class. It will also be hosting both the Olympics and the World Cup.
There is an incredible boom of investment in that country. Over the next 10 years, it will be over $100 billion. We would like to be there to ensure our construction contractors, engineering companies and different sectors of the Canadian economy play a major role with the growth in that economy. Not only stadiums and new facilities are being built, but a fast-rail link and a new metro system is as well. There is incredible opportunity for us to show Canadian know-how in a very dynamic country like Brazil.
India is the largest democracy and Canada has a very large Indian diaspora. India is growing, not just in south Asia, but across the world. It has a major influence in buying companies, certainly in the area of high technology and engineering. It is playing a major role internationally and we are very proud to see the success of that country.
India is a partner of which Canada is very proud. Yesterday the minister mentioned that he had an opportunity to meet with his Indian counterpart last Friday in Parliament. I believe he had an opportunity to discuss the possibility of some type of free trade agreement in the future. I would encourage Canada to move in that direction.
I mention those two countries because they are very large and substantial countries. We need to move forward beyond agreements with important countries but small ones. We are talking small in comparison to Brazil and India. We have signed other deals with Chile and we are now looking at Jordan. These are important countries, but nothing to the size and scale of those two superpowers of both Brazil and India.
This is where we as parliamentarians have to make a decision. I do not see what good would come out of a delay of six months to be honest. The appropriate thing to do is to move this forward to committee so that I, as a member, and other members of the committee have an opportunity to hear from stakeholders. That is the reason why I would like to support the bill and move it forward. I encourage other members to do so.
The time is now. I do not think by delaying it six months, I do not think much can be achieved. The appropriate place to raise these issues is at the committee level. There is a lot here that I have already raised and enunciated from this agreement, which merits it going forward to committee.