Debates of Dec. 12th, 2011

Canada-Panama Economic Growth and Prosperity Act

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, it is a pleasure to rise today to debate Bill C-24. I will build off of the last question to start with and then return to some comments later.

It is important to note that New Democrats are in favour of trade. There is no doubt about it. None of us are against the movement of goods and services, but what we prefer is some balance in our trade agreements. The constant theme of trade is that when we give something, we get something back. Under this administration and previous ones, Canada has slipped significantly. It has signed a series of bilateral agreements since NAFTA that have actually put us into a significant trade deficit, even with the United States. My community lost the Auto Pact in NAFTA, and subsequently and eventually our auto manufacturing has gone from number two in the world to number eight.

When we look at Bill C-24 and the repercussions it could create, there are significant aspects with the loss of trade. It does not automatically guarantee that we are going to be the winner in a trade deal. Often Canada's bilateral agreements have been with smaller nation states that have advantages through lax environmental, labour and regulatory systems that allow their products to come into our markets while it is difficult for our products to subsequently get into theirs.

There are also issues related to non-tariff barriers, which I will touch on briefly. One country that has not come forward is Korea. There are tariff barriers there, but there are also non-tariff barriers in the auto manufacturing sector. As a result, hundreds of thousands of vehicles flood into Canada every year, but we sell virtually no vehicles in Korea. That also happens even when we do not have trade agreements or there is no balance.

Another good example is Japan. I was told recently that the only Canadian vehicles sold in Japan were the ones sold to the Canadian embassy. It is a problem when hundreds of thousands of vehicles are pushed into our market and we do not have any reciprocity whatsoever.

The issue of Panama is interesting. It has been put on the white list. There is a blacklist, a grey list and a white list, and I will get into that a little later if I have time. The OECD categorized these lists, but there still is not an automatic assumption of all the characteristics of what a tax haven is. Second to that, there is still a process in place.

The NDP's former international trade critic, the member for Burnaby—New Westminster, was very serious in trying to create an agreement that could be worked out with the government to deal with serious tax haven issues with Panama, as well as labour issues and a number of different things. Unfortunately, the government has not agreed to include that as part of its process. It has not been willing to compromise to a certain degree to ensure that tax havens are going to be taken care of.

It is interesting because Panama has quite a significant history of money laundering and tax havens. It also has a history of flagging ships of convenience and basically throwing the seafarers out the window, so to speak, making them vulnerable for treatment that is not part of the conduct of an international agreement. Panama has used that as a way to supplement income and attract corporations for its net benefit at the expense of others.

Although Panama has been moved to this list, it does not mean that all the measures are being taken into account. It does not account for some of the internal taxation issues, or even the current issues that are taking place. Just because it is moved off a list does not necessarily merit having no checks and balances. New Democrats were proposing some checks and balances to the system. There is a big difference between that and just having a blind faith bilateral agreement and seeing what happens later. It just has not been working for Canada in this case, and has not been working in general.

New Democrats want more specifics built into the agreement with Panama, and we are willing to do that. This bill will go to committee, which needs to hear from some witnesses. I have some testimony that I will table here today, but there needs to be testimony from individuals to look at whether there is actual movement.

I know that the parliamentary secretary made a very important point about the Panama Canal opening up in 2014. It is very important. The Panama Canal is historic. My former legislative assistant, Mohummed Peer, actually did a documentary through PBS on the original Panama Canal. It is quite a significant achievement and a marvel in many respects.

The new Panama Canal will actually have 5% of the world trade going through it. I think that is part of the reason that there is a lot of pressure to move Panama onto the white list. I think that is one of the reasons there has been a lot of effort to move it along that way.

However, that does not mean that it has actually moved that way. We need to have some testimony or some checks and balances to ensure that it does.

The government claims it is tough on crime, but often it has been very lax when it comes to organized crime or tackling some of the difficult challenges with our trade partners that relate to crime and also relate to how things are affected on our streets. I would look at my riding of Windsor West, for example, where 40% of Canada's daily trade goes to the United States, basically, along two miles of the Detroit River. It crosses on four crossings: the hazardous materials truck ferry, the Ambassador Bridge, the CP Rail tunnel, and the Windsor-Detroit tunnel. We have two kilometres there.

Despite having 40% of that trade, recently the government has cut back on the customs facilities and branch there. Now decisions about stopping trucks and smugglers dealing in guns, drugs, and human trafficking are now made 400 kilometres away, in Niagara Falls. Despite having reports saying that there should have been a consolidation in Windsor, the government decided to move the headquarters and so forth to Niagara Falls. My point is that cuts have been made, ideological cuts, and that has actually opened up our exposure to these elements.

With regard to Bill C-24, my worry is that we do not have any of the important backstops that are necessary to look at the tax havens. I want to touch on the issue of the OECD here, because it is important that people understand that there is a blacklist that includes countries that do not live up to any expectations or standards. There are really no countries left on the blacklist that I am aware of. The grey list includes a number of countries that a do not follow some tax standards. Then there is the white list, to which Panama has been added. It has been moved to it recently, so that is a benefit.

However, at the same time, we still do not have the necessary backstops that the member for Burnaby—New Westminster proposed. One of his amendments, which was defeated by both the Liberals and the Conservatives, was a taxation agreement that would track legal income while the tax information exchange agreement would track all income, including that made through illegal means. Considering Panama's history and reputation on such matters, it would be clear that such an agreement is necessary before signing a trade deal.

The member for Burnaby—New Westminster was attempting to ensure that there would be more information and a deeper tax scrutiny on Panama.That would be important because of the hundreds of thousands of corporations that are actually in Panama.

Some testimony from Todd Tucker of the Public Citizen's Global Trade Watch was very important at committee. I want to read a little of what he had to say. He said:

I have two central points. First, Panama is one of the world's worst tax havens. It is home to an estimated 400,000 corporations, including offshore corporations and multinational subsidiaries. This is almost four times the number of corporations registered in Canada. So Panama is not just any developing country.

Later he said:

Let me elaborate on the first point. What makes Panama a particularly attractive location for tax dodgers and offshore corporations? Well, for decades, the Panamanian government has pursued an international tax haven strategy. It offers foreign banks and firms a special offshore licence to conduct business there. Not only are these businesses not taxed, but they're subject to little to no reporting requirements or regulations.

That is important, because when we want to get into a fair trade deal, we need to have access to the types of conditions and strategies that we are going to compete against. These tax havens give advantages on the trade arrangement that do not favour Canadian exporters, and that is why we have seen the trade surplus diminish under the current government and a trade deficit emerge on a continual basis. Our manufacturers, our labourers, abide by international and Canadian standards that make it uncompetitive for them when corporations are able to use those subsidies, being tax havens, to basically lower their costs in the way that they are able to compete, so the realtionship becomes naturally unfair and unfitting.

I understand the pressure on the government with regard to increasing its access to markets. We have seen a couple of other interesting issues emerge recently that are motivating the government, not only with Panama but also Jordan, to move toward some type of bilateral agreement. We recently saw our international trade committee go to Europe for the European trade agreement, CETA. That agreement is very important in many respects. It has a lot of conditions that are going to be very critical for our supply management and a series of different things.

The interesting thing that took place while our trade group was in Europe was that the Conservatives signed a perimeter agreement with the United States for more harmonization on regulations and on different services and products, including food and automotive products, which might actually limit our exporting capability into Europe, because the content requirements are going to further rise between Canada and U.S. regulations and they will then also be negated for Europe.

I can understand the overall strategy of the government in trying to find alternatives out there, but again, it cannot be done in the absence of labour laws and other types of laws that are important.

On Panama, we will offer some recommendations and amendments to try to move forward. However, we are disappointed with the government's lack of ability to compromise and add those elements.

I want to touch a bit on labour rights. Panama has a history of issues with labour rights, and we do not have the type of scrutiny necessary to evaluate this. The member for Burnaby--New Westminster was asking for a commission to be set up to look at labour rights and provide some type of mentorship, in a sense, so that there would be oversight of this trade agreement and labour rights.

In some of the countries we are trading with, labour rights are lower. These issues emerge even in the context of larger trading partners. For example, there are child labour issues with India. These can present serious problems for us to compete against.

Panama, as we know, has ships under flags of convenience. That is important because it allows Panama to lower its labour standards, putting a whole bunch of people at risk, while limiting our capability to compete.

We saw the very high-profile case of Paul Martin's Canada Steamship Lines using flags of convenience. There was quite a controversy in this country. It was really shocking that a prime minister's company would take advantage of this loophole for labour rights to be able to advance his own pocketbook from Canada Steamship Lines. Flags of convenience are another situation that is not addressed in this agreement.

Therefore, we are going to oppose the bill at this particular time. We feel that there should have been some greater compromise with this.

Also, the member for Burnaby--Westminister proposed a yearly review of this deal to examine whether or not Panama has actually advanced on some of the tax haven issues. We would be open to those things as long as there was going to be some greater scrutiny and follow-up. That is the problem with just accepting the bill the way it is right now.

As I conclude, I want to say for the record that New Democrats are supportive of a trade agreement. There is no doubt about that. However, we want to see progressive trade as the difference, and there has to be some balance with regard to our operations and our trade agreements. Right now we are continuing to gut the Canadian economy with some of our trade agreements. How they are working out has led to Canada having the lowest number of manufacturing jobs since we have been tracking them in the 1970s. This is a real problem, because we are losing the value-added work that is necessary for this country to compete in the global economy. What we are witnessing is that when we open up trade, sectors of the economy have actually lost some of their strength.

We can look at the tool and die and mould-making industry, for example. There has always been the argument that we have to go to high-end, value-added manufacturing to be okay, and that will be a way that we can actually evolve our economy. However, tool and die and mould-making in Canada are the best in the world, but we are struggling to maintain it because of tariff and non-tariff barriers and some of the things brought down in trade agreements that have opened us up to competition against lower standards for labour, lower environment rights and less scrutiny. These are real problems.

We have not addressed some of the serious issues. When we actually have some power and some capability, as in the case of Panama, we should have some conditions built into the agreement that would require analyzing and reviewing it to ensure that those things are measured and taken seriously. We would then be able to put pressure on Panama to comply.

The hon. parliamentary secretary said that if we did not do this, we would be punishing Panama and it would go back to being a greater tax haven. First of all, we still do not know the evidence. President Sarkozy was very clear in his remarks. In fact, he was asked to apologize for his remarks and refused. He is very serious about the effects of the tax haven situation in Panama. I do not know why we would not measure and analyze this. Why would we not build into our base model for trade with Panama the ability to influence, in order to end that type of practice? If we did that, we would have a greater effect on the drug trade, organized crime and corporate responsibility. A series of measures would allow Canadians to compete, while also helping to deal with these issues around the globe. We have an opportunity to do this.

We should not just let the OECD determine our relationship with another country. That is not right. We should be putting our own standards of greater scrutiny in place, because we know there are a lot of politics relating to the OECD. However, if we are serious, we have an opportunity for Canada to have a stronger relationship with Panama. We can actually then have some scrutiny over the conduct in Panama. Leaving it to the OECD is not enough. Its members have disagreements on what a tax haven is. At the same time, OECD members like President Sarkozy note that the tax haven situation has not gone away. I think the evidence is strong enough that it merits our making some amendments. We will look at that in committee.

We are disappointed that the government came back with the same bill. It has been around a number of times, the first being August 11, 2009. The bill has been punted back and forth and subjected to electoral changes, yet has not changed at all. That is a real problem for us. We would have thought that at some point the government would introduce some of the measures it heard concerns about, so that it could move the bill through the House more quickly. There is no doubt that if there was that intent, we could move this legislation through the system a lot more quickly.

The member for Burnaby—New Westminster was very clear about our concerns with respect to the bill. We would take this approach: we would go back to committee and examine it and hopefully have an opportunity to convince the government to make these changes. If the government were willing to make these changes, then we would work with it to move the legislation through as long as it would ensure that the tax haven, human rights and labour issues would be addressed and that there would be an ability for us to follow through. If we just act in blind faith, we know the results. We know the government's record.

Canada has diminished its capability to trade, especially from the value-added aspect. We are about more than just oil, gas and natural resources in this country. This country was built on value-added work, especially after the Second World War, when there was a real intent to make sure there would be opportunities. Just opening up a market and reducing tariffs and trade does not guarantee that we actually improve our quality of life.

There is no doubt that we want greater access to these markets in Panama, Jordan and the EU. Some policies will be changed; people who have already invested in businesses and parts of the economy will be affected. We need to identify those areas and ensure that Canadians can compete in a fair way. There may be damage to certain sectors of the economy. I know that the government is looking at putting supply management on the chopping block in a number of different agreements. If we implement those types of measures, there has to be a business case and a plan. Therefore, we should be proposing a series of amendments at committee to ensure that these issues can be taken care of.

I appreciate the opportunity to debate this bill. I think it is important for Canadians to understand where our economy is going. Our trade deficit has gone so dramatically high that it is a serious threat to our national economy and to our quality of life. It really shows the mismanagement of the government by just blindly thinking it can sign small bilateral agreements to solve the Canadian economy. We have to have a value-added economy. This agreement is a small part, but it actually has a big part to play in the tax haven issues.

The reality that we all understand is that Panama, as the canal opens up, will have a lot of power. The question is, what will we do right now to ensure there is some fairness and reciprocity regarding the abuse of tax havens?

[Gerald Keddy, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, those were interesting closing comments on reciprocity from the member opposite. Trade agreements truly are about reciprocity. They are about rules-based trading between equal partners. If I can summarize, the hon. member does not support free trade agreements with Panama, Colombia, Peru, Honduras or Jordan, because we should not be trading with those countries. However, if we look at more developed nations, the members opposite do not support free trade agreements with Iceland, Norway, Switzerland, Liechtenstein or the 28 members of the European Union. I do not know who they support as free trade partners.

I have a problem with what the hon. member said about companies trading with the European Union. Although he got off topic about Canadian content, it is very clear. I spoke to manufacturers, agricultural producers and people in the fishery about the EU agreement; not one of them was worried about Canadian content. It is good enough for the OECD countries, but it is not good enough for the NDP—

[The Acting Speaker, Barry Devolin]

Order, please. The hon. member for Windsor West.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the reason I delved into the European trade agreement is that, at the time, our committee in Brussels and Paris was actively pursuing policies here in Canada and North America that would erode our capability to take advantage of that agreement if it went ahead. That is the reality. Some of the standards that we would adopt under the Canada–U.S. perimeter security agreement would eliminate products and services that we can now bring into Europe because of content provisions and laws in that agreement. This is the challenge we are faced with, as these two things are happening at once.

I want to return to the OECD question from the parliamentary secretary. I do not think it is right for us, when we know the significant tax haven, drug running and money laundering situation in the history of Panama, to turn a blind eye and say that the OECD has let us out of this one. We know the political pressure, because the OECD countries want to ship through Panama. Panama has a big stick, as the canal is opening up. At the same time, the OECD standards should not be a whitewash for us. We should use this as an opportunity to at least do some follow-up on the money laundering situation, the crime and organized efforts that have been identified in Panama.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, countries like India are quickly becoming strong world economic powerhouses. There are other countries where we have adopted aggressive immigration policies, where we have seen growth of countries and communities, like the Filipino community. Could the member indicate what the NDP's policy is on developing freer trade with countries like India and the Philippines?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, when we look at some of these bilateral agreements, we should be taking into account environmental, labour and health issues. I will use India as an example. We do want to trade more with an emerging economy like India, but we have to watch out, because we ship asbestos to India. We have pictures, documents and other information showing children working with Canadian asbestos with no protection. We know India has child labour issues. We believe that some of these considerations should be written into the agreements, to advance and benchmark them, so there is actually progress.

We are never going to compete if child labour is going to be used in manufacturing, assembling and exporting of the same product. That is just never going to happen. First, it is not ethical. Second, the conditions, wages and treatment of the workers give them such a competitive advantage. This is why they do it. They treat people inhumanely in order to lower the cost of the product. That is just wrong. We believe those things should be addressed, benchmarked and worked on.

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I want to direct a question to my colleague, the critic for international trade.

The parliamentary secretary went to some length talking about all of the trade deals that the NDP does not support. Of course, the issue here is that these are trade deals that are developed by the government. That is the concern. Not all trade deals are of concern, and the critic has been clear on that.

One of the problems, and I would ask him to comment on this, is the fact that the government never does an adequate assessment of what the wins and losses are going to be, and the expected impact in terms of the jobs in Canada as a result of a particular deal. Would the member comment on that aspect?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, the member for Dartmouth—Cole Harbour most ably handled this file prior to his leadership campaign, which required him to take another route. He took a very balanced approach to the trade file.

I think it is important to recognize that we want to see some balance with regard to these trade agreements. He is rightly talking about the examination of the winners and losers in trade agreements. When businesses emerge out of our Canadian economy, and then all of a sudden the government changes where they can operate, how they can operate, who is going to be the competition and how, then there needs to be an examination of these changes. This will help improve the environment, or at least provide an opportunity to adjust to the new environment.

The government is changing the whole field for these companies, whether it be the auto sector or the supply management for dairy and agricultural sectors. A range of problems can emerge.

We are asking for the examination and identification of vulnerabilities. We are also asking for a business plan so that those organizations know what they are getting into, know what the new world environment is going to be so that they can succeed or at least have some time to adjust.

A good example was our chance to buttress the time for trade on textiles with China. I think it bypassed us, while even our own North American competitors took it up and protected their industries. The United States took advantage of it. We did not. As a result, it killed our textile industry, quite significantly and a lot more quickly than necessary.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, a particular concern of the Green Party in relation to the proposed trade agreement with Panama is the investor-state provisions, which essentially parallel the investor-state provisions for NAFTA. I would have hoped that, as we go forward with trade agreements, we would learn from our mistakes. Chapter 11 was clearly a mistake and it disadvantaged Canadian democratic institutions. It caused us to repeal legislation that protected us from toxic gasoline additives, and put us in jeopardy in such matters as the Abitibi-Bowater contract with Newfoundland and Labrador.

Does the member have any comments on the mistakes made under chapter 11 of NAFTA and why we might want to fix them before going into this agreement with Panama?

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, this is an important question because chapter 11 has made corporate power over public policy power a very significant issue.

It can involve everything: milk, chemicals on property, water quality and a whole series of issues that we should not have to give up.

One of the interesting things about NAFTA is that Canada is the only country in the world that gave up its natural resources control. We gave that up with NAFTA. It is incredible. Not even Mexico gave that up. Mexico kept that protection element on public policy.

We are the only country in the world that has given up that crucial element. That is why we have to go on bended knee to the United States all the time. We have given up our number one tactical advantage to be able to trade with the rest of the world.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I am pleased to speak to Bill C-24, An Act to implement the Free Trade Agreement between Canada and the Republic of Panama, the Agreement on the Environment between Canada and the Republic of Panama and the Agreement on Labour Cooperation between Canada and the Republic of Panama.

I mentioned the full title because I do believe that very important parts of this agreement, and ones we have been pushing for a long time, are the side agreements on labour co-operation and the environment. Whether they are strong enough at the end of the day, that is certainly something at which the committee will have to have a more in-depth look.

For years, various trade agreements have left out the important points of labour and the environment. It is unconscionable that in a trade agreement we would ask our businesses to compete on so-called fair free trade with other countries, where there are abuses of labour, low paid labour, and regulations on the environment, others do not. It is important to use these trade agreements to bring up labour and environmental standards around the world.

The trade agreement with Panama, though, is yet another example of the government pursuing new arrangements at the expense of established agreements. The most recent indication that the government is better at talking about the significance of trade while ignoring the practical matter of securing our trade with countries we have been trading with for a long time is demonstrated by the most recent trade statistics.

This past Friday, Stats Canada indicated that our merchandise exports declined by 3% and imports increased by 1.9%. Our trade balance, again, slipped into deficit.

While we are getting all kinds of talk from the government and the member for London West earlier in his remarks when asking a question of the parliamentary secretary talked about how aggressive the government is in securing trade agreements. Yes, it is aggressive. There is no question about that. However, it is aggressive in flitting all around the world trying to establish agreements with any number of countries, not big players in terms of actual trade, but while it is doing that, it is ignoring the countries with which we already have established trading relationships, especially the United States.

The government's mismanagement of Canada's trading relationships has resulted in trade deficits for the first time in 30 years, and that is worrisome.

Yes, while we support this particular trade agreement, we believe the government is failing over all in terms of a trade agenda around the world, basically by ignoring the key market that we trade with, which is the United States. In that market, in terms of the value of trade on a daily basis, more than $1.4 billion is traded between Canada and the United States. According to the international trade publication of Canada's State of Trade 2011, in 2010 the United States market accounted for 74.9% of our merchandise exports, and by 2040, according to the trade department itself, the U.S. share of Canada's exports will be 75.5%.

That regardless of the diversification of trade, even this government acknowledges, in its own documentation, that the United States is and will remain the dominant trading party of this country.

I express that because of all the propaganda and rhetoric we are getting from the government. It talks about a new trade deal here a new trade deal there. It is negotiating Panama today, but it is ignoring our established markets, and that point has to be made.

So yes, while the Conservatives sign the agreements, and they can add up the numbers, the fact of the matter is that they are failing Canadians on the trade agenda, especially with the United States of America.

In terms of merchandise trade, in 2010 Canada exported $339.4 billion internationally. The vast majority of our merchandise trade was with 10 countries, which, in descending order, were: the United States, accounting for 74.9%; the United Kingdom, 4.1%; China, 3.3%; and then Japan, Mexico, Germany, Korea, Netherlands and Brazil.

It is sad to say that we are now starting to lose ground in the Korean market, which is one of those top 10. The United States has just signed a free trade agreement with Korea and the tariffs to the United States will come down.

Korea is a huge market for Canadian pork and beef. However, the discussions between Canada and South Korea just seemed to have dried up. I do not know whether it is a dispute or whether the Minister of International Trade is trading off Canadian pork producers because the Minister of Finance is so concerned about the auto industry that is in his backyard.

The government has to come together and balance, in an auto-pact kind of way, in order to protect the Canadian car industry, which the Minister of Finance clearly wants to do as it is in his own backyard. However, the Minister of International Trade has to stand up to the Minister of Finance and say that Canadian pork and beef exports to Korea, where we trade over $1 billion in that market now, are important too.

Every day from here on, with the United States tariffs coming down, we are going to start to lose our Korean market share. It will go up for the United States and down for Canada. It is time that the Minister of International Trade stood up for Canadian pork producers in that particular market.

This is not Panama, but is an important market and we have to pull the whole trade agenda into context. Panama is important, but it is extremely important that we not lose markets wherein we have already established a market share.

Canada is a trade dependent nation with 80% of our economy depending on access to foreign markets for Canadian exports. The Liberal Party supports the principle of free trade. We support initiatives that improve market access for Canadian business.

To look back at how we got into some of these established markets, we see a failing with the current government. Prime Minister Chrétien led trade missions, sometimes with premiers and businesses, to China and other countries around the world to establish and expand the trading relationship. That is not happening with the present Prime Minister. The trade minister seems to be flying around the world, but as I said, we are losing established markets. We cannot continue to allow that to happen.

The international trade committee studied Bill C-46 in the previous Parliament and consulted with stakeholders to ensure that the agreement was generally good for Canada. The committee travelled to Panama and I believe to Jordan as well. I congratulate the committee on its work.

However, I agree with the parliamentary secretary that we do not need to go through that broad hearing process again. It is on the record and we can look at it. I think there are other issues that we need to look at as a committee in order to do our work, but we do not need to repeat what was already done. I would hope that we can give this piece of legislation relatively quick passage in the House.

Panama has a relatively small economy. In 2009 we exported $90 million in goods to the country. It is, however, a stable country which has made significant progress in recent years in terms of development and democracy, which Canada is well placed to encourage.

Some of the exports that have great potential in Panama, such as fish, shellfish, french fry potatoes and agriculture products, do come from my region of the country, so the agreement should be good for some businesses and farmers in my own particular region.

I would like to put this into perspective. While this is a very worthwhile venture, the Conservative government has been lagging behind our competitors in important emerging markets like China and India, and this has been mentioned by previous speakers, and has only recently attempted to engage in those markets. Canada should be focusing its trade agenda on larger growing markets where there are more opportunities for Canadian businesses and Canadian employers.

The Conservative government has been failing, and I underline that, to protect Canadian interests vis-à-vis our largest trading partner, the United States. The United States is engaging in increasing protectionism, which has already hurt Canadian businesses, yet the Conservative government seems to be doing virtually nothing.

Time and again we have asked the Minister of International Trade about the buy American issue, and he has surprised and disappointed us. We asked him about the additional fees on products going by sea and air into the United States, and he surprised and disappointed us.

Against the rule of law and undermining democracy, the Canadian government is trying to do away with the Canadian Wheat Board, and the bill may pass through the Senate tonight against the ruling of the Federal Court and against the rule of law.

To the disadvantage of producers in this country, the government is giving to the Americans, undermining democracy in the process. The Americans have challenged Canada 14 times with respect to that particular agency. Canada won every time and now the government is going to give it away. One has to wonder who the minister is really working for. Is he working for American or Canadian producers?

It is one thing to kill the Canadian Wheat Board, but are the Americans going to reduce their subsidies? No, they will not. They never negotiated anything like that. It is a win for the Americans, and that is the problem that we are seeing with the Conservative government.

At the WTO we won the issue with respect to COOL, country of origin labelling. Is the government demanding that the Americans pay compensation to our producers? No. Our industry lost over $5 billion as a result of that illegal, improper action by the United States, and the minister just sits on his hands. It just gives them something else in return. That is the key point in terms of the trade perspective.

Panama is important. Bill C-24 is a reasonably decent bill, but the government has been avoiding the bigger and broader trade issue. At the end of the day, even with a new trade agreement, Canadian exporters and Canadian businesses seem to be consistently losing ground, and they are feeling it in their pocketbooks.

We support Bill C-24, but our focus in terms of trade is on the larger issues and larger trading partners, both existing and potential, that the government is neglecting to the detriment of the Canadian economy and Canadian jobs.

The agreement with Panama is helpful and in the opinion of the Liberal Party the legislation should move to committee for further examination. As I said a moment ago, we do not need to take months to examine it. We should be able to give the bill reasonably quick passage if we examine it critically.

I have a couple of points on Panama. In spite of the global economic downturn, Panama's GDP grew at 10.7% in 2008, one of the highest in the Americas. In 2010, Panama's GDP growth stood at 7.5%. Panama is Canada's largest export market in Central America. The bilateral trading relationship has grown 61% since 2009, reaching $213 million in bilateral trade in 2010.

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, information and communication technology services. Merchandise imports from Panama include precious stones and metals, mainly gold; fruits; nuts; fish; and seafood products.

The existing Panama Canal, vital, as we know, for the international trading system, is being expanded, with completion slated for 2014. The $5.3 billion expansion is expected to generate opportunities for Canadian companies in construction, environmental engineering and consulting services, capital projects and more. That is an opportunity for Canadian companies to work on the ground and to gain economy back home in terms of increasing the size of Panama Canal so it can handle super Panamax vessels.

Elements covered by the FTA include market access for goods, cross-border trade and services, telecommunications, investment, financial services and government procurement. Panama maintains an average most-favoured nation, applied tariffs on agriculture products of 13.4%, reaching as high as 260% on some products. The FTA would eliminate these immediately, and that is a good thing, in the case of 90% of the products and gradually on the rest over the next 5 to 15 years. This would likely enhance the competitive position of Canadian agriculture products, such as frozen potato products; pulses; beans and lentils; pork, which was previously taxed at 47%; malt; processed foods; and beef. As I said earlier, several of those products are important to the Atlantic region.

On non-agriculture goods, Panama maintains an average MFN applied tariff of 6.2%, reaching as high as 81% on certain key Canadian exports. The FTA would completely eliminate these tariffs, which could help Canadian exporters of fish and seafood, construction materials and equipment, industrial and electronic machinery, paper products, vehicles and parts. Canada would immediately eliminate over 99% of our tariffs on current imports from Panama.

The free trade agreement also addresses non-tariff barriers by adopting measures to ensure non-discriminatory treatment of imported goods, promoting good regulatory practices, transparency and use of international standards. Ratifying this free trade agreement appears to have little economic risk for Canadian industries. The concerns that have yet to be resolved and relate to the issue of Panama is Panama as a tax haven and the issue of money laundering. I do not want to get into the technicalities in those particular areas. That is an issue that we need to talk about at committee. I asked the parliamentary secretary a question earlier. We see that as an important issue that really does need to be addressed.

The bottom line is that we are supportive of this particular trade agreement but we are critical of the government in terms of its overall trade agenda where it continues to lose out on already established markets as it vies to find new ones.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I appreciated listening to the member for Malpeque talk today. I can remember being down in Washington with him a couple of years ago when we were fighting together for our farmers, fighting against the country of origin labelling on which the WTO backed us. I know the member has great passion and great understanding for the agriculture industry.

I have a question for the member for Malpeque. It seems like the Liberal Party will stand behind this bill, and I commend them for that, but could he explain to the government why the NDP is opposed?

If we listen to the member for Dartmouth—Cole Harbour, he said, “The problem with this bill is it is about the Conservative Party”. There is no issue with who develops the bill. If the bill is good for Canada, it is good for Canada and it should not matter who develops it.

Could the member explain to us and maybe give us some insight on why the NDP is so against any type of trade deal?

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, it would not be up to me to speak for members of the NDP. They are quite capable of speaking for themselves.

I did listen to the trade critic's remarks earlier when he talked about some of the concerns with this bill. I do recognize and agree with him on some of those concerns.

However, from the Liberal Party's point of view, the overall initiative here is a good one. I outlined in my remarks that we think it is very important that the FTA does have the side agreements on labour and on the environment. It is a good enough bill that we believe it should be given relatively quick passage at committee, move ahead and get on with some of the other trade issues that are irritants to Canadians.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, although we might have some differences with the bill, the one thing we seem to have in common is with regard to the tax haven, even though Panama has been moved on the list to the white list.

Would the member be open to an amendment to this bill that would analyze the changes in Panama and then one year later having some consequences if it has not abided by those changes or it continues to be a tax haven and continues to be an area for money laundering, drug laundering and where corporations can use tax haven loopholes to their benefit against Canadian corporations and others?

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, the Liberal Party is open to any kind of discussions. We would look at those amendments very seriously.

The member is correct to mention that Panama is moving on the list through a grey area to a white area, and that is a good step forward. However, I do think it is our responsibility as members at committee to not just take the OECD or somebody else's word for it, but to look seriously at a couple of concerns. One of them is certainly money laundering of mainly drug money and two is the tax haven issue.

We will be aggressively pursuing witnesses who can talk about that issue and outline what is really happening within Panama on those two points. We are well open to looking at amendments that could clarify the matter and put the pressure on to see that some of these issues are indeed resolved.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, I wonder if the hon. member is surprised and disappointed by the number and frequency of occasions on which the Minister of International Trade has been surprised and disappointed?

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, one of the historical statements by the Minister of International Trade will be “surprised and disappointed”. I mentioned it in my remarks. He was surprised and disappointed when the Americans came in with buy American even though President Obama was telescoping that they were going that way, that they were looking at implementing some policy of buy American, which would be against everything, our protectionist stance since June 28. Come October sometime and the minister was surprised and disappointed that it happened. Where was the proactive activity on the part of the government?

The second area where he was surprised and disappointed was on the $5.50 fee from sea and air going into the United States. That was in legislation in the House for four weeks and yet the minister was surprised and disappointed.

The point being is that the minister needs to be proactive in relations with the United States, our most important trading partner. It does no good to flit and fly all around the world when we are losing ground in our most important economic trading relationship. The minister, instead of being surprised and disappointed, needs to finally stand up for Canadians in this trade arena.

[Ed Holder, Conservative, London West, ON]

Mr. Speaker, I had the opportunity to travel with the member for Malpeque this past week, as we travelled to Europe on some issues relating to international trade. The reason I mention this is that in his earlier statement the member said that this government was ignoring major countries around the world. I cannot think of a larger trading block, frankly, than the EU. The member would also know that we are on the verge of doing some great work with India as well. Those are two major markets around the world.

The member expresses surprise and disappointment. I think if he were to sincerely express surprise and disappointment it would be over the lack of free trade deals that in the 13 years he was part of the Liberal government the Liberals, frankly, did not put together. What he should be pleased about is the fact that we have had so many free trade deals established around the world. Frankly, that is a harbinger of great things to come.

I wonder if he would comment on those great opportunities.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, maybe the member for London West missed it during my remarks but the reason we are doing so well in the export arena to this day, including in China, is because of some of the trade trips Prime Minister Chrétien took premiers and business folks on with him. That is where we started expanding trade. Maybe he missed it.

As I also said in my remarks, this is the first time in 30 years that we have had a deficit in merchandise trade and the current government is there. Just talking about trade is not enough. We have trade agreements in place with the United States, being one. We have a good export market in South Korea, being another. However, because we are not in the South Korean market, because I think the Minister of International Trade has caved in to the Minister of Finance, we are now seeing ourselves in the position of losing a billion dollars worth of pork and beef exports to Korea. As the member for London West and I found out when we were in Europe, and good work by the committee there I will admit, we probably will not regain the pork market, which we have lost in Korea, in Europe.

My point is that, while it is important to establish new agreements, it is even more important to not lose ground in the agreements that we have already established with the United States, Korea and elsewhere. That is where the government is going wrong. That is why we have a merchandise trade deficit for the first time in 30 years.

I would ask the member for London West and certainly the Minister of International Trade to wake up and smell the roses. They must start standing up for Canadians in the trade agreements we already have. Yes, do the expansion, but hold our ground on the trade agreements that we already have and see that we are not taken of advantage of by protectionism in the United States south of the border.

[Lisa Raitt, Conservative, Minister of Labour]

Mr. Speaker, I will be sharing my time with my friend, the member for Kelowna—Lake Country.

It is my pleasure to rise in the House today to talk about the issue of labour in the context of the Canada free trade agreement.

It is my pleasure to rise in the House today to talk about the issue of labour, in the context of the Canada-Panama free trade agreement.

We live in an increasingly global community and it is integral that we work to broaden and deepen our trading relationships with countries around the world. Canada's pro-trade plan is creating economic opportunities and jobs for Canadians. As our focus remains on the economic recovery, trade agreements are opening up new markets and helping Canadian workers and businesses compete internationally. While improving trade opportunities for Canadian workers and businesses, we also recognize that ensuring strong labour principles, practices and standards is important. That is why Canada has negotiated a strong labour provision in parallel with this free trade agreement.

This labour agreement would ensure a level playing field for Canadian workers and businesses while creating good well-paying jobs for Canadian workers by making it clear that as we grow our economies, we will create jobs and economic growth in both our countries.

We know that the NDP does not want to support freer trade and we have a fundamentally different approach to engaging internationally than the NDP has. It prefers isolation, but we know that through engagement we can promote economic growth that would benefit workers in both countries. The NDP's record speaks for itself. It has opposed every single free trade agreement Canada has ever signed, including the North American free trade agreement and agreements with Chile, Costa Rica, Israel, Peru, Colombia, Panama, the European free trade association, Jordan and Honduras.

Through trade we are creating jobs and prosperity here in Canada. One in five Canadian jobs is generated by trade. We understand that through trade agreements such as this one, we create jobs and prosperity right here in our country. However, as part of the Canada–Panama agreement on labour co-operation, Canada and Panama have committed to ensuring that their labour laws as well respect and embody the International Labour Organization's 1998 Declaration on Fundamental Principles and Rights at Work. It is through this declaration that we demonstrate our shared commitment to improving labour standards and protecting workers' rights. It also demonstrates this government's firm belief that through trade we create economic growth and prosperity for workers in both countries.

I can confidently say that despite the NDP's protestations, the provisions found in the Canada–Panama labour co-operation agreement are thorough, comprehensive and robust. Both countries have committed to provide protections for occupational health and safety, including compensation in cases of injury or illness. Both countries have committed to establishing and maintaining minimum employment standards, including with respect to wages and hours of work. The parties have also agreed to provide migrant workers the same legal protections as those afforded to nationals. This prevents discriminatory working conditions and protects some of the most vulnerable workers. Overall, this agreement would help create and maintain productive and healthy labour environments that would benefit both countries.

As members can appreciate, these commitments are only as strong as the dispute resolution mechanisms and penalties that back them up. That is why this agreement also includes a strong dispute resolution mechanism that is transparent and easy to use. Both countries would be obligated to respect the agreements and could face financial penalties should they fail to respect internationally recognized labour rights or fail to enforce domestic labour laws. The Canada–Panama free trade agreement also includes a non-binding chapter on labour that reaffirms both countries' obligations and objectives as found in the parallel agreement on labour co-operation. As part of the Canada–Panama agreement on labour co-operation, the Canadian government has agreed to work with Panama to actually improve labour standards and help protect workers.

Through the international program for professional labour administration, Canada is currently funding projects in Panama to build institutional capacity, to foster social dialogue and to promote rights-based labour migration administration strategies. The Government of Canada also recently provided funding for a project to promote occupational safety and health.

By voting in support of Bill C-24, the Canada-Panama economic growth and prosperity act, our government will further strengthen the relationship that we are building with Panama. The bill seeks to implement the free trade agreement and the parallel labour co-operation and environment agreements with Panama.

This Conservative government will be voting to pass this legislation in order to support strong labour practices, strengthen Canada's economic position and build on our previous successes with our global partners.

I move:

That this question be now put.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, as it seems that the debate has just begun at second reading, I ask the hon. minister, what is the reason for any haste at this point to invoke closure on debate yet again? Frankly, I am quite shocked by this and I would like to hear some attempt at an explanation for why the House of Commons cannot continue to debate this important legislation.

Are the House of Commons and parliamentary practice now merely nuisances for the government of the day?

[Lisa Raitt, Conservative, Halton, ON]

Mr. Speaker, it has been very clear that we view trade as important to this country. In fact, we are the most trade-dependent nation in the G8. We have seen great results from trade. Time is of the essence. It is very important that we move on with the economic recovery and with our trade agenda.

I am very pleased to outline all of the benefits for Panama with respect to labour agreements, funding and helping capacity. Quite frankly, the sooner we get on with this, the better

[Robert Chisholm, NDP, Dartmouth—Cole Harbour, NS]

Mr. Speaker, I am again disappointed at the way the government is so quick to move closure on any debate that comes up in this Parliament. It is not happy enough to have a majority, it wants to bring the hammer down on any debate and make sure that nobody has the opportunity to raise important issues.

The Minister of Labour has a mandate to be responsible for labour and for rules and regulations that affect working people in the country. I would think that she too would be concerned and vigilant about similar regulations and laws as they relate to working people in other countries. If we are to be respectful and treat workers properly in this country, why would we not want to do the same in other countries?

I would like the minister to give me some assurance that she has been vigilant. I would ask her to tell us that in fact labour rights would be protected under the terms of the Panama agreement.

[Lisa Raitt, Conservative, Halton, ON]

Mr. Speaker, I can assure the member that we do take it very seriously.

The other free trade agreements that have labour co-operation agreements attached I think would be the best examples. For example, I was able to travel down to Colombia last year to speak not only with the government but with the United Nations representatives, who were doing incredible work there on social dialogue. I also spoke with members of the union to ascertain their point of view as to what help the Canadian government could give to improve capacity and occupational health and safety. I have done the same in terms of travelling to Brazil and speaking to counterparts there. There is always that tripartite relationship of speaking with the government, the workers and business to ascertain what Canada can do to bring a stellar labour law legislation system to other countries. They can learn from us and we can learn from them too.

[Scott Simms, Liberal, Bonavista—Gander—Grand Falls—Windsor, NL]

Mr. Speaker, as a point of information for myself, regarding Panama, where is it right now with this deal? Does Panama feel as compelled as we do to pass this agreement very quickly?