House of Commons Hansard #67 of the 41st Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was infrastructure.

Topics

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4 p.m.

NDP

The Deputy Speaker NDP Denise Savoie

Order, please. I would like to give the hon. parliamentary secretary an opportunity to respond.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:05 p.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Madam Speaker, the member's question is relevant although it does not deal with this specific piece of legislation. The pork industry will face an increased competitive threat from the Americans after they sign the free trade agreement with Korea. We recognize that. We certainly work closely with the pork industry of Canada to get access to foreign markets and we will continue to do that.

That is exactly why we continue to look at bilateral trading arrangements, whether they are with the Jordanian marketplace, or whether with Honduras, Colombia, the European Union, or with the Europe free trade agreement which included the countries of Iceland, Norway, Liechtenstein and Switzerland, and the former agreement we signed and approved with Peru.

Every time we open up a new market, it takes some of that pressure off of our producers in those specific industries where they are facing greater pressure from countries which have moved ahead of us because we were not moving quickly enough to secure free trade agreements. Now we have to race to catch up to countries like the United States who have beaten us to the point with Korea.

We recognize the challenge. We will continue to work on behalf of the pork industry, and on behalf of Canadian workers and families to secure more free trade opportunities and particularly opportunities for the pork industry.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:05 p.m.

Conservative

Brian Jean Conservative Fort McMurray—Athabasca, AB

Madam Speaker, I would like to commend the parliamentary secretary for his hard work on the trade file. I know it is somewhat thankless, especially when there are NDP and Liberal critics across the way who are critical of the hard work he and the minister are doing.

I am curious though. We have seen a fantastic new agreement with the Americans in relation to cross-border trade, and control of our border and security which is a great step forward.

I hear from the parliamentary secretary, especially with regard to international trade agreements, that we have actually signed in five and a half years three times the number of agreements that the previous Liberal government did in 13 years. I would like to commend the parliamentary secretary, his staff and the minister for that because obviously free trade means good trade.

In my area in B.C. as well as Quebec and Ontario there are forestry products. I understand this is going to help forestry products and paper products quite a bit and create a lot of jobs in Canada. I would like to hear the parliamentary secretary talk about that and particularly where those jobs are going to be in Quebec, Atlantic Canada and British Columbia.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:05 p.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Madam Speaker, the member raised two issues and they both need to be touched on.

The first issue was the border vision plan that the Prime Minister and President Obama have just signed to reduce bottlenecks at the border, to reduce the red tape, and to increase the ability of people and trade to cross the border in both directions easily. That will improve our relationship with our American friends, and help trade and Canadian families.

The other issue was specifically on forestry. We have seen a terrific downturn in the forest industry in the last decade. It has been under pressure from all sides. To get it through that, we have been assisting it to find new markets.

The fact that we have signed trade agreements with nine countries since becoming government in 2006 is commendable, but our work does not stop there. We have more to do and we will continue to do that on behalf of the forestry sector and every other sector in the Canadian economy.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:05 p.m.

NDP

Wayne Marston NDP Hamilton East—Stoney Creek, ON

Madam Speaker, I understand the member's passion for what he does.

The member talked about the NDP's perspective being different on free trade agreements. The lens that we look through is different than the lens that member looks through. This legislation has labour protection, environment and foreign investment outside the main agreement, and that is wrong. That is one of the reasons why we have not supported particular trade agreements that have come before us. Human rights come first with our party, not last.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:05 p.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Madam Speaker, respectfully, human rights come first for every party, and I would include every party in this place.

It is interesting to note that the member would pick out labour protection and the fact that there is a separate labour agreement. Labour is separate from trade, so one would think it would be a separate agreement.

The thing that I find most amazing about the NDP's position on labour is that the International Labour Organization has approved this. It is in agreement with it. It supports it. It is good enough for that organization, but it is not good enough for the NDP.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:10 p.m.

NDP

The Deputy Speaker NDP Denise Savoie

It is my duty pursuant to Standing Order 38 to inform the House that the question to be raised tonight at the time of adjournment is as follows: the hon. member for York South—Weston, Air and Space Museum.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:10 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, I am pleased to rise on Bill C-23. I will get to this particular trade bill, but I want to address a couple of comments that have come out in recent discussions.

The member for Dartmouth—Cole Harbour was referenced with respect to his comments relating to buy America. As vice-chair of the Canada-U.S. Parliamentary Association, I have been to Washington many times and have met with many different congressional and state representatives, as well as senate representatives, heads of committees and so forth relating to buy America and Canada's position. Many of them have argued that Canada should have had a reciprocity clause with respect to buy America by having our own buy Canada act as part of a defence that would have negotiated the removal of buy America because we have now seen it grow even further. What the government does not understand is that there is buy America and buy American. There are two acts that actually have protectionism in them.

Most recently we have seen it happen again where, despite the minister going down to Washington, we actually have more problems because we will see more legislation. There is another piece of legislation that has been tabled in the House that actually calls for the buy America act to be involved in the transportation sector, which it was not before. Therefore, there are more barriers coming up and they come with a series of issues.

Cross border trade was noted as well and the prosperity deal that was signed last week by the Prime Minister and President Obama. What is interesting about that deal is that it concentrates mostly on petroleum and pushing our oil in Washington, and not looking after our manufacturing sector and other trade. Our trade and manufacturing jobs have gone down to the lowest level since we have been actually taking those numbers and making them public in the 1970s. We have the lowest amount of manufacturing jobs left. That is because the government has been obsessed with oil versus that other value-added trade.

What happened today is very important with respect to the announcement last week. We learned that the Minister of Transport failed to move on legislation to protect a new border crossing in my riding at Windsor-Detroit where 40% of our trade goes to the United States every single day. It goes along a two-mile corridor. We are trying to build a brand new border crossing, a new public bridge. It has been blocked along the way by a private American citizen who has literally bought up the Michigan legislature. He has spent over $1 million in donations and has blocked the actual construction of that bridge.

Therefore, when we are talking about trade with Jordan or with the United States, it is important to note who our number one customer is, that being the United States. The way that we have been signing deals and arrangements has actually been lowering us. We have put ourselves in a trade deficit. That is the reality. New Democrats are interested in trade. We are interested also in making sure it will be done in a fair and balanced way. There is nothing wrong with that.

There is no way a Canadian can compete here, which is what we are asking for, with sweatshops in Jordan, some of which are Canadian companies. I will give a specific example later on. These sweatshops take offshore labour, often from Sri Lanka and other developing countries, 75% of them women, house them and put them in deplorable conditions to produce clothing.

How is the textile industry in Montreal able to compete with that? Will we accept that? Should we as citizens accept to wear cheaper garments produced by people who have been put into abusive situations and who are being taken advantage of? That is well-documented.

It was interesting to hear the criticisms about us saying that the labour movement is in favour of this now and that we are offside. The United Steelworkers originally supported the 2000 agreement between the United States and Jordan with respect to a trade deal. It is one of the situations I will be looking at with respect to amendments to get that undone. The United Steelworkers went on a fact-finding mission to see what happened because it had labour and environmental agreements and a whole series of things that were included but were voluntary. It found very little change. There was very little substance to the differences it was experiencing in the past because there was no enforcement.

This week we saw how our environmental enforcements are often not working within our own country. Therefore, we can just imagine what the rights of people in a kingdom like Jordan, which is not a democracy, can subject them to.

There is a responsibility and, generally, an interest for us to find some common ground and move some of those serious issues to closure. Surely we do not want the abuse and mistreatment of women fleeing Sri Lanka to increase because Canada has signed a free trade deal with Jordan. I would hope that is not the case. We want some measures in this agreement to make sure we can eliminate those issues. Perhaps there is an opportunity.

Side issues to bilateral trade, such the environment and labour, are often very much weakened because there is no regulatory enforcement, but we can build that into the legislation, and New Democrats will be looking for that. It is a carrot and stick approach. There is an offer to Jordan to improve trade and improve access to markets, theirs and ours, but at the same time we will be seeking improved humane labour standards, improvements we all think we can agree on.

Would anybody want to diminish those things? That question has to be asked. If we were to fuel further problems, would that be something we would support and be proud of as a country? We see that we have turned a blind eye to this in many respects when we look at what has happened across the world more recently with Libya and other states. We often turn a blind eye to some of these things for corporate interests. At a certain point we need to talk about global trade and all that kind of stuff, where there is no room for rights, the environment or other things; however, we need those things to be in place to improve our lifestyles and improve our planet. There has to be some balance.

Jordan may not be able to reach our standards right away. As consumers, we will demand that manufactured goods meet certain standards. When we buy a sweatshirt, a product with a zipper, or clothing, we want those products to meet certain standards, but at the same time we allow people to work for 14 hours a day, not have time off and be housed in warehouses and unclean areas. We have to address this issue. If that is the difference in getting a sweater or sweatshirt a couple of dollars cheaper, it is wrong.

We have a moral responsibility to address this issue while we can. If we take the blind eye approach, we are actually victimizing them, because we are aware of the standards we have in Canada. We do not allow child labour in Canada, so we should not be ignoring those issues with Jordan and other states.

There are issues because of a side agreement, but the conclusion in the environmental assessment that was done under the Canada-Jordan Free Trade Agreement was this:

Even if dramatic increases in bilateral trade flows occurred as a result of the implementation of the Canada-Jordan FTA, the economic effects of this Agreement would be modest relative to Canada's overall economic activity given the relatively low levels of bilateral trade and the size of the Jordanian economy. As a consequence, related environmental impacts in Canada are not expected to be significant. Moreover, environmental impacts, if any, will be addressed and managed by the existing environmental management programs in sectors that stand to gain in the FTA such as forestry and agriculture.

What is going to happen is that there will be no new regulatory oversight or repercussions related to this deal. It is interesting because the Conservatives talk about these issues in these trade agreements as if they are going to expand increasing markets, but their own research is telling them it is going to be relatively modest. What makes it really ironic and rich is that although the Windsor-Detroit corridor has 40% of our daily trade, $1 billion, flowing through the border, we still have a problem with securing a new site; meanwhile, the government is talking about putting this deal as a priority. It has tabled legislation for Jordan, but when the Minister of Transport, Infrastructure and Communities was advised by his own department to table legislation to protect our number one trading partner and border crossing in Canada, he did not do it. The government's policies in this last session of Parliament have been to drive Canada down and apart, not build it up.

The government was advised specifically to take action because we are at high risk when it comes to the Windsor-Detroit crossing, since 40% of the trade crosses there, private American citizens own the bridge, and it is 80 years of age. Our manufacturing value-added system is at risk. We have watched a watershed of jobs leave from Ontario, Quebec and other places, including jobs in manufacturing across the country, and what has the government been focusing on? Panama and Jordan.

That is what the government has tabled as legislation. Our number one trading partner, our number issue, is the United States. The Prime Minister goes to the United States, signs a border agreement and talks about infrastructure. Meanwhile in Michigan, the new border crossing is languishing because the government has not passed a law. The government's own minister was advised in his briefing book to actually act on the Windsor-Detroit crossing to stop lawsuits and prevent it from being blocked. He never did it.

Instead we have this bill, and we have issues with it. It is important to note that when we have these issues, there has to be proper follow-up. We will see if that is going to happen.

I will give a good example. In 2011 Jordan signed the international convention on domestic work. It provides for some protection for workers on the international level. Jordan signed that agreement and adopted it, but has yet to ratify it. Even when Jordan has been out there in the world trying to promote improvements and saying to the world that it is going to do some things, it has yet to ratify that agreement.

How long does that take in the Jordanian system? It probably does not take long. It is a kingdom. The legislative process will not take years. That is one of the things we should be demanding. We should be asking when it will be ratified, when it will be implemented, how things are to be measured, and how Jordan will ensure that workers are going to be protected.

I want to talk a little about those workers and those conditions, because Canada is connected there. I am talking about Nygard, Dillard's, JCPenney, and Walmart, which are linked to human trafficking, abuse and the Jordanian sweatshops.

It is really important to note the United Steelworkers looked at a number of specific plants in different areas. They sent a fact-finding mission over there. What they found is that there are 1,200 foreign guest workers trapped in the IBG factory, and nothing helped when they actually signed the U.S.—Jordanian agreement.

They went back and found that they still had problems. The east factory has about 600 workers: 300 from Sri Lanka, 200 from Bangladesh, and 100 from India. That is an example from one of the factories. I have pictures here. It looks like a warehouse. It looks more like a place for agriculture warehousing or something like that.

An estimated 75% of the guest workers are women between the ages of 18 and 30. It is a young workforce, predominantly women, in conditions that are absolutely abysmal.

Why do we not take this opportunity to say to Jordan, “Fine, we are open to trading and improvement, but we do not want those goods and services provided through abusive behaviours. We do not want them. In fact, if you do not fix some of the stuff you are doing now, then we are not going to move forward on this agreement”.

Alternatively, we could set benchmarks with enforcement tools or ways to peel back parts of the agreement if Jordan does not meet those benchmarks, unless the objective is to turn a blind eye and allow foreign workers to be abused so that we can get cheaper clothing.

We might as well just say that if that is the way it is going to be. If we are going to ignore the photos, ignore the visitations, ignore the pleas from the workers who have actually smuggled out a number of different tags, some from Canadian companies, at their risk, and ignore their cries for help, then we might as well just say that is what we are going to do.

These side agreements on labour and side agreements on environment are not enforceable, although there are some lofty words in some of these agreements.

With regard to the issues on labour, I will provide a good example. The real problem is that they have the words in there, but there is no final accountability. The side agreement is a good example. Under “corporate social responsibility”, it says:

Recognizing the substantial benefits brought by international trade and investment, the Parties shall encourage voluntary best practices of corporate social responsibility by enterprises within their territories or jurisdictions, to strengthen coherence between economic and environmental objectives.

It is so vague it does not matter, and there is no enforcement. It is not worth the paper it is printed on. It does not help the worker from Sri Lanka who is killed in one of the sweatshops. They have pictures here. It does not help the workers who are abused on a regular basis.

It is interesting, too, because when they go to Jordan, there is a process. They are processed. This is the sad and scary thing about this situation. There is a process taking place with the full consent of the Jordanian officials.

Do members know what happens? Guest workers are trafficked into Jordan, stripped of their passports and held in slave labour conditions. Workers' passports are confiscated. Their routine is 16-hour shifts, seven days a week. They work in the factory 111 hours a week. They are cheated out of half their legal wages. Workers are slapped and threatened with deportation. There are reports of sexual harassment and abuse. If, for whatever reason, a worker misses a shift, that worker is docked two days' pay and punished. They live under miserable, primitive dorm conditions lacking heat, with only sporadic access to water and infested with bedbugs. In fact, one was actually brought back to the University of Ohio to confirm that the bedbugs were actually feasting and gorging on those people in that environment. The due diligence has been done to investigate the conditions in Jordan.

Here is a routine shift they work: 7 a.m. to 9 a.m., they work two hours; 9.a.m. to 9:15 a.m., they have a 15-minute tea break; 9:15 a.m. to 1 p.m., they work for three and three-quarter hours; 1 p.m. to 1:30 p.m., they have a half-hour lunch break; 1:30 p.m. to 8 p.m., they work for six and a half hours; 8 p.m. to 8:30 p.m., they have a half-hour supper break; 8:30 p.m. to 11 p.m., they work for two and a half hours. They have 16-hour days.

We need to address these issues if we are saying to Jordan that we want it to be our partner. If we are extending our hand, it is our responsibility to say something about these issues. It is our responsibility to ensure that bilateral trade is fair. Do we want these conditions to get worse for them, or do we want them to get better? Do we want them to stay the same?

I would argue it is economically impossible for us to compete in this way anyway, because it is not fair if they are using slave labour. All those who invest in the textile industry in North American, particularly in Canada, are going to get the short end of the stick no matter what. It does not matter how much they invest or how much they train their workers. It does not matter how much they have given back to the community. It does not matter what they have done over a number of decades: they cannot compete with those standards. They cannot compete with people basically used as slaves.

What does it say to those people who are actually investing in Canada--people who actually believe in proper work hours for their staff, believe in contributing back to the community and value the people who are employed by them? We are insulting them by doing that.

We are not doing anything to be proud of as a country if we are saying those things are all acceptable so that we can get a cheap sweater or lower-cost merchandise or fill the shelves at Walmart with cheap clothes. These are the things we have to look at.

To conclude, I want to say that we are interested in trying to make this bill work, but it has to be done with responsibility. Turning a blind eye is not the ethical or right thing to do.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:30 p.m.

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of International Trade

Madam Speaker, I thank the hon. member for clearly laying out the position of the NDP on this trade agreement and all others.

I have two points. The first point is the hon. member went off on a tangent on the Detroit bridge and the fact that 40% of the trade between Canada and the United States goes across it. I found it absolutely astounding, so maybe the hon. member could explain to me, that he supports his colleague from Burnaby—New Westminster who has a bill before the House to have buy Canada provisions and he stated that he supported buy Canada provisions. We know that increased protectionism was absolutely the cause of the Great Depression and it just snowballed. One country increased protectionism, then another country and then another country.

President Obama said that we should not have increased protectionism but he allowed a very dangerous precedent to happen. This is unfortunately a result of the American political system. Politics will always trump good policy in the United States in an election year. The members of Congress, the members of the senate and the members of the house of representatives we talk to tell us that politics will always trump good policy. I am hearing the same thing from my colleague in the NDP. He is talking about politics, not good policy.

It is good policy that we trade. It is good policy that we allow countries to move forward and that we encourage them to move forward with rules-based trading. That is what we are talking about.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:30 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, quite clearly this has been happening for a number of years. We have been told. I have met with many American legislators who have said, “Listen, you guys have nothing to offer in terms of reciprocity to these issues so that is the real problem”. That is why we see a Chilean peach create the APHIS fee for our trucking industry. That is why we see a new entry-exit fee. When the United States negotiates a trade deal with Colombia, it ends up charging us that fee because it does not respect us. That is important.

The Conservative government has failed. It has let the Americans characterize the northern border as a security risk and it has thickened it by militarization in policies. Instead of standing up for Canada in Washington, the Conservatives said, “Yes, fine, there is a problem on our border”. They could not point to where it was. There is a problem in Cornwall. However, they agreed with the southern political movement to say the northern border is a bigger risk than the southern border. The result is that we have seen more barriers and thickening of the border on a regular basis.

That is the big failure of the government. The Conservatives did not stand up when Napolitano said that terrorists came from Canada. They did not stand up when Lieberman said it. They did not stand up when different American politicians said that the northern border is a risk. That is why we have these trade barriers today. It is unfortunate because the Conservatives just have not addressed the issue properly.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:30 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, I appreciate the remarks of the trade critic for the NDP and how he outlined the problems in the labour force in Jordan. Definitely, we cannot turn a blind eye to the rights of labour in Jordan. This certainly has an impact in Canada.

Does he believe that this bill needs amendments to have enforcement areas in terms of labour and environmental rights? I would ask him which way he wants to go in that area. We will be supporting this bill going to committee. We hope the government would see the common sense of allowing some amendments that would strengthen it.

Jordan is the world's 90th place economy. The government talks a lot about trade. The Conservatives blow about their having done nine trade agreements. Yet recently, we had the first deficit in merchandise trade in 30 years. I wonder if the hon. member could expand on why that is. We are holding trade talks around the world but we are losing ground with our main trading partners.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:35 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, I enjoy working with the member on committee.

We are going to be making specific amendments at committee. Let us look at this responsibly. If someone witnesses an individual being abused, physically, psychologically, sexually, whatever it might be, that person has a duty to act. Certain abuses are happening in Jordan. We need to benchmark where those abuses are taking place, set some expectations and find a way to deal with them. Those are the types of amendments that New Democrats will be proposing in committee. If there is some balance there with the government, we will be okay.

In terms of overall trade, the government has been pushing oil in Washington for years. I was there when it was happening. The government has left the manufacturing industry behind and that industry has now diminished.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:35 p.m.

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Madam Speaker, I would like to commend my colleague, a fellow member of the Standing Committee on International Trade, for his work and thank him for a very enlightening presentation.

I would like to revisit the subject of our responsibilities as Canadians, as a country and as a trading partner, with respect to labour law issues. I believe this is very important.

In a conversation with an expert specializing in international trade issues—I can no longer remember which one—the expert mentioned that human rights and other related issues are often crucial. This is especially pertinent at this juncture because these issues could be an impediment to future partnerships or garner the disapproval of Canadians, who are also consumers.

If we do not choose our partners carefully and, above all, if we do not propose fair and worthwhile agreements that make us proud to be their partner, does my colleague believe that we could suffer a backlash that definitely could be costly?

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:35 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, I thank my colleague from Beauport—Limoilou for his work in committee.

It is important that we evaluate those elements because they can work against us.

I used the textile industry as an example because Jordan is known for it. We had an incredible textile industry in this country. It was one of the best in the world. There was always the notion that it had to go higher end because that would be best for economic development, but that turned out to be untrue. Tool and dye manufacturing companies in my area had to be reinvented. Those companies are the best in the world. When a bad trade deal is signed, where people can undermine the competition or local economy through environmental or human health issues, then our companies cannot compete with those things and people basically become disposable.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:35 p.m.

NDP

Marie-Claude Morin NDP Saint-Hyacinthe—Bagot, QC

Madam Speaker, I would like to briefly come back to the labour conditions in Jordan. I would like the hon. member to elaborate on that and on the impact of this type of non-negotiated agreement on Canadian workers, foreign workers in Jordan and Canada's international reputation.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:40 p.m.

NDP

Brian Masse NDP Windsor West, ON

Madam Speaker, there is a good example with IBG Jordan where women are forced to work 16 hour shifts from 7 a.m. to 11 p.m. seven days a week. There is also a mandatory all night 23 hour shift at least once a week from 7 a.m. straight through to 6 a.m. the following morning. The women are exhausted obviously and there have been some horrible cases. We know this has been happening. We need to make sure it stops.

Jordan needs to put a plan in place. We need some benchmarks in order to improve these types of conditions. If we can do that, then we can trade with the country. Trade is a two-way relationship. It is not just about the actual merchandise that is exchanged back and forth. It is also about the personal and social aspects. They go both ways.

This is an opportunity for us to help those workers. I hope the government sees it that way and we can work together on a solution.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:40 p.m.

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I rise on a point of order. I have been looking for an appropriate moment so as not to interrupt the proceedings too much.

Earlier in the House a vote was passed on division on the appointment of the Public Sector Integrity Commissioner. I attempted to get the Speaker's attention at that point to say no to that appointment. The House leaders had consulted, but nobody checked how my vote would have gone. I realize at this point it may be difficult to have a vote recorded, but I wish to be recorded as opposing this appointment. Unfortunately, although my voice went out as a no, the Speaker spoke to what the House leaders had decided, on division. I do not know if it is possible to have my vote recorded at this stage.

I did want to make a statement to the House on behalf of the many people who have written my office in the matter of this appointment. I want to be recorded as voting no if the other--

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:40 p.m.

NDP

The Deputy Speaker NDP Denise Savoie

I thank the hon. member for her comments. Obviously, now her views are on the record. It was a vote on division which reflected the fact that there was disagreement. There were not enough people who stood up for a recorded vote. We would have required five members to rise for a recorded vote. In this case it is simply reflected as on division, meaning that not all members were in agreement.

Resuming debate, the hon. member for Malpeque.

Canada-Jordan Economic Growth and Prosperity ActGovernment Orders

4:40 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, I am pleased to speak to Bill C-23. I have noted many times that the government loves to put names to acts that make them sound like they are other than they really are. The government calls this one, in the short title, the “Canada-Jordan economic growth and prosperity act”. I really think it should have a different name, more appropriate to what this agreement really is. I would call it the “trade agreement with the world's 90th place economy”. It is really not huge in terms of the prosperity that it is going to create. It is the world's 90th place economy, so let us put this particular bill in the perspective that it ought to be put in.

When this agreement was originally announced in June 2009, the Arab spring had yet to occur. The instability that has overtaken the region in the past year has been nothing short of transformative. In this climate, the FTA with Jordan is about to unfold. We are supportive of the bill in principle, as we have been of previous trade agreements. However, there are serious areas of concern. My colleague from the NDP mentioned some of those. I would agree with some of them.

These areas of concern should be carefully considered during examination of the legislation before the international trade committee. Among the areas of concern are child labour matters, which have been previously mentioned, and other labour issues. These would best be resolved through an open and transparent agreement. There are side agreements on labour and the environment, but they are really not that enforceable; they are really more of a desire. I do think we have to find ways of enforcing labour and environmental agreements.

Before looking at the agreement and the situation in Jordan, there are some general points that the House must consider with respect to trade generally and the government's actions. The government's mismanagement of Canada's trading relations around the world has resulted in trade deficits for the first time in over 30 years. Under this government's watch, we have seen a merchandise trade deficit for the first time in 30 years.

If we were to listen to the propaganda machine of the government, which is so far from reality, it claims to have negotiated nine trade agreements. The minister flits and flies all around the world talking trade. Yet while he is talking trade around the world he is ignoring the trading relationship with countries where we already have strongly established trading arrangements. We are falling back in those particular areas.

There is no question that Canada is a trade-dependent nation. Eighty per cent of Canada's economy depends 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 businesses. We want to hear from stakeholders and carefully examine this agreement to ensure it is indeed in Canada's best interest.

Free trade with Jordan will help encourage economic stability in that region. I would go further. If the side agreements on labour and the environment can be engineered properly and some teeth put in them, free trade can even help improve social, labour, economic and working conditions within Jordan.

Pursuing new trade agreements is worthy of support. However, as I said a moment ago, we have to put these agreements in context. While the Conservatives have proclaimed the promotion of trade, it has been under their watch that the mismanagement of the file, in terms of trading relationships, has resulted in trade deficits for the first time in 30 years.

With respect to the United States, we have seen the government “surprised” by increased United States' protectionist actions, and I will list but three.

First, the government was surprised by the initial buy American provisions in the 2008 United States stimulus package, even though for months President Obama projected that he would be looking at strong buy American policies. However, the government was surprised. It was caught not watching the store.

Second, the minister was surprised in the fall of 2011 when buy American provisions returned in the Obama administration's recent job plan efforts. Again, the government was caught short and not watching the store.

Third, the minister was surprised by the announcement of the United States Federal Maritime Commission, at the instigation of U.S. senators, of an investigation into U.S.-bound container traffic being diverted to Canadian ports and whether to impose fees or tariffs as a result of that diverted trade.

Perhaps I should mention one more because this affects Canadians who are travelling by air and sea to the United States, and that is the $5.40 entry fee. In the agreement the United States negotiated, I believe with Columbia, we lost our exception. Again, the Canadian government was caught surprised and disappointed.

My point is this. Not only do we have to look at new trade agreements around the world, which is important, but our biggest market is the United States. However, the United States continues, at every turn, to catch the government by surprise and disappointment. As a result, we see an erosion of our most important economic trading relationship. The importance of that relationship exceeds $1.4 billion of trade on a daily basis.

In terms of the merchandise export rate, in 2010 Canada exported $339.4 billion internationally. However, the vast majority of that trade is with but 10 countries. In descending order, they are: the United States, 74.9% of merchandise exports; the United Kingdom, 4.1%; China 3.3%; with Japan, Mexico, Germany, Korea, Netherlands and Brazil following that. We can see that it is a long way from first place to second place, with the first place trade being with the United States.

According to the International Trade Department, we are currently conducting 75% of our merchandise trade with the United States. According to its documents, by 2040, we will still be conducting 75% of our merchandise trade with the United States.

Let me be clear. While there are all these trade negotiations being talked about, and the minister is going here and there, the Conservatives are not watching the store in terms of our trading relationship with the United States. In fact, as I said the other day, on the areas of conflict with the United States, they give up certain things and get nothing in return. The Canadian Wheat Board is a prime example. It was challenged 14 times by the Americans. They could never win as a violation of a trading agreement, but the Conservatives have given it away and gets absolutely nothing in return.

On the perimeter security deal, what are we getting in return for that? Likely nothing, but we do not really know because the Conservative government, which claims to be transparent, keeps everything secret.

Canada is a trade dependent nation. We do depend on access markets for Canadian imports. However, with respect to Jordan, there are a number of issues that must be kept at the forefront, as with any trade agreement discussion and implementation.

The Export Development Corporation, in its recent export forecast overview, indicated that while the fallout from the Arab Spring had caused political uncertainty in the region, Jordan had managed, to be fair to it, to, “sap opposition movements of their momentum through modest political reform programs and spending promises”.

However, recent indications are that the uncertainty within Jordan had been slowly increasing. A recent The New York Times article referenced the issue of stability within the wider Middle East and the concern with respect to investment pointing out that:

If Middle Eastern governments want to attract foreign investors during the current period of change and uncertainty, then Arab countries need to lead the way by demonstrating faith in the long-term promise of the region’s markets...

The International Monetary Fund has indicated that the situation throughout the Middle East is one of economic certainty. It states:

For many countries in the Middle East and North Africa, 2011 has not been an easy year. The region is witnessing unparalleled uncertainty and economic pressures from both domestic and external sources, which have triggered a marked downturn in economic activity. While the economies of the oil-exporting countries have seen a mild pickup in growth in 2011, oil importers are experiencing a dramatic slowdown.

The IMF report of November 22 went on to state that in countries such as Jordan, high commodity prices were pushing up import bills and “uncertainty has also constrained access to international capital markets and direct investment have fallen off”.

A recent article in the New York Review, entitled “Jordan Starts to Shake”, raises some serious questions with respect to the Jordanian situation. The country is mired in recession and recently King Abdullah has increased the numerous state subsidies by $1 billion. More than 21,000 security positions have been created. The birth rate has been exceeding the ability of the country to create necessary jobs and unemployment exceeds 13%. There are some major concerns within the country.

Canadian merchandise exports to Jordan totalled $66 million in 2010, up from the $30.8 million in 2003. Top Canadian exports to Jordan in 2010 included: paper paperboard, mainly newsprint; vehicles; wood products; pulse crops, mainly lentils and chickpeas; and machinery and electrical and electronic equipment.

Canadian merchandise imports from Jordan totalled $19.9 million in 2010, up from the $5.7 million in 2003. Therefore, it is clear that the trading relationship is increasing and improving.

Top imports from Jordan in 2010 include both knit and woven apparel, inorganic chemicals, precious stones and metals, namely jewellery, vegetables and pharmaceutical products.

Two-way trade between Jordan and the United States in 2009 exceeded $1.77 billion. However, on that point, there is trade with the United States and Jordan and there is now trade between Canada and Jordan. This trade agreement should open up some opportunities.

Again, I want to come back to the government's failure in this area.

One of our most important pork markets is South Korea. The United States has negotiated a trade agreement with South Korea in which tariffs will come down. As tariffs come down, that $1 billion pork and beef market of Canadian producers into South Korea will decrease. We will be non-competitive because the Americans will displace us in that marketplace. The Government of Canada is asleep at the switch in terms of the trade agreement with South Korea.

We had started negotiations. I have to question whether the Minister of International Trade is getting slapped around a little by the Minister of Finance, who seems to be worried about the auto industry in his own backyard. Has he all the power in the cabinet? Could the government not negotiate an agreement like the United States has, which protects its auto industry and allows its pork industry to expand in South Korea as well?

I make that point because the government is talking about all the benefits of this 90th world economy and is ignoring the market we already have in South Korea for pork. The Conservatives are not negotiating or they are just not getting anything done in that area, That is what concerns me.

While I agree with the principle of negotiating with Jordan, we cannot continue to ignore those established markets that we have. Even on the CIDA agreement, where other members of the trade committee and myself spent part of last week in Brussels and in France. That too is an important market, but even if we get in that market in pork and beef, it will not make up for the loss of those pork exports to South Korea, which we are clearly losing on a daily basis because the Americans have negotiated an agreement and the Conservative government seems to be asleep at the switch.

Tariff elimination is important. There would be the elimination of all Jordanian non-agriculture tariffs, which currently average 11%. These include tariffs of 10% to 30% on many non-agriculture products of Canadian export interests, including industrial and electrical machinery, auto parts, construction equipment and forest products, such as wood building materials and paper.

There would be the elimination of the vast majority of Jordan's agricultural tariffs including: key Canadian export interests such as pulse crops; frozen french fries, which is important in my area because we make the best there is; and various prepared foods and animal feeds, which currently face high tariffs as much as 30%.

The vast majority of current Canadian exports to Jordan will benefit from immediate duty-free access to the Jordanian market upon implementation of this FTA. On implementation, Canada will also immediately eliminate all non-agricultural tariffs and imports originating in Jordan, as well as most agriculture tariffs.

As in all of its past FTAs, Canada has excluded over-quota supply managed dairy, poultry and egg products from any tariff reductions, and that is a good thing.

Ratifying this trade agreement appears to have little economic risk for Canadian industry. However, we should keep in mind that Canada's largest import from Jordan is apparel. While it seems, from what we hear and what we have questioned, the Canadian Apparel Federation does not seem to be concerned about this FTA, I think the points made by the NDP critic earlier have a lot of merit. Our apparel industry cannot compete with low-paid labour working as many as 16 hours a day under atrocious conditions. That situation must stop.

We agree with the side agreements on labour co-operation and environment. They are important. We cannot expect our businesses in Canada to be under a high cost labour regime with good safety standards, which is important and we support, to be under tougher environmental regulations, greater costs for industry as a result of meeting those environmental regulations and businesses in Jordan not facing the same situation. In terms of this agreement, we have to find a way to try to strengthen those side agreements.

The bottom line is that, yes, we support this bill going to committee. We believe it needs to be discussed, we need to have witnesses in and we need to strengthen it where possible.

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5 p.m.

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of International Trade

Madam Speaker, I thank the hon. member for Malpeque for his comments and for his support of this bill going to committee. I hope we can expect the Liberal Party to support the bill coming back to the House for third reading.

The hon. member raised a number of issues, some of which I agree and some of which I respectfully disagree, but I am not trying to rewrite history or be a revisionist historian. I want to ask the hon. member about one principle. This principle underlies our efforts to establish new trading arrangements with countries around the globe, whether they happen to be the nintieth economy in the world or the first economy in the world, and that is the principle of rules based trading. The principle that goes along with rules based trading is reciprocity.

The idea that we have clear rules that dictate trade and that those rules are reciprocal for both parties is fundamental to whether we will survive as a trading nation. Canada is certainly not large enough, with 33 million people, to depend upon ourselves for trade. There is a group in the House that wants to put barriers up to trade. I have not seen that from the Liberals and I hope I do not.

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5 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, clearly we support rules based trade. We need to have rules. However, one of the problems with many of the trade agreements, the WTO sometimes, is the enforcement of those rules and having them implemented quickly enough. If a business is involved in exports and somebody undermines its product in various ways that are against the rules, and we can look at the country of origin labelling in the United States, by the time the product finally gets through the system, the business has already sustained many losses.

We won the country of origin labelling at the WTO but the damage is already done to our industry. It has lost $5 billion. Many of my neighbours quit the beef industry as a result of, first, BSE and then country of origin labelling. Therefore, the enforcement side of it does not kick in early enough to take on the countries that are breaking those rules. The bottom line is that rules based trading is especially critical in terms of any trade agreement.

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5:05 p.m.

NDP

Linda Duncan NDP Edmonton Strathcona, AB

Madam Speaker, in closing, the member for Malpeque was intending to speak about some of the side agreements. I would appreciate his comments on one particular side agreement, which is the environmental side agreement.

It is with great regret that I have to rise again. I think this is the fourth or fifth time I have had to rise in the House to point out that while the government says that it believes in sustainable development and balancing environmental protection with economic development and trade, it is going in the opposite direction. This agreement, like all the agreements the government has brought before the House, completely diminishes the original side agreement famously put forward with the NAFTA.

The Canadian and U.S. governments, after the fact, apologized and said that it really should have been incorporated and binding with the trade agreement and that maybe next time they will do that. The Canadian government has not incorporated the environmental or labour measures into the agreement. They are still side-barred unenforceable agreements. However, it has taken a worse step. There is no independent secretariat where citizens can file complaints about the failure to enforce effective laws, and the government voted against the environmental bill of rights that I tabled in the House, which would have enacted in this country the very rights it is pretending to accord and hold out to Jordan that it offered to Canadians. I am wondering if the member could speak to that.

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5:05 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, I cannot question the member's point on the environment and the government.

It is clear, especially in recent days, that it is not only the environmental aspect of agreements that there is some concern about, with respect to the way the government is going, but we have now become the laughing stock of the world in terms of our climate change position with the minister announcing our pulling out of the Kyoto accord.

It is clear that the government, for whatever reason, is not serious about environmental issues. It does make us concerned in terms of the side agreements on labour and the environment, whether it will really put forward the kind of hard position that it needs to ensure that the environment conditions in both countries are similar,

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5:05 p.m.

Liberal

Denis Coderre Liberal Bourassa, QC

Mr. Speaker, our party believes fundamentally in the importance of having economic agreements that can have political significance. However, we to have understand that Jordan is in a very hot part of the world these days and there is a certain political reality that we have to deal with.

I would like the hon. member to share his views on the importance of having this type of economic agreement and the role it can play in politics. What impact would this type of agreement have on Canada's role in Middle East politics?

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5:05 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, Canada's role in the Middle East is an important one.

I do think that this trade agreement, if handled correctly, could improve conditions in Jordan in this instance. I firmly believe that when there is a trading relationship with a country, staying out of the trading relationship will not do anything in terms of the labour conditions of those people working in the industries in that particular country.

However, if we have a side agreement and if we find ways to make it enforceable, then we can improve the social and economic aspects within the country just by the fact that that is in the agreement. Trade will become important from Canada to Jordan and vice versa. It also gives us more sway in terms of enforcing better labour standards, better safety standards for labour and so on.