Debates of Nov. 6th, 2012

Canada-Panama Economic Growth and Prosperity Act

[Dan Albas, Conservative, Okanagan—Coquihalla, BC]

Mr. Speaker, I appreciate the concern because we want everyone to do well, whether here in Canada or in Panama. That is a very worthy thing and I certainly sympathize with the member.

Part of this agreement is called the agreement on environment, in which there are provisions encouraging the use of voluntary best practices of corporate social responsibility and a commitment to promote public awareness of the parties' environmental laws. The agreement reaffirms the country's international commitments under the United Nations Convention on Biological Diversity. I would say those concerns are being addressed.

As I said in my earlier statement, we are wealthier as a country because of the free trade agreement with the Americans. The NDP voted against that. I would be mindful of that as we move forward in our deliberations.

[Harold Albrecht, Conservative, Kitchener—Conestoga, ON]

Mr. Speaker, earlier I asked my colleague to comment on the opportunities that would be created through food processing and he commented on food processing in terms of the packaging of fruit that originates in his riding. I would like him to expand a bit on that. That is a fantastic idea and I do not think he had enough time to elaborate on that in his speech. I want to give him a few minutes to tell us a little more about that great technology.

[Dan Albas, Conservative, Okanagan—Coquihalla, BC]

Mr. Speaker, this is both a private and public collaboration through the Pacific Agri-Food Research Centre in Summerland, which is in the heart of my riding. The people of Summerland love to visit it, not just because of the natural beauty but also because of the fascinating science projects that take place there that continue to help our economy.

The basic idea is that by creating a new form of shipping container, it will allow Okanagan cherries, apples and perhaps even grapes to be shipped because they will last up to 30 days. Right now most product can only be sent in less than two weeks. That is an excellent opportunity for people in my riding to start thinking about the far and emerging markets that this government is pursuing trade agreements with.

[Malcolm Allen, NDP, Welland, ON]

Mr. Speaker, the member for Okanagan—Coquihalla knows that the finest wines made in this country are actually in my riding. I would be happy to bring a bottle and if he wants to bring one as well, we can perhaps decide which is better, though not in the House, of course.

Let me ask a two-part question. First, the member said he could not wait to have a perfect bill. Is he suggesting that we should have imperfect legislation? Second, he talked about the wine industry in Okanagan—Coquihalla, which is a fine region without a doubt. I have been there. Is the Canadian wine industry as a whole actually increasing its market share or is foreign competition coming into this country and taking over a larger piece of the market than what it had before we saw the implementation of the North American Free Trade Agreement?

[Dan Albas, Conservative, Okanagan—Coquihalla, BC]

Mr. Speaker, first, when I made the statement that we should not let perfection become the enemy of the good, if we did not have that argument, and I would include the member in this, most of us would not be married right now. I will leave it at that. He does not seem to be disagreeing with me.

Second, I would say that we have an affinity with the United States. We trade with them. In fact, many of us have spouses who were born in the United States. We are strengthened by increasing our investment in one another. It is very elementary to say that together we are stronger. With a small population in such a big country blessed in natural resources, we can work together to harvest those—

[The Acting Speaker, Bruce Stanton]

Order, please. We are out of time.

Resuming debate, the hon. member for Beauport—Limoilou.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I would first like to mention that I will be sharing my time with my highly esteemed colleague, the member for Algoma—Manitoulin—Kapuskasing. I wish her well with her speech.

I have already told the House that I was a member of the Standing Committee on International Trade for one year. During that time, I observed what I hoped was a certain naïveté on the part of government members. It would have been touching, insofar as international trade is concerned, except for the very serious ramifications for our communities. The reality is that it is not naïveté, but a stubborn desire to stick with the old ways.

That is truly unfortunate because if the government were more open to dialogue—or at least a bit more open—we could work in a constructive manner and sign free trade agreements that would benefit all Canadians. Unfortunately, that is impossible. That is what I observed directly and that is what we see every time the government presents a free trade agreement to the House.

There is another very important aspect to consider and that is a very serious consequence of hastily signing free trade agreements and blindly entering into commitments without taking into account the relationships that exist between the countries involved, particularly the countries with which we are doing business. With regard to international relations, we must act very carefully. Every move Canada makes on the world stage is closely scrutinized by our closest neighbours and by the community of nations, not to mention independent research institutes throughout the world.

Canada has an excellent reputation that the Conservatives are unfortunately in the process of very quickly destroying. Because of this reputation, the eyes of international observers are always on Canada. When we do something as significant as giving a country such as Panama status as a favoured nation, we are sending a very important message, which is that we respect the practices of the country in question. With regard to Panama, this raises many questions.

As a courtesy to the members opposite, I will not confuse them by touching on too many different topics since the implications of a free trade agreement are obviously extensive. Instead, I will focus on a single topic, and that is the fact that Panama is a tax haven. I hope that members of the House will listen closely and understand that signing such agreements causes Canada to wander far along a path or become deeply involved in an activity that is widely condemned throughout the world.

Before I begin talking specifically about tax havens, I would like to provide some statistics from UNICEF on income inequality. For the period from 2000 to 2010, 40% of the poorest households shared only 11% of the wealth in Panama, whereas 20% of the richest households—only a small portion of the population—shared over half or 57% of the country's wealth. This gives an important indication of the social situation in Panama and shows just how inequitable this country is. That is one of the reasons why we must be very careful. Obviously, these statistics are not necessarily directly related to the fact that this country is a tax haven, but no doubt they are fairly closely related to it.

Lacking a precise definition, the OECD tried to set some criteria for a tax haven. I will briefly mention the four criteria: very low or no taxes; no exchange of tax information with other nations; lack of transparency regarding its tax system; and no substantial activities of the taxpayer in the country in question.

Since Panama excludes a large part of its population from political, social and economic activities, as demonstrated by the UNICEF figures, we must be careful not to condone practices that are simply reprehensible.

Tax havens are characterized by a lack of transparency, banking secrecy and shady financial operations. The Tax Justice Network ranks Panama 14th on its financial secrecy index of the world's most opaque nations. What is very interesting is that, in addition to ranking countries, that organization asks a number of questions related to Panama's practices.

Regarding banking transparency, it said, “Panama does not adequately curtail banking secrecy”. Regarding trusts and foundations, it said that “Panama does not put details of trusts on public record”. Lastly, regarding corporate transparency, it said that “Panama does not require that ownership of companies is put on public record.... Panama does not require that company accounts be available on public record”.

Here we can see just how much impunity corporations can enjoy, especially in the Panamanian banking and financial systems. Unfortunately, when an organization like that takes a stand, the government tries to discredit it. So I will lead the government into territory that it should be more familiar with and should find more credible.

I found a European website called “the best tax havens in 2012”. The information on that website is very up to date, which is good. I mentioned it briefly earlier, but the website says:

Thus, there is no single, definitive answer to the question, “what is the best tax haven”, especially since it is often better to combine several offshore jurisdictions. If you are an entrepreneur or a manager of an SME in Europe and especially in France, we would recommend the following tax havens:

Then it lists just under 10 countries, including Panama. So that is wonderful confirmation that Panama is an ideal place to shelter one's money from taxes.

I am going to talk about another aspect that I mentioned earlier. CCP Inc., a company that can be found online, basically claims that it can create any type of offshore company in the five tax havens. In order not to spread itself too thin, the company chose the countries with which it is easiest to do business, namely, Antigua, Belize, Dominica, Nevis and Panama. In the case of Panama, CCP Inc. encourages people to allow it to help them create a foundation by telling them to feel free to contact the company or to use its online form. I will not put the link on my website because I in no way condone this.

If we sign the various agreements that will link us to Panama, we will send a message to the world that Canada condones tax havens and tax evasion. Clearly, everything is negotiable. CCP Inc. suggests that people create a foundation to shelter their assets from taxes, saying “Security and Privacy are Your Rights!”

When I first ran for election in 2006, this government said that it wanted to be transparent. I am going to ask my colleagues to be consistent and not to condone banking secrecy or questionable practices, such as those in the Republic of Panama.

I would like to thank you, Mr. Speaker, for the time I have been given. I await my colleagues' questions.

[Rosane Doré Lefebvre, NDP, Alfred-Pellan, QC]

Mr. Speaker, I thank the member for Beauport—Limoilou for his excellent speech. The member for Hochelaga also briefly mentioned the fact that Panama is a tax haven in her speech.

While they were speaking, I visited the OECD website and learned that Canada has not signed an information exchange agreement with Panama, although it has done so with many other countries. I will not list them all, because we have signed information agreements with several dozen of them, which means that we can exchange tax information with them.

I think that is a serious flaw with Bill C-24. What does the member for Beauport—Limoilou think about that?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank the member for Alfred-Pellan for raising this point. I appreciate her bringing it up, because I unfortunately forgot to mention it.

It is unbelievable to see this government's lack of priorities. It does not know how to set priorities.

We could ask the government a question. Once the agreements are signed and passed in the House—if they unfortunately succeed with the help of the Liberals—will Panama agree to sign this famous information exchange agreement? I highly doubt it, and that is very worrisome.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I appreciate the comments from the member. I do not necessarily agree with his comments.

At the end of the day, there are industries in the province of Manitoba, as in other provinces, that see merit in having a free trade agreement with Panama. I can talk about the potato industry, as I have. There are literally hundreds, if not thousands, of jobs within the province of Manitoba. We could talk about the pork industry, which has great potential in the province of Manitoba and again creates many jobs.

Freer trade with other countries around the world has generated the wealth Canada has today. I suspect that if the member went through every free trade agreement ever passed through the House of Commons, he would find room for improvement. There is no doubt that this particular agreement is the same. Yes, it could be better. Is the member suggesting that if we do not have a perfect agreement, the agreement should never pass? When I say “perfect”, I am referring to things such as environmental laws, human rights issues, labour laws, and so forth. Is that what it takes for the NDP to pass or support an actual free trade agreement?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, my colleague's comments were very disappointing. I will turn the question around. Will we have to condone child labour and child exploitation in order to sell pork or potatoes? Will we even have to condone eugenics or reprehensible practices such as female genital mutilation? I am not sure. I do not want to go too far and accuse him of anything.

Quite frankly, it is disgusting that they are turning a blind eye so easily for the sake of trade. That is my response.

[The Acting Speaker, Bruce Stanton]

We have time for a quick question. The hon. member for Sherbrooke.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, it is my honour to ask a question of my colleague from Beauport—Limoilou, who taught tax havens 101 to my Conservative colleagues. I am glad that was done today in the House, because it shows what this is really all about. He did a good job defining what constitutes a tax haven.

As my colleague from Alfred-Pellan said earlier, Canada did not sign an information sharing agreement. In my colleague's view, what message is the government sending when it signs a free trade agreement with a country that is considered a tax haven? What message is the government sending to the international community about the fight against tax havens?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I want to thank my colleague from Sherbrooke very much for asking me that question.

This sends a terribly ambivalent message. We have a human rights legacy that goes back decades. In fact, we fought for human rights throughout the entire 20th century. Canada was a pioneer; it is among the leading countries in this regard. The government is in the process of destroying that legacy and, frankly, that is disappointing.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I want to thank the hon. member for Beauport—Limoilou for sharing his time with me.

Mr. Speaker, it is a pleasure to rise today to debate Bill C-24.

While the members opposite might not want to recognize it, New Democrats are absolutely in favour of developing good trading relationships. We understand the need for expanding our markets, but that does not mean that we will give our support to bad agreements. We cannot give uncritical support for the mere notion of trade, and we will stand opposed to those agreements that unnecessarily expose Canada to playing fields that are anything but level.

New Democrats would like to see agreements that go about creating and preserving jobs here in Canada, not documents that hasten the movement of production to other countries. I think most Canadians would agree that keeping good-paying jobs in Canada should be a bare minimum condition for a trade deal and that creating more and better jobs should be the real goal.

The government is fully aware that only New Democrats proposed amendments to the Canada-Panama free trade agreement when the bill was studied at committee. That is a clear example of how we are willing to work to make this agreement better. We clearly are focused on agreements that prove to be of net benefit to Canadians. It cannot be said that New Democrats did not come to the table prepared to work and make the agreement better for Canada and Panama. In that respect, we are pragmatic about trade agreements. The government paints that as something else. However, we have seen that over time, New Democrats' reservations are usually based on probable outcomes and not on an exercise in wishful thinking.

With Bill C-24, there are critical problems that underline the significant differences in belief that separate us from the Conservatives and the Liberals when it comes to negotiating trade deals. For example, we believe that the preconditions to ensuring a level playing field should already be more or less in place. Without that, one country may reap a significant advantage, such as an abundance of cheap, poorly paid labour that operates under substandard labour laws with respect to important Canadian ideals such as workplace health and safety.

New Democrats have also had long-standing disagreements about the significance of environmental protection and the role that should play as these agreements are developed, contrary to the other side. In fact, this trade agreement, like too many others, has a critical flaw in terms of environmental protection. Those measures have been tucked inside a side deal instead of being given prominence in the agreement itself. That further entrenches the belief that the environment must take a back seat to economic interests, which is a view that is irresponsible and unsustainable.

Therefore, when we look at Bill C-24, we ask ourselves what the advantage is for Canada. Will Canada come out ahead? This is not guaranteed. Does this deal reflect the kind of country we are? Again, there are no guarantees, and there are more than a few requests that we take a leap of faith instead. We are asked to take a leap of faith on the environment, on labour, and on the transparency of the Panamanian government and its intention to deal with Panama's reputation as a tax haven. Quite simply, Panama has a long history of being a tax haven. It has gone out of its way to help people hide money from countries like Canada, and that sends up a red flag for many Canadians.

The Conservatives tell us that they are negotiating a separate deal with Panama to address this concern, but on this issue, the government has a credibility problem. It is easily argued that the Conservatives have little interest in addressing offshore tax havens. I will let members decide what the motives for that might be. We know that the Conservative government cut back on inspectors and the resources Revenue Canada uses to catch offshore tax cheats. That is not the stuff of a government that takes the problem seriously. It does not even make economic sense. We know full well that every dollar spent investigating offshore tax fraud nets five dollars in return. Any person on the street would tell us that this is money well spent. Therefore, we can dump the argument that this is somehow about saving money.

This is why New Democrats have a difficult time believing the government's claim that it is addressing the problem in a separate agreement. The fact that it is not already in place, ahead of this free trade agreement, is distressing. I am certain that most Canadians would agree that if someone were bleeding their income, they would not go out of their way to do more business with that person without first addressing that pre-existing problem. It is not as if we are the junior partner here. This is an agreement we do not absolutely need to make, so the question of why the tax loopholes were not addressed first is legitimate.

Labour conditions are another concern that should be considered more important in the negotiation of trade agreements in general and with Panama specifically. We know that any labour rights in the agreement are not built into the deal itself. They are part of a side agreement that does not really have much in the way of teeth.

Consider that Panama is quite a bit smaller than Canada, with only 3.4 million people, and is a significantly unequal society. A full 40% of the population is poor. The rate of extreme poverty is 27%. That problem is particularly acute among indigenous populations.

Given those facts, it should be clear that we are in a position to use a trade agreement as a tool to help Panama address its problem. Yet without better entrenching labour conditions, we are passing up that opportunity. It is too bad, since we know that the country has gone through significant structural adjustment, liberalization and privatization in recent years that has not translated into economic benefits for the population. Without a bit of a push from a larger partner in a trade agreement, it is difficult to imagine much changing, and it is an opportunity lost. I say that being fully aware of worrisome trends in Panama and how that country is vulnerable when it comes to labour rights and human rights.

Many members will know that in 2010, President Ricardo Martinelli unilaterally changed Panamanian laws. He put an end to environmental impact studies on projects deemed to be of social interest, banned mandatory dues collections from workers, allowed employers to fire striking workers and replace them with strike breakers, criminalized street blockades and protected police from prosecution. Predictably, President Martinelli's attack on labour rights resulted in strikes and demonstrations. Six people were killed, while other protesters were seriously injured. Many were blinded by tear gas and police violence. Ultimately, 300 trade union leaders were detained before the president withdrew the labour provisions and called for a national dialogue with moderate trade union leaders and business leaders. This is not the behaviour of a government that respects labour rights, or human rights, for that matter.

I know there are many on the benches opposite who view organized labour as adversaries. However, I am sure there are precious few who would agree with the severity of the Panamanian response or even with the measures that set these events in motion.

Therefore, when New Democrats say that we would like to see labour rights better protected in this trade agreement, one can see that this is based on very real concerns and unsettling trends. We are not convinced that Panama is quite ready to be given favoured trading partner status or that this agreement has the teeth needed to help lift Panama up to our standards.

I would like to reiterate that we are happy to use trade agreements as a way to make our economy stronger and more vibrant. We believe this can be done without blinders that limit the scope and imagination of what can be negotiated. On this issue, as with so many others, we hear the words of our former leader, Jack Layton, urging us on with a simple phrase: “Don't let them tell you it can't be done”.

Therefore, we call on the government to similarly challenge itself to arrive at trade deals that expand Canadian exports by reducing harmful barriers to trade, that encourage the development of value-added industries, that create Canadian jobs by increasing market access for our products and that increase productivity by encouraging new investment. We say negotiate agreements that diversify our exports, especially in emerging markets, and deals that help reduce Canada's trade deficit and improve protections for labour rights, human rights and the environment.

We support agreements that benefit consumers by expanding choice and bringing down prices and that reflect Canadian values such as transparency, accountability and human rights. That is what Canadians deserve.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Speaker, my hon. colleague raised an interesting point in her speech about the environmental agreement portion being broken away from that act. Continuously in the House members opposite have urged the government to break up bits of legislation and now are suggesting that in doing so in this agreement it would somehow weaken it. Is the member now advocating for an omnibus-type trade agreement?

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, it has been clear from the start that the Conservatives were not interested in any amendments that were being put forward. A Conservative member asked a while ago why the government should wait and try to make sure this is a really perfect agreement because it wants to move on. That is exactly right. Canadians do deserve better. They deserve agreements we can live by; they deserve agreements that can be respected, as labour laws should be respected.

With all our riches, Canada should be in the driver's seat and negotiating deals that would protect critical public resources and services. We should be helping make Canadian firms global leaders in the world economy.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the Liberal Party supports the importance of labour laws, the importance of environmental laws and the importance of human rights, but we also recognize the importance of freer trade among other nations. Where we can enter into free trade agreements where both countries, in particular Canada, can benefit, the question is then why not. They would enhance the economic opportunities of all Canadians, if we decide to move forward.

I do appreciate the member's comments because they are the closest to the late Jack Layton's comments. She implied that we cannot have a free trade agreement with another country if that country's environmental laws are not equal to Canadian environmental laws, if labour laws abroad are not equal to Canadian labour laws.

Could my colleague expand on why she believes there should be equality between Canadian laws and the laws in other countries before an agreement can be achieved?

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, let us not forget that the Conservatives have never seen a trade agreement they did not like. The fact of the matter is that we need to make sure that, when we do trade agreements, they are of net benefit to Canadians. We also have to look at the labour rights and human rights of workers in those other countries. For example, we do not allow the use of asbestos here in Canada, yet we send it elsewhere for those workers to use without the proper safety net in place. We have to look at that.

New Democrats are pro-trade, but we believe in the superiority of multilateral trade agreements. We believe in agreements that are fair.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I want to thank my colleague for her excellent speech.

I asked a member across the way a question about something that is particularly troubling when it comes to Panama. Pursuant to legislative measures taken by the Republic of Panama, the police is immune to prosecution. Accordingly, labour laws, among other things, can be violated with impunity.

I would like my colleague from Algoma—Manitoulin—Kapuskasing to say a few words about that.

[The Deputy Speaker]

The hon. member for Algoma—Manitoulin—Kapuskasing has 40 seconds to reply to the question.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, 40 seconds is not much time.

However, in my speech I talked about how we must ensure the well-being of workers, especially when we enter into agreements such as this. We are not against free trade agreements. However, we must ensure that the rights of people, and human rights such as labour rights, are respected.

[The Deputy Speaker]

I would like to inform the House that speeches will now be 10 minutes, followed by five minutes for questions and comments.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Speaker, it is certainly a pleasure to rise in the House today to talk about the Canada-Panama free trade agreement.

I am sure we have heard some great speeches today, particularly from my colleagues. I do not imagine I will speak as eloquently or as passionately as did our member for London West earlier today, but I heard his talk and it was exceptional. My colleague from Mississauga—Erindale did a fantastic job of addressing this issue, as did our great member for Okanagan—Coquihalla. I have a tough role to follow.

We have been debating the key elements of this trade agreement and the discussions around it for nearly 60 hours. We are certainly aware that Canada is a significant trading partner with Panama.

I was amazed to hear, throughout the speeches and debates today, how significant that total is. We did over $235 million in trade with Panama in 2011 alone. That is significant for a country of that size.

Canada's prosperity is directly linked to reaching out beyond our borders for economic opportunities that serve to grow Canada's trade and investment. This is another excellent example of how we are doing that.

Panama is an established market for Canadian exports and holds significant potential for Canadian businesses.

We have also heard about the tremendous opportunities that exist in Panama with respect to government procurement. In addition to the ongoing $5.3 billion that is to be spent on the Panama Canal expansion project, the government of Panama has numerous infrastructure projects, either under consideration or already in progress, to build or improve ports, roads, hospitals, social housing projects, bridges and airports. These projects are part of a $13.6 billion Panamanian government strategic investment plan for the years 2010 to 2014.

A country like Canada with so much expertise could certainly take advantage of these significant opportunities in Panama. Panama is also a strategic destination for Canadian investment, with the stock of Canadian investment in Panama reaching over $121 million in 2010.

Looking beyond investment, government procurement and market access for goods, this agreement is a comprehensive free trade agreement with obligations that extend well beyond these subjects to include other areas of importance to Canadian business.

The free trade agreement provides detailed obligations in areas such as financial services, temporary entry of business persons, electronic commerce, telecommunications and competition, monopolies and state enterprises.

The Canadian banking system is consistently recognized among the best in the world, and today the World Economic Forum has ranked Canada's banking system as the most sound in the world four years in a row. This is an area where Canada is truly excelling. The Canadian financial service sector is a leader in providing high quality and reliable financial services.

Across the Americas, Canadian banks are helping foster economic growth through access to credit and other financial services. In Panama specifically, Canadian financial institutions such as Scotiabank have an active presence and are offering a wide variety of banking services. This agreement will help those Canadian financial institutions take advantage of those opportunities that exist in Panama.

On financial services, this agreement provides market access parity with what Panama was offered to the U.S. through the trade promotion agreement and contains a robust prudential carve-out. This agreement substantially lists obligations for the financial service sector, including banking, insurance and securities.

These market access commitments are complemented by key obligations that ensure non-discrimination, provide a right of establishment for financial institutions and promote regulatory transparency in the financial sector. These are key elements that the Canadian financial service sector is seeking in order to ensure it is able to compete in an increasingly competitive global market. Our Conservative government is now responding to this demand.

Another important area included in this trade agreement is to ensure businesses are able to fully maximize the opportunities in Panama in temporary entry for business persons. This is an important issue for Canadian businesses to ensure their employees are able to work in Panama, and it is a natural complement to market access for goods, services and investment.

In recognition of the significant number of Canadian companies operating in the region, the agreement removes unnecessary barriers impairing the ability of companies to bring in the skilled workers they require. These would include impediments such as the requirement for labour certification tests, quotas, proportionality requirements and any other prior approval procedure. The agreement extends to an extensive list of professionals, including various technicians and provisions for spousal employment.

The strength of this free trade agreement does not stop there. It also extends to the areas of electronic commerce and telecommunications. Electronic commerce is an important addition to the previous free trade agreements in light of the importance of ensuring that new digital economy issues, such as protection of personal information, consumer protection and paperless trade, are not overlooked. These issues are increasingly important to business in the 21st century, and Canada and Panama have recognized this importance.

In the free trade agreement with Canada, Panama has agreed to a permanent moratorium on customs duties for products delivered electronically. This includes items such as electronic surveillance software, music purchased online and digital books. The moratorium is important not only for business but for consumers as well.

In addition to electronic commerce, telecommunications provisions were also included to support the competitive development of the telecommunications sector. Through this free trade agreement, Canadian telecommunications service providers will be able to better compete with their American counterparts in the Panamanian market.

Clearly, there are many benefits to this free trade agreement with Panama that go beyond trade in goods and investment. The agreement on the environment commits both countries to pursue high levels of environmental protection, to improve and enforce their environmental laws effectively, to maintain appropriate environmental assessment procedures and to ensure they do not relax their environmental laws to encourage trade or investment.

The agreement on the environment also includes provisions on encouraging the use of voluntary best practices of corporate social responsibility and a commitment to promote public awareness of the parties' environmental laws. The agreement reaffirms the countries' international commitments under the United Nations Convention on Biological Diversity to promote the conservation and sustainable use of biological diversity and to respect, preserve and maintain traditional knowledge, innovations and practices of indigenous and local communities.

In addition, the agreement on the environment provides for co-operative activities between Canada and Panama aimed at achieving the environmental objectives and obligations of this agreement.

The final area I would like to touch on is the obligation of the free trade agreement related to competition, monopolies and state enterprises.

This agreement meets Canada's objective of assuring that anti-competitive business practices and the actions of monopolies or state enterprises do not undermine the benefits of trade and investment liberalization achieved in this agreement. Canada and Panama will co-operate on issues related to competition policy through their respective authorities. The obligations ensure that Canadian companies doing business in Panama are treated fairly.

There are many other areas of the agreement, which will offer real commercial benefits to Canadian companies.

Overall, this is a high-quality and comprehensive trade agreement. It will allow Canadian businesses to compete and excel in the Panamanian market, where many key exporters are seeing enormous potential. According to a report published by the CAPA Centre for Aviation, Panama is the fastest growing economy in all of Latin America and it is expected to be the fastest growing economy in Latin America for the next five years.

Panama's real gross domestic growth for 2011 is estimated at 10.6%, which is faster growth than that of many of the other rapidly emerging economies. It clearly illustrates that the commercial potential in Panama is significant.

I see my time is coming to an end, so I will just say that this free trade agreement has the support of key exporters and investors across Canada and its passage through the House would ensure that Canadian businesses are able to take advantage of opportunities in that market. I urge all members of the House to consider their support of it.

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

Mr. Speaker, we have talked on this side at some length about our concerns regarding transparency of tax matters, the fact that international concerns have been raised about Panama's status as a tax haven. The Conservatives said that the OECD took Panama off the grey list and that removes all concerns. However, the member will undoubtedly recognize the fact that the OECD still has very significant reservations and other countries, including the U.S., would not sign onto an agreement with Panama until an agreement on tax information exchange was completed.

Does the member agree that we should ensure that the agreement on tax information exchange is made available before we sign on to this agreement?