House of Commons Hansard #177 of the 41st Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was agreements.

Topics

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:25 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, that is a thoughtful question. I would turn it around and argue that if one were to make the argument that the only way to raise standards in another country were to engage in trade with it, then we should sign free trade agreements with every single country in the world regardless of their domestic situation. That is clearly absurd.

When Canada is determining whether or not we should give most favoured nation status to a country, we should have some strategic policy framework with which to do so. We should be signing agreements with countries that are showing positive movement and development toward modern civilized standards. Obviously we would not want to sign a trade agreement with a country that had a terrible human rights record or that refused to conform to the norms of civilized society. We would not want to do that.

In the case of Panama it has made some progress toward eliminating its longstanding reputation as a tax haven, but it is not there yet. The U.S. Congress said it would not let investment flow from Panama to the United States, when it knows there is drug laundered money there and Panama is a tax haven, until it has an effective tax information exchange in place to ensure drug money is not going into the United States.

Why are the Liberal Party and the Conservatives not taking the same stand here in Canada?

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:25 p.m.

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of International Trade

Mr. Speaker, I listened fairly closely to my hon. colleague's speech and he raises more questions than he actually answers. One of the issues he talked about at length was levelling the playing field. On the one hand, he wants to level the playing field with Panama bringing what many would say is a third world country into the league of manufacturing nations and into more modern society. On the other hand, he says we cannot do that because Panamanians are working for $1 or $2 an hour and we are working for much more than that here. Therefore we cannot somehow compete against them.

The whole point of free trade agreements is to boost the economy in a region, to boost the standard of living of people, to boost their access to education, to boost their access to health care, to improve the overall general climate and ability of those individuals to find work in a modern society. How can we on one hand level the playing field in some areas and not in others?

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:30 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, I agree in general that trade policy has a number of aims including, hopefully, to boost the standard of living in each country. It is a fair question as to whether or not that actually happens with certain agreements. It depends on the countries involved and it depends on the terms of the agreement. Unlike the Conservatives who take it as an ideological article of faith that simply signing a trade agreement has some magical power to boost the standard of living in both countries, we in the official opposition prefer to deal in the realm of evidence, where that is not necessarily the case.

In the case of Panama, all we can do is deal with the situation that we have before us. Again, most favoured nation status is a very special status that Canada accords to certain countries. We do not just give it to any country in the world. We give it to certain countries and we hopefully have some policy rationale for doing so.

On this side of the House we do not think that signing a free trade deal with a drug laundering tax haven is a good idea. The Conservatives say they are tough on crime and a law and order party. I do not know why they are making it easy for drug laundered profits to come into our country. They should explain to Canadians why they are not listening to the official opposition's wise amendment to hold off on this treaty until we have an effective tax information exchange agreement. That is what we have suggested. Conservatives have said no.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:30 p.m.

NDP

Matthew Dubé NDP Chambly—Borduas, QC

Mr. Speaker, last Friday I asked the Minister of International Trade a question. I asked the Leader of the Government in the House of Commons the same question this morning, when he moved time allocation.

He said that, at present, negotiations are under way to conclude a tax information exchange agreement in order to fight tax havens, which we often hear about in Panama. Although there have been improvements, as my colleague pointed out, the U.S. Congress has adopted this same philosophy and waited for taxpayers to be treated fairly before ratifying the free trade agreement. It is important to point that out. Could my colleague comment on that?

Furthermore, my Liberal colleague said earlier that the situation could improve if we treated workers better. Why should we trust this vague political will? Why not first deal with these injustices and then sign a free trade agreement?

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:30 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, that is an excellent question. I have not even heard any attempt by the government to answer the question of why it would not agree with the official opposition and wait to make sure we have the kind of tax transparency legislation in place that we know is necessary. We are not dealing in a vacuum here. We are dealing with a country that is one of the top two tax havens in the world. I think all Canadians remember the Panamanian dictator, Manuel Noriega. They remember that Panama was used as a base for running drugs with the Contras. This was not terribly long ago.

I understand Panama has recently emerged from dictatorship and is making some progress towards becoming a fully functioning democracy, but the testimony we heard in committee is that they are not there yet. Panama does not yet have a fully independent judiciary. It does not have a fully democratic system.

Until Canadians can be sure that we are not signing an agreement that sees drug laundered profits come into our country, I do not think we should be according most favoured nation status to that country. I think most Canadians would agree with that.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:30 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I agree with much of what the member for Vancouver Kingsway had to say, but I disagree with holding up the legislation.

What would the cost of waiting be, in terms of those export industries affected? I am thinking of potato exports from my own province. The government did have 38 months in which to deal with the legislation and could have negotiated some of the concerns that the member for Vancouver Kingsway has, but it failed to do that. It blames it on the opposition, but the government had our support and it could have passed the legislation.

The change that has happened is that on October 31 the Panama FTA with the United States kicked into effect. This is the second trade area now where we find ourselves at a disadvantage as Canadians. South Korea being the other one.

Has the member done any economic analysis to see what the impact of waiting might be?

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:35 p.m.

NDP

Don Davies NDP Vancouver Kingsway, BC

Mr. Speaker, I would like to thank my hon. colleague for his question and for his great service to the committee.

My hon. colleague was sitting in committee with me when we were questioning DFAIT officials to get an idea of the economics involved. He, as well as I, heard that total trade between Panama and Canada amounts to 0.03% of our trade. We are not talking about anything significant at all in terms of trade. I think Panama ranks in the high 80s in terms of countries with which we trade around the world.

Again, the difference between the Americans and Canada in this is that the Americans were prudent and made sure that they had the tax haven issue dealt with prior to according most favoured nation status. I think that was a wise move on the Americans' part.

I am not sure why the Liberal Party did not agree with the New Democrats that it would be prudent to do the same thing in Canada. For our part, we are not saying that we are necessarily opposed to a free trade agreement with Panama, but we are opposed to a free trade agreement before we have the necessary checks and balances in place to make sure that we are not extending tax haven status from Panama to Canada. Right now, that cannot be said.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:35 p.m.

South Shore—St. Margaret's Nova Scotia

Conservative

Gerald Keddy ConservativeParliamentary Secretary to the Minister of International Trade

Mr. Speaker, before I start the main part of my speech, I would like to take a bit of time to continue my rebuttal of some of the comments made by my hon. colleague from the NDP. I want to lay it out in pretty general terms.

A number of comments were made that simply do not wash. The comment was made that we can hold off on the treaty until we get a tax information exchange agreement. Yes, we can hold off on the treaty forever. We do not ever have to sign it, but we can also negotiate two different areas at the same time.

The reality is that Panama is off the OECD grey list. It is on the so-called white list, because it has improved its tax information sharing with other nations. Therefore, that is no longer an issue for OECD countries. Meanwhile, we are trading with Panama today.

The hon. member does a total disservice to Canadian companies that are trading with Panama now. There is $111 million worth of trade between Canada and Panama, and he shrugs that off as if that is nothing. A good deal of that trade is coming out of Quebec, Atlantic Canada, Ontario, western Canada and British Columbia. It is shared equally among the provinces, and everyone gains. It is an absolute disservice to say that $111 million worth of trade is not important. I frankly disagree.

When we look at the idea of rules-based trading, having a system in which we understand what the tariffs are, going in, and that they will be eliminated to zero, it is all about building capacity in Panama. We cannot do that overnight. Panama has moved light years in the last 20 years, and it has moved in the right direction on every single thing. When the Panamanians took over the Panama Canal, the naysayers, a group the NDP apparently belongs to, said that they would never be able to operate the Panama Canal. They said that the Americans could operate it, because they can do anything. Do you know what? The Panamanians took over the Panama Canal, and not only did they operate it, they did it well.

What has that done for the Panamanian psyche and Panamanian society? It has put hundreds of millions of dollars of revenue into Panama. That hundreds of millions of dollars builds capacity, the very capacity the NDP wants to thwart in Panama. That is the capacity that builds roads and hospitals and sends kids to school. More importantly, when we sign this free trade agreement with Panama, which will enable it to acquire cheaper food because it will be tariff free, kids will be sent to school with food in their bellies. That is a terrible thought, apparently, for the NDP anti-trade group.

I shake my head. I had great hopes for the New Democratic Party in this Parliament. It said that it was going to support trade and look at the trade deals for what they were. New Democrats found a way not to support trade. Whether they like it, whether they do not like it, there are some good things and some bad things. At the end of the day, when the rubber hits the road, the final verdict is what counts. If New Democrats do not support this trade agreement, they do not support trade. They should not try to have it both ways. They should not try to equivocate. Either they support trade or they do not support trade.

Thank you, Mr. Speaker, for putting up with that. It was important that I get it off my chest. I would like to get into the main part of my speech now.

I am pleased to be here today to talk about the Canada-Panama free trade agreement. The free trade agreement would generate increased export and investment opportunities for Canadians by creating a preferential and more predictable trade and investment environment, something I talked about in my opening comments.

When the free trade agreement comes into force, Panamanian tariffs on over 90% of Canadian goods exported to that country will be eliminated immediately. That is good news for Canadian exporters. With $111 million of merchandise traded between Canada and Panama, that is fantastic news.

For Canadian service providers, the free trade agreement would help expand market access opportunities in areas such as information and communications technology, energy and financial services. For Canadians looking to invest in Panama, the free trade agreement would include a chapter of comprehensive rules governing investment. These rules would provide greater protection and predictability for Canadian investors and their investments in Panama. At the same time, the labour co-operation agreement would ensure that these economic advances would not be made at the expense of workers' rights. Furthermore, the agreement on the environment would commit both countries to pursuing high levels of environmental protection, to improving and enforcing their environmental laws effectively, to maintaining appropriate environmental assessment procedures and to ensuring that they do not relax their environmental laws to encourage trade and investment.

I will speak for a moment on that, because it is absolutely key to protecting the environment. Not every country in the world has the same standard of environmental protection. That is the reality of the world we live in. Many of the G8 countries and more advanced economies can afford to protect the environment. For growing economies, those dollars are taken from somewhere else to protect the environment. The great thing about this chapter of the investment treaty would be that they could not allow their environmental protection rules to become slacker. They could not be less for a Panamanian company than for a Canadian company. At the end of the day, it would mean that both countries would have to ensure that they did not relax their environmental laws to encourage trade or investment. That would be a step in the right direction, and it is those types of basic rules that would make a difference for the future of Panama.

The same agreement on the environment would also include provisions on encouraging the use of voluntary best practices, corporate social responsibility and a commitment to promote public awareness of the parties' environmental laws.

The free trade agreement would also provide Canadian exporters of goods and services with greater market access to Panama's government procurement opportunities, including those related to the Panama Canal expansion and other infrastructure projects.

The Panama Canal project is one of the largest and most ambitious projects in the region. It is expected to cost an estimated $5.3 billion. This agreement would better enable Canadian suppliers and investors from across the country to participate in this megaproject by ensuring that Canadian goods and services would have access to procurement by the Panama Canal Authority, without discrimination.

However, it is not just about the canal. I will broaden the discussion further to many of the tremendous opportunities this agreement would offer Canadians when it comes to government purchasing. Our government has been at the forefront of efforts to expand and secure access to foreign government procurement markets. According to OECD statistics, government purchasing plays a significant role in the economies of most countries, including Canada. It accounts for approximately 10% to 15% of a country's GDP, amounting to hundreds of billions of dollars annually around the world. These markets present significant opportunities for Canadian suppliers, and our government is working hard to ensure that Canadians have the tools available to take advantage of these opportunities. These obligations would also support the interests of Canadian taxpayers, ensuring increased access, competition and fairness in government procurement in Canada.

What is wrong with the idea of the taxpayer getting the best possible value for his or her hard-earned tax dollars? There is nothing wrong with that principle. These obligations would also support the interests of Canadian taxpayers, ensuring access, competition and fairness in government procurement. I have said that twice, because it is worth repeating. It is worth understanding the basic fairness that can be brought to the procurement market. Ultimately, suppliers, governments and their taxpayers all benefit from these efforts. Our government seeks to accomplish these goals by negotiating agreements such as the World Trade Organization agreement on government procurement and specific chapters in Canada's free trade agreements, such as the one with Panama.

Earlier this year, our government welcomed the successful conclusion of negotiations to modernize the WTO agreement on government procurement. However, our efforts to secure and expand opportunities for Canadian suppliers go beyond the World Trade Organization. Most of Canada's free trade agreements, from the North American Free Trade Agreement to those with Peru and Colombia, have obligations on government purchasing. These obligations are based on core principles, including a commitment to non-discrimination between domestic and foreign suppliers as well as an assurance of transparency and clear procedures.

The Canada-Panama free trade agreement we are debating here today is another step in our effort to create jobs, growth and long-term prosperity for hard-working Canadians.

It has been said many times in the House that Panama has a dynamic and rapidly growing economy. Canada's businesses have long been interested in gaining or expanding access to this emerging market. Despite the global economic downturn since 2008, Panama's economy continues to show strong signs of growth. In fact, its political stability and progressive business environment have helped Panama achieve impressive average growth of 6% to 7% over the past several years.

Panama is also an ideal location for Canadian businesses seeking to expand and build long-term business ventures in the Americas. As a gateway to the region, our trade agreement with Panama will make it easier for Canadians to establish that foothold in the Americas.

Panama's government market, particularly in the areas of infrastructure, transportation and services, represents a significant opportunity for Canadian suppliers. The ambitious $5.3 billion expansion of the Panama Canal, which I mentioned earlier, is at the top of the list. The Panama Canal serves as a key hub between the Atlantic and Pacific oceans and is a significant driver of Panama's economy. Its expansion would bring about increased container traffic, some of which will access Canadian ports to supply the North American market. This is yet another example of why Canada must act quickly to implement this agreement. Canadian businesses can compete and win against the best in the world, but we must ensure that they have a fair opportunity to do so.

As I said, opportunities exist beyond the canal. In 2010, the Panamanian government announced an infrastructure plan valued at $13.6 billion over five years. Numerous infrastructure projects are either under consideration or are already in progress to build and improve roads, hospitals, bridges and airports. Among these projects is the Panamanian government's plan to construct a metro system valued at $1.5 billion.

These projects present many opportunities for Canadian companies and Canadian workers. However, we need this agreement in force, because Canadians can benefit from it. The fact is that despite having signed nearly two and a half years ago and having debated it in this place for nearly 60 hours, the opposition continues to accuse our government of rushing this deal. Two and a half years and 60 hours somehow means that we are rushing the deal. I really beg to differ.

We have seen time and time again that the NDP will use any excuse to oppose a trade agreement. It has been that way ever since NAFTA. Twenty-five years ago, the opposition claimed that the Canada-U.S. and North American free trade agreements would wipe out millions of jobs, compromise Canada's sovereignty over freshwater and cause us to lose our Canadian culture. None of those claims came true. In fact, precisely the opposite happened. Since those agreements were signed, the Canadian economy has boomed. Hard-working Canadians have benefited, and we still have full control over our water. Canadian culture is more alive and well, and I dare say, profitable, than it has ever been in the history of our country.

It is not only the NAFTA that the NDP opposes. The NDP member for Dartmouth—Cole Harbour, when he was the leader of the Nova Scotian NDP, called trade agreements jobs destroying and vowed to fight all trade agreements. The member for Burnaby—New Westminster and former NDP trade critic went so far as to work against Canadian exporters when he argued that Buy American was a perfectly logical policy.

Protectionism is not logical. There is nothing in protectionism that is logical. We should not be surprised that this is yet another trade agreement that the NDP has failed to support. In fact, the NDP members have stood in the way of our attempts to open up new markets for our exporters at every opportunity.

Now, because of these delays, our competitors are catching up. Panama's free trade agreement with the European Union could enter into force as early as the end of this year. Let us consider that for a moment. Most members in this House would look at the European Union and say it is a market-based economy with very high standards for labour relations and the environment and, certainly, that it has democratically based governments.

The EU has done a tremendous job in putting 27 member states together, and soon to be 28 with Croatia joining. We also need to look at the EU for a moment. It did all of that for its member countries to trade with one another. It broke down the trade barriers. The EU has challenges, and in fact the entire world has challenges, with the economy. However, the EU moved forward because it tore down trade barriers. I ask the NDP members to think about this for a moment, that these nations some 60 years ago were shooting at one another. Where are these nations today? They have the most powerful and richest consumer economy on the planet, with 500 million people. It is amazing, and it is because they dared to tear down trade barriers.

Even more importantly, the Panama-U.S. free trade agreement came into force just last week. Another democratically based government with high respect for the environment and for labour, our closest neighbour and largest trading partner, is trading with Panama. That is okay to the NDP members: they will let the Americans and the European Union trade with Panama, but somehow it is wrong for Canada to do the same thing and let our companies compete on equal footing.

Our companies need this agreement so they can take advantage of these commercial opportunities. It is important that Canadian firms establish an early presence to build solid relationships to capitalize on the future opportunities that will arise in this emerging market.

Canadian companies clearly have the expertise to meet Canada's development plans. The Canada-Panama free trade agreement would guarantee access for Canadian suppliers to these types of procurement opportunities, reducing the risk of doing business in the region. The agreement, moreover, would ensure that Canadian suppliers can compete on the same basis as their main competitors in the United States.

It is our job as members of Parliament to make sure that Canadian companies have secure access to opportunities of this nature.

In summary, the time has come to move forward. I certainly still hold out hope for my NDP colleagues. I certainly believe that they do want to move to the centre of the political spectrum. I think in their heart of hearts they understand that trade is good. They have some challenges maybe with some members, but we all have challenges. We do not all agree on every single item. I understand that.

Intuitively, look at the folks we are trading with around the world, especially the United States and the European Union. They are trading with Panama now. They will have their foot in the door ahead of us. We need to be there on equal footing with our foot in the door at the same time.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:55 p.m.

NDP

John Rafferty NDP Thunder Bay—Rainy River, ON

Mr. Speaker, in listening intently to my hon. friend's comments, one of the things that jumped out at me was his statement that he does not believe in protectionism because it is a bad thing for the government and Canada.

I guess that would explain why the government would leave Canadian dairy farmers out to dry when supply management disappears in this country because of trade deals, such as with the EU, which this government calls protectionism.

Would my friend like to comment on that?

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:55 p.m.

Conservative

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

Mr. Speaker, if the hon. member would like to take a moment, I would be happy to provide a briefing on the comprehensive economic trade agreement with the European Union. Certainly, as he well knows and surely agrees with, our position is that supply management is not on the table in those agreements. There is nothing in that agreement that changes the long-held Canadian position on supply management.

Furthermore, supply management has not prevented our signing any other trade agreements, including NAFTA, our agreement with Colombia, and our ongoing negotiations with Japan and the TPP and others. Our position on protection of supply management has not affected any of them.

Every government reserves the right to protect certain items like social services, health care, water, and some that are trade-restrictive such as supply management. In every single trade agreement that Canada has signed, we protected those areas.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

12:55 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I do not always agree with the parliamentary secretary, but I would agree with him that we are now in a bind because the United States has reactivated its FTA effective October 31, and we have rapidly come to a disadvantage in that market as a result.

However, I have to ask the parliamentary secretary where the government has been for the last 38 months. It had the ability to get the bill through Parliament and at this late hour, after the fact, it is now introducing closure to try to get it through, but we are already at a disadvantage at this point.

The parliamentary secretary may want to answer that, but I have a different question for him. The government has gone to great lengths to talk about the advantages to us from an FTA and the expansion of the Panama Canal. The following quotation appeared in the United States Congressional Research Service's report to Congress on the proposed U.S.-Panama FTA dated April 21, 2011. It states:

Another unique feature of the FTA negotiations was the treatment of business issues with respect to the Panama Canal Area. Its status as an autonomous legal entity under the Panamanian Constitution required separate negotiations for government procurement, labor, investment, and other areas. The United States is the only country with which Panama has been willing to negotiate issues related to the canal area in an FTA.

Where does Canada now stand on procurement issues with respect to the Panama Canal under that kind of an arrangement?

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

1 p.m.

Conservative

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

Mr. Speaker, I would disagree. I believe there are opportunities for procurement in the expansion of the Panama Canal.

The hon. member is well aware that we are getting to the final days of the expansion of the Panama Canal. I think we are about two years from the opening date and a lot of those contracts have been let. However, there are certainly procurement contracts and subcontracts available to Canadian companies.

More importantly, if we think of all the global commerce out there on the oceans, the great advantage to Canada with the advent of the twinning of the Panama Canal is that upon that date over 5% of that commerce will go through the Panama Canal at one point or another. When we put that global commerce up the east and west coasts of Canada, our coastal communities and cities stand to gain, especially our ports, such as the Port of Vancouver; the Port of Prince Rupert; the Port of Saint John, New Brunswick; the Port of Halifax; and the Port of St. John's, Newfoundland. Those gateway ports will bring more trade to both coasts of Canada.

That is where the real opportunity from the Panama Canal will lie on its opening date.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

1 p.m.

Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I want to thank my colleague for his great intervention on promoting trade around the world.

I come from a riding with a lot of agricultural sectors. We have beef production, pork production, poultry production and horticulture. In my riding we have Conestoga College, which just recently instituted a food processing centre. We have all kinds of food processing in our riding, including Piller's Meats, Schneider Foods and Conestoga Meat Packers. There are all kinds of opportunities for increased exports.

I am wondering if my colleague could comment on the importance not only to the primary producers of our grain and oil seeds, poultry, pork and beef, but also in terms of our food processing technology, which is certainly envied around the world. We could certainly benefit the producers and processors as well.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

1 p.m.

Conservative

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

Mr. Speaker, I cannot answer the question much better than the member posed it. The reality is absolutely there, and not just for agricultural exports but also for food processing equipment and machinery. There are ample opportunities to export that type of technology to Panama or through Panama as a gateway into the rest of Central and South America.

There are number of areas where we stand to gain, including merchandise exports, agricultural exports and financial services. There is nothing but opportunity with this agreement.

I take great exception to any hon. member who would stand in this place and say that that $111 million in merchandise trade we do with Panama today is somehow not important. For the companies doing that trade today, it is extremely important. Not only that, but they will be the first people able to take advantage of a future expansion of trade.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

1 p.m.

NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I was a member of the Standing Committee on International Trade for almost a year, and I am always amazed at the answers that the parliamentary secretary gives to justify certain actions.

I will focus on the issue of tax havens. I took the time to do some research, and I found some very important reference sites—sites that promote tax havens to the public. For example, a European site recommends tax havens in fewer than a dozen countries, including Panama, for European business creators or SME managers.

Similarly, CCP Inc. says on its website that it can set up any type of offshore company in five tax havens, including Panama. Panama is part of these tax havens. The company's slogan is “Security and Privacy are Your Rights!” The site is available in English, French and Russian, which gives a very good idea of how serious the company's business is and how much money it is raking in.

I want to ask the parliamentary secretary how he can so easily condone tax evasion and tax havens.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

1:05 p.m.

Conservative

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

Mr. Speaker, I think the hon. member would agree with me that no parliamentarians are condoning tax havens. At the same time, I think we need to realize that all countries are moving forward at different rates and not all have the same capacity.

Let us take a look at where the Panamanian government has moved on tax havens. They have signed tax information exchange agreements with 14 countries around the world. That fact alone has taken them off the OECD grey list. They are now not on the grey list but the so-called white list, with most favoured nation status.

The reality is that Panamanians are moving in the right direction. This is not a matter of condoning tax havens; this is a question of whether we are going to trade with a country with a formula that establishes rules-based trading. We are trading with them now. We are not suddenly going to start trading with Panama tomorrow, because we are already doing it. The difference will be that we will have a clearly established set of rules to do so.

Third readingCanada-Panama Economic Growth and Prosperity ActGovernment Orders

1:05 p.m.

NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, it is my pleasure today to rise and make comments on the bill before us, the free trade agreement with Panama. Before I get to the substantive part of my argument, I want to touch on a couple of things.

We have heard a lot about the NDP being against free trade. The NDP has shown that it is for free trade, when those free trade agreements are negotiated in a manner that protects human rights, labour rights, the environment, and that is transparent and sustainable.

We are so serious about free trade that our critic, and it was only the NDP critic, my esteemed friend from Vancouver Kingsway, took 13 substantive amendments to committee. If we were not serious, all we would be interested in saying is that we are opposed to this. We are not. We wanted to make this free trade agreement work. In order to make it work, our critic and our whole team put in a lot of time and took 13 amendments to committee. How many amendments did the other opposition parties make? Zero. However, despite all the hard work, my colleagues across the aisle once again refused to accept any amendment.

One of the key things about being a parliamentarian, and the whole purpose of the committee stage, is for people from all political parties to try to improve the legislation. However, there is arrogance from the other side, and because Conservatives have a majority, they are not open to any amendments. The government has a bizarre idea that anything they propose is so superior that it could not possibly be corrected or amended by anyone else. The Conservatives totally ignored the serious work done by parliamentarians to try to fix their legislation so we could then support it.

If any blame is to end up anywhere, it is on the government side. Once again, Conservatives have failed to allow parliamentarians to do their job. They not only use their parliamentary majority at the committee stage to shut down all the amendments, but today as we saw earlier, they used their majority to shut down debate. What do they have to hide? They just want to read out the same old mantra over and over again.

We also heard from the government that this is all about improving trade and improvements for Canadians. Neither the former government, led by a Liberal, nor my friends across the aisle, can be trusted to negotiate free trade agreements. They did not do and they do not do the necessary oversight that is required. My colleagues across the aisle love to quote dollars and figures, so let me quote some numbers from them. These are the Conservatives' figures.

I was so keen to speak on this that I forgot to say that I will be sharing my time with my esteemed colleague from Surrey North.

As I was saying, we have gone from a $26 billion trade surplus to a $50 billion trade deficit. For our manufacturing, which is a value-added job, the trade deficit has gone up six times, to over $90 billion. Those are decent paying jobs that Canadians no longer hold because they have been given away.

Raw materials are not only Canadians' raw materials, but they are also the inheritance of our children and grandchildren. Once again, the export of raw materials without value-added jobs adds up to $30 billion, but value-added exports are down to $35 billion.

If I were an economist or an accountant, I would be looking at these figures and asking the government to go back to the drawing board to do some homework. That is the teacher part of me.

We also hear the Conservatives talk about opening the borders, free enterprise, and all of that. I am reminded that we hear a lot of that when it comes to big tax breaks for international and national corporations. We hear about it when it comes to free trade agreements. However, when it comes to labour market adjustments, of course, all of that disappears. Then we pass legislation so that employers can pay 15% less to temporary foreign workers who we bring in to ensure the free marketplace analogy is not allowed to work when it comes to Canadians looking for decent paying jobs.

I heard my esteemed colleague from across the way talk about NAFTA and how wonderful it has been. I would remind him of the reality in British Columbia, the beautiful province that I reside in and which is a pleasure to call home. In B.C., we have seen truckload after truckload of raw logs going over the border. Many of our towns in northern B.C. and in the interior have become ghost towns, as they watch those raw logs disappear over the border. Gone with them are the jobs in manufacturing, and, of course, we then buy the manufactured products back.

Let me say that if one mentioned NAFTA in many towns in B.C., one would not get a pleasant reaction. My colleague from British Columbia sitting on the other side knows what a heated topic exporting raw logs from British Columbia is and how it has impacted our communities in a huge way.

The other issue I have to touch on is the environment. One of the key areas for us to address is the environment, and free trade agreements are one of the ways we can do that. However, the Conservative government seems determined to undermine and dismantle environmental protection. Through these free trade agreements, it would also be supporting environmental degradation in other countries as well. I think that is unacceptable. We really have to take a look at where we are going with this.

Members all know that we do not live in isolated cells. Environmental factors and global warming do not recognize borders. They do not stop to show a passport. When pollution occurs in Panama, it impacts us in British Columbia, across Canada and around the globe. We have to be cognizant of that.

Of course, our mining company interests in Panama would be protected and we are happy about that, but there needs to be a balance here. However, it is imbalanced, which makes us not support this particular free trade agreement.

I will quote from Jen Moore's presentation to MiningWatch Canada .

Although [the agreement] includes an environmental side chapter, this is a non-binding declaration that relies on political will for its implementation, of which sort we have not seen in Panama.

Last but not least, I want to mention the money laundering and tax haven in Panama.

The Conservative government talks about security and a halt to drugs. If someone has five marijuana plants, it would give them a six-month minimum sentence. However, it is willing to sign an agreement with a country that even the OECD has recognized as being a tax haven, where money laundering takes place and there is no transparency over those issues.

New Democrats have very serious concerns. We are opposed to this agreement because the Conservatives refuse to accept the very intelligent amendments put forward by our critic.

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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

Mr. Speaker, I listened with interest to my colleague, who implied that a free trade agreement can somehow be unilaterally amended in Parliament once all of the negotiations have occurred. More troubling than that was her comment that her party supports free trade.

I want to give her a lot of time to answer this question. I would like her to list all of the free trade agreements in the past 20 years that the NDP has supported.

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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, as I have said, we will support free trade agreements. We will support free trade agreements—

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Conservative

LaVar Payne Conservative Medicine Hat, AB

How many?

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Conservative

Harold Albrecht Conservative Kitchener—Conestoga, ON

The past 20 years.

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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, I would like to be able to finish my response.

New Democrats would like to be able to support free trade agreements. We supported the free trade agreement with Jordan. I was in the House when we voted for it, and I was very proud to do so. I was looking forward to supporting this one. I looked at the 13 amendments that the NDP critic put forward after a great deal of thoughtful deliberation, and if major amendments had been accepted, the NDP would have been rising in a wave. We would have been on our feet voting for this.

We take our parliamentary duties very seriously. We have to do due diligence and protect the environment, labour rights and Canadian jobs.

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Liberal

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

Mr. Speaker, I share a lot of the members' concerns. However, she said at one point that if she were an economist, she would instruct the government to go back to the drawing board. I was wondering if she could cite an economist who actually said that.

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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, I have not had too many conversations with economists recently, and I will be very honest about that. However, I have discussed free trade with many working people in British Columbia. I have discussed free trade with some of the logging companies. I have discussed free trade with some of the trucking companies. I have discussed free trade and its impact, especially as we have seen it in B.C., with very diverse communities. All of them can see one thing very clearly: we should not sign a free trade agreement that does not benefit Canadian workers.

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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, speaking of Canadian workers, after listening to this debate, I have to think that the Conservatives' response to a flood would be to provide a thimble and say it is going to help. We have seen a gush of well-paid manufacturing jobs leave the provinces of Ontario and Quebec, presided over by the government.

Conservatives come before the House today and talk about good jobs and job creation. Let us see a job-creation plan from the government. We have been asking for this since we got here in 2011 and we have not seen a single one. Conservatives want to talk about good jobs. Let us put a plan on the table and not play around with the facts about jobs. I would like my colleague to respond to that.