Mr. Speaker, I believe that Canada can play a positive role in taking up the challenges faced by Panama, a country that has to carve out a place for itself with a population of barely three million people in an ever-changing America. These three million people, for the most part, deserve to participate in and contribute to the growth being enjoyed by Latin America.
There are, however, facts that cannot be ignored if we wish to enter into a free trade agreement with Panama. Panama is one of the most active tax havens. The main economic activity in Panama is the provision of financial services. The G20 met in London in 2009 and stressed the importance of dealing with the problems caused by tax havens and now, Canada is working in the opposite direction and opening up a new front to facilitate tax leakage. An agreement with Panama will promote tax evasion, which involves depriving the taxman of huge sums of money. Canadians will not benefit from the agreement any more than Panamanians.
One aim is to significantly reduce tariffs. However these reductions in a poor country such as Panama could have serious consequences. For example, Panamanian products will end up in competition with Canadian products when, in fact, Panamanians will have little chance of exporting their own goods unless it is produced in conditions of poverty.
We know that the Conservative government has calculated the potential gains for Canada. Nobody is denying that Panama has a lot to offer. Nor is anyone denying that Panamanians are every bit the equals of their Latin American neighbours when it comes to their talent and their determination to provide a rich and honest life for their families.
An outstretched hand between two nations has tremendous potential. Today, I would say that such gestures are necessary. Canadians have extended a hand to welcome, dialogue and co-operate. Obviously, this co-operation benefits Canadians, who in turn create coveted wealth with their partners: jobs, good jobs, a peaceful youth, well-being, and even some money under the mattress. Canadians have a hand extended, but we are not sure that the government really understands why.
Canadians are afraid the government will use this outstretched hand to take without giving back. Canadians are afraid the government will flout Canadian values in its trade with other nations. The many oversights in this free trade agreement only fuel this fear. We need to ask ourselves if they are in fact oversights or if they are deliberate omissions. As it has done regarding the environment and in other areas, is the government limiting itself to developing international agreements based on what it can get out of them? Is it forgetting to include what it has to offer and should offer because it has run out of steam or run out of ink, or is it doing so deliberately? Are these omissions an invitation to Canadian companies to simply take what they like, without giving anything back, an invitation to traffickers of all kinds to continue to plunder?
I am certain that Canadian values are dear to the Conservative members. I have travelled with some of them and, together, we have seen how Canada can help meet certain challenges faced by these countries.
We were all touched by the difficulties being experienced by a number of our neighbours in the Americas. We discussed some promising solutions.
For that reason, I find it difficult to understand the lack of ambition in the bills they are introducing today. Having seen what we are capable of and what contributions we can make, I am surprised by the silence of the proposed agreements. The Conservatives could use the opportunity afforded by this new relationship to provide more education for young Panamanians, and more training for workers and upgrading for those who persevere.
However, they are taking the laissez-faire approach. They are choosing to let others promote Canadian values, and to let corporations make the decisions on trade reciprocity.
In its bill, the government claims to want to “protect, enhance and enforce basic workers' rights”. If the government were as serious about this aspect as it is about eliminating trade barriers, there would be more substance in these agreements. There might be a little more for Panamanians. If the government were serious, it would not merely list the areas of co-operation that are likely to be developed in the future.
The Conservatives could immediately guarantee adequate working conditions, whether by ensuring a minimum wage or labour standards that meet Canadian standards. Instead, they adopt a laissez-faire attitude. They could immediately protect children by offering them education and ensuring they are not put to work. This does not only mean eliminating the worst forms of child labour, but also asking businesses to reinvest 1% of their payroll in training, or promoting local hiring and co-operation with training programs. But the Conservatives adopt a laissez-faire attitude.
Yet, these would be winning conditions for all in an international relationship. He who extends his hand to grab is protecting his own pocket first and foremost. If the government's intention is to simply ensure a secure environment for Canadian investments, then it will confirm Canadians' fear and betray their values. On the other hand, if the government is serious in its desire to develop the potential of the Canada—Panama relationship, then it must be ambitious.
Canadian businesses must bring in as much as they take out. That is a principle of fairness essential to trade. If, in exchange for opening up the Panamanian market we only get a few fruits and vegetables at a discount, while also allowing tax evasion on a bigger scale, then there will be no gain for Canadians. Panama does not deserve to be isolated. On the contrary, that is the worse thing that could happen, including to us. Such isolation would give even more freedom to profiteers. Panama also does not deserve to open its frontiers to speculation and to investment without restrictions.
As for Canadians, they do not deserve to see their confidence and values betrayed by their government's negligence. They do not deserve to see agreements signed on their behalf promote abuse instead of combating it. We have all a duty here to ensure that this free trade agreement between Canada and the Republic of Panama is balanced and ambitious. Therefore, let us work together to ensure that it is indeed the case.