Madam Speaker, I am pleased to rise in the House today to debate Bill C-24 to implement the free trade agreement signed between Canada and the Republic of Panama on May 14, 2010.
Although I am in favour of free trade and I support this bill, I refuse to do so at any cost, because I think we need to take a step back and reflect on the relevance and the impact of this agreement. Unlike the NDP, which systematically opposes free trade, the Liberal Party of Canada has always believed that trade agreements can have a positive effect on our economy. As we all know, our economy is based on exports, so eliminating trade barriers is highly desirable. Personally, I do not think the agreement with Panama, per se, is problematic; rather I think the problem lies with abandoning our traditional markets.
Our current economic situation is proof of how negligent the Conservatives have been. Although we had a positive trade balance for a very long time, we now have a trade deficit, and I highly doubt that a free trade agreement with Panama will change that fact. In 2009, Canada's exports to Panama totalled only about $90 million, while our trade with the U.S. exceeds $1.4 billion every day. Approximately 75% of the goods we export go to the United States.
Even so, our trade balance with our neighbour is in deficit. Protectionist measures in the U.S. are contributing to this unfair situation, despite NAFTA. I therefore have to wonder why a new free trade agreement with another country is so urgent, when our largest trading partner refuses to honour its commitments when difficult economic times come along.
Perhaps the Canadian government should do more to defend our economic interests in Washington, rather than in Panama. We are seeing this government making more and more concessions to the Americans rather than defending Canadian interests, and our economy is paying the price.
I firmly believe that it would be in our best interest to focus our efforts on revitalizing our trade relationship with our neighbours to the south and our other major trading partners rather than spreading our resources out. Instead of doing whatever the Americans want, which is what the government did on the copyright issue, the Conservatives should work harder to protect Canadian interests.
The Conservatives have been too nonchalant. For example, even though President Obama mentioned the buy American policy several times in his speech, the Conservatives were taken completely by surprise when they found out that the U.S. government intended to go ahead with a measure that violates our free trade agreement.
Why bother signing so many other free trade agreements when the most important one is not even enforced? I think that we should find ways to make the United States respect our agreements before we sign new ones that will likely have very little impact. It is an inescapable fact that, because of our geography, our economy is heavily dependent on the United States. The government should focus its efforts on that market rather than divide its resources among less critical files.
We also have a number of other major trading partners, including South Korea, China and the United Kingdom. The government should make it a priority to recapture those markets. Despite its strong economic growth, Panama will never be more than a relatively small market for us. The impact of this agreement will therefore be small, as I have said several times already.
Of course, diversifying our trading partners is a good thing and makes us less vulnerable to the ups and downs of certain markets. Despite its relatively small economy, Panama is important. It has been experiencing significant economic growth and is one of Canada's major trading partners in Latin America.
The country has also been making significant progress in matters of governance and democracy. In a way, a free trade agreement would recognize that progress. It is also worth noting that the new Panama Canal will be of critical importance to global trade. The region will probably continue to experience strong economic growth and will become an even larger commercial hub once the new canal opens. Strengthening our relationship with Panama is no doubt a good move.
However, we cannot ignore the issues of tax evasion and money laundering. Canada loses millions of dollars every year because of such illegal activities. With a free trade agreement in place, we will be entitled to ask for greater fiscal transparency to combat tax fraud.
In addition, certain environmental and humanitarian issues need to be raised with the Panamanian government. The working conditions in Panama do not even come close to those of our workers. Salaries are extremely low and working conditions are far from good for everyone. This free trade agreement will open our market to Panamanian companies. We are within our rights to ask Panama to improve its working conditions. Clearly, a company that underpays its employees and makes them work 12 or even 16 hours a day does not deserve to be able to sell its products in Canada and compete with equivalent products that, of course, cost more to produce here.
The government must also require certain environmental guarantees. But, of course, I am not holding my breath in that regard. This government is not doing anything for Canada's environment and so I doubt it will do anything for Panama's. Coming from this government, such demands would have no credibility.
In closing, I would like to reiterate my support for free trade with Panama. However, I believe that we should sign a tax information exchange agreement with this country. This would help us to increase transparency and would give us more tools to combat tax evasion and money laundering in Panama.
Nevertheless, we should first put all our energy into recapturing our core markets. Canada must speak up. Canadians expect this government to protect their economic interests on the international stage. The Conservatives should focus more on our economic relationship with the United States and try to make it honour the free trade agreement because, as I mentioned in my speech, our economy depends heavily on the United States. Panama has only a very small influence on our economic health.
I am therefore asking the Conservatives to focus all their energy on the relationships with our largest trading partners. Given the fragility of the current economic situation, we simply do not have the luxury of ignoring our core markets, nor do we have the flexibility to do so.