Madam Speaker, I rise in the House today to speak in support of Bill C-24 , the Canada–Panama free trade agreement. This is a trade agreement that would help Canadians from all regions of the country, including the hard-working people of Calgary Northeast.
The Canada-Panama free trade agreement would level the playing field for Canadian businesses in Panama. As we all know, healthy Canadian businesses produce jobs, growth and long-term prosperity. Seeing as how Panama has negotiated a few free trade agreements in recent years, Canadian companies are currently at a disadvantage in Panama because many of their competitors have better market access under one of Panama's recent free trade agreements.
In March 2011, six Central American countries, including Panama, initialled an association agreement with the European Union. The agreement includes a section on trade, which will reduce tariffs on European goods such as machinery and transport equipment, goods that are also key Canadian exports to Panama.
In addition, since 2003, Panama has signed and implemented free trade agreements with Chile, Peru, Singapore and Taiwan. However, it is not just these trade agreements against which we are competing.
The United States is our friend but it is also a competitor. The U.S. signed a comprehensive free trade agreement with Panama in 2007. It has been ratified by both Panama and the U.S. and it is expected to come into force before the end of 2012. Once that agreement is brought into force, over 87% of U.S. exports of consumer and industrial goods and nearly 56% of American agriculture exports to Panama will become duty-free immediately. Canadian producers of pork, potatoes and other goods will be hard pressed to succeed in the Panamanian market if their American competitors enjoy such duty-free access while we do not.
I am sure my hon. colleagues will agree that we must take steps to maintain Canada's competitiveness in Panama. The Canada-Panama free trade agreement would do just that. By removing the majority of tariff barriers faced by Canadians goods exported to Panama, this agreement would help Canadians succeed in one of Latin America's most dynamic and rapidly growing economies.
The Canada-Panama free trade agreement would also help Canadian companies bid competitively on major government procurement contracts, including projects related to the $5.3 billion U.S. expansion of the Panama Canal. If we in the House believe that Canadian exporters and investors are among the best in the world, we must help them prosper by ensuring that they are not disadvantaged in the Panamanian market. The opportunities are there and it is our job to help Canadians take advantage of them.
Now I will turn to the second set of benefits that the Canada-Panama free trade agreement would provide. As members know, Canada is a country of many regions. Tariff concessions under the Canada-Panama free trade agreement would make Canadian goods from every region more competitive in Panama's market, bringing economic benefits to every province.
Permit me to briefly remind the House of a few specific benefits that this agreement would have for exporters across Canada.
When I migrated to Canada, Quebec was my first home. That is where I met my wife Neetu. Our first son Jatin was born in Montreal on January 15, 1991. It is a beautiful part of Canada and a province that would benefit from this trade agreement. Quebec pork producers would enjoy immediate duty-free access to the Panamanian market. Panama's tariffs on pork currently range up to 70%.
Quebec producers of industrial and construction machinery would benefit from the immediate elimination of Panama's current tariffs, which are as high as 15%. Quebec firms in the pharmaceutical and aerospace sectors would also enjoy duty-free access to Panama. Panamanian tariffs in these sectors currently range up to 11% for pharmaceuticals, and up to 15% in the aerospace sector.
Therefore, I urge all Quebec members to stand up for Quebec producers and to vote in favour of this agreement.
In Ontario, the free trade agreement would benefit exporters through the elimination of Panama's tariffs on industrial and construction machinery. Ontario exporters of electrical and electronic equipment which currently face tariffs of up to 15% would also enjoy immediate duty-free access to the Panamanian market. Other sectors of export interest for Ontario include pharmaceuticals, chemicals and furniture. In all of these sectors, Panama will immediately eliminate its current tariffs when the free trade agreement comes into force. I know that the Leader of the Opposition likes to blame all manufacturing slowdowns on other provinces, but supporting this agreement is one real way, an easy, honest way, that the NDP can stand up for Ontario manufacturers and exporters.
In B.C., where I also lived before settling in Alberta, exporters would benefit from the immediate elimination of tariffs on goods such as paper and paperboard, processed food products and wine. Exporters in my home province of Alberta would enjoy duty-free access for industrial and construction machinery, and power-generating machinery.
In grain-growing provinces like Saskatchewan, Manitoba and Alberta, farmers of oilseeds, pulses and cereals would benefit from the immediate elimination of Panama's tariffs, some as high as 40%, on their products.
Let us jump back east. In Atlantic Canada, exporters would benefit from the immediate reduction of Panama's tariffs on paper and paperboard. Current tariffs on these products range as high as 15%.
Panama would also eliminate its tariffs on fish and seafood, which range up to 15%, and frozen french fries, which range up to 20%. As we know, french fry superstar McCain Foods is fast becoming a global player, and recently I had the pleasure of touring one of its facilities in Gujarat, India with our hard-working Minister of International Trade. Let us not stand in its path to success with Panama.
Other sectors of interest for Atlantic Canadian exporters that would receive duty-free access under the Canada-Panama free trade agreement include plastic, electrical and electronic equipment, and information and communication technology.
These represent just a few of the ways that Canadians would benefit from this free trade agreement, but before workers and businesses across Canada can take advantage of these new opportunities, we must do our part and pass Bill C-24. We live in challenging economic times, and we cannot allow Canada's competitiveness to diminish. By pursuing an aggressive bilateral trade agenda, this government is helping Canadians to compete and win in markets beyond our borders.
International trade plays a critical role in the success of our nation; 60% of our GDP and 1 in 5 jobs depend on trade. Free trade agreements, including this agreement with Panama, are necessary to help Canada maintain its current economic strength and prosperity. That is why I hope that my hon. colleagues here in the House will join me in supporting the passage of Bill C-24. It is good for constituents, it helps produce jobs and growth, and it is good for Canada.