Debates of Jan. 29th, 2014

Canada-Honduras Economic Growth and Prosperity Act

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, let us put this in context. Honduras is a country of about eight million and Canada of 35 million, so Canada is about four times the size.

Imagine if the current Canadian government removed four members of the Supreme Court of Canada because it did not like the decision they made.

Let us say 23 journalists in Honduras are equivalent to almost 100 Canadian journalists here. Imagine if 100 journalists in Canada had been murdered in the last five years.

Imagine if members of the opposition parties were picked up on the street and assassinated, and imagine if there were dozens of LGBT people in this country who were murdered by paramilitary death squads roaming through the Canadian countryside and the authorities refused to even investigate, never mind prosecute them.

This is the real situation in Honduras. How would we feel about those conditions here in this country? How would we feel about another country internationally extending a reward to us in the form of increased economic support? Would we not want those countries of the world to be putting pressure on us to raise our standards to acceptable 2013 international democratic and human rights standards?

The New Democrats say we should, and I am absolutely flabbergasted that the Conservatives bring forth an agreement like this in 2013 and expect Canadians to accept it.

[Scott Reid, Conservative, Lanark—Frontenac—Lennox and Addington, ON]

Mr. Speaker, I chair the Commons subcommittee on international human rights. We have done some hearings on Honduras. We have also done some hearings on other countries, including Iran.

Frankly, I was astonished to hear the hon. member suggest that there is any resemblance at all between these two countries. It is beyond outrageous. It is kind of like comparing them to the Martians and the Neptunians.

In Iran, there is suppression, not merely of political dissidents, but murder of the entire leadership of the Baha'i faith, which originated in Iran, and gays are forced to choose between being executed and going through forced sex change operations. The Iranian regime favours a second genocide to wipe out the Jews of the world by using nuclear weapons against Israel, and it is attempting to develop a nuclear policy to follow through on that.

I would say that there are some differences between Iran and Honduras. Notwithstanding his suggestion that we should be looking at a free trade agreement with Iran, I suggest that the parallels are imprecise.

The member mentions that there is a record of human rights abuses in Honduras. He is right. There is also a human rights abuse record in the United States, which had slavery; in Britain, which conquered many countries, and so on. The fact is that there is a congress elected today, through elections last year, that is not responsible for any of these things.

The member mentioned a very high crime rate. He is right; it is one of the highest in the world, along with the rest of Latin America. That is a problem of civil justice. It is a matter that is not under the direct control of the government. It is not a human rights issue, although it is a tragedy.

Finally, with regard to the suggestion that it is undemocratic, that statement was true, but it is no longer true. I cannot imagine what, other than a drive to prevent us from ever having free trade with any country anywhere ever is motivating this member.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I raised the issues of countries like Iran, North Korea and Ukraine to illustrate examples of countries to which we would not consider extending preferential terms.

Each country is unique; sometimes they are unique in degrees. However, when there is a country like Honduras, which the United Nations has stated engages in widespread human rights violations, including killings, disappearances, forced evictions and sexual violence, I fail to see how that is less upsetting to the hon. member than what is happening in Iran.

Both countries are doing the same thing. They repress their citizens' rights. They kill their own citizens. They are not democratic. They do not respect political rights. They murder journalists. They do not have free and fair elections. That is the comparison. That is the analogy we are making here.

The hon. member is on the human rights committee, and if he does not get that comparison, then I am not sure he is well placed to be on that committee.

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, Liberals support Bill C-20. The Liberal Party is strongly in support of the principle of free trade as an essential part of Canada's economic growth in the 21st century.

I would like to talk a bit about our broader vision of what we need to do with trade and how that fits into our overall economic vision, and then I would like to talk about this specific agreement and how we need to work hard in implementing it to live up to the principles of Canadian democracy and how Canada wants to conduct itself in the world.

On trade, 19.2% of Canadians work in jobs that are directly in the export sector, and up to 80% of the Canadian economy, depending on how one counts it, is dependent on exports. We are a small country in a vast globalized world economy, and without being open to that world economy, without being an active energetic participant, we have no chance of thriving and, crucially, no chance of creating middle-class jobs, which we need and which we are failing to create in sufficient number and quality right now.

However, what we need is not just a number of piecemeal agreements with small countries like Honduras. What Canada needs to be successful is an economic and trade vision that is much more ambitious, wider reaching, and which fully and ambitiously integrates Canada into the global economy. Therefore, while Liberals support this trade deal with Honduras, we believe our country needs to be more energetically engaged with other emerging market economies that are growing strongly and where we see the rest of the world competing now for a position.

In particular, I would like to draw everyone's attention to what is happening right now in Africa. A lot of us are accustomed to seeing Africa as a development story, a poverty story. The reality of the new Africa today is that it is one of the world's hottest emerging markets. Some of the leading countries in Africa have had, for more than five years, 5% economic growth year on year. This is real; this is huge. We are seeing investors pouring in, and we are seeing a competition between the big and ambitious countries in the world, notably China and the U.S., for a strategic position in Africa. Where is Canada? Africa is a continent to which we urgently need to turn our attention when it comes to trade deals, and what a great way for us to have a positive impact on the world.

The other part of an ambitious global economic agenda and global trade agenda for Canada is thinking about where we want to position our country in the world economy. Right now we are living in a winner-take-all global economy. That applies to countries, and it applies to individuals and companies. Frankly, we are not seeing from today's government a sufficiently ambitious and forward-looking economic agenda for our country.

One of my favourite books at the moment is a book by economist Tyler Cowen called Average is Over. His central contention is that we are living in a moment when if a company is the best in a space, the top talent in a space, the top city or top country, it will succeed. However, if one is in the middle and just average, there is no future. That is a lesson that Canada desperately needs to learn and that the Canadian government needs to make as the centre of its policies.

We need to be building an overall trade agenda, an overall economic vision in which we are creating in Canada a platform for being fully engaged in the world economy, but also a platform for which we have companies headquartered in Canada doing business around the world, rather than the old branch plant economy. That is not going to work. It is not going to create enough great jobs for the 21st century. This reality of an ambitious trade agenda, an economic agenda fit for the 21st century, we believe, is going to become ever more apparent in 2014.

Already this week, the first week of our new session, we have heard a lot of assertions from the Conservative benches about Canada's economic excellence, how we are better than anyone else in the G7 and so on. That is going to be less true in 2014, as the other G7 economies, which suffered so greatly from the financial crisis and from which Canada was spared thanks to the wise bank regulation policies of the Liberal government in the 1990s, have now healed. We are going to see that in 2014. We are already seeing a very strong comeback in the U.S. and the U.K., but our relative performance is looking much worse already, and we are not even through the first month of 2014.

That says that we have coasted. We have coasted on the fact that we did not have a financial crisis and we have not put in place a powerful, forward-looking economic agenda that is going to build prosperity for the middle class in the 21st century, and that includes trade. Piecemeal agreements with small countries are a good start. However, we need to be a lot more ambitious and have a much broader vision.

When it comes to the Honduras deal in particular, my hon. colleagues in the NDP have raised the important point that this is a trade deal with a country that has a very troubled record and very troubled reality on many political labour and environmental issues. We in the Liberal Party believe that it is important for us to do this deal. Not every country in the world is perfect, and we have to trade in the global economy. We believe that having a strong trading relationship can and must be a way to be a positive force in those economies. However, it will only work if it is more than words.

In implementing this trade deal, we have to be very aware of what is going on in Honduras and to the possibility that by having a trade deal with this country and having our companies engaged with it we could be complicit in political, environmental and labour violations. We do not just sign a deal and walk away; we have to watch closely and be absolutely certain that we and Canada are behaving well.

I would like to point to the fact that rather than having a binding mechanism for labour and environmental standards in the side agreements, article 816 of the free trade agreement states:

Each Party should encourage enterprises operating within its territory or subject to its jurisdiction to voluntarily incorporate internationally recognized standards of corporate social responsibility in their internal policies....

That puts a great onus on us to be aware, to watch and to be absolutely careful that those political, environmental and labour standards are watched and observed.

As the MP for Toronto Centre, I would like to draw particular attention to the tremendous abuse and repression that the LGBT community faces in Honduras. Even as we broaden and deepen our economic relationship with Honduras, this is something that we have to be absolutely aware of and watchful about. We have to take great care that the Canadian companies that will be working and trading there, and will have a relationship with Honduras, are not party to that and are in fact acting against it through their example.

Regarding the environmental standards, we have to be watchful about this. If, as the Labour Party believes, we are to use our trade agreements with troubled countries to be a force for moving those countries in a positive direction, we have to take incredible care. We have to take incredible care about the labour and environmental standards as well. This is how we ensure that free trade is a great deal for the Canadian middle class. Without watching those labour and environmental standards, trade with a country which is poorer than Canada, like Honduras, can be dangerous for the middle class.

Again, we cannot simply sign a piece of paper and walk away. This trade deal has potential. That is why we support it, but we have to be extremely vigilant. We must also move toward a broader vision, something much more than one single deal.

[The Acting Speaker, Conservative, Bruce Stanton]

Before we get to questions and comments, I have a little item here that I forgot to do before the hon. member for Toronto Centre began.

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Malpeque, National Defence; the hon. member for Québec, Air Transportation; and the hon. member for Charlesbourg—Haute-Saint-Charles, the Quebec Bridge.

Now we will go to questions and comments.

The hon. Parliamentary Secretary to the Minister of Public Works and Government Services.

[Bernard Trottier, Conservative, Parliamentary Secretary to the Minister of Public Works and Government Services]

Mr. Speaker, I listened attentively to my colleague's speech from across the way. There are some very mixed messages criticizing the agreement but saying that she will support it and that her party will support it.

There is a certain history of the Liberal Party not really supporting trade deals. We all remember Jean Chrétien promising to rip up the free trade agreement in 1993, and then getting elected and doing nothing of the sort. Now they have that religion around free trade.

With respect to free trade in Latin America, we have free trade deals with Costa Rica, Colombia, and Panama. I was in Guatemala City recently and met with the Canadian Chamber of Commerce. I met with somebody who is actually operating in Costa Rica and Colombia, where we do have free trade agreements, and we talked about how they have kitchen showcases. There is a rising middle class in Latin America, and what do middle class families want? They want new kitchens. They are importing entire kitchens from plants in Winnipeg and Montreal. This is just an example of the tremendous opportunities for exports to countries like this.

When we criticize a deal because it is too small, we have to recognize that collectively Canada is really becoming a player in these markets in Latin America.

Would she explain further why she thinks trade with a small country, which on the one hand she is supporting, is not ambitious enough? One country at a time, we are building a trade arrangement in Latin America and making Canada a major player.

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, our central point and our central argument about economic policy for Canada is going to be that what we need is a big global vision, a vision fit for the 21st century. That is why we are supporting the agreement but saying that it is not enough and that we need to be working on bigger deals that fit in with a broader agenda.

I do, though, have to respond to the earlier comment criticizing us for supporting the member's policy. What I would say there is that the Liberal Party is moving past the rancorous major attack politics that, sadly, we have seen dominate this House for far too long. When we think a policy is a good one, we are absolutely willing to support it. That is case, absolutely, with free trade.

Since I hope you are pleased with our support for the free trade deal, I would encourage you to support our very bold and incredibly popular move on the Senate. You gentlemen could do the same thing today. You could show how broad-spirited you are and show that you too can be bipartisan.

[The Acting Speaker, Conservative, Bruce Stanton]

I would just remind all hon. members to direct their comments through the Chair and not directly to other hon. members.

The hon. member for Vancouver Kingsway.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, first I would like to welcome the hon. member to the chamber and congratulate her on being appointed her party's international trade critic.

Again, the issue here is not that Honduras is a small country and that it is poor; the issue is that Honduras is an undemocratic country with one of the worst human rights records in the world. I have already gone over the fact it has the highest murder rate of journalists, it is a major cocaine trafficking centre, it tolerates environmentally destructive policies, and New Democrats believe that Canadians want Canada to stand up for democracy and human rights on the world stage.

I heard the hon. member give a passionate speech the other night on the situation in Ukraine, another government that is repressing its citizens and acting undemocratically. My question for the hon. member is this: is it the position of the Liberal Party that Canada should be signing a free trade agreement today with the current Government of Ukraine as a way of engaging with it so that we can elevate human rights, or would she be opposed to Canada signing such an agreement with the current regime in Ukraine, which is every bit as bad as the current regime in Honduras? What is the difference?

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, first, I am sorry for not addressing you. I promise to learn the rules better as the days go on.

With regard to the Ukraine parallel, obviously I have been thinking about that a lot. It is very relevant to the current situation.

I would draw the attention of my hon. colleague to the fact that the current battle in Ukraine was actually precipitated by the willingness of the European Union to sign an association agreement, which included some trade provisions, with the current Government of Ukraine, led by President Yanukovych. That current government, even before all of this, was not an angelic regime. In fact Yulia Tymoshenko, of whom we have been speaking, was imprisoned. It was a difficult, finely-balanced decision for the European Union. It was prepared at that point to sign an agreement Ukraine, and indeed was very enthusiastic about it, because the EU felt that agreement would help Ukraine, which was tentatively building a democracy, to become fully democratic.

The same applies to Honduras now. It is absolutely not perfect. That is why I raised, and we as a party raised, some significant points, and we think this agreement has to be closely monitored. This is not something that we sign and walk away from.

At this moment, we think that this deal is good for Canada and good for Honduras.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I would also like to congratulate the hon. member for Toronto Centre for joining us in this place and on her role as international trade critic.

I wish that her party had a better position on trade in general and on this agreement in particular. I do not see how one can turn a blind eye to the fact that we are talking about a country that has a repressive regime, four years following a military coup, with a very questionable election. It was just this past Monday that the new president was inaugurated, and all indications are that he will continue the trends of increasing gaps between the wealthy and the poor and of infringements on indigenous lands—and sadly, right now, infringements on indigenous lands by Canadian tourism interests, which under this agreement would be able to further penalize Honduras should it decide to change its tune and want to protect indigenous rights.

Does the hon. member have no qualms about this agreement with Honduras?

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, I thank the member for those points. I would just like to repeat that Honduras is absolutely far from being an angelic and perfect country, and we are fully aware of that. It is our judgment that at this moment a trading relationship would help us to help the positive forces in Honduras and would help Honduras move in the right direction,

Again, this is not something we sign and walk away from. It behooves the Government of Canada and all of us here to watch it very carefully, and if we feel there is a retrograde movement in Honduras, we will need to act.

On the point about Canadian companies and their behaviour in Honduras, that falls under encouraging corporate social responsibility, which I have already cited. This is a very strong point, and we need to take great care as representatives of the Canadian people to encourage Canadian companies to behave abroad as we would demand they behave at home.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I too welcome the member for Toronto Centre.

My question relates to what the government needs to do to ensure that benefits from trade agreements accrue back to Canadians.

The fact of the matter is that while the Conservative government is absolutely great on rhetoric, it is terrible on results when it comes to trade agreements, other than signing them. It is one thing to sign them, but we need a positive balance at the end of the day for the sale of Canadian goods and services.

Here are the facts with respect to the Conservative government. Since November 2008, the government has managed 48 months of trade deficits. From January 2011 until November 2013, there were consistent trade deficits every month. The present Conservative government is the first government in 30 years that has had an annual trade deficit, so although the government signs agreements and provides great rhetoric about what it is doing, the results are not accruing back to create middle-class jobs.

My question is this: what more needs to be done to stop the government's failure in terms of trade results?

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, my colleague's excellent point underscores my point and our general argument that while we are strongly in favour of free trade, it needs to be embedded in a much more ambitious, much more effective agenda for Canadian economic competitiveness in the 21st century.

The hon. member's point about the trade deficit is particularly telling and particularly unforgivable, given that this has come at a time when commodity prices are at all-time highs. As we all know, we are a commodity-exporting nation, so it is really startling that this has been happening.

What do we need to do better? As my hon. colleague said, we need to ensure that when we talk about the free trade agenda, when we talk about embedding Canada in the global economy, we are not just signing pieces of paper, getting the sound bite, and walking away. We need to be absolutely sure that the structure of those deals supports middle-class jobs back home in Canada, and, more broadly, that these deals support the creation of world-beating companies based in Canada but selling into the global marketplace.

[Erin O'Toole, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, I would like to echo the comments made by a few of my colleagues welcoming the hon. member for Toronto Centre. I listened intently to her maiden speech, and as the parliamentary secretary, I hope she joins the trade committee soon to participate in our discussion.

She also mentioned a book that I am going to put on my reading list, and I would put one on her reading list. On the day she was elected, November 27 of last year, our government introduced the global markets action plan. In her speech she asked with regard to Africa, “Where is Canada?” That global markets action plan not only discusses South Africa but also discusses emerging markets like Côte d'Ivoire, Cameroon, Nigeria, Mali, and Zambia. That document is the culmination of many years of strategic thought she seems desperate for. Which are her top countries in our global markets action plan that she will work with us on to create jobs for Canadians?

[Chrystia Freeland, Liberal, Toronto Centre, ON]

Mr. Speaker, I thank the member very much for the welcome, but the action plan unfortunately was not published on my election day, which was November 25, not November 27, obviously a more important date personally for me than for other members of the House. Maybe only three other members find it as significant.

I look forward to working with the hon. member on the trade committee and I promise to carefully study that report and let him know what our priority countries are. I would say, however, that it is not only about priority countries; it is about a broader vision.

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, I will be sharing my time with my colleague from Prince Albert.

I would first like to add my voice to the chorus of introduction and welcome to the hon. member for Toronto Centre to the international trade file. I look forward to working with her and all of our colleagues to foster job opportunities, growth and prosperity for Canadians from coast to coast to coast.

It is a pleasure to rise in the House to speak in regard to our Conservative government's commitment to protecting and strengthening the long-term financial security of hard-working Canadians. That is why on November 5, 2013, my hon. colleague, the Minister of International Trade, signed the Canada-Honduras free trade agreement.

Trade has long been a powerful engine for Canada's economy, as we have heard from previous speakers. It is even more so in what remain challenging times for the global economy. With this agreement, we can celebrate yet another milestone in the achievement of our government's vision for engagement in the Americas.

The Canada-Honduras free trade agreement is an important part of Canada's commitment to the Americas. For Canada to remain competitive, our government is pursuing new strategic partnerships with emerging economies, especially those in the Americas.

Honduras has its own active program of bilateral and regional trade and investment agreements. Specifically, it is a signatory to active free trade agreements with eight partners, including the United States and the European Union.

Our government is helping Canadian exporters and investors compete on a level playing field. As we know, the United States, our biggest trading partner, has a trade agreement and so has a trade advantage, and the signing of this free trade agreement and its coming into effect would help level the playing field.

Economically, Canada and Honduras have a bilateral trade and investment relationship that has potential for long-term growth, as we heard earlier from our colleague across the way from Winnipeg North. We already have a healthy and growing commercial relationship with Honduras.

According to Statistics Canada, two-way merchandise trade between Canada and Honduras has been steadily growing, which is very encouraging, reaching nearly $257.2 million in 2012, an increase of almost 9.3% compared to 2011. In 2012, Canadian exports to Honduras totalled $38.6 million and Canadian imports from Honduras totalled $218.6 million, up 17.4% from 2011.

How will that growth happen and what does this free trade agreement with Honduras entail specifically for Canada? For Canadian firms and communities that depend on continued and growing business activities for their livelihood, it is an excellent question. I know from my constituents of Kelowna—Lake Country that one in five jobs are based on trade.

I want to expand a little more over the next few minutes on some of the concrete benefits of this free trade agreement with Honduras. We have signed this FTA, which includes provisions for market access for goods and cross-border trade in services, investment and government procurement.

On goods market access, once the free trade agreement is in place, Honduras would immediately eliminate tariffs on almost 70% of its tariff lines in respect to goods from Canada. Most of the remaining tariffs would be phased out over periods of five to fifteen years. The range of products that would benefit from enhanced market access opportunities is wide and includes agriculture and agrifood products, forestry products, plastics, chemical products, vehicles and auto parts, and industrial machinery, just to name a few.

For Canada and Honduras, a free trade agreement would play an integral part in strengthening and growing our economic relations and lead to growing economic opportunities and prosperity in both countries.

One example is in our agriculture and agrifood sector. My colleague from Prince Albert, who will be following me, is no stranger to the agricultural file in Saskatchewan and will expand on the benefits for agriculture. However, one of the big aspects is restored access for beef and pork, which is estimated by industry experts to have a combined market value of approximately $5 million to $7 million annually with the majority of exports expected to be pork. We know that pork producers need all the help they can get. It is a difficult industry and in expanding I know they would welcome this new market as well.

This access would open up new opportunities for Canadian farmers, especially those producing pork and beef products, and thus contribute to the continued maintenance of Canada's agriculture sector as a strong driver of the Canadian economy and Canadian exports.

Under this free trade agreement, Canadian companies in diverse sectors would benefit, not only from the elimination of tariffs and from better and more secure access to service markets but also from the greater certainty provided by the investment rules contained within it. As we all know, certainty, stability and predictability are characteristics that our Canadian businesses are always requesting, especially that these trade agreements provide that stability and predictability.

Some Canadian companies have already demonstrated an interest in Honduras as an investment destination. Clothing and textile manufacturer Gildan Activewear of Montreal, for example, is the largest private-sector employer in Honduras with over 20,000 employees. That is amazing: 20,000 employees employed by a Montreal-based company, and that being the largest private-sector employer in Honduras. The Ottawa-based Canadian Bank Note Company, one of the world's foremost security printing companies, has met success in selling its electronic lottery system to Honduras. Aura Minerals of Toronto, a mid-tier gold and copper mining company, operates a gold mine in Honduras.

These companies, in order to ensure the sustainability and effectiveness of their investments abroad, are making real contributions to the communities in which they operate, thus fostering more diversified and sustainable economic co-operation and development in Honduras. That is CSR, as we heard before, corporate social responsibility in working together for Canadians and Hondurans.

Moreover, there is our government's commitment to ensuring that the responsible business practices of our firms operating abroad, particularly in the extractive sector, go beyond words. In the specific case of Honduras, for example, our government, through its development co-operation program, has provided assistance to that country under the democratic development initiative, to improve governance in the Honduran mining sector. An important part of this initiative includes the provision of technical assistance and thus local training in capacity building in their sector. We heard before that a rising tide lifts all boats. We are using Canadian technology and training to increase their capacity building so they can help grow their economy as well.

As a country of focus for Canada's development assistance, Honduras benefits from initiatives that promote sustainable economic growth, food security and access to social services. These initiatives are designed to create a sound, predictable and safe environment for its citizens and for businesses. Indeed, in its commitment to helping Canadians compete and succeed in the global economy, this government has adopted a comprehensive approach to free trade agreements that often includes provisions for investment, trade in services, intellectual property, government procurement, technical barriers to trade, and temporary entry. They are also accompanied by parallel agreements setting out obligations on the environment and labour, which are very important because our Conservative government firmly believes that trade liberalization goes hand in hand with workers' rights and sound environmental practices.

Now more than ever, Honduras, a small and growing market for Canada, can be a valuable trade and investment partner for Canada. Going forward, the Canada-Honduras free trade agreement is a firm commitment from both sides to grow and expand this important strategic relationship. It is also emblematic of our government's confidence in and support of continued democratic, social and economic development in Honduras. As we have heard from previous speakers, this is consistent with Canada's objective of building dynamic economies and promoting responsible investment and open markets to create new opportunities in jobs in the Americas. The twin engines of growth, investment and trade, are the keys to sustainable prosperity; so investment and trade are the two pillars and foundation we need to help grow our economy.

As part of our Conservative government's ambitious pro-trade plan for jobs and growth, we have been proactive in fostering increased integration of Canadian firms and global value chains, and engaging with a greater number and wider variety of international trade and investment partners. We have been doing so to foster Canada's competitiveness in the global market and to ensure that our firms are on a level playing field in as many arenas as possible, so that they and the communities from which they stem, which we all represent, can stay competitive, innovative and prosperous.

In closing, I therefore urge all hon. members of the House to support this free trade agreement as part of our collective efforts to help Canada thrive in the world economy.

[Jack Harris, NDP, St. John's East, NL]

Mr. Speaker, I listened to the member's presentation, and he seemed to think, in using the phrase “a rising tide lifts all boats”, that if there is prosperity in Honduras, this is going to make a difference to the lives of everybody in Honduras. We know the regime is unequal and repressive and subject to human rights abuses.

One of the witnesses before the Standing Committee on International Trade, representing the Canadian Council for International Co-operation, expressed the concern that Canada has validated the existing regime by adopting a business-as-usual approach in signing a free trade agreement with Honduras in spite of its human rights record. We know there are no mechanisms in this legislation, that we are aware of, that would have any effect on enforcing or doing any of the things that the member suggests would result from this agreement.

Why should Canadians be involved in a situation of actually validating a regime that is guilty of such egregious action against its own citizens and the whole human rights standards of the world?

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, the member for St. John's East would obviously know about rising boats, being from the coast, and would appreciate sharing the analogy.

It is an analogy that means we need to look at helping others who need a hand up. I believe in providing hope for others. The analogy we use in that respect is believing in engagement rather than isolation. If one looks around and sees other people wanting to better themselves and their country, I believe it is our responsibility as Canadians, as humans, to help others.

I have had the opportunity to meet with the Honduran ambassador to Canada on several occasions. I know there has been positive movement. Our colleague, the Minister of State, Foreign Affairs and Consular was there last week, working with the Hondurans and trying to help initiate positive movement.

I would just like to close with the fact that in 2008 when I was on the trade committee we went to Colombia and it was a similar situation. We met with people in the shanty town there. They were basically destitute. Connie Watson, who was a reporter for CBC, asked at the time if a free trade deal would help the situation. The answer was yes. They said that investment would be welcome, especially on roads, schools and jobs and for these displaced people, 40% of whom cannot find work in their city. There is a similar situation in Honduras. That is why we are supportive.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I do think it is worth repeating that Canada and Honduras currently do have a merchandise trade. It is getting to well over $200 million on an annual basis. We see entering into a freer trade type of agreement with other nations as a positive thing for Canada as a whole.

I want to pick up on something that I think many Canadians are growing more and more concerned with, and that is the overall trade, the bigger picture here in Canada and the impact it is actually having on the middle class.

The member would no doubt be aware that, when the Conservatives took office, there was a fairly significant overall trade surplus. That trade surplus has been lost. We have now had a significant trade deficit for a number of years.

I am wondering if the member might want to provide comment in terms of how he feels these trade agreements are going to help. Should the government be focusing additional attention on the matter in which they have really not been successful, and that is increasing overall trade so that Canada would have a trade surplus, which would generate literally thousands of additional jobs here at home in Canada?

[Ron Cannan, Conservative, Kelowna—Lake Country, BC]

Mr. Speaker, trade has expanded, as the member mentioned. It has steadily grown, reaching nearly $257 million in 2012, an increase of almost 9.3%. It is great in that respect.

Our exports to Honduras continue to grow, up by 17.4%. Positive numbers include agriculture, machinery, wood and a variety of products that we are exporting; that provides jobs for Canadians.

There are almost 40 trade agreements that we have signed since 2006. I have been on the trade committee for almost eight years now. I believe middle-class Canadians are in the best position, as we have had more than 160 different tax cuts and the GST went from 7% to 6% to 5%, saving the average family of four approximately $3,400.

The fact is that with the increase in growth, we can have a growing economy, which allows the opportunity to lower taxes and provide more jobs, growth and prosperity for Canadians.

[The Acting Speaker, Conservative, Bruce Stanton]

Before we go to resuming debate, I see there is an awful lot of interest in questions and comments. I would just reiterate to hon. members that during such times we try to get members to limit their question time, and similarly the response time by the hon. member who had been speaking, so that we get more people participating.

Resuming debate, the hon. member for Prince Albert.

[Randy Hoback, Conservative, Prince Albert, SK]

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

As we know, our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. The creation of jobs and economic growth for the benefit of Canadian businesses, workers, and their families continues to be our focus. That is why we will continue to deliver pro-export leadership.

In 2012, Canada exported almost $39 million worth of merchandise to Honduras. Trade with Honduras creates jobs and economic growth for Canadians. This is a high-quality, comprehensive agreement that would increase trade and investment between our two countries. Canadian exporters have an excellent opportunity to expand as Honduras markets grow, with GDP growth reaching almost 4% in 2012. The government is steadfastly committed to promote free trade in order to support economic growth and to create jobs for Canadians. To this end, our government has embarked on one of the most ambitious pro-trade plans in Canadian history, and this agreement is an important part of that plan.

Today I would like to spend a few minutes talking about the new export opportunities this trade agreement would provide to Canadian producers, processors, and manufacturers. Once implemented, the agreement would improve market access for Canadian goods into Honduran markets by lowering trade barriers, such as tariffs, which would increase Canadian exports to Honduras. Soon Canadian businesses will enjoy the same access to Honduran markets as those in the United States and the EU, which already have trade agreements with Honduras in force.

This agreement would help level the playing field and maintain the competitiveness of Canadian companies doing business in Honduras. Today Canadian exports to Honduras face an average tariff of 10.5% for agricultural products and 4.5% for non-agricultural products. Once the Canada-Honduras free trade agreement is in place, Honduras would immediately eliminate tariffs on almost 70% of its tariff lines covering goods imported from Canada, with most of the remaining tariffs to be phased out over a period of five to 15 years. The elimination of the vast majority of Honduran tariffs would benefit numerous sectors of the Canadian economy across many regions of the country.

Let us look at the impact of the agreement in detail. One sector that would see the benefits is the agriculture and agrifood sector. In 2012, Canada exported close to $3.3 million worth of agricultural products to Honduras. Canada's agriculture and agribusiness sector is innovative and competitive and is becoming increasingly focused on international markets. Trade agreements like this one help create new opportunities for Canadian producers and processors to export their high-quality products around the world.

The elimination of Honduran tariffs on agricultural products under this agreement would help Canadian exporters gain new market access in Honduras. This would mean more jobs and economic opportunities for Canadians. Since the range of products produced throughout Canada that would benefit from this agreement is so wide, allow me to mention just a few examples.

This agreement would eliminate the Honduran tariffs of up to 15% on pork. This is outstanding news for our hard-working farmers in Ontario and Quebec. Likewise, the removal of tariffs of 15% on beef would benefit producers in Alberta and Saskatchewan, while the elimination of tariffs of up to 15% on processed potato products, including french fries, would bring positive impacts to growers and processors in Manitoba, New Brunswick, and even Prince Edward Island. Saskatchewan producers also stand to gain from this agreement with the elimination of the 5% tariff on linseed oil.

Companies producing plastics and chemical products are employing Canadians throughout our country. Companies located in Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, and Saskatchewan are already exporting Canadian products to Honduras. In 2012, Canada exported $9.1 million worth of chemical products and almost $937,000 of plastics to Honduras. With tariffs of up to 15%, it is not hard to imagine how the complete elimination of Honduran tariffs in these two sectors could allow Canadian companies to enjoy enhanced market opportunities to export a diverse range of products.

Canada is a renowned worldwide manufacturer of high-quality wood and pulp and paper products. Our country is blessed with vast and abundant forest land, and our companies and workers possess the expertise to transform the natural resource into value-added products. In 2012, Canada exported $1.2 million worth of forestry products to Honduras. Again, considering that Honduras maintains a tariff as high as 15% for these products, Canada's past exports in this sector are only the tip of the iceberg of what could possibly be exported in the future. The elimination of all tariffs by Honduras in this sector would unleash important gains for Canadian forestry products.

Other products that would benefit from this agreement are vehicles and auto parts. Manufacturers in Ontario, for instance, could seize new export opportunities that would be created by this agreement.

Canada has exported products such as specialty vehicles, including tractors, buses, and construction vehicles, and automotive parts to Honduras. While some automotive parts and certain types of vehicles already enjoy duty-free access to Honduras, there are tariffs ranging from 5% to 15% that are applicable. With this agreement, they would be completely eliminated.

Canada has one of the world's most valuable commercial fishing industries. While Canada's exports of fish and seafood to Honduras have historically been low, Honduras' high tariffs of up to 15% for these products are certainly a factor that has contributed to this situation. The complete elimination of Honduran tariffs under the agreement would allow Canadian fishers and fish and seafood processors from Nova Scotia and Newfoundland and Labrador, for instance, to fully capture the export opportunities the Honduran market has to offer.

This agreement is about creating future opportunities for our exporters and producers to grow and diversify their markets. Our government is creating the right conditions for this to happen. Knowing the ingenuity of our companies and how innovative and hard working Canadians are, we know that removing trade barriers, including tariffs, stimulates job creation and achieves economic prosperity for all Canadians.

Allow me to touch briefly on the various sectors that comprise our advanced manufacturing industry. I am talking here of sectors as varied as aerospace, industrial machinery, and information and communication technology. Again, Honduras applies a high 15% tariff on imports of products in these sectors, which can certainly hinder Canadian competitiveness in that market.

The agreement would completely eliminate all Honduran tariffs on these products, which would allow Canadian companies to take advantage of these new possibilities. Manufacturers in British Columbia, Alberta, Manitoba, Ontario, and Quebec can expect to enjoy these positive benefits.

There are many more examples I could cite, but the fundamental point is that comprehensive tariff elimination under the Canada-Honduras free trade agreement would create the potential for increased Canadian exports to Honduras. This would mean more jobs for Canadian families and more prosperity for our economy, and it would benefit every part of our country.

Throughout the negotiations for this agreement, government officials consulted with a wide range of stakeholders, and the message was clear: Canadian companies and exporters look forward to the implementation of this agreement and the benefits it will create.

Canadians value the real and tangible benefits that free trade brings to our country, and that is why Canadian companies support our government's initiative to forge new trade opportunities around the world. Our businesses deserve the right to compete on a level playing field with their U.S. and E.U. counterparts as they market around the world.

I had the opportunity to be in Honduras. I went to see a manufacturing company called Gildan, which manufactures clothing in Honduras. It is a Canadian company that has done very well there. As we toured the plant and facilities there, we could see that it was a first-class, very well-run facility that Canadians could be proud of. It was something we might see in downtown Montreal, downtown Toronto, or any other place in Canada, because the company was allowed to use the codes and the regulations used in Canada.

The workers from Honduras would travel for miles to apply for work there, because it provided economic benefits for them and their families. We talked to some of the employees. They really understood the importance of trade and what it meant to them personally and to their families. It allowed them to provide a good quality of life and a good income for their families. Those are some of the benefits we will see in Honduras as we do more trade with that country.

I also have beef producers in my riding who bring in workers from Honduras. They are some of the best workers they have.

As we look at the connections between Canada and Honduras and Canada and other Central American countries, they are getting closer all the time, and we are learning from each other. They are learning from us what is acceptable and what is not acceptable as far as human rights and things like that, and we are learning about their needs and requirements and how we could help them become better individuals. Not only that, but their country could become one of the more outstanding countries. Somewhere down the road, they can look back at their history and say that they were there, and look where they are today. Canada can help them get there.

Mr. Speaker, I appreciate the time to speak on this agreement, and I look forward to the questions.

[Marc-André Morin, NDP, Laurentides—Labelle, QC]

Mr. Speaker, I do not share that vision. I find it amusing that two of my colleagues opposite mentioned Gildan.

Gildan does not export pork or potatoes. It exports jobs. Gildan was one of the only profitable textile factories in Montreal that was still successful. Now, it is going to become a mere distribution centre with everything being made in countries such as Honduras.

I doubt that the astronomical salaries those companies pay in Honduras are more than a couple of dollars a day because that is the international standard.

I have a feeling that there is still a chance that we will lose and export jobs. International aid, now disguised as something else, will serve to repair the damage caused by mining companies.

In any case, I am wondering if the member thinks it is profitable to export jobs to Honduras.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, I am not surprised the NDP would not agree with this side of the House. It has never supported any trade deals we have put forward in the past, whether it was the Conservative government or even the one or two deals the Liberal government entertained. That does not surprise me. New Democrats always do the Chicken Little thing. They say we are going to lose jobs. We are going to lose capacity in our economy. People are going to lose their jobs, and we are all going to sit at home and have nothing to do.

When we look at FTAs we have done in the past, NAFTA for example, and the benefits that have come to this country because of agreements such as that, it is amazing. For the NDP members not to recognize those benefits is actually really crazy, because it is foolish to not accept those facts. Those facts are clear. They are black and white. Every Canadian family benefits from agreements such as this.

The member talks about Gildan and about exporting jobs. Canadian companies need to have opportunities to take advantage of situations around the world and look at them in a comprehensive manner. If they find a situation where they cannot manufacture here, they may have to make a change. I would rather see that change go to countries in Central and South America, where they have the same values we have here in Canada, than go to other regions of the world where they actually have different values.

The situation in Central and South America is a part of the world where we can really help. They can become better people, and we can help them to do that.