Mr. Speaker, I am pleased to rise today to speak on the second group of amendments to the anti-Helms-Burton legislation which was introduced in the House today.
Before turning to some of the technical purposes behind these amendments I would like to add to some of the comments which my colleagues in the House have made, particularly the hon. member for Terrebonne, the hon. member for Peace River and the hon. member for Burnaby-Kingsway. All of them have indicated that they are in agreement with the principles espoused in the bill and with the purposes of the amendments.
The hon. member for Terrebonne expressed some reservations in respect of the timing of the amendments. The hon. member for Peace River felt that we should be more aggressively pursuing action against the Americans. Perhaps he is getting the tanks in Peace River ready to drive down the highway toward the U.S. border. His grain trucks will be surrounded by mounted patrols. We will see what we can do in that respect.
I would like to remind members of the House about the principle reasons for which the bill was introduced and then turn to the amendments.
The hon. member for Peace River put it well when he said that we are entering into a period when we have to recognize that while we live in a world of free trade rhetoric, in fact, there are constant threats against the free trade regime of which the United States government purports to be the greatest proponent. The United States while talking free trade has long been an active user of other non-free trade vehicles.
The U.S. uses unilateralism, as it does in section 301 of the Trade and Tariff Act. It says to countries: "If you do not do it our way we are going to hit you with trade sanctions, even if it may be contrary to our international legal obligations". It does it particularly offensively when it uses extraterritorial measures as a way of trying to bring other countries to heel.
This is an old problem. We lived through this in the 1950s when Ford Motor Company was told under the U.S. export control laws that it could not export trucks to Red China from Canada, even though it was a Canadian company doing business in China. Canadian workers suffered and Canadian jobs were lost, but the U.S. made Canada do that because it was part of its foreign policy.
Similarly, anti-trust laws were applied in an extraterritorial manner to enforce American anti-trust laws which, however laudable they might be in their own way, when they are enforced in another country contrary to the espoused political purposes of that country are unacceptable.
As a result, in the last Parliament the Foreign Extraterritorial Measures Act was introduced and adopted by the House. It follows the model of British legislation and French legislation which has both blocking provisions in it and an opportunity to claw back excessive damages which have been awarded by United States courts. That is another unfortunate aspect of the American legal system. That legal system is such that it allows what are called treble damages claims.
This is the threat of Helms-Burton if we want to get into the legal nicety of it. The problem that Helms-Burton and much of this American legislation when it is applied extraterritorially represents is that a Canadian, a non-United States citizen, is threatened with a legal action in which $5 million in damages is claimed, multiplied by three, which is $15 million.
These are used as interim measures to drag people into the U.S. courts or ultimately to achieve what has been achieved to some extent by this Helms-Burton legislation, a chilling effect. It says to people that if they have assets in the United States, if they carry on business in the United States, the Americans are going to make it so expensive for them that it is not going to be worth their while to go to Cuba. It is not going to be worth their while to go to Libya. It is not going to be worth their while to go anywhere the Americans do not approve of. That is where we have problems with the Helms-Burton legislation.
We have problems with it because it has been applied in a way that is totally contrary to public international law. It gives a cause of action for expropriation not to people like the Americans who had property in Cuba at the time it was taken. That might be acceptable. But it gives it to people who were Cubans at the time. These actions will not be started by people whose property was expropriated. It will be started by their families, their grandchildren.
We sympathize with people whose property was taken. We do not believe that in public international law property should be taken, but it is very clear there have to be rules in public international law which set out the parameters under which actions of this nature can be undertaken. That is where Helms-Burton goes beyond and gives a cause of action for the political reasons the member for Burnaby-Kingsway alluded to in his speech to people who in normal situations would not have it. As such it is extremely troubling to international trading arrangements.
I have pointed out to my American colleagues what is going to happen if Canada decides to do the same thing for example with Ukraine. There are one million Ukrainians in this country. Why not give a cause of action about all the property that was taken in Ukraine? How would we ever be able to do business with Ukraine if we adopted that type of approach?
What will happen to the United States of America when China says to the United States of America that it is going to adopt Helms-Burton type legislation in respect of Taiwan? What will be the principled response of the United States of America when the Chinese government with all its force says to the Americans: "If you carry on business in Taiwan, you will not be able to carry on business here. We will do the same to you for the same legal reasons that you say you are using for Helms-Burton". What will be the response?
The Americans will have no response and that is why fundamentally the bill is not really in the interests of the United States of America. It is not in the interests of anyone who believes in an open trading system because if other countries choose to adopt similar measures, we will soon have created a world in which no business, no capital and no labour will be able to move around the walls that have been created by these treble damages actions.
The response we have in Bill C-54 is a principled response to that problem. It blocks American attempts to enforce the judgment here. It gives a clawback which we are not talking about in connection with these amendments. It also increases fines against companies which carry on American policy decisions out of this country instead of Canadian policy decisions.
We believe that an open trading system with Cuba is the best way to advance the cause of liberty in that country, the cause of human rights in that country, the cause of justice in that country. We have pursued those goals consistently and we will continue to pursue them. It is not something we are doing on behalf of Mr. Castro or some regime in Cuba.
This bill ensures an open trading system. We believe if properly applied it will ensure that we have open doors, that we will have cultural exchanges to enable the Cuban people to see the benefits of democracy, the benefits of an open system. That is the way in which we will achieve change in that country. We have applied that principle consistently in other countries, for example, Vietnam and China. There is no logical reason why the same approach cannot be applied in respect of Cuba.
The second group of amendments which I am presently addressing are basically of a technical nature. They address problems which relate to the fact that we have had to specifically make Helms-Burton unenforceable in Canada. I appreciate the acceptance of the amendments by the opposition parties. I appreciate their comments that these came forward after the bill had been introduced in our committee. The members were there when we discussed it.
It was felt on mature reflection that we had to address a specific problem. The problem is if we in Canada are threatened with a treble damages lawsuit in the United States, it is all very well to say: "When that is over, we will get an order from the Minister of Justice to block the application of that order in Canada and we will be safe in Canada". But our lawyers are going to ask us how we know we will get that order from the Minister of Justice, how do we know we will not be dragged into that American lawsuit.
The lawyers will probably say that we will have to go to the United States and defend ourselves. We will probably have to spend hundreds of thousands of dollars, maybe even millions of dollars, in these large, complicated United States lawsuits to defend against a claim which is unmeritorious and should be totally unenforceable in this country.
For greater certainty, the government has introduced a provision which says that right here and now, no judgment under Helms-Burton will be enforced in this country. This is a clear marker to enable Canadians doing business in this country to know that they do not have to participate in a U.S. lawsuit.
In my view, this and the other amendments which we are presently discussing on the same issue, are clearly a way in which we enable our citizens and others carrying on business here to know they will not have to participate in that expensive litigation game the Americans like to play. They will not have to worry about a treble damages lawsuit.
I will finish by making just one comment.
To conclude, I will make comment on the statements made by my colleague from Terrebonne. He said we have been waiting for seven months.
Mr. Speaker, you know, and members of this House know very well that international negotiations with the Americans are tricky and difficult. We acted very responsibly by waiting to see what the President of the United States was going to do, since he had a veto on this law.
As soon as it became apparent that the President would not exercise his veto authority on this law, we took action. We took action as soon as possible. We introduced this bill to the House at the opening of this session. We could have acted more rapidly, but I think we could not have acted reasonably to protect Quebecers and Canadians on the international trade issue.