Pat O'Brien

[Softwood Lumber, October 4th, 2001]

Mr. Chairman, the Leader of the Opposition says I incite them. They are easily incited.

I listened very carefully to the hon. member's comments. With all due respect, I just do not think he is correct in the statements that he made. Those statements need to be challenged by the government and they will be challenged.

This is the most serious trade dispute that exists bilaterally between our two nations. Hundreds of thousands of jobs are directly at stake. Some 300 Canadian communities from coast to coast to coast, including B.C., but not just in B.C., have 50% at least of their livelihood depending on the softwood lumber industry.

Of some 100 million jobs in all regions of Canada, including central Canada and B.C. and the Atlantic, one is six jobs of them indirectly or directly related to the softwood lumber industry.

What has the government done? It has repeatedly and consistently challenged the false accusations of the American industry and the American government that have been made about our softwood lumber industry. This is the fourth time that we face this challenge now from the United States. In the three previous cases these allegations were not substantiated.

The reality is this. This is an issue of U.S. protectionism and the fact that the Americans are very unhappy with the Canadian industry having gained a 34% market share in the United States. That is really what this is all about.

Through the efforts of the Canadian government, led by the Minister for International Trade, with the close co-operation of the Canadian embassy in Washington, we have for many months now been building alliances in the United States, exactly as the Leader of the Opposition suggests, belatedly. Action has been going on for a long time to recruit some 150 members of the U.S. congress who support our position to inform and work with major companies like Home Depot . They support our position to recruit consumer groups that understand that they could be paying up to $4,000 more on a new home. Why? To simply protect less competitive U.S. lumber operations.

Those efforts did not just come out of thin air. The Government of Canada has taken the lead in helping make sure that groundwork was done. The Leader of the Opposition put forward some good suggestions. It is just that they are late and they have already been going on for some time.

We have a good consensus of the industry in Canada, the provinces and territories, that what we want is free trade in softwood lumber.

As the minister pointed out, there was no sort of a willy-nilly decision that we just woke up and the softwood lumber agreement is over. There was a conscious decision after very wide consultations that this agreement would be allowed to run out. Why? Because what we desire is free trade in softwood lumber.

If the United States had not taken the action that it has taken, we would be in a situation where softwood lumber prevails. Unfortunately, the Americans again for the fourth time in 20 years have taken this protectionist action. Of course we have been and will continue to challenge that at every opportunity.

The Prime Minister has repeatedly raised this issue with President Bush, as I said. The Minister for International Trade has repeatedly raised the issue with Secretary Evans and with trade representative Zoellick. We are challenging these allegations of the United States at the WTO. We have requested a panel where five specific challenges will be launched about the American allegations.

We know that the United States congress is split on the issue. There are a few protectionist senators who are leading the charge against this and are now being mischievous, some sending letters to Canadian parliamentarians suggesting that we now self-impose a tax that will help them out of a situation that they know they will lose. They will lose this trade action again.

What is the unfortunate reality in this? My colleague, the Minister for International Trade, I and our government knows this very well. Unfortunately, this kind of a decision does not come really quickly. Unfortunately, there is pain to be borne unfairly by Canadian companies, producers and workers because the United States is not living up to what it claims to be, which is free traders.

Discussions went on in Toronto last week and are going on in Washington this week. Progress is being made to find the root causes of this so we can come to a solution outside of litigation. As long as those efforts are bearing fruit then they ought to proceed.

At the same time we are moving on several other fronts, whether it be ministers and government leaders talking to American leaders or whether it be Canadian officials taking the necessary steps for the WTO challenges.

The reality is that Canada is right in this issue. Our case has stood up every time it has been challenged and it will stand up again.

I applaud the Minister for International Trade for the wide consultation. A number of members on the other side of the House have indicated that there has been very wide consultation. That has continued and will continue. As long as there is a consensus in the industry for us to continue down this path then the government will continue to vigorously defend our interests in softwood lumber.

The solution really is free trade. It is not regionalism. It is not the unfortunate comments that I heard from the Leader of the Opposition to play B.C. against Ontario or Quebec. Those are not the sentiments that we need at this time. We need a united effort. The Canadian people will accept nothing else.

[Softwood Lumber, October 4th, 2001]

Mr. Chairman, I badly wish there were questions and comments because I have two or three very serious questions for the leader of the official opposition. I hope I will have an opportunity to take them up with him. Perhaps he will attend the trade subcommittee which will deal with these issues and we will have a chance for a fuller exchange there.

I am disappointed to hear the Leader of the Opposition reach into his bag of tricks and pull out the old regional fears of playing B.C. against Ontario and against the other provinces. The country deserves better at this time. The federal government cares about all regions of this country.

I would like to invite the Leader of the Opposition to come to Northern Ontario, to those communities which are very dependent on softwood lumber. I would like him to come with us to Quebec where he will realize that 25% of the softwood lumber exports come from the province of Quebec. B.C. is critical in this issue, but this is not just important to B.C. This is a national issue. It is important to all regions of Canada.

I hear hon. members opposite say of course, but they would not have drawn that conclusion from the partisan regionally divisive comments that we just sadly heard from the Leader of the Opposition. It really was regrettable.

The Leader of the Opposition is somehow very badly misinformed. He talks about non-partisan groups going to the United States. I participated in a non-partisan effort to go to the United States, Washington specifically, in June with colleagues from all parties of the House of Commons. I believe his party participated. It was certainly invited to participate. I understand the critic could not attend.

A second group went in July. I heard the critic say that he participated in that. I am glad he was there. Would he then inform his leader that the government has encouraged several non-partisan visits to the United States, efforts to build consensus and to look at the root causes.

The leader spoke about consumer groups that have appeared somehow magically in the U.S. and the business groups that support our position.

I would ask, Mr. Chairman, for a little indulgence from the other side. I did not once interrupt the leader of the opposition.

[Softwood Lumber, October 4th, 2001]

Mr. Chairman, I think my colleague has made a good point but I would note that fortunately, President Bush has suspended the Byrd amendment. It is very important that we clarify that.

The member mentioned head of state consultations. Maybe he is not aware that when the Prime Minister met President Bush on September 24 on the terrible attacks that took place, even then he had an opportunity when it was appropriate to raise softwood lumber.

What more does the member think the Prime Minister and the Minister for International Trade could possibly do? They continue to raise the issue at their appropriate high levels, given the reality that the tone has changed somewhat in light of the atrocious attacks on the United States.

[Export Development Act, October 1st, 2001]

Mr. Speaker, it is an honour to lead off second reading debate on this important piece of legislation. This legislation results from an extensive review of the existing Export Development Act and of the activities of the corporation it governs, that is the Export Development Corporation or what we commonly call EDC.

The bill contains specific amendments that flow from a comprehensive review process which began in 1998 and brings a balanced approach to change at EDC. This legislation also complements other policy direction from government, as well as changes that have been initiated by EDC since the review process got under way.

It is fair to say that the period leading up to this legislation has seen the most thorough review of Canada's export financing activities that has ever been undertaken. The broad based review included public consultations, parliamentary committee recommendations, and advice and recommendations from many other experts, stakeholders and independent observers.

The bill now before the House is a product of a focused discussion on what is best for Canada in the intensely competitive world of international trade as well as a thorough examination of how best to reflect Canadian values in our dealings with other countries.

A key feature of the bill is a new statutory requirement for the environmental review of projects being considered for EDC support. This is a significant change that positions Canada in the forefront of the international community in efforts to more closely link export credit activities and environmental impacts. The bill also includes other statutory changes that provide the necessary legal basis for a number of operational changes at EDC.

Bill C-31 fulfills a commitment made by the Minister for International Trade last June. At that time the minister announced important policy changes for Canada's export credit agency. He said he would introduce enabling legislation this fall. Bill C-31 completes the package by providing the necessary legal basis for change.

The minister's June announcement was based on conclusions that came out of the review process I mentioned a moment ago. To understand how the amendments we are debating today flow from the review, it is useful to understand something of the process itself.

As members may know the Minister for International Trade, in consultation with the Minister of Finance, is legally required to periodically review the act under the terms of the act itself. This requirement stems from changes that were made to the act in 1993 by the parliament of the day.

Those changes include a significant expansion of the commercial mandate of the Export Development Corporation so that it could fill perceived gaps in the private sector financial services market or more actively support the international financing needs of Canadian exporters.

These changes proved to be very effective. The corporation's financial support to Canadian exporters grew from about $12 billion in 1993 to more than $45 billion last year. In that time Canadian businesses have expanded their market reach all over the world.

Today exports account for over 40% of our GDP. Approximately one-third of our jobs are directly dependent on our success in export markets.

It is clear that the Export Development Corporation is a key part of our country's success in export markets. The EDC has demonstrated its value to Canada by filling gaps in the private sector's financial services, by reaching out to bring more small and medium size businesses into the export marketplace, by providing needed financial support to Canada's customers in developing countries, and overall by ensuring that Canadian exporters have access to the kind of financing that will keep them competitive with exporters from other countries.

Due to the fact that the EDC plays such a key role in our country's trade development strategy, we must ensure that it will continue to meet the competitive financing needs of Canadian exporters, and especially the small and medium size businesses that are the backbone of our economy and the main creators of jobs throughout Canada.

This need has become even more important as economic conditions around the world have tightened and market conditions for Canadian exporters have become even more competitive. At the same time EDC's operating policies and financing activities must reflect Canadian values in areas of corporate social responsibility, the environment, human rights, public accountability and transparency.

As legislators our public policy challenge is to find a balance between the twin priorities of international business competitiveness and corporate social responsibility. Bill C-31 helps to do just that. It also complements other initiatives to bring about a balanced approach to change at EDC.

For example, taken together with earlier policy guidance provided by the Minister for International Trade, the bill builds on a process of change at EDC that has benefited from the extensive public review process which took place over the past three years.

The first step in the process was the commissioning of a consultant study in 1998 undertaken by the well known law firm Gowlings. The Gowlings team undertook a comprehensive study of the Export Development Act as well as the corporation that the EDC governs. Gowlings also assessed Canada's export plans and needs within the international policy environment including extensive stakeholder consultations as well as detailed surveys and independent research.

Gowlings found that EDC enjoyed a very positive reputation in the Canadian export community. EDC is highly regarded as a Canadian success story by both its customers and its competitors.

EDC has gone out of its way in recent times to widely survey its clients. There is a tremendous level of satisfaction with the service that it delivers. I frequently hear from constituents and major companies in my riding about how important is the help and work of EDC.

I cite General Motors Defence of London, Ontario, as a good example. It is very appreciative of the efforts of EDC in the export work that it does. Some 80% of General Motors sales are in the export market.

The Gowlings report also raised concerns. It said that EDC's project financing decisions might not give proper regard to the potential environment in human rights impacts in other countries. Among Gowlings' recommendations were proposals to improve accountability on environmental and human rights matters.

The Gowlings report was tabled in parliament in July 1999 and referred to the Standing Committee on Foreign Affairs and International Trade, or SCFAIT, as well as to the Senate banking committee. Both committees held hearings, heard from witnesses and produced reports for the government's consideration.

The Senate banking committee focused on the relationship between EDC and other Canadian financial institutions. The committee's report recommended a form of private export credit guarantee that is now being studied. SCFAIT's review was more wide ranging. Through a series of hearings and round tables a broad range of advocates from both business and public interest groups as well as many other experts were heard from. Many written submissions were also received by the committee.

In his report to parliament SCFAIT's chair noted the challenge of addressing and balancing two sets of public policy objectives through EDC. On the one hand he said EDC must be open and accountable so that Canadians can ensure that it reflects their values in its dealings with other countries. On the other hand Canadian exporters must have continued access to the kind of financial services that are vital to their competitive position internationally.

The SCFAIT report offered recommendations to achieve this balance. An overarching recommendation was a proposal to amend the Export Development Act so that EDC supported activities would deliver both economic benefits to Canadians as well as meet Canada's international commitments and obligations, particularly those related to environmentally sustainable development and human rights.

Bill C-31 follows up on the spirit of that key recommendation. The Auditor General for Canada has also provided advice on EDC that the government has found helpful and that is relevant to the bill before us.

Last year, in response to a request from the government, the auditor general studied the environmental review framework that EDC had introduced earlier. EDC brought in its own environmental review process in 1999 but public concerns had been raised about its rigor and clarity. The government wanted the auditor general to examine the suitability of EDC's environmental review framework and to assess its performance in implementing it.

The auditor general delivered her report in May of this year. She concluded that EDC's environmental framework contained “most elements of a suitably designed environmental review process”. This was a useful finding. It indicated that EDC was on the right track with its approach to environmental review.

However, the auditor general also identified a shortcoming when she cited a significant difference between the design of EDC's environmental framework and its operation. Although she concluded EDC was on the right track with its approach to environmental review, she also signalled that its operating policies and procedures needed to be improved.

Following on this report, the Minister for International Trade provided a clear set of guidelines to the corporation for the management of its environmental review practices.

EDC has taken to heart the advice it has received and is currently engaged in wide public consultations aimed at strengthening its environmental review framework. In a related move, the corporation is also bringing in a new disclosure policy as a follow up to stakeholder consultations.

It is important to note that the debate on whether or not an environmental review of EDC projects is needed is over. Everyone feels that it is needed. Representatives of both the business sector and public interest groups agree on the need for environmental review. With this bill, the government is using the Export Development Act to provide a statutory basis for an environmental review process at EDC. The next step is for the corporation's board of directors to develop a directive to make the objectives and the expectations of the review process clear and workable.

EDC is now at work to develop a more rigorous environmental review process, one that will meet both economic and social responsibility objectives and one that will have the force of law as proposed by the bill. This move to a statutory requirement for the environmental review of EDC projects is a significant step forward by Canada on the world stage.

A number of other countries, notably OECD member countries, are now looking at measures that would require their national export credit agencies to carry out environmental reviews of projects being considered for support. With this bill, Canada will be among the first to make environmental review of such projects a matter of law.

At the same time, the statutory approach presented in Bill C-31 does not put Canada out of step with emerging trends and developments in other countries. For example, some Canadian public interest groups have argued in favour of bringing EDC's environmental review activities under the authority of Canada's Environmental Assessment Act. However this approach would be inconsistent with developments that are underway elsewhere within the international community, including in the OECD, where most of our export market competitors are found.

In other words, the bill positions Canada as a leader in the international move to higher standards for the environmental review of export agency finance projects. However, it does it in a way that will not put Canadian businesses at a competitive disadvantage to exporters from other countries. This is a key point. It is a further illustration of the need to find a realistic and practical approach to balanced change at EDC.

The bill also proposes some administrative amendments to the existing act. For example, the bill proposes a change in the corporation's legal name to Export Development Canada in English and Exportation et Développement Canada in French. This means the acronym EDC will be the same in both of our official languages.

This change simply reflects the reality of everyday business usage by EDC's clients. It will also allow the corporation to build on its very positive EDC brand name in Canada and abroad. I might add that by having the name of our nation, Canada, in its title, it obviously would play very successfully on the tremendous goodwill throughout the international community that we as Canadians experience every time we travel anywhere in the world. I know Canadians from all walks of life share that experience.

Other changes include: an amendment to enable the board to delegate powers and duties to committees that it may establish. This reflects modern business management practice and is consistent with practices followed elsewhere in both the public and private sectors.

An amendment to exempt EDC's activities from the provisions of the Canadian Environmental Assessment Act. This amendment is included to avoid the potential for duplicate environmental reviews in cases when EDC may be involved in partnership with another organization that is subject to CEAA.

An amendment to enable the EDC board to establish a pension plan for officers and employees of the corporation. This amendment speaks for itself.

Finally, I want to comment on the amendment that would require the auditor general to audit the design and implementation of EDC's environmental review process at least once every five years. This too is a key measure. It ensures that EDC will remain publicly accountable for its environmental review performance. I also note that the Minister for International Trade has asked the auditor general if her first audit could take place after only two years. This is not required but the minister has been very proactive in putting forward this proposal, and should be applauded for it. It shows how seriously the minister and the government view this entire initiative in showing environmental accountability.

The amendment to require EDC's board to establish a directive to determine whether a proposed project is likely to have adverse environmental effects should be welcome news for those who want legal force for environmental review at EDC.

The amendment to require the auditor general to audit the design and implementation of that review process should be good news too. It means that EDC's environmental review performance will remain subject to the scrutiny of the auditor general, an officer of parliament who is independent of the board, or for that matter of the government.

To conclude, EDC is a vital part of Canada's export development efforts. Businesses, large and small, all across Canada depend upon the corporation to provide the financial services they need to be successful in the intensely competitive international marketplace. I have cited already the example brought to me repeatedly by my friends at General Motors Defense in London, Ontario.

At the same time, as a crown corporation, EDC must reflect Canadian values in its policies and operations. Environmental review is an essential aspect of that. The bill would provide statutory force to this key area of corporate social responsibility.

To sum up, there are three basic reasons why the House should support the bill. It facilitates the continuing process of change toward a stronger and more effective EDC. It brings the force of law to the environmental review of EDC projects. It ensures that the auditor general, on behalf of the Canadian public, will continue to monitor and report on EDC and its environmental review performance.

I would urge all my colleagues in the House to support the legislation.

[Canada-Costa Rica Free Trade Agreement Implementation Act, September 28th, 2001]

Mr. Speaker, as part of the government I speak for a more significant part of the Canadian population in that survey after survey has shown that over 70% of Canadians support freer and liberalized trade. Therefore I will stand with the 70% and my colleague from Winnipeg Centre can stand with the 30% if he chooses.

I listened to his remarks and several times he cited that the EU as a great example in trade agreements. I attended on behalf of the Minister for International Trade a trade discussion day concerning less developed countries. I hope my colleague will listen to this point because I will ask him a specific question and expect a specific answer with no ducking.

At that trade discussion day EU ministers of development were categorically opposed to including labour agreements in trade deals. The very EU ministers that he cites with such praise were categorically opposed, led my none other than the U.K. minister, Clare Short.

Would my colleague from Winnipeg Centre tell us why the NDP seems to be one of the few voices anywhere in the world that is insisting that labour agreements be included in trade deals, when almost everyone else including his cousins in the U.K. labour party is saying that it would lead to back door protectionism?

How could the member ignore the comments of a man like Kofi Annan who said that liberalized and globalized free trade are the best possible courses of action we can take to help the poor countries my colleague addressed in his comments?

I have never had an answer from the NDP on those two points, so I am anxiously awaiting one now.

[Softwood Lumber, September 28th, 2001]

Mr. Speaker, I thank the member for his question and his continued interest in this important matter.

The government has been very active on three specific fronts relevant to softwood lumber. First, we are committed to trade action. We are now in the process of requesting a WTO panel and the government will take six measures to the WTO for adjudication regarding the U.S. trade action. We continue to hold official discussions. Last week in Toronto there was enough progress made that there will be discussions next week in Washington to look at the root causes.

In light of the tragedy in the United States, the government is advocating quietly but persistently for our lumber industry.

[Canada-Costa Rica Free Trade Agreement Implementation Act, September 28th, 2001]

Mr. Speaker, I am pleased to rise today to address Bill C-32 which would implement the Canada-Costa Rica free trade agreement.

This agreement is an important step forward on several levels. To begin with, the success of this endeavour clearly demonstrates that free trade agreements can be negotiated between larger and smaller economies. That bodes well for the future of the free trade area of the Americas.

At the same time, this agreement will open up a new market with exciting potential for Canadian exporters. It also includes precedent setting chapters in the areas of trade facilitation and competition policy.

The Canada-Costa Rica free trade agreement includes side agreements on the environment and labour that are an important improvement on those found in earlier agreements.

I am especially pleased that we have concluded an agreement with Costa Rica, sometimes called the Switzerland of Central America. As a country of some 3.9 million citizens with no military and longstanding, democratic institutions, Costa Rica has been an important beacon of stability in Central America. With a large percentage of its budget devoted to education and health care, Costa Rica's future looks very bright.

Canada and Costa Rica share similar political cultures, placing primacy on respect for the rule of law, democracy, respect for human rights and the environment. Our relationship with Costa Rica has been one of longstanding co-operation, trust and mutual benefit. Formal trade relations between our two countries date back more than 50 years to a bilateral commercial agreement concluded in 1950. Since then our relationship has developed steadily. A free trade agreement will only make it stronger.

Both countries' citizens will be able to share in the prosperity that freer trade creates. Already our bilateral trade with Costa Rica has seen an average annual growth of over 6% in the last five years with a 7% increase in exports and a 5% increase in imports. The FTA will accelerate this growth.

Although our bilateral trading relationship is small, approximately $270 million, this number is rising rapidly. Indeed, there was a 25% jump in our exports in the year 2000. It is also worth mentioning that we have invested about $500 million in Costa Rica.

Canadians are quick to seize an opportunity which could explain the enthusiastic response to the extensive consultations that were concluded regarding this initiative. The response from Canadians was strong and indicated support for pursuing an FTA with Costa Rica. It should also be noted that a significant number of small and medium sized enterprises expressed an interest in such an agreement. For them, numbers like $270 million, our bilateral trade with Costa Rica last year, are very large indeed. Their support is not surprising considering that there are considerable opportunities in the Costa Rican market for many Canadian goods, including automotive products, prefabricated buildings, some fish products and a number of agricultural products.

The improved access we will gain with this FTA will give Canadian businesses an edge in Costa Rica, particularly over foreign competitors who do not have preferential access to the Costa Rican market. As our businesses that benefited from preferential access through the Canada-Chile FTA could tell us, getting into a market first matters.

The agreement will include immediate elimination of Costa Rican tariffs on most Canadian industrial exports. It is expected that over 90% of Canada's current agriculture and agri-food exports to Costa Rica will realize market access benefits.

Canada and Costa Rica believe that a commitment to environmental and labour co-operation along with the effective enforcement of domestic laws should go hand in hand with trade liberalization. That is why, in addition to the FTA, two complementary co-operation agreements on the environment and labour were negotiated in parallel.

These parallel agreements are practical and reflect the scope of our relationship with Costa Rica.

They are also designed to promote values shared by both countries, such as the rule of law and sustainable development.

Considering the benefits I have mentioned, as well as many others, it is not surprising that free trade enjoys widespread support in this country. As I am sure everyone in the House knows, to the chagrin of some I might add, the vast majority of Canadians, more than 70% in fact, support freer trade. They recognize that increased trade is a prerequisite for economic growth and Canada's continued prosperity and social well-being.

The statistics demonstrate that this is true. In the year 2000 Canada's exports of goods and services represented over 45% or almost half of our GDP, a substantially higher proportion than that of our major trading partners. This share is up from 43% in 1999 and up considerably from just 28% in 1990.

Some 80% of the over two million new jobs created since the government took office in 1993 can be attributed to our increased trade. That means that one in every three jobs in Canada is now linked directly to our success in international trade. One in every three jobs is directly related to our success in international trade. That is so important that it bears repeating.

Most of our exports are now high value-added goods and services: telecommunications, aerospace, software, environmental technologies and other areas of the new economy.

Many Canadian companies, including small and medium sized firms and their employees, depend on trade for their growth and success. Trade puts money in the pockets of Canadians who teach in our schools, work in our factories and run our hospitals. As well, Canadian consumers and producers can obtain a broader choice of cheaper and better goods and services through trade. To put it simply, trade translates into better and higher paying jobs and increased opportunity and prosperity for all Canadians.

I would like to turn now to the importance of new WTO negotiations which have been the subject of increased attention and some concern over the past few days. Given the growing importance of trade to the Canadian economy, it is obviously in our interest to have clearly understood and widely accepted rules to ensure that we are not left subject to the whims of larger and more powerful economies.

A rules based trading system also gives Canadian companies access to larger markets abroad, while at home these companies can take advantage of global economies of scale and maintain or increase employment in their communities. Canada's continued prosperity depends on an open and healthy global economy. That is why we strongly support the launch of new WTO negotiations.

Although differences over an expanded negotiating agenda remain, most WTO members are seeking a launch of new negotiations at the next ministerial meeting scheduled to take place in November in Doha, Qatar. In Canada's view, expanded negotiations should improve access to emerging world markets and ensure trade rules keep pace with changes in technology and business practices.

We are working closely with our trading partners, including the United States, the EU, Japan and key developing countries to build support for new negotiations.

WTO members have many challenging issues left to resolve before Doha, but I believe, with political will on all sides, we can make good progress in bridging the differences among members. A new round offers our best hope to gain access to dynamic new markets and to both expand and strengthen the rules based system which has worked so well for Canada.

I would also like to say that in light of the tragic events that took place recently in the United States, I firmly believe that it is more important now than ever to pursue the goal of worldwide trade liberalization.

Bob Zoellick, the United States trade representative, has recently stated that trade reinforces openness, opportunity, democracy and compassion. I think Canadians overwhelmingly endorse that statement. I believe, as he does and as does the Minister for International Trade, that the WTO meeting in Doha should proceed so that the world trading system can continue to promote international growth, development and openness.

The many benefits of free trade are evident on a regional level. Canada's continued engagement with regional trade agreements such as NAFTA and more recently the FTAA are critical to our collective economic prosperity and social well-being. With a combined population of 800 million people and a GDP of some $17 trillion, the Americas is one of the fastest growing markets in the world in terms of consumers and growth in per capita income.

The FTAA represents an historic opportunity to unite the countries of the hemisphere in a comprehensive free trade area that would contribute to job creation and growth throughout the region, including Canada. That is one of the reasons we are enthusiastic supporters of the FTAA negotiations now under way and why Canada continues to play an active leadership role in the negotiations.

The FTAA would create greater prosperity throughout the entire region. Poorer countries of the hemisphere would have the opportunity not only to improve their economic situations through trade and investment but to begin to address the real problems of poverty, crime, environmental degradation, threats to democracy and human rights.

I will quote from UN Secretary General Kofi Annan's report to the preparatory committee for the high level international intergovernmental event on financing for development.

The secretary general was speaking of the important benefits of freer trade to less developed and developing countries which are struggling to enjoy the benefits we in Canada and other countries enjoy. This is exactly what he said:

There is now widespread acceptance that, in the long run, the expansion of international trade and integration into the world economy are necessary instruments for promoting economic growth and reducing and eradicating poverty...Estimates of the potential gains in developing countries from a variety of liberalization measures range from $100 to $150 billion. There are thus large gains to be captured by developing countries from continued liberalization in goods markets.

I have heard it argued by a minority of Canadians and a minority of members of the House that free trade is somehow bad for the poorer countries of the world. They argue that it is a trick meant to take advantage of poor nations while benefiting only wealthier countries like Canada and the United States.

Many of my colleagues and I sat in the Chamber and heard the prime minister of the United Kingdom, Tony Blair, state the same sentiments as the UN secretary general. He said we must challenge false accusations about liberalized and globalized freer trade. He said that in his view as prime minister of a major country freer trade is fundamental to helping poorer nations develop their economies.

Those were not popular statements with a minority of Canadians and some members of parliament on the far left. Nonetheless the facts support them. An independent person like Kofi Annan, whose statement I quoted, cannot be dismissed as someone who does not understand the reality of the global trading system. Poorer countries of the world stand to gain immeasurably by liberalized and globalized trade if we go about it in a careful and fair minded way. That is what Canada is strongly committed to.

Canada is also committed to pursuing technical assistance programming for the Caribbean and Central America to help countries build their capacities for trade, investment and financial stability. At the same time, Canadians have invested $54.8 billion in the nine NAFTA countries of the Americas. Canadian investment in those countries increased sixfold over the past decade. This means that more Canadian money is flowing into South and Central America and the Caribbean.

The Canada-Costa Rica free trade agreement is a symbol of our long term commitment to the hemisphere. It will help advance negotiations leading to the free trade area of the Americas. The agreement will provide much needed insight into how to address the needs of smaller and more vulnerable regional economies.

In the end our efforts to liberalize trade on the multilateral, regional, and, as in the case of Costa Rica, bilateral level will all lead to the same goal: a more open and rules based trading system which will benefit all economies and nations of the world, a system in which there are only winners and no losers. That is what Canada is strongly committed to. Such a result would greatly benefit the people of Canada and people around the world.

I sincerely hope members of the House will support the legislation. Concerns have been expressed about it already, even by some of my colleagues. We are quite prepared to hear and address those concerns. However let us make no mistake. Canada is a free trading nation. We stand by that and support Bill C-32.

[Sir John A. Macdonald and the Sir Wilfrid Laurier Day Act, September 24th, 2001]

Mr. Speaker, I am pleased to join the debate on Bill S-14. I congratulate my colleague, the hon. member for Don Valley West, for what I think is a very good idea. There are no more important political leaders in our history than Sir John A. Macdonald and Sir Wilfrid Laurier.

Although we talk about the first English speaking prime minister, I know Sir John would have wanted it pointed out that he was a Scotsman as was his successor, Sir Alexander Mackenzie, the first Liberal prime minister. We could see the ethnic nature of Canada right from the start.

Sir John was of course the leading Father of Confederation and did a masterful job of cobbling together the kind of compromises that made the country necessary, and that was no mean feat trying to get together peoples of different nationalities and religions, many of whom had bitterly opposed each other on many fundamental points. As the ultimate pragmatist in Canadian history, he was able to lead, along with many other important Fathers of Confederation, and cobble together the compromise that made Confederation a reality.

Canada became a bilingual nation in 1867, not a bicultural nation, as many people have said. That would be to sell short the very culture from which our first prime ministers sprang, the Scottish culture. If were to look at the coat of arms of Canada we would see the cultural symbols of four nations: France, England, Ireland and Scotland. This country began in 1867 as a bilingual and multicultural nation. That is not some new fact or new policy that some would have us believe. I have heard opponents of mine in election campaigns castigating the Liberals for being the party that created multiculturalism. This has been a multicultural nation from day one, even more so now as nations from all around the world have come to join the original four European nations.

Sir Wilfrid Laurier was the first French Canadian prime minister of Canada and one of the best intellects to ever occupy that office. It is very interesting that we have just commemorated the death of former Prime Minister Trudeau who was also one of the most brilliant men to ever be prime minister of Canada.

One of Wilfrid Laurier's famous phrases was “the sunny ways of compromise”. He would apply that approach to Canadian politics because he understood that we could not have a nation made up of as many diverse peoples as does Canada unless we were willing to have give and take.

The flag beside the Speaker's chair is very appropriate because it is a compromise flag. It probably was nobody's first choice or choice of a very few people.

If Macdonald was the ultimate pragmatist, then surely Laurier was the ultimate compromiser in the best sense of the word. He sought to build bridges and not fences. He employed the sunny ways of compromise. If Macdonald was the original Father of Confederation and master crafter of the nation, which he was, then Laurier oversaw its first major expansion. Laurier oversaw the bringing in of the provinces of the west. He oversaw the so-called people in sheepskin coats, the peoples from eastern Europe, many of whom helped to populate western Canada. Canada also had a major influx of people from the United States at that time.

Sir Wilfrid Laurier was a major player in our history and took the country into the 20th century from the 19th century. It is no secret that the current Prime Minister of Canada is very enamored of Sir Wilfrid Laurier. I would think that it would be fair to say that Sir Wilfrid Laurier is probably his political hero.

It gave us on this side of the House great pleasure to see our colleague and current Prime Minister take this nation from the 20th century into the 21st century as Sir Wilfrid originally took the nation from the 19th century into the 20th century.

Probably more than most prime ministers, Sir Wilfrid Laurier understood the importance of minority rights, that democracy is about majority rules but not a tyranny of the majority which ignores the rights of the minority. Canada cannot work on that basis. Whenever we descend to that level we run into national problems, which Macdonald and Laurier both experienced.

Laurier dealt with some very difficult issues in his time such as the Boer War, the first international war in which Canada participated. Although we were not fully independent at the time in world events, it was the first international action in which we participated. Sir Wilfrid oversaw that.

A number of my colleagues have spoken about the importance of Canadian history. As a teacher of Canadian history for some 21 years, I could not agree with that more. The ignorance of our own history is absolutely appalling, dangerous and has to be addressed. I and my colleagues who share that view call upon the federal government to do what we can. I know the provinces protect education but we need a national education vision even if it is a jurisdiction jealously guarded by the provinces. As Santayana put it so well, those who do not learn the lessons of history are condemned to repeat them.

[Gopher Control, September 19th, 2001]

Madam Speaker, I acknowledge the member's persistence in calling for wide consultation. He made that point repeatedly in the House and the minister certainly agreed with him. As he has noted, those consultations took place from coast to coast to coast with industry and all provinces.

My colleague from Cumberland--Colchester speaks about a long term solution that is wanted both in Canada and the United States. That is certainly the case in the House and in our country, as he well knows.

The long term solution is free trade on softwood lumber. That is what both the United States and Canada purport their goals to be in trade. We are simply calling for the same kind of free trade in softwood lumber that we have in many other commodities.

My colleague asked a question about certain statements of the premier of British Columbia. I guess time will tell and we will see what the premier does, but it is of interest to this government what the practices are in the various lumber producing provinces, B.C. being one of the most important of those.

We will have to watch and see what is done, but I want to emphasize very carefully that we feel that once again Canada's case can be proven and will be proven at the WTO. We do not subsidize unfairly in softwood lumber. That case has been tested before several times. We have always won the case and we will win it again this time. I think my colleague has raised some important issues that certainly bear scrutiny.

[Terrorism, September 19th, 2001]

Mr. Speaker, like many Canadians I have American relatives, some living in New York City. The vicious terrorist attack on the United States is being felt personally and deeply in Canada. Canada will support the U.S.A. and our NATO allies in the important campaign to bring these criminals to justice.

In my city of London, Ontario, the leaders of our Muslim community have repeatedly and forcefully condemned the attack on the United States. I join them in that condemnation. I also stand with them in denouncing the misguided actions of a few of our citizens who wrongly accuse, threaten or attack our Muslim friends and neighbours in London or anywhere else.

This is exactly the kind of hatred and twisted logic which, taken to the extreme, produces the insane violence that victimized so many innocent Americans last week.

May those who were killed rest in peace. May those who mourn their loved ones be assured of the prayers and support of peace loving people everywhere.