House of Commons photoWon his last election, in 2004, with 38% of the vote.
Free Trade Area Of The Americas February 15th, 2001
Mr. Speaker, the negotiations the member refers to are ongoing. The government is actively seeking input from all interested Canadians vis-à-vis the FTAA.
We continue to receive written submissions. We continue to receive daily comments on our website. There was a meeting of federal and provincial ministers of trade 10 days ago. The government is firmly committed to an open, transparent and inclusive process on FTAA.
Supply February 15th, 2001
Madam Speaker, I rise on a point of order. It is with reluctance that I interject and interrupt my colleague, but as the parliamentary secretary charged with organizing the debate, or trying to make sure that we have a full debate at least on this side, I am straining to understand any relevance whatsoever of the member's comments to the motion that is on the floor.
Supply February 15th, 2001
Madam Speaker, I congratulate my colleague from the Progressive Conservative Party on his re-election to the House and on his appointment as trade critic for his party.
If memory serves, on November 27 the government was resoundingly re-elected by Canadians. The Canadian public knows full well what our position is on free trade and what it has been since we have been in office. I submit to my colleague that he had his answer very clearly from the Canadian people, that they support the initiatives of the government vis-à-vis free trade and many other initiatives we have undertaken.
With respect to his question on softwood lumber, I have addressed it a couple of times in the House but am happy to reiterate it for him now. The government is very clear that nobody in Canada wants to see the current deal extended or another deal such as the current one struck again.
The ultimate goal of the Canadian government on softwood lumber is very clear: free trade in lumber with the United States. Why? It is the surest way to achieve fairness for all the provinces and for all Canadians involved in the lumber business.
Supply February 15th, 2001
Madam Speaker, let me take the opportunity to congratulate you on your appointment to the chair.
I listened with some interest to my colleague's comments and, indeed, he is right. I confess to be one of those who in 1988 was extremely dubious about free trade and whether it would be good for Canada. Clearly it has been. That is very evident.
That is why the government, most Canadians and most parliamentarians support free trade, with the exception of members of the NDP whose position everybody knows before they even speak on it. They support it because they know it is good for the Canadian economy. They know it will help eradicate poverty, as the United Nations has recently pointed out.
The hon. member says that he and his party agree with the Bloc motion. However, in citing the example of 1988, how can he now support a process which is not what the Mulroney government of the day followed? Our proposed process is the same as the one used by that government of the day. It includes a full review of the enabling legislation open to debate and open to opportunities for amendment. That is how change would come.
How could the member support a process which is so radically different from that which his own government followed in 1988?
Supply February 15th, 2001
Mr. Speaker, to the Bloc member who is saying all of this is secret, I would be happy to give him the address of the website which he obviously does not know exists.
My question to my colleague from the NDP is simply this: what is her response to the following statement?
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.
The quote comes from a recently released UN report. How can the member tell us that international trade is not important in addressing the problem of poverty?
Supply February 15th, 2001
Mr. Speaker, my colleague from the NDP was calling for a little more clarity from the government, so I would like to ask him a question and seek to provide some clarity on the process as we understand it on this side of the House.
The government negotiates trade agreements to promote Canadian trade interests based on extensive consultations with Canadians, NGOs, parliamentary committee and business organizations, et cetera. Only when Canada is satisfied that the agreement is in the interests of the country would that agreement be signed.
The process in all these agreements to which the member has referred is that parliament was asked to approve the agreement after a careful review and debate of the implementing legislation. That is the normal process that has been followed in the House of Commons throughout Canadian history. It is a process that will be followed in this very important negotiation.
I do not understand the member's confusion. I hope that the reiteration of what has been our policy since Confederation clarifies matters.
I would like to ask the member a question. Does he not see the Bloc motion as written as rather vague, as wanting to create a situation that was referred to earlier by the chair of the standing committee? It would seek to change the Canadian constitution in effect and create something that has never existed in the House throughout our entire history. Does he not see that as the case?
Supply February 15th, 2001
Mr. Speaker, I am so pleased to hear my colleague from the Canadian Alliance address the concern that many of us on this side of the House share as well. Very well-meaning people, some of them personal friends of mine in London, Ontario, just simply do not seem to understand the point the member has made: that the best way to address poverty here in Canada and around the world is to do what the UN is calling for and continue to liberalize trade.
I will quote UN Secretary General Kofi Annan who he said that tariffs must go. In his new report he says that rich countries should remove all barriers to goods and services from poor countries. That would put at least $100 billion a year into the pockets of the world's poor, more than double what they now get in foreign aid.
I fully endorse the member's comments on the need for liberalizing trade. The Minister for International Trade certainly does and so does everyone on this side of the House. I am pleased to agree with the member on that.
Regarding the opportunities for consultation, there have been many and there will continue to be many, both through our position on the website and with groups that can come to the standing committee. We welcome all consultation possible.
Supply February 15th, 2001
Mr. Speaker, first of all allow me to congratulate my colleague from the Bloc on his very good maiden speech in the House and also on his appointment as trade critic. I look forward to constructively working with him and the other critics over the next couple of years.
The member made a very good point and one that we certainly know is valid, that is, in the midst of economic prosperity in any country, including Canada, we still have those who unfortunately are being left behind. There exists a dichotomy that none of us are happy with and it needs to be addressed. I fully agree with him on that matter.
However, on the need for more liberalized trade, I will quote from a UN report:
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.
Those words come from the United Nations. They are fully endorsed by the secretary general of the United Nations, Mr. Kofi Annan, who has said that the best thing we can do for the poor in our own nation or the poor around the world is to liberalize trade. That is the best way we can address the problem of world poverty. Those words come from people far more expert than I, and I endorse them.
Supply February 15th, 2001
Mr. Speaker, I thank my colleague for his congratulations. First I want to assure him that in my 20 year career in elected public office at the municipal level and now at the federal level, if there is one thing that my constituents have been very clear about it is that they know with great certainty that I will be heard from in whatever forum in which I represent them and that certainly includes the House of Commons.
My colleague's question gives me the opportunity to do a little commercial on a trade day that we will hold in London, Ontario, on March 6, with my colleagues. Indeed, the Minister for International Trade and trade officials will be there. I will certainly be there with my other colleagues to take all the questions that people have on how they can export and take advantage of the opportunities that exist in the export markets.
I hear something of a contradiction in what my colleague from the Alliance and, indeed, colleagues from the Bloc have said here today. First and foremost they call for greater transparency and consultation, but then they demand to see the Canadian position in the House right now. That is simply a contradiction. We have filed our position on five of the nine negotiating groups. It is on the website. We are getting responses every day to them. However, we have not finalized our position on the other four groups because the consultation that the hon. member calls for is ongoing right now. With whom? It is ongoing with NGOs, with individual Canadians, with stakeholders. When the full position is developed that will be the appropriate time to engage in a national debate. The consultation being called for is simply not complete.
I say again, and I am proud to say it, that the government is the leader in these negotiations on openness and transparency and it will continue to be that.
Supply February 15th, 2001
Mr. Speaker, I take this first opportunity to congratulate you on your appointment to the chair. I thank the people of my riding of London—Fanshawe. I also thank my wife, my children, and all my very dedicated campaign workers who have made my election for the third time to this place possible. I am deeply honoured and I thank them.
I am very pleased to address the House today on the very important issue raised by the opposition, the free trade area of the Americas. The past decade has been one in which the hemisphere has made remarkable progress and in which Canada's relations with its closest friends and neighbours have developed in new and exciting ways.
We will celebrate this progress and the spirit of co-operation that has transformed our community when the Prime Minister welcomes the leaders of the democratically elected governments of the region to the third summit of the Americas in Quebec City in April.
The Americas is one of the world's most dynamic regions. Although its 800 million people are not even one-sixth of the world population, they account for more than one-third of the world's economic activity. At about $11 trillion U.S. the combined gross domestic product of the Americas is greater than that of the European Union.
At the Miami summit of the Americas in 1994, leaders endorsed a declaration and plan of action that expressed their common commitment to strengthening democracy and creating greater prosperity. They also committed themselves to practical measures to improve health care, increase access to quality education and protect biodiversity, to name but a few.
At the second summit in Santiago in 1998, leaders endorsed action to support the development of democratic institutions, protect human rights, and enhance transparency and respect for the rule of law. They also gave specific instructions to begin the process of negotiating the free trade area of the Americas. Once it is complete, the FTAA will be the world's largest free trade area.
Throughout today's debate, my colleagues and I on this side of the House will discuss in some depth the issues of access, services, investment and the need for coherence. I certainly hope hon. members across the aisle will join us in this important debate. However, I must admit that I suspect some members of the opposition will simply cast aspersions on the FTAA rather than offer constructive and realistic ideas. I would love to be proven wrong on that.
Only the opposition can simply say that everything the government does or proposes is fundamentally contrary to the interests of Canadians. The reality of governing is that we must assist Canadians in fulfilling their hopes and achieving their aspirations while providing real, meaningful assistance to the people of the Americas. The FTAA offers Canadians many more benefits that would clearly compel us to support these negotiations.
I am speaking too of the vast hemispheric dialogue on issues such as labour rights and environmental protection that have been fostered and promoted within the broader hemispheric movement. We all expect a free trade area of the Americas to create the conditions for greater prosperity. Without the chance to improve their economic situations through trade and investment, just how could poor countries of the hemisphere begin to address their real problems of poverty, of crime, of environmental degradation, and of threats to democracy and human rights?
We also know that there are vulnerable and excluded elements of our societies. There are challenges to our culture and to our values. There are indeed risks to some parts of our economies, risks that trade alone does not create and that the FTAA alone cannot resolve, but risks that concern our citizens nonetheless.
What do we do? We cannot stand still and accept matters as they currently stand in Canada or anywhere else in the hemisphere if there is a chance to make them better. The facts are clear. Canada has done very well from its openness to trade and investment and has acquired the strength and experience to do even better in the future under even better rules. Therefore we must go forward.
A key objective in the FTAA negotiations is to achieve open and secure market access for goods produced within the free trade area. The elimination of tariffs is key to this objective. Some Canadian exporters face significant tariffs in key markets for important Canadian exports. Canada therefore supports an approach that will allow for early tariff elimination for some products in order to provide exporters the opportunity to expand trade quickly and reduce costs for consumers.
At the same time all countries have domestic industries that may require time to adjust to increased import competition. Consequently we expect that a transition period which allows for the phased elimination of some tariffs will also be negotiated.
Consistent with the approach taken in other negotiations, Canada will push for the elimination of tariffs on all non-agricultural products over a period not to exceed 10 years. Canada is also examining a transitional safeguard mechanism to protect producers from unforeseen difficulties associated with hemispheric trade liberalization. To ensure that only goods produced in the hemisphere benefit from preferential tariff treatment, a Canadian objective will be to negotiate appropriate rules of origin.
If there is one sector where new access could lead to significant benefits for Canada and for Canadian businesses, it is in the area of services. The service sector is a key engine of the Canadian economy. It is responsible for more than two-thirds of Canada's GDP, almost three-quarters of employment, some 10.5 million jobs, and nearly 90% of new job creation in Canada. It is leading the transformation of the Canadian economy into a knowledge based economy.
Canada is the 12th largest exporter of services in the world, exporting some $51.8 billion worth in 1999 alone. The argument for supporting Canada's services exports is particularly eloquent when it comes to the Americas. Canada's commercial services exports to FTAA countries, excluding the United States and Mexico, were worth $1.9 billion in 1998, up from $787 million in 1993.
The Canadian telecommunications sector is enjoying tremendous success, exporting services valued at over $2 billion per year and employing some 104, 000 people. As a consequence, since 1993 the sector has been growing at a rate of just over 9% each and every year.
Still, Canadian exporters of telecommunications services face market access and regulatory restrictions in many countries of the hemisphere, in part due to the presence of telecommunications monopolies in several central and Latin American countries, the lack of transparency, predictability and timeliness in the process for awarding operating permits and licences or prohibitive fees for licensing or interconnection.
In recent years Canada's financial institutions have been very active in central and Latin America. One leading example is Scotiabank which is active in Argentina, Chile, Brazil, Costa Rica, Belize, El Salvador, Guyana, Panama, Peru, Uruguay and Venezuela.
Another good example is the National Bank which recently teamed up with three U.S. venture capital companies and a local Chilean partner to form the Corp Banca consortium in order to purchase banking institutions in South American countries.
The same is true for the insurance sector.
Another sector where Canadian expertise is renowned around the world, of course, is engineering and other related services. Canada is currently the world's third largest exporter of engineering services, and the high calibre of Canadian engineers is internationally recognized. That is why Canada is actively participating in the services negotiations under the free trade area of the Americas.
Canada has much to gain from the establishment of a comprehensive set of rules on trade and services under the FTAA. Canada's general objective in the services negotiations is to seek improved market access for Canadian service providers under a transparent and predictable rules based regime.
In the elaboration of FTAA rules on services, Canada will be guided by its existing rights and obligations in the North American Free Trade Agreement, the Canada-Chile Free Trade Agreement and the WTO General Agreement on Trade in Services, more commonly known at GATS.
While the link between trade, economic growth and jobs is well understood, the same is not true for the flip side of trade investment. Foreign investment has played a central role in Canada's development as a nation and remains essential to securing Canada's continued development and prosperity.
Canada's efforts toward a strong rules based system at the regional and multilateral levels are aimed at creating a solid basis for long term economic expansion and continued social progress. Investment rules provide for transparent, predictable and fair rules for Canadian investors, large and small.
Trade and investment rules give a medium sized economy like ours a great deal of leverage against the political pressure sometimes exerted by larger economies. Conversely, inward investment in Canada coming from the non-NAFTA countries of the Americas totalled only $3 billion in 1999.
Overall, Canada has a strong outward investment orientation in the Americas beyond the United States and Mexico. In this context, Canada has a strong interest in seeking a rules based, secure and predictable environment for investors and their investments in the hemisphere.
In the elaboration of FTAA investment rules, Canada will be guided and take into account past experiences with trade negotiations and the implementation of investment rules with other countries, including those of Latin America and the Caribbean.
Canada's main objective is to ensure a clear delineation of investment obligations that will serve our national interests. As is the case for other trade agreements, the FTAA investment chapter will allow countries to file exceptions for those measures they wish to maintain and what would otherwise not be allowed under the FTAA.
In addition, Canada will ensure that it preserves its ability to adopt or maintain regulations, administrative practices and other measures in sectors of key policy interest. I am specifically referring to our most treasured public health care system and our public education system. These are not open for debate or discussion by the Government of Canada.
The summit process ensures that economic growth through liberalized trade is linked to social development. Hemispheric co-operation on democracy, human rights, labour, employment and environmental issues, justice, health and other major issues proceeds within the same framework as the FTAA. The FTAA is complemented and reinforced by the efforts of many other ministers of the hemisphere, not just trade ministers.
For example, ministers of energy will meet in Mexico at the beginning of March. Ministers of the environment will meet in Montreal at the end of March. Finance ministers will meet in Toronto in early April. Ministers of labour will meet in Ottawa next October.
These collective and co-operative hemispheric efforts on specific issues such as labour, employment and the environment reflect an integrated approach to meeting summit commitments.
We welcome the opportunity to talk about the FTAA and we will never be shy to do so on any occasion. However the Bloc's motion is irrelevant, unfortunately, simply because the government has been at the forefront of the hemisphere in consulting openly with Canadians and with parliament. The kind of leadership my colleagues from the Bloc have called for today is something the government has demonstrated very clearly and repeatedly, and it will continue to do so.
The standing committee studied and published a report. Then the minister tabled the government's response to the report, which set the tone for our proposals for the FTAA at this stage. Had the Bloc consulted with all parties on their motion perhaps we might have been able to agree with it. Nonetheless, we on this side welcome the opportunity to debate it. I am convinced the FTAA process will benefit significantly from this parliamentary exchange on such a very important issue to the people of Canada.