Mr. Speaker, we continue this morning second reading of this bill to implement the new GATT agreements and to establish the World Trade Organization. I must say this debate was brilliantly launched by the Minister for International Trade and by my colleague for Verchères who is the international issues critic for the Bloc Quebecois.
Second reading provides for a discussion of the principles and general direction of a bill while more technical aspects are closely analyzed in committee and, if necessary, the Bloc Quebecois will table amendments at third reading.
After long negotiations, Canada, like all other GATT members, must pass legislation bringing into force at the target or desired date of January 1st, 1995, the GATT agreements reached last April. These agreements strengthen significantly the legislative framework for international trade and define more clearly the rules of the game. They increase the number of sectors subject to these rules, improve the trade conflicts settlement mechanisms and, finally, establish the World Trade Organization, which we have been waiting for since the second world war.
This is considerable progress towards equal opportunity on the world markets for small and medium-sized countries like Canada and Quebec and, in fact, most countries of the world. Even if great economic powers like the United States, Europe and Japan still largely control the negotiation process, once they agree to new rules, these rules apply automatically to all GATT members, which, then, can benefit from a greater protection for their international trade activities.
Whith a level playing field, performance on the international markets depends less and less on the size of a country and more and more on its ability to design, produce and sell high quality products and services at competitive prices. Under such circumstances, small and medium sized countries can do quite well and even succeed better than large entities, as is proven every day in the world economy.
I understand perfectly well the enthusiasm shown by the Minister for International Trade who said in his opening speech, and I quote: "By creating a more open and stable international trading environment this agreement will generate increased Canadian exports and investment".
The minister is quite right and I can assure him that, on the eve of becoming a sovereign country, Quebec shares his enthusiasm and his understanding of the evolution of international trade rules.
Allow me to read another excerpt from his speech: "Canada's economic strength now and in the future will depend fundamentally on our willingness to stay on the leading edge of freer trade, to continue to take an active and creative role in forging new relationships and in building new structures that over time can extend the reach of a rules based international order.
The multinational system centred on the World Trade Organization will be the foundation of that international order, but it is not the only element of what is and must be a complex and constantly evolving trade order. We must harness for positive ends the profound forces pushing us all toward deeper economic integration. Today it is more accurate to speak not of trade policy as such but of international economic policy". And listen carefully, this is the minister speaking: "Jurisdictions and policy areas that have long been considered to be quintessentially domestic are now increasingly subject to international negotiations and rule making".
The minister is perfectly right. Again, Quebec is in total agreement with the Minister for International Trade, so much so that one might wonder if the minister consulted Mr. Jacques Parizeau or Mr. Bernard Landry before he wrote his speech. That is exactly what we keep saying when we consider the future relations between Quebec and the rest of Canada.
On the eve of a referendum that will determine the political future of Quebec and of the rest of Canada, I have to admit it is heartening to hear at least one federal minister making the realistic, clear and enthusiastic statement of the rules and policies that will govern economic relations between Canada and Quebec.
That conclusion and the praise I give to the Minister for International Trade may come as a surprise, but it is quite simple and natural. How could the Canadian minister seek economic ties will all sovereign countries of this world and not with Quebec, when we already have significant and productive trade relations with the rest of Canada?
Canadians and Quebecers would have a hard time understanding such an attitude, and the whole world would be taken aback. But since other ministers, the Prime Minister included, do not have that same open and realistic attitude, let us specify what is at stake. While Quebecers wish their Canadian partners will have an open and realistic attitude, the rules governing our future economic relations will not depend on attitudes only, but largely on rules set under the GATT.
It is largely a matter of international law, the broadening and reinforcement of which the minister praised today. Article XXVI(5)(c) of the GATT agreement provides that a new state carved out of a country which is already a member of GATT automatically becomes a member on becoming a sovereign state, provided it accepts conditions and requirements applying to the parent state. It is quite simple and clear. A C. D. Howe Institute study says that most Canadian experts fully recognize that fact.
It is primarily a matter of law. Quebec has already said that it would apply for membership and that it would accept all conditions and requirements that apply now to Canada. The only choice for the international trade minister, then, is to welcome the future relations between Quebec and Canada with the same enthusiasm he demonstrates for other sovereign states. He should so advise the Prime Minister. Given that the Prime Minister just said he likes a good fight, especially with Quebec, he will probably not greet the GATT rules with the same enthusiasm as that shown by his Minister for International Trade.
According to what he said, if Quebec becomes politically independent, the rest of Canada will want to separate economically from Quebec while remaining associated with all other sovereign countries of the world. Well, Mr. Minister, you will have to tell your Prime Minister that Quebec being a de facto member of the GATT, the same rules will apply to Quebec as to all other sovereign countries members of the GATT, and the rest of Canada will have to abide by these rules.
In international trade or GATT terms, this very simple principle is called the most favoured nation treatment. When a country gives a tariff concession to another member, that concession must immediately and unconditionally apply to all similar products coming from all member countries. That is one rule of law that will considerably restrain the Prime Minister's aggressiveness.
But that is not all. GATT goes further. It does not merely prevent discrimination between countries. It also anticipates discrimination once the product is inside the recipient country and therefore prevents discrimination towards other domestic products. That is what we call the "national treatment". It requires that GATT members adopt legislations on sales, transport and usage of foreign products which are identical to those governing similar domestic products coming from national companies so that both foreign and domestic products be treated equally.
The Prime Minister will have to admit that, if he is to abide by the law, his leeway is limited. Naturally, if his aggressive instincts are too vivid, he could break the rules of law and trigger a trade war with Quebec.
If instincts were to prevail over reason, let me repeat word for word what his Minister for International Trade said when he tabled this bill. The agreement excludes the adoption of unilateral measures in response to trade disputes. The new integrated system of dispute settlement which would mean clearer rules, shorter waiting periods and, for the first time, an appeal process with a binding ruling, constitutes a major improvement in the previous GATT system.
Finally, the effectiveness of the rules depends on the means of having them enforced. You will note that we now have an appeal process with a binding ruling, which means the possibility of having them enforced.
Consequently, this comprehensive reform of the multilateral system of trade dispute settlement represents a major advantage, although that is impossible to quantify for commercially less important countries such as Canada, which are fundamentally vulnerable to the unilateral approach of economic giants. That would also apply, of course, to Quebec and Canada, so that there would be no unilateral action in response. That argument applies, of course.
What can we conclude from this short analysis of the GATT rules and the speech of the minister responsible for International Trade when comparing them to what the Prime Minister said about future economic relations between the rest of Canada and a sovereign Quebec?
I think that you will agree with me that the Prime Minister of Canada seems to confuse the preparing of the referendum campaign with the preparing of an Halloween party. Instead of clearly and simply presenting the true face of future economic relations between Quebec and Canada, he is looking for a disguise to make people insecure, to scare them before the referendum, while we all know that, after a winning referendum for Quebec, the rest of Canada would simply not have a choice of rules to apply. It would have to imperatively and minimally follow the GATT rules.
After the fact, the Prime Minister will undoubtedly seek to play down his strong language from the past referendum, the hardly concealed threats made before the referendum. He will probably want to explain to us that they were only minor mistakes which would certainly not force him to resign.
I must admit that, personally, I have a lot of difficulty respecting that kind of politician. A politician who was saying during the last election campaign that he would not sign the North American Free Trade Agreement without major renegotiation, and who rushed enthusiastically to sign it a few weeks after taking office. Today, he is playing exactly the same game with the future economic relations between Quebec and Canada.
During the last election, he did not fool Quebecers and they massively voted for members of the Bloc Quebecois. I dare hope that, today, the rest of Canada agrees more with the realism and enthusiasm of the Minister for International Trade, who is seeking to build open and stable economic relations with sovereign states, than with the narrow minded and obsolete attitude of the Prime Minister, when he talks about the future economic relations of a sovereign Quebec with the rest of Canada. The rest of Canada needs a spokesman like the Minister for International Trade to prepare its future economic relations with Quebec on an open, stable and productive base which
would fit into the irreversible evolution of international economic rules.
I can assure the minister that he will find in Quebec negotiators just as enthusiastic and determined as he is in supporting openness, stability and economic growth, something which would be mutually profitable.
Today, thanks to this bill, we were able to discuss GATT. I can say that we are just as prepared and willing to discuss possible negotiations with regard to free trade, the auto pact and all the other commercial rules that bind Quebec and Canada.