Mr. Speaker, I rise today on behalf of the government to argue against Bill C-306, which the hon. member from the Bloc introduced last February.
The year is 2009, not 1929. We live in a time when Canada no longer needs to prop up its industries with protectionist laws. We live in a time of liberalized trade and increasingly open world markets.
The fact is that Canada is a trading nation, and it always has been. Trade is a huge part of who we are. It is a part of our past, it is a part of our future competitiveness and it is a key part of our fight against the current recession.
In a recent report by the World Economic Forum, Canada ranked fifth among 118 countries in enabling trade. That report measures the degree to which a country facilitates international trade and investment, and it bears witness to its successful economic development.
Indeed one in five jobs in Canada is dependent on international trade, and we export half of all our manufactured goods. Clearly our success as a nation is built on increasing trade with other countries, not putting up barriers to trade.
However, this bill would do exactly that. It would put up trade barriers by making it the law that federal departments and agencies buy only Canadian produced goods, and not only that, but buy them at prices up to 7.5% higher than the competing products of other countries. This is deeply flawed economics and a very short-sighted response to the recession.
However, we do not have to take my word for it. Both the Prime Minister and the Minister of Finance have said publicly that protectionism is not the way to fight a recession. Their position, and that of the government, has been stated clearly: protectionism would mean recession, or worse, for a very long time.
Just a few months ago, in Washington, the Prime Minister spoke out strongly against protectionism in the United States, saying, “If there is one thing that could turn a recession into a depression, it is protectionist measures across the world”.
The reality is that the economic slowdown is not just a Canadian problem; it is an international one. All countries need to focus on stimulating the global economy because we are in a global economy, not just our national economy.
One of the ways we are doing this is by keeping protectionism at bay. This is the point that Bill C-306 completely fails to grasp.
Can we imagine what would happen if Bill C-306 did become law? First of all, Canada would be made an international laughing stock. After all, at the November summit of the G20 countries, we, and all other countries, agreed to avoid a return to protectionism.
That the hon. member opposite would table such a bill shows how out of touch she and her party are. At a time when the world needs less protectionism, the hon. member has produced a bill that would force government departments and agencies, crown corporations and even foundations to buy Canadian products at inflated prices and to invite retaliation.
That is woolly economics. From the point of view of our trading partners, it would be a subsidy. Our trading partners would have a field day the next time we find ourselves in front of an international trade tribunal, which will be soon if the bill passes.
What kind of retrograde thinking is this when the countries of the world are acting together to fight the worst economic crisis in a generation? If we want to protect jobs today and position the economy for growth in the future, we do not do it by hiding behind artificial barriers to trade. That is totally wrong-headed.
For one, we are not helping our industries to become more competitive; we are coddling them. For another, adding a price preference for Canadian products essentially adds 7.5% to the operating costs of government, at all levels. I cannot believe that a member of the House thinks that is going to make our economy more competitive.
At a time when Canadians are sacrificing and when governments have put their costs under the microscope, to suggest that we pay a premium for bad economics is the height of absurdity. Our government is not looking backward like this. We are looking forward and outward.
We are against protectionist policies and we are determined to respect and uphold our trade commitments with our partners. That is why our Prime Minister was in Europe earlier this month, opening doors on trade talks with the European Union potentially worth $12 billion in new Canadian exports.
The government has a perfectly good plan to fight the recession. It is the economic action plan. This multi-year plan outlines the steps we will be taking to stimulate the economy, to protect Canadians during a global recession and to invest in our long-term economic growth. As a result of these actions, Canada will emerge from this recession with better infrastructure, a more skilled labour force, lower taxes and a more competitive economy.
To finance this plan, the government is making a deliberate choice to run a temporary deficit to help stimulate our economy. There will be no long-term running of permanent deficits because the approach we are taking emphasizes capital expenditures rather than increasing the operating costs of government. This allows us to meet short-term needs while serving long-term goals. It helps sustain and create jobs during the global recession, and it allows us to build the infrastructure our country needs for long-term growth.
As the economy recovers, we fully expect to emerge from deficit and return to surplus within five years. We will use future surpluses to pay off the debt incurred during this recession. This plan will get money into the hands of individuals, families and communities in all provinces and regions of this country.
The measures we are taking are necessary, affordable and short term. I want to emphasize that point. It is temporary. It will not permanently increase the cost of government. We will continue to avoid a long-term structural deficit that we cannot afford. The amount that we borrow this year will remain affordable and reasonable by international standards.
Let me also assure the hon. members that the economic action plan contains many measures to support industries in difficulty, including the forestry, manufacturing, tourism, agriculture, fisheries and automotive industries. At the same time we need to focus on keeping our markets open and continuing free trade with our American partners. When 80% of our manufactured goods are dependent upon the U.S. market, we cannot afford to start putting up barriers to trade. Nobody can, so let us not start with this bill. We need to keep the Canadian market open and we expect our trading partners to do the same.
Do the hon. members of this House honestly think that the best way to fight the recession is by increasing the cost of government and putting up new trade barriers at this time? Do they think that is the best way to protect jobs and prepare Canadians for the future?
I doubt the majority in this House would agree that this is the best way forward. I would ask members to vote to defeat this bill, which would undo everything that Canada and the world is fighting for: more jobs and strong, competitive economies for the future.