Mr. Speaker, I will be sharing my time with the hon. member for Surrey North.
As a member of the Standing Committee on International Trade, it is my duty to rise here today to debate an agreement that could have a significant impact on Canadians from coast to coast to coast.
On several occasions—at meetings of the Standing Committee on International Trade, here in the House as well as outside the House—the NDP asked the Conservative government to be transparent and hold a public debate before signing the foreign investment promotion and protection agreement, or FIPA, between Canada and China.
As per usual, however, the Conservative government preferred to do things in secret, under the radar, behind closed doors. The agreement itself has never been debated or examined by a committee. It has never even been voted on. China and Ottawa surreptitiously negotiated this FIPA, an agreement that gives Chinese state-owned enterprises unprecedented rights that are not even offered to Canadian enterprises, an agreement that undermines Canadian sovereignty and the constitutional authority of the provinces. To add insult to injury, the agreement will have a 31-year term and cannot be revoked.
The Canada-China FIPA is the biggest trade agreement since NAFTA. It gives Chinese state-owned enterprises the right to sue Canada for damages when decisions are made at the municipal, provincial or federal level that harm their investments.
Usually, Canada signs FIPAs with countries whose investors do not own major assets in Canada. However, that is not the case with China, and the growing weight of Chinese investments in Canada now has a political price. As a result of the Canada-China foreign investment promotion and protection agreement, Canadian taxpayers will now have to shoulder disproportionate obligations with regard to Chinese companies in exchange for protecting Canadian companies in China.
According to Gus Van Harten, a law professor at York University, the rights that this treaty grants to Chinese state-owned enterprises will affect provincial authority over natural resources, taxation and property rights.
By signing this treaty, Canada is abdicating part of its sovereignty to China and its enterprises, without really getting anything in return for Canadian companies in China. Why? The reason is that the treaty also consolidates the inequality that currently exists with regard to Canadian companies' ability to access the Chinese market. Under the Investment Canada Act, Canada is currently a relatively open and transparent market. However, the existing framework in China, particularly in strategic sectors, lacks transparency, is closed and is described in a very vague manner in the treaty. China will therefore benefit from a favourable environment for its investments in Canada, but the reverse is certainly not guaranteed. That is why we, on this side of the House, are concerned.
The $15 billion takeover of the Canadian oil and gas company Nexen by Chinese energy giant CNOOC confirms the imbalance with regard to the two countries' respective investments. The consequences of the treaty go well beyond the oil sands. Chinese state-owned enterprises are also active in the mining sector, and they are looking at making investments in Quebec's Plan Nord. A Chinese company has already acquired a nickel mine in northern Quebec, and it will be protected by the treaty, as will all future investments.
Like all Canadian provinces, Quebec's ability to control its natural resources would be limited from this point on; and, yet again, it would happen without consultations between the province and the Conservative government.
We cannot accept the fact that a valid provincial policy—one that addresses a crucial environmental challenge and that is widely supported by the people—is being directly attacked with no real possibility of recourse.
The treaty does not prevent various levels of government from continuing to regulate environmental protection, health and public safety. However, if these regulations are detrimental to Chinese businesses, the companies can sue the governments and receive significant financial compensation—potentially in the billions of dollars.
In that context, it is probable that the provinces, municipalities and the federal government will be more reluctant to pass new regulations because they will want to avoid exposing themselves to costly lawsuits. This treaty will make passing new regulations less palatable.
For example, we do not see how Canada would be able to regulate greenhouse gas emissions or strengthen oil sand regulations without affecting Chinese investments and possibly subjecting the country to lawsuits.
Setting aside the issue of jurisdiction for the moment, it would be completely fiscally irresponsible of the federal government to negotiate an agreement that requires it to take responsibility for measures taken by a provincial government.
A number of countries have faced catastrophic fines because of these treaties. The amount of money at stake has reached tens of billions of dollars—hundreds of billions, even—to the point where certain countries, such as Australia, have decided to take another look at whether investment protection agreements, which is what this is, are a good idea.
Finally, judging from the experience of other countries, the trade agreement between China and Canada may well undermine the development of Canada's clean energy technology sector.
It is inconceivable for a treaty that could have such a devastating effect on Canadian sovereignty, provincial jurisdictions and public rights to be passed with absolutely no democratic debate in Parliament and across the country. That is why we must stand firm against it. Canadians have not given this government a mandate to sell our sovereignty to China or to the highest bidder.
The NDP believes in the importance of our commitment to China and other emerging markets. We want clear rules that support investor confidence and that protect and promote Canada's interests. We want a trade policy that creates new business opportunities for Canadian companies and that promotes value-added industries, as well as high-quality jobs, while respecting labour law and environmental law.
Unfortunately, on a number of occasions, this government signed agreements based on nothing more than a radical right-wing ideology and a hands-off approach that simply does not work.
We in the NDP feel that Canada should have a robust trade policy, with good partners, in order to reflect Canada's commitment to responsible and environmentally sound economic development that respects all stakeholders.
Let us be clear. We are in favour of trade, but trade that is fair, effective and beneficial for both sides. That is the key.
This is not about signing free trade agreements with anyone, at any time, under any circumstances, time and time again, the way things are being done right now. No, this is about paying attention, taking these agreements very seriously and taking the time to listen to every voice across the country in order to have a clear vision, to think about all the things that could go wrong and to really be predictable. Now, that would be a responsible approach.
To conclude, the Conservatives must be clear with the Government of China and with all Canadians by stating that they will not ratify the agreement being negotiated right now. Canada's trade and investment relationship with China is far too important to make mistakes.