I can hear the opposition members talking about George Bush, but they are sure anxious to follow his lead. That is why the want to sign the trade agreement with Panama.
According to the U.S. Department of Justice and many other entities, Panama is a major financial conduit for Mexican and Colombian drug traffickers and money laundering activities. Again, just like we did with Colombia, we want a free trade agreement with a drug-producing country. How will that benefit Canadian workers? I do not know.
It is yet another trade deal negotiated in record time, without any consultations with trade unions, environmental groups or civil society and citizens. A fair and sustainable trade deal would not just address the needs of business, but also the needs of working families and the environment.
I will give the House our vision of a realistic free trade policy. The NDP reaffirms its vision for a fair trade policy that puts the pursuit of social justice, strong public sector social programs and the elimination of poverty at the heart of an effective trade strategy. Would it not be nice if we could help eliminate poverty in Panama with an effective fair trade agreement?
Canada's trade policy should be based on the principle of fair, sustainable and equitable trade, which builds trading partnerships with other countries that support the principle of social justice and human rights, while expanding business opportunities. We want our Canadian businesses to expand their opportunities, but we want them to do it in a fair and equitable way for workers across the world.
Fair trade should be the overarching principle, not just an afterthought of trade negotiations. The NDP strongly believes in an alternative and a better form of trading relations that can be established with Panama and other countries, one that includes the following within an overall fair trade strategy.
The first is to provide a comprehensive common-sense impact assessment on all international agreements that demonstrates the trade deals Canada negotiates are beneficial to Canadian families, workers and industry and that the government does not sign any trade agreement that would lead to net job losses.
The second is to ensure that the trade agreements Canada negotiates support Canada's sovereignty and freedom to chart its own policy, support our ability to be a competitive force on the world stage and support the principles of a multilateral fair trade system.
The third is the fundamental principle that all trade agreements must promote and protect human rights by prohibiting the import, export or sale in Canada of any product that is deemed to have been created under sweatshop conditions, forced labour or other conditions that are not in accordance with fundamental international labour standards and human rights.
The fourth is the fundamental principle that all trade agreements should respect sustainable development and the integrity of the ecosystem.
The fifth is that any time the Government of Canada signs a free trade agreement, the decision to proceed with enabling legislation would be subject to a binding vote on whether or not to accept the terms of the agreement.
The current system which consists of tabling FTAs in the House for a period of two sitting days prior to ratification is neither mandatory nor binds the government to a decision of the House.
These are very simple suggestions that I have read. These principles could be easily implemented into any agreement that we sign with any country.
I do not know what the rush is with the Conservative government.
I would like to read into the record a letter from the Hon. Michael H. Michaud, member of Congress. Parts of this letter have already been quoted today, but I want to read the whole letter:
Just when we thought we'd heard almost everything there is to know about the American International Group (AIG), from its bailouts to its bonuses, many may not know AIG is suing U.S. taxpayers claiming it “overpaid” U.S. taxes on activities in Panama, a country which applies low to no regulations and taxes on firms registered there. AIG wants to get back those taxes it dodged with this Panamanian front....
We could substitute “U.S.” or “American corporations” or “AIG” with any Canadian company.
Panama's industrial policy is premised on obtaining a comparative advantage by banning taxation of foreign corporations, hiding tax liabilities and transactions behind banking secrecy rules and the ease with which the U.S. and other firms can create unregulated subsidies. According to the State Department, Panama has over 350,000 foreign-registered companies.
AIG is very keen on tax havens with Panama.
Imagine, a small country like Panama has 350,000 foreign registered companies. I think the only reason it has so many foreign registered companies is that it is a tax haven. Companies do not have to pay taxes so they are investing in Panama.
The New York Times ran an exposé on how AIG is currently suing the U.S. government for $306 million in back taxes it claims it does not owe thanks to its use of one of Panama's corporate entities, Starr International Company, SICO. SICO is AIG's largest shareholder. It is also the manager of a compensation fund for AIG employees who are paid by AIG in shares. SICO's chairman is former AIG chairman Maurice Greenberg. The same company that received government bailouts and used taxpayers dollars for outrageous bonuses is now demanding twice the amount of the bonuses it paid in back taxes.
If people are not already outraged by the greed of AIG executives, the fact that it is using Panama's tax haven statute as a way to sue the American taxpayers for back taxes is completely egregious. The Panama free trade agreement would make matters worse.
I will finish by asking, what is the rush? Let us stop and think about what we are doing here. Let us think about the Panamanian workers. Let us think about the Canadian jobs we could end up losing.
Most of all, let us think about the Canadian companies that are hiding money in Panama and not paying taxes. That is tax money that could be used to improve our health care system, improve our education system and provide long-term care facilities which we are lacking. We could use those taxes for a lot of other good Canadian values.
