Mr. Speaker, I am rising in the House at a somewhat late hour, but I am highly motivated to speak to Bill C-20, oddly named the Canada-Honduras Economic Growth and Prosperity Act. In fact, what we are referring to is the Canada-Honduras free trade agreement.
First of all, I would like to set out three conditions that, in the opinion of the NDP, create a free trade agreement that is appropriate for Canada and for signatories to such an agreement. First, the country that we want to sign an agreement with has an appreciable strategic value, and said agreement benefits the Canadian economy. Second, this agreement fosters an increase in trade opportunities and supports Canadian exporters. Third, the potential partner respects values that it has in common with Canada.
The NDP believes that these three conditions would favour the conclusion of trade agreements with partners in other countries.
Canada's economy is sustained by trade as a result of its natural characteristics, geography, demographics and history. Countries can enter into different types of agreements. The Conservatives' approach focuses only on one type, the free trade agreement.
In an article entitled “Questioning Conventional Wisdom”, Jim Stanford makes the following suggestion:
Canadian trade officials should take a page from Chinese and Brazilian strategists, to maximum the opportunities for domestic exporters through reciprocal trade and export-oriented development plans.... ...should work...to devise focused strategies to promote the presence of key valuable industries here—and to nurture Canadian-based globally-oriented firms in those industries.
Canada has signed several free trade agreements, notably the free trade agreement with the United States. However, since coming to power, the Conservatives seem to have become obsessed with signing such agreements. I am wondering whether it is to Canada's advantage to sign this type of agreement or whether it would be worthwhile exploring other avenues. When it comes to trade, we must identify advantages for the partners and ask certain questions, especially about the impact of NAFTA on the Canadian economy.
Let us take a moment to examine the changes observed in the Canadian economy in recent years. In the 1990s, value-added goods such as machinery, consumer goods and automobiles represented 60% of our exports. This trend has completely reversed in the last 10 years. Products with high value-added only account for 40% of our exports.
What has happened? The free trade agreement has opened Canada's doors to the U.S. so that the U.S. can export consumer products and other value-added goods to Canada. For its part, Canada has opened its doors to the U.S. so that they can provide Canadian natural or primary resources with lower value-added.
As a result of these facts and others, Canada's trade balance dropped steadily over 10 years going from 5.8% in 2000 to its lowest level of -1.9% in 2010.
In January 2014, La Presse reported that Canada had a huge trade deficit. Indeed, in March 2014, Canadian exports dropped by 1.4%.
Just this past Monday, The Globe and Mail also reported, again with regard to the so-called free trade agreement that we have with the United States, that the U.S. government was going to enhance the famous Buy American Act. That means that there would be barriers to the so-called free trade between Canada and the United States, not for the United States, but for Canada.
I will read an excerpt from that article that appeared in The Globe and Mail:
The unfortunate reality is that the North American free-trade agreement did not create a true free-trade zone. It enshrined existing protectionist barriers, and left some gaping loopholes.
What would the consequences be for Canadian exporters?
This measure that seems to be developing in the U.S. right now is called the Grow American Act. This is what is being said about it:
...which would ratchet up U.S. content requirements to 100 per cent by 2019 from the current 60 per cent.... ...[which] would likely force Canadian companies, such as subway car maker Bombardier Inc. and bus makers Nova Bus and New Flyer Industries, to shift more production—and jobs—to their U.S. plants.
There is an imbalance in some of the free trade agreements that Canada has negotiated over the years.
Canada's trade deficit is truly worrisome because it has a very significant impact on our economy. According to experts, this trend will not improve significantly in the coming years, despite the many free trade agreements this government brags about. In fact, one has to wonder whether it might be possible to conclude better trade agreements.
This government does not have a strategy. What is the Conservatives' economic vision for a 21st century Canada? What are the strategic sectors that the government is promoting abroad? Are we promoting Canada's value added sectors such as the aerospace, green technologies and high technologies sectors? Those are value added sectors where Canada has demonstrated its knowledge and expertise.
Do our partners in these trade agreements show an interest in Canadian products? Does the government showcase the high quality of Canadian exports and explain that, in Canada, we treat workers' health and safety, as well as their working conditions, as a priority, and that workers are paid a good salary?
Furthermore, does the government point out that Canadian businesses comply with environmental standards and that Canada is a democratic country with a stable economy? All these factors add to Canada's value as an exporter.
In the NDP's view, the Canada-Honduras free trade agreement will not promote economic growth and prosperity in either of the countries involved. For this reason and for many others, I will not support this bill.
