Mr. Speaker, it is my pleasure to rise this evening and speak to Bill C-41, An Act to implement the Free Trade Agreement between Canada and the Republic of Korea.
Like my colleagues, I am very pleased to say that our caucus is prepared to support this bill at third reading. At the same time, I would like to clarify certain points related to the amendments we suggested and proposed in committee meetings. Unfortunately, they were rejected by our Liberal and Conservative colleagues.
I particularly want to emphasize the criteria that the NDP caucus has always insisted on regarding the negotiation of free trade agreements. They can be summed up in three little points—small but also very important points—that have far-reaching significance. We know that a partner proposing a free trade treaty must respect democracy, human rights and proper environmental and labour standards. Naturally, these are Canadian values, and both countries must agree on these ideas.
The second point is that we should ask ourselves this question: is the potential partner's economy of significant or strategic value to Canada? That is obvious. We know that South Korea is a developing country, but one that is quite advanced. It is one of Canada's primary trading partners in Asia. Canada's clear need to diversify its international trade is a step in the right direction.
When I was studying economics and international marketing, I became aware that our country, Canada, was really very dependent on the economy of our neighbour to the south, the United States, to such an extent that some 80% to 85% of our exports were going south of the border.
Still, that need has always been great, since Canada has always emphasized the development of new markets for its technology and natural resources. That is why our international trade strategies came to focus on free trade agreements of all sorts. It all started with NAFTA in the 1980s. Later, there were more treaties with a number of developing countries. We supported some of these agreements and disagreed with others.
The third criterion concerns the terms of the agreement. This is an important point. One of the main problems we raised in committee relates to the resolution of trade disputes. We submitted amendments, corrections and modifications concerning certain aspects of this free trade treaty. From the perspective of the ethics of a democratic country, there is no problem. However, resolution of trade disputes should absolutely not be part of this agreement. This should not be dealt with by the government. We firmly believe that any trade dispute must be resolved through the appropriate legal processes.
The free trade agreement with Korea offers Canada a significant opportunity to diversify its economy. This is another step in the right direction, because we rely a great deal here on natural resources, and if I recall correctly, this was the main sticking point regarding one of the specific items in other free trade treaties. In those treaties, much criticism was levelled at the approach taken by Canada, which wanted only to export raw materials, without even putting them through some sort of processing that would have given them uniquely Canadian added value, highlighting our expertise and our technologies.
This free trade treaty with Korea is a step in the right direction, because that country enjoys support from a broad coalition of economic stakeholders in Canada. This partner shows that it has a firmly established democracy where human rights are respected. It also has adequate environmental and labour standards. The unions are firmly established and all have an affinity with Canadian values.
In all secondary or manufacturing sectors—to put it precisely, as we should—such as heavy industry, wood products, agriculture, food processing, seafood and high tech, we can genuinely share the expertise of each country and find a win-win formula somewhere, as should be the case for any trade with other countries.
We should note certain other important facts relating to these treaties. Korea is a member of the G20. It ranks fifteenth among those 20 countries, which puts it relatively high on the ladder. Korea is Canada’s seventh-largest trading partner. Obviously, this is something that must not be forgotten. In fact, Canadian imports have already lost about 30% of the ground. We have been backsliding and we need to catch up.
I would remind members that this free trade treaty has been in negotiation since 2005, or for nearly a decade; it has been at least nine years. We do not understand why the government did not move forward with this sooner. I suppose that, as usual, it was because of the Conservatives' laissez-faire attitude and mismanagement of our country's economy. It is all very well to announce that there will be job creation, but at the end of the day, we see that it never amounts to anything concrete.
Korea is a democracy and the fourth-largest economy in the entire Asian region.
To conclude briefly, we have certain affinities with some countries and South Korean opposition parties. They, like us, in our caucus, think that the investor state dispute settlement mechanism, as proposed in this agreement, must be eliminated.
I hope that at third reading stage, someone will think it would be worth reconsidering this situation, to make it acceptable to everyone.
We New Democrats know that international trade is essential to Canada's prosperity, and we have sought for a long time to diversify our trade with our trading partners in all regions of the world, including Latin America, Asia, Europe and Africa.