Mike Wallace

[Strengthening Military Justice in the Defence of Canada Act, June 19th, 2012]

When? Name them.

[Strengthening Military Justice in the Defence of Canada Act, June 19th, 2012]

Mr. Speaker, from a process point of view, I just want to know if the member could illustrate other times during second reading where a government, whether it was us or a previous government, stood in its place and accepted amendments prior to an item going to committee?

The process that works here is that at second reading we have a debate. The bill would then go to committee where amendments can be put forward. The bill would come back to the House at report stage to be debated. This is what we did ad nauseam last week. The bill then goes to third reading. That is the process.

Could the member give me any examples when the government of the day accepted amendments to a bill at second reading prior to it going to committee?

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Madam Speaker, the member is from an area that has a tremendous amount of trade already, particularly through the Hamilton airport and its cargo activity. What would this trade deal potentially do for his riding and the Hamilton airport as a cargo hub?

[Canada-Panama Economic Growth and Prosperity Act, June 19th, 2012]

Madam Speaker, I want thank my colleague for his work on international trade issues in the committee.

My question is relatively simple. The member is from British Columbia and his activity on the international trade file has been extensive. I would like to know, from the member's perspective, what trade and international trade and free trade agreements mean to British Columbia and his community?

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Mr. Speaker, I am sorry that the member opposite misunderstood the statement. The statement was that through free trade agreements, we are promoting Canadian values and standards. If we told countries that they have to be like Canada or we would not speak to them, as the NDP wants us to do, we would talk to no one and Canadian companies would suffer, Canadian jobs would not be created and innovation would not happen.

We are looking for partners to do business with. Part of that process is that we promote our values in terms of the environment, the workplace and human rights. It is through those agreements that we are able to express what Canada stands for in the world. We are number one. I take exception to the member saying that Canada does not have a high level of standards. We are promoting those standards through free trade agreements.

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Mr. Speaker, I know the member has heard the answer before. What we were dealing with on the free trade agreement had to do with tariffs and investment. There is an issue with the tax treatment of companies that are doing business in Panama. We have many tax exchange agreements, as the member said, with other countries. The United States has a tax agreement with Panama, which is relatively new. I can say that we are working on the tax issue. It was not ready in time to be included in this, but it is an issue we know we need to deal with as a government.

Denying Canadian companies an opportunity to do business in Panama and reducing the barriers to trade with Panama is not the right approach, in our view, in terms of moving the yardstick further along to accomplish those goals, including a tax agreement.

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Mr. Speaker, I appreciate the kinds words of the member opposite.

It is a bit of a red herring. It is in the agreement. We have side agreements on particular issues. Negotiation on free trade agreements is a two-way street. The member and his colleagues in the NDP believe that it is the Canada way or no way. We do not believe that. We believe this is an opportunity. When we sign these free trade agreements, there are issues that we need to deal with, whether they are with labour or the environment. We have discussions and put it in writing in, as he defines it, as a side agreement. It is progress. It is the way to move forward on creating jobs for Canadians.

The NDP way is to take the ball and go home. Nothing gets accomplished, no jobs for Canadians and no future for Canadian businesses abroad. That is not the way to go.

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Mr. Speaker, it is my pleasure to have this opportunity to talk about the benefits for Canadian investors. My speech today will be about the investment aspects of the Canada-Panama free trade agreement.

Foreign investment is a crucial component of today's modern economy. Foreign investment not only brings with it jobs, but increases the transfer of know-how, efficiencies and economies of scale to a host of economic opportunities. These markers of success, in addition to the people ties fostered, help strengthen Canada's global competitiveness at home and pave the way for new opportunities for Canadian companies overseas. These opportunities help Canadian companies remain globally competitive by ensuring their integration into the world economy.

At the end of 2011, Canadian direct investment abroad reached an all-time high of $684 billion. The value of the stock of foreign direct investment within Canada is also impressive. By the end of 2011, Canada had attracted more than $607 billion in foreign direct investment.

I will pause for a moment to remind my colleagues and to emphasize that the actual numbers from the end of 2011 show there is more investment from Canadian companies abroad than direct investment we get from foreign companies. This is important. We often hear in the House, on the street and in our ridings, that Canada is hollowing out, that Canadian companies are being sold and we are losing our control. In actual fact, that is not the case. Canadian companies are more aggressive and progressive in investing in foreign lands than the money that comes into our country.

As the past few years have demonstrated, the Canadian economy has proven to be a safe harbour as the global economy faces severe challenges. Canada is home to 27 of the Financial Times “Global 500” companies. More top global companies have headquarters in Canada than in Germany, India, Brazil, Russia or Italy.

Canada has also outpaced its G7 partners with its economic growth, the fastest it has been in the last 10 years, as a result of having lower corporate taxes, prudent fiscal management and financial regulation, a business climate that rewards innovation and entrepreneurship and an open economy that welcomes foreign direct investment.

Canada must remain diligent to ensure that our economic credentials remain strong at home and that Canadian businesses continue to have access to an increasing number of investment opportunities abroad. This is why it is important for us to leverage our investment relationships that we have around the world and with countries like Panama.

While data is unavailable for the end of 2011, the stock of Canadian direct investment in Panama was estimated by Statistics Canada to have reached $121 million at the end of 2010. Canadian investment in Panama, primarily found in the financial services and the mining sector, also has strong potential for growth.

There are many Canadian investment success stories around the world and Panama is no different. Scotia Bank has been in Panama since 1973 and has expanded to become the country's fifth largest commercial bank. SNC-Lavalin moved its Central American regional office to Panama in 2006. Inmet Mining Corporation continues to develop its copper mine in Panama, which is now over 13,000 hectares.

Opportunities for Canadian investors in Panama are also poised to grow in the future. We have heard about the tremendous opportunities that exist in Panama with respect to large numbers of infrastructure projects.

In addition to the ongoing $5.3 billion U.S. Panama Canal expansion project, the government of Panama has numerous projects either under construction or already in progress. These projects include the building or improvement of ports, roads, hospitals, social housing projects, bridges and airports, which are part of the U.S. $13.6 billion Panamanian government strategic investment plan for 2010 to 2014.

Under this plan, a large number of infrastructure projects would create new opportunities for Canadian businesses. A country like Canada, with so much expertise to take advantage of these significant opportunities in Panama, must act now. The current and future opportunities for Canadian investors show how important it is to enhance our investment relationship with countries like Panama.

This agreement would do just that by building upon a Canada-Panama Foreign Investment Promotion and Protection Agreement signed in 1998. By enhancing the investment provisions under this agreement, a free trade agreement with Panama would provide investors from both countries with the benefits that come with enhanced investment obligations. These provisions, which would promote the two-way flow of investments between Panama and Canada, would provide a range of obligations that would benefit investors from both countries.

They are designed to protect investment abroad, through legally binding rights and obligations. The investment obligations of this agreement incorporate several key principles. They include: treatment that is non-discriminatory and meets a minimum standard; protection against expropriation without compensation, meaning we cannot take land or property without compensation; and the free transfer of funds without penalty.

In short, Canadian investors would be treated in a non-discriminatory manner. This dynamic would help foster an investment relationship between our two countries and pave the way for an increased flow of investment for the years ahead.

Through this agreement, investors would also have access to transparent, impartial and binding dispute settlement systems.

While this agreement would ensure that investors and their investments are protected, it would not prevent either Canada or Panama from regulating in their public interest, with respect to health, to safety and to the environment.

The investment provisions also include an article on corporate social responsibility. This provision recognizes that Canada expects and encourages Canadian companies operating abroad to observe internationally recognized standards of responsible business conduct. This provision would also help level the playing field for Canadian investors when they invest abroad by encouraging CSR principles among all investors.

Overall, this agreement would send a positive signal to our partners around the world about the openness of Canada to foreign investment. This agreement would enhance investment opportunities abroad for all Canadians.

Foreign investment links Canadian companies to global value chains and to new economic opportunities. This enhances our competitiveness and increases the flow of goods and services between Canada and our trading partners.

To date, Canadian companies have shown a significant interest in investing in the Panamanian economy. However, as time passes, opportunities for Canadian investors are at risk. That is why it is critical that Canadian companies have the ability to strike while the iron is hot. I encourage members not to delay the approval of this agreement.

Our government has been very clear that trade and investment are vital to the economic growth and long-term prosperity of Canadians. That is why our government continues to move forward with an ambitious free trade agreement agenda that focuses on creating partnerships with key nations around the world. To take advantage of commercial opportunities around the world, we must do everything we can to open doors for Canadian businesses.

That is why I ask all hon. members to show their support for the Canada-Panama free trade agreement.

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Mr. Speaker, I fundamentally disagree with the premise of my colleague's discussion.

In our view, we agree that there needs to be a set of values, standards and regulations that all abide by, and that is exactly what free trade agreements do. They allow two countries, two parties, to come together and have an agreement to move the yardstick further in terms of human rights, values and corporate environment in which companies should work.

I find it interesting that the NDP members take credit for supporting one agreement with Jordan, even though they say it is not perfect. Then in the same sentence, they say that they would agree with having multilateral agreements with countries.

I would like the member to name the countries that the NDP would support Canada having multilateral free trade agreements with so it can be on the record. I would like to know what countries they would like us to pursue.

[CANADA-PANAMA ECONOMIC GROWTH AND PROSPERITY ACT, June 19th, 2012]

Mr. Speaker, we worked on this issue with Panama in previous Parliaments, as was mentioned by others. Why is it important for Canada to be moving forward with free trade agreements around the world, including this one with Panama? What will that do for the Canadian economy, and why is it important at this time, based on the world economic situation?