Mr. Speaker, I rise today to address Bill C-8, which is the exact replica of Bill C-57, that was introduced before the prorogation imposed by the Conservative government.
This bill includes the act to implement the free trade agreement between Canada and Jordan, the agreement on the environment and the agreement on labour cooperation. These are three very important elements. Generally speaking, agreements on the environment and on labour laws are side agreements. As is implied by the term, side documents are separate agreements. So, there is not a lot of interface between the free trade agreement and the agreements on the environment and on labour.
Jordan is a small country landlocked in the Middle East. It is surrounded by Syria to the north, by Irak to the northeast, by Saudi Arabia to the east and south, and by Israel and the West Bank to the west. It covers an area slightly larger than that of New Brunswick and Prince Edward Island together, and it has a population of about 5.1 million people.
Jordan has one of the smallest economies in the Middle East. In terms of purchasing power parity, Jordan's gross domestic product in 2008 was $31.7 billion in U.S. dollars, which compares to that of the Honduras, Nepal and Turkmenistan. One wonders why Canada is committed to negotiating free trade agreements with such small countries.
Jordan ranks 14th among Canada's top trading partners in the Middle East, with a share of 0.7% of the regional trade. We do business with Jordan to the tune of about $9.2 million. Canadian exports to Jordan total $76.8 million, while imports from that country amount to $15.4 million. If we use this 0.7% in relation to Canada's GDP, we get the figure of 0.00575%, which is very small.
Canada's main exports to Jordan are paper and paper products, which total $17.5 million and represent 22.8% of all exports. Exports of copper and copper products and root vegetables and tubers total $8.3 million and account for 10.8% of exports.
Exports have risen slightly since 2003. Canadian products represent 76.8% of exports to Jordan, and 61.5% of those products are easily identifiable. I am sorry, but I do not have any information about the remaining exports.
Canadian imports from Jordan include clothing. Clothing imports total $6.9 million and account for 45.1% of all imports from Jordan.
This shows very clearly the importance of the Jordanian market to Canada. We can easily see that this is not really a free trade agreement focused on trade or business; it is mainly a political agreement. The Bush administration signed an agreement with Jordan, so naturally the Conservatives want to follow suit and sign a free trade agreement with Jordan.
The Bloc Québécois has been saying for a long time that bilateral agreements are not necessarily the best way of doing business with other countries. Basically, every country's goal is to sign agreements with other countries. If we trade with 200 other countries, then eventually we will end up with 200 different agreements that will be better for some countries than others, depending on what one country is hoping to gain from another. This creates inequalities and often, unfortunately, causes a downward spiral when it comes to things like social conditions, labour conditions—including wages—and the environment, all of which the Bloc Québécois considers extremely important. These are all factors that make people willing to commit to a job in order to earn an honest living, which they do not do everywhere, because trade liberalization is important. People need other countries to supply them with the resources they do not have at home, but there are ways of going about getting those resources. We should not be trying to sign free trade agreements just for the sake of signing them, even if they are not very significant.
Jordan essentially represents a very small market and a very low export volume.
We get the impression that the main purpose of concluding this agreement is to send a message to other Middle Eastern countries wanting to develop better economic relations with the West. Jordan is in the process of modernizing its government and its economy, and is relying heavily on international trade to support its economic growth, since it has few natural resources. Promoting trade with this country could therefore send a very clear message to other countries.
From a commercial point of view, Jordan's agricultural sector is poorly developed and does not present a threat to Quebec farmers. On the contrary, given its limited forest resources, it represents a new opportunity for the Quebec pulp and paper industry, which is already Quebec's number one export industry to Jordan. However, although the Bloc Québécois supports Bill C-8, we have a problem with the Conservative government's strategy of focusing on bilateral agreements instead of taking a multilateral approach, as advocated by the Bloc Québécois. The Bloc Québécois believes that a multilateral approach is more effective for the development of more equitable trade that protects the interests of all nations.
I am also quite concerned about one other aspect. Despite the fact that natural ground and surface waters, in their liquid, gas or solid form, are excluded from the agreement by the enabling statute, the Bloc Québécois noted that this exclusion is not written into the text of the agreement itself. That is why we would like to ensure that Quebec's major water resources are clearly excluded from the agreement, so that control over their development remains in the hands of Quebeckers.
As the House will recall, a few years ago I moved a motion in the House specifically to ensure that NAFTA include an exemption that would ban the bulk export of water from Canada and Quebec to other countries, and that we not be forced into such exports.
Often in free trade agreements, when goods become an object of trade, the countries we deal with can force us to export goods that we would prefer to exclude from such agreements.
As I said earlier, Jordan increasingly wants to modernize. It changed direction when Abdallah II acceded to the throne in 1999. Under his reign, Jordan implemented economic policies that were responsible for a major increase in economic growth over the ensuing decade, which has continued since 2009. Jordan now has one of the freest, most competitive economies in the Middle East, surpassing the United Arab Emirates and Lebanon.
I would like to provide a few economic statistics. In 2008, Jordan’s GDP was $31.01 billion. Per capita GDP was about $5,000. In 2008, the growth rate was 8.31%, the inflation rate 15.5%, and the unemployment rate 13.5%.
As I mentioned earlier, Jordan is relatively poor in natural resources, with the exception of potassium and phosphate. On the other hand, its population is young and very well educated. Jordan is counting heavily on international trade to ensure its development. Of all the Arab countries, it has signed the most free trade agreements. Among the co-signatories to these agreements are the United States, the European Union, Singapore, Tunisia, Algeria, Malaysia, Libya and Syria. Further agreements with Iraq, the Palestinian Authority, Lebanon and Pakistan are in the works. Jordan has therefore been pretty active when it comes to signing free trade agreements. Its economy is very dependent on several kinds of imports and, even though it has limited resources, it can export a number of products.
Jordan has special economic zones that attract foreign investment. These zones generally involve lower taxes and tariffs than in the rest of the country in order to encourage exports. One of these special zones, Aqaba or Akaba, opened in 2001 and offers a flat 5% tax rate on most business activities as well as no tariffs on imported goods and no property taxes for companies. Despite the high unemployment rate in Jordan, companies located in this zone can hire foreigners for up to 70% of their workforces. Finally, foreign companies can repatriate 100% of their profits.
The main impediments in the Jordanian economy are the weak water delivery systems and dependence on foreign markets for energy and oil. Total trade in goods between Canada and Jordan is about $92 million.
The Bloc’s position is well known. When we study a bill, we always study it from the standpoint of Quebec. We represent Quebec and its interests. The agreement is aimed primarily at Canadian exports of agricultural products to Jordan. This was mentioned at the press conference held on November 17 by the agriculture minister at the time.
Limited water reserves and an arid climate prevent Jordan from developing significant agriculture. The agricultural sector there has been in decline for a number of years and represented just 2.4% of the GDP in 2004. Although Jordan represents a small market globally, a significant portion of total Canadian exports to Jordan comes from Quebec.
According to the Institut de la statistique du Québec, 44.8% of total Canadian exports to Jordan came from Quebec in 2008. This proportion was 33.8% in 2007. The volume of this trade is nonetheless very small, considering that the total value of Quebec's exports to Jordan was a mere $35 million in 2008, despite significant growth that began in 2007, going from approximately $18 million to just under $35 million in 2006 and 2008.
Quebec's exports are predominantly copper products, followed very closely by pulp and paper. These two sectors represent roughly $25 million of the $35 million in total exports from Quebec to Jordan.
Jordanian imports to Quebec have been quite modest, representing less than $3 million a year, before seeing growth starting in 2005 and peaking in 2007, with a total of just under $8 million. They have been in decline since then, falling back below $6 million in 2008. Quebec's trade balance is therefore positive, with exports of roughly $35 million in 2008 versus exports of $6 million. These imports are predominantly textiles and clothing, for a value of a little over $4 million, followed by exotic fruit and nut imports to a much lesser degree.
Under these conditions, we might ask, given the relative importance of Canada compared to Quebec, why a free trade agreement should be concluded with Jordan. Even though we prefer a multilateral approach, the fact remains that Quebec nonetheless has a positive trade balance with Jordan. However, I repeat and I will continue repeating: we want Canada to adopt a multilateral approach.
Given the relative importance of a free trade agreement with Jordan, this agreement is even more proof that Canada has abandoned the multilateral approach.
Overall, the multilateral system has been extremely effective in dealing with the problems countries may face in their relations and negotiations regarding labour, the exploitation of workers or the environment.
The agreement we are looking at now does not include an investment agreement, but we know that Canada signed a foreign investment protection agreement separate from the free trade agreement. Such situations are rare.
We would like the government to keep making improvements to its bilateral agreements. But most of all, we would like the government to return to a multilateral approach as quickly as possible, to prevent all kinds of injustices, inequities and inequalities from creeping into bilateral agreements.