:
Mr. Speaker, it is my pleasure to speak in support of the Canada-Honduras free trade agreement today.
Since 2006, our Conservative government has been focused on the priorities of Canadians: creating jobs, growth, and economic opportunities for all. One of the ways we have been achieving real results for Canadians is through opening new markets for Canadian businesses.
The Canadian economy relies on international trade. Our companies, over 40,000 of them, are already exporting. As the global economy becomes more and more interconnected, value chains grow and more of our businesses become active internationally. In Canada, one in five jobs is dependent on exports. Today trade-related activity represents more than 60% of Canada's gross domestic product.
Canadian companies are among the best in the world. Not only can they compete, they can succeed in the global marketplace. Our government is creating conditions to support the success of our companies, and we owe it to them to take action.
Canada has always been active in international trade. With the global economic crisis and the toxic threat of greater protectionism, the need for open markets has now become clearer than ever.
Canadian businesses have expressed broad support for trade and investment agreements. These agreements directly benefit small and medium-sized businesses for whom red tape and delays can be particularly burdensome. Our Conservative government continues to be a strong advocate on the world stage for free and open markets. In fact, the recently announced that Canada will join 13 World Trade Organization members, including China, the European Union, Japan, and the United States of America, in negotiations toward a new World Trade Organization plurilateral agreement on environmental goods. More open trade in environmental products will increase the availability and lower the cost of environmental goods, such as hydraulic turbines, air handling equipment, water treatment technologies, and waste management or recycling equipment. It is an ambitious agreement that will significantly facilitate the achievement of the green growth and sustainable development objectives of the World Trade Organization economies by creating a win-win situation for trade and for the environment.
Rather than take a wait-and-see approach and hope for the best, Canada decided to proactively focus on diversifying our trading relationships through regional and bilateral free trade agreements. Under the leadership of the and the , 2013 was the most successful year for trade in Canadian history.
Last October our Conservative government reached an agreement in principle on the Canada-European free trade agreement. It is a great achievement, I might add. This is a major milestone on Canada's international trade negotiations agenda. Through the Canada-Europe free trade agreement, our companies will gain preferential access to a market of over 500 million affluent consumers and a collective gross domestic product of $17 trillion. A Canada-European Union joint study concluded that the agreement would increase Canada's GDP by $12 billion annually and would grow bilateral trade by 20%.
In addition to this historic agreement in principle with the European Union, since 2006 we have concluded agreements with the European Free Trade Association, which includes Norway, Switzerland, Iceland, Lichtenstein, and with Peru, Colombia, Jordan, and Panama. We most recently concluded negotiations with Korea. We are also working expeditiously to conclude negotiations with the members of the trans-Pacific partnership as well as bilateral agreements with Japan and India.
To help Canadian investors, since 2007 we have concluded or brought into force 22 new or updated foreign investment protection and promotion agreements. These are just a few examples of our international trade achievements to date.
Contrast this with the Liberal record on trade, signing only three free trade agreements, agreements that are being broadened and modernized by this Conservative government, and having expensive political photo ops without any proven results or follow up, unfortunately. We have left behind that decade of Liberal trade neglect. To do this, we conducted consultations right across this great country. We engaged around 400 business and industry stakeholders. These were not just large corporations but the small and medium-sized businesses that are the lifeblood of the Canadian economy.
This is why we are so proud of the global markets action plan we launched in November 2013. This is not a bureaucratic exercise. It is a concrete plan for Canadian business developed with Canadian business. The global markets action plan focuses on our international economic engagement by identifying priority sectors and markets. It also underscores the importance of economic diplomacy, and of course, it aims to help Canadian small and medium-sized companies expand their global reach.
Through this government's initiatives, we want to support Canadian companies, whether they export goods or services or want to invest, to be competitive in these new markets.
Speaking of new markets, our government has long recognized the growing importance of the Americas. The confirmed this when he made that region a foreign policy priority in 2007. Increased trade and commercial engagement is part of the Prime Minister's vision for a more prosperous, secure, and democratic hemisphere, and it makes sense to Canadian businesses too. Total trade between countries in the Americas and Canada increased 34% from 2007 to 2013, not to mention that Canadian direct investment was up 58.6% from 2007 to 2012, a big jump.
How does Honduras fit into our ambitious free trade plan to create jobs and opportunities for Canadians? That is a very good question. In 2011, the announced that we had successfully concluded free trade agreement negotiations with Honduras. I would like to note three key reasons why it was important for Canada to conclude this agreement.
First, Canadian companies were already at a competitive disadvantage in Honduras, and that is a fact. Since 2006, American companies have benefited from having an established free trade deal with Honduras.
Listen to what César Urias, director, Latin America, for Canada Pork International, said to the international trade committee during its study of the Canada-Honduras free trade agreement. He stated:
In 2004...Canada exported 1,345 metric tons estimated at $2.2 million, approximately one-third of Honduras pork imports. By 2006, Canadian pork exports dropped to zero as the Dominican Republic-Central America-United States free trade agreement...came into effect.
This unlevel playing field was made even worse when the European Union concluded its free trade deal with Central America, including Honduras, in 2010. That free trade agreement has been provisionally applied with Honduras since the summer of 2013. Our companies need to catch up with our U.S. and EU counterparts. The Canada-Honduras free trade agreement would put them on a level playing field, a level playing field for which they have been asking.
Take as an example what Vincent Taddeo, vice-president international for Cavendish Farms, said. He stated:
The Canadian government must make the timely establishment of free trade negotiations a greater priority and ensure a more level playing field for our exports and exporters; ...be proactive and aggressive in negotiating and conducting other free trade agreements.
I can assure our pork farmers, producers, and workers at companies like Cavendish Farms that this Conservative government is heeding their call.
Second, when we negotiate a free trade agreement, we are looking at the potential for trade in the future. From 2009 to 2013 our two-way merchandise trade with Honduras grew 59.2%. This trend speaks to the potential for further growth of our trading relationship with Honduras. Once the free trade agreement enters into force and our companies begin to see the benefits of tariff elimination, imagine the enhanced opportunities for Canadian business. When our businesses trade, they create jobs and opportunities for workers here in Canada.
To take a snapshot of what this agreement would mean for our pork producers, I will again refer to Mr. César Urias' comments when he stated:
The free trade agreement with Honduras is estimated to generate sales of $5 million to $7 million in the first year following implementation.
That is just in the first year. Stories like that from our industry prove why this agreement needs to be passed and as soon as possible. I repeat: as soon as we can.
What the anti-trade New Democratic Party does not understand is how broad the benefits would be for Canadians, even after Mr. Urias spelled it out for its members at committee, when he explained:
...[the free trade agreement] benefits the very base, the very foundation of the producing sector, as well as farmers, distributors, transporters by train, truck, or you name it. It even benefits financial services, insurance, and credit industries. There's a large, vast effect that is replicated in many other industries, not just...[the pork industry]. It's not just a focused effect. It spreads all over.
When this improved market access for goods is combined with the agreement's provisions on investment, services, and government procurement, we will have created the conditions for Canadian companies to succeed in that market.
Investors would also benefit. The Canada-Honduras free trade agreement includes provisions designed to protect bilateral investment through legally binding obligations, and to ensure that investors would be treated fairly and in a non-discriminatory manner. Through the free trade agreement, investors would also have access to transparent, impartial, and binding dispute settlement. The investment provisions of this free trade agreement would support a stable legal framework that would protect Canadian investments in Honduras and vice versa, including guaranteeing the transfer of investment capital and protecting investors against expropriation without prompt and adequate compensation.
Finally, this agreement underscores Canada's ongoing commitment to our partnership with Honduras. Honduras is a country with many difficulties and it would be easy to, as the NDP constantly demands, turn our backs in the face of human rights and security challenges. However, this government firmly believes in engagement, not isolation. That is the real way to achieve results. Only by continuing to build an open and credible dialogue can we support positive change in the country.
Even Jim Bannantine, president and CEO of Aura Minerals, a Canadian mining company operating in Honduras, agrees. He said:
...the free trade agreement, through the economic integration and jobs, is the best effect on the security in Honduras. By far the number one positive factor in security in Honduras, that allows us to practise our...[corporate social responsibility] and operate unimpeded, is jobs, economic growth; jobs make the best defence against this violence.
This commitment to building positive change is evident in Canada's multi-faceted, bilateral relationship with Honduras, from our people-to-people links to Canada's development program, and extends into our free trade agreement negotiations. This is why it is important to Canada that we include provisions like corporate social responsibility and anti-corruption and why we negotiated parallel agreements on labour and environmental co-operation.
During his testimony, Mr. Bannantine made it very clear that the Honduran people are seeing results, when he said:
On the...[corporate social responsibility] side, there are lots of examples on the ground. A couple of million dollars a year go to the local community.
For these reasons, the free trade agreement is a cornerstone of our bilateral relationship. The Canada-Honduras free trade agreement would absolutely benefit both our countries.
I urge all hon. members to support the implementation of the Canada-Honduras free trade agreement. Let us get together and pass Bill as soon as possible.
:
Mr. Speaker, I understand from my colleague’s previous speech on Bill , concerning the free trade agreement between Canada and Honduras, that for the Conservatives, it is quantity that counts, and not quality. Canadians know that we have to negotiate trade agreements that offer winning conditions for Canada, which is precisely what the Conservatives have not done.
I would like to say that I oppose this bill. I also had the pleasure of being a member of the Standing Committee on International Trade, where we examined this bill. First, let me reiterate that the NDP is in favour of international trade. We want to trade with other countries. We want to sign agreements with democracies around the world that can help Canadian manufacturers and contribute to our economy. However, our approach is not the same as the Conservatives’. We believe we must negotiate agreements that meet important criteria.
I would like to speak to the House again about the three criteria that all free trade agreements must meet to earn the support of the NDP. First, we have to ask whether the proposed partner respects democracy and human rights principles. Does the partnership enable both countries to establish and apply adequate environmental and labour standards? If that is not the case, is it really a good idea to support the trade agreement? In that case, the answer is no.
Second, we have to see whether the proposed partnership is of significant value to Canada and whether it will really benefit us. It is clear that the Conservatives have not done their homework on this subject. In fact, Honduras currently ranks 104th among Canada’s export markets, in terms of export value. We know that it is an economy even smaller than the economy of Ottawa-Gatineau. That gives us an idea of the strategic value of trade with Honduras.
Third, we have to determine whether the terms of the proposed agreement are satisfactory. This is also not the case for the free trade agreement between Canada and Honduras.
Like me, people may wonder why the government chose Honduras to negotiate a trade agreement. This is a question that a number of Canadians are also asking themselves. My Conservative colleague boasted about the number of free trade agreements the Conservative government has signed. In fact, that shows how desperate the Conservatives are, since they are working from a weakened position on the international scene.
I would like to give a brief summary of the reasons why they came to negotiate a free trade agreement with that country, which has such a small economy and flouts human rights.
We know that once Canada had barely managed to sign a multilateral agreement with the Central American economies as a whole, it looked to the weakest political player, Honduras, to negotiate a specific agreement as part of what is an ideological pursuit of free trade agreements.
In August 2011, the announced the conclusion of negotiations between Canada and Honduras, and in November 2013, the and his Honduran counterpart signed the free trade agreement.
Therefore, the reason that an agreement had to be negotiated with a country like Honduras, a country that, moreover, does not respect human rights and has virtually no reliable democratic institutions, is that negotiations with the other countries in the region had failed.
I am now going to explain how the economic benefits of a free trade agreement with Honduras are minimal. It is not as the Conservative member said. According to internal analyses done by the Department of Foreign Affairs and International Trade, the Canadian economy will apparently get very little from the agreement. We can see that the Conservatives do not even pay attention to the reports produced by their own department.
As I said, Honduras currently ranks 104th among Canada’s export markets, in terms of export value. The 2011 statistics show that the total value of exports of goods was only $38 million, while imports came to $218 million, which represents a substantial trade deficit.
We wonder whether the Conservatives even took the time to do an impact analysis, to see whether there are really any benefits from this agreement, particularly knowing that tariffs are already very low with Honduras. In fact, a majority of tariffs are below 5%. We wonder why the Conservatives are in such a hurry to negotiate this agreement.
The witnesses raised another concern at the Standing Committee on International Trade, which is the lack of transparency.
We know that the agreement was negotiated with no transparency at all. In spite of repeated requests by civil society in Canada, the Government of Canada did not release the texts of the agreement during the negotiation process.
I would like to digress a moment, if I may. We can see that the Conservatives have taken a particular approach to negotiating free trade agreements: they do not consult adequately with Canadians. They do not consult with civil society, with workers, with first nations or with other groups, and they do not make the text public.
The Standing Committee on International Trade also studied our free trade agreement with Europe or the European Union. During these meetings, witnesses stated that the consultations had not been extensive enough.
I would like to quote what was said by Jerry Dias, Unifor’s national president:
...we've been critical of the way this deal has been negotiated, without the full and meaningful participation of trade unions, environmental NGOs, and other groups in Canada's civil society.
The text of the free trade agreement with the European Union was made public in other jurisdictions. U.S. decision-makers had access to the draft texts, and European parliamentarians too had access to these texts. The Conservative government asked for our trust and prevented us from having access to these draft texts.
I think this lack of transparency is deplorable. It concerns me a great deal because it has become a habit of this Conservative government. It is a habit that prevents civil society groups from consulting with members of Parliament, giving advice to the government and providing the negotiators with facts and information that might help them in negotiating free trade agreements in the best interests of Canadians.
It should also be mentioned that the token environmental impact assessment of the Canada-Honduras free trade agreement, which was released in October 2013, omitted any assessment of the impact of Canadian investment in Honduras. Those figures were deemed confidential.
In addition, the side agreements on the environment and labour are inadequate. A number of witnesses at the committee meetings said so. The reason they are inadequate is that they are not accompanied by any real measures for enforcing them. In fact, as we say, they lack teeth. They lack the power to be enforced.
According to the section on investments in the Canada-Honduras free trade agreement, companies can sue governments in international tribunals, something that undermines the ability of governments to make decisions intended to safeguard the public good.
Canada’s federal government must be able to make decisions that safeguard the public good without businesses having a veto over them. This is necessary.
Now, I would just like to go to the heart of my argument, which concerns human rights, because this is something that is very important to me and something that we have discussed on numerous occasions in this debate.
We can talk about the economic impact of this free trade agreement. However, Canada also has a duty to behave responsibly on the international scene. It has a role to play in promoting human rights, and as members of Parliament, we must encourage the government play this role.
In 2011, in Honduras, there were to 85.5 murders per 100,000 inhabitants. This means that in 2011, Honduras was the most dangerous country in the world. This is a very serious matter. I would like to say more about the issue of freedom of the press and explain how grim the human rights situation is in this country.
Journalists and human rights advocates have a pervasive sense that they are under threat, and that the state is at best unable or unwilling to defend them or at worst complicit in the abuses, which is also the general feeling of a large majority of the population. Between 2003 and 2013, there were only two convictions, even though 38 journalists were murdered. That represents an impunity rate of 95%.
It is worth noting that, according to the witnesses who came to the parliamentary committee, there are likely no real investigations in Honduras. That makes it complicated to assign responsibility for the murders of those journalists. We were able to hear witnesses from PEN Canada, a civil society group that studies human rights and journalists' rights.
PEN Canada submitted a report to the committee. The report is entitled “Honduras: Journalism in the Shadow of Impunity”; unfortunately, it is available in English only. I strongly suggest that everyone listening this evening read that very informative report. It contains a lot of useful information. The report specifically looked into the stories that the journalists were covering at the time they were murdered, and found common themes, like corruption, political intrigue, and organized crime.
In terms of the government’s participation, because of the links between organized crime and Honduran security forces—whether the police or the army—it is very difficult to separate the acts of violence committed by those non-state actors from the human rights violations committed by agents of the state. In some cases, we have seen that circumstantial evidence strongly suggests that the state was either complicit in, or was actually behind, the murder of journalists.
When we look at countries in the region, we see that Honduras is in a worse situation than Canada’s current trade partners in the region. Honduras is not like the other countries. We really must see it as an exception.
To give you an idea of our situation compared to other countries, it is important to note that, according to Freedom House’s global freedom of the press index for 191 countries, Canada ranks 29th.
Chile is ranked 64th; Peru, 89th; and even Colombia, another country that is grappling with drug trafficking, is ranked 112th. Honduras is ranked 140th out of 191 countries, tied with Egypt, a country where the rights of journalists have been repeatedly violated since the protests of a few years ago.
This agreement is not in keeping with the course of current affairs in Canada. When it comes to freedom of the press, Honduras has a track record that is far worse than its neighbours or Canada's other preferred trade partners.
PEN Canada also pointed out that a lot of the topics that are putting journalists in danger include business, investment and trade. All evidence suggests that journalists who write about far more controversial and sensitive subjects, such as the environment, natural resources and land disputes, are at a far greater risk than their colleagues of being victims of violence or murder.
The Conservatives keep saying that signing a free trade agreement will improve the human rights situation in Honduras. Honestly, do they believe in magic? Not only have Honduran institutions been unable to protect the fundamental human rights of Hondurans, but the government has a history of being involved in human rights violations.
When I asked Karen Spring, who testified before the committee, whether she thought the free trade agreement would have a positive or negative effect on human rights issues, this is what she said:
I would say even the enforcement mechanisms that are established in Honduras under Honduran law are not being enforced in any way given the high impunity rate, so I would say the human rights situation will be negative if we encourage further economic interests in sectors that have traditionally been linked to mass human rights abuses that haven't been mediated by the state.
I also asked Ms. Spring whether she thought Hondurans would benefit from the agreement. This was her answer:
...I would say foreign companies, foreign investment, and the 10 to 12 [Honduran] families who have traditionally run the Honduran economy and political arena [and who will benefit].
According to the experts, not even Hondurans will benefit from this free trade agreement.
Unfortunately, I do not have enough time to discuss other subjects. I oppose this bill and I hope my colleagues will too.
:
Mr. Speaker, tonight I will speak about why the Liberal Party is supportive of free trade as an important, essential part of Canada's economic strategy. I will talk about why we support this Honduran free trade deal. I will talk about some of the problems with this deal that we need to be aware of. We think it is a deal that we need to enter into with eyes wide open, and I will speak about some of the overall problems that we are seeing in the trade strategy being pursued by the government.
Let me start by talking a little bit about free trade and why it is so essential to Canada. Eighty per cent of our economy is in some way connected with international trade. We are a big country geographically, but there are not too many of us. In this globalized world economy, it is absolutely essential for Canada to be open to the world economy. Some 19.2% of jobs in Canada are directly connected with trade. In addition, each job in the export sector adds another 1.9 jobs, so trade is really an essential part of any economic strategy to make Canada grow.
With the Honduras deal in particular, we have been talking about the relative size of this deal, the relative size of the Honduran economy, why it is really a small piece of our overall trade puzzle, and that is absolutely right, but it is also really important to get Honduran trade right. In fact, right now, I am sad to report that when it comes to Honduras, we are not dealing particularly well. Currently, as of 2012, we exported $39 million worth of goods to Honduras, and imported $219 million worth of goods.
A little bit earlier in the debate we heard some loose talk about Ricardo, and how, when it comes to trade, we should not worry too much about trade deficits. It all evens out in the end. Trade is just basically good. That is a nice theory and a nice point of view, but I submit, when it comes to jobs in Canada and the real lives of middle-class Canadians, it is absolutely essential that we have a strong, export-led, and export-driven economy. I would urge people who are interested in the works of Ricardo, if they have read them, to actually look at the more recent experience of highly successful economies like Germany, where we have seen very powerful, very strong, very strategic export-led growth be a recipe for a strong middle class. I think to argue that deficits do not matter, trade deficits do not matter, is a very profound mistake.
I would like to talk a little bit now about the Honduras deal and an issue that I think is very important for us to bear in mind, and that is the value side of the equation. As I have said, we support this deal. We believe in trade and we believe in trading with the world, but it is important to note that Honduras is a country that has a very troubled political and human rights record. We do not think that is a reason to not trade with Honduras. We are great believers that engagement, that trade, can be a way for Canada's democracy to help countries along that continuum. We have seen that happen in many parts of the world.
We also believe it is absolutely essential to be aware of these issues from the start, and to enter into this trading relationship aware of them and with a plan to monitor them. I would urge all of us, as we are talking about expanding our trade relations with Honduras, to be very mindful of the example of Russia, a country I personally know very well and really love.
As Russia moved out of Communism on the path to a market economy and democracy, we made a similar argument, that trade and engagement would be a valuable way of helping Russia become a more open society, and for many years, I believe that was the case. However, sometimes that just does not work, and what we have seen with Russia is Russia making a choice with Ukraine in November 2013, and most crucially and tragically, with Crimea in February 2014, to exclude itself from the international community.
What that has meant is that the countries that made this pact with Russia, which said they were going to extend a hand of friendship and trade with it, are now having to pull back, and that means a real economic cost. I would say to all of us here, particularly those members who, like the Liberal Party, support this deal with Honduras, let us make a pledge tonight that part of the deal is putting values first.
Part of the deal, of course, is about the Canadian economy and the importance of trade, but we also need to pledge to watch very closely what is happening with democracy, journalists, labour activists, indigenous people, women, and the LGBT community. If there is a tipping point, we have to be prepared, even if it comes at an economic cost, to pull out of that trading relationship. I cannot emphasize how important it is to us as a country to put those values at the centre.
Having spoken about Honduras, I would like to speak a bit more generally about where our free trade agenda is in the picture of the Canadian economy. Like everyone in the House, I noted with great disappointment the surprising trade deficit in April, which was $638 million according to Statistics Canada. That is a very poor performance and it is very worrying.
I suspect that my respected colleagues, especially those on the other side of the House, may not take my word for it when it comes to where Canada's trading relationship and performance are. I think there is an organization, you gentlemen, and it is only gentlemen this evening—we could talk about gender issues, but we will not do that right now—I think you gentlemen are probably interested in the Canadian—
Why is everything a gender issue with you?
Ms. Chrystia Freeland: I think you gentlemen are probably interested—
:
Mr. Speaker, I will do that, although I would ask you to help ensure more collegial behaviour on all sides of the House.
I suspect that the members on the other side of the House will not doubt the credibility or the significance of a report from the Canadian Chamber of Commerce, one of our country's leading industry bodies. In May 2014, it published a report called “Turning it Around: How to Restore Canada's Trade Success”. That title should worry us. It does not sound like it is too great a verdict.
The first chapter is called “Canada's Lagging Trade Performance”. Here is what it says:
International trade is one of the fastest and most effective ways for Canadian businesses to grow, create jobs and contribute to the economy. However, the increase in exports and outward investment has been slow in recent years, and diversification to emerging economies has been limited.
...Canada is lagging its peers according to several measures. Over the past decade, the value of exports has increased at only a modest pace.... If...price increases [in energy] are excluded, the volume of merchandise exports shipped in 2012 was actually five per cent lower than in 2000 despite a 57 per cent increase in trade worldwide.
For a party like the Liberal Party, which believes strongly in middle-class prosperity and in trade as a path toward that, these are damning words indeed.
According to the report:
Canada’s foreign investment trends tell a similar story. Export Development Canada has recorded significant growth in sales by Canadian foreign affiliates...but evidence suggests that sales levels are relatively higher for affiliates from the U.S., the U.K., Japan and Australia.
Not only are we doing less well than we did in 2000, despite a robustly globalizing world economy, we are lagging our international peers. This is why the Liberal Party believes so strongly in trade and why we would really like to see Canadian policy, Canadian action, that is not just about slogans, not just about photo ops, but is actually about a strategic approach and getting deals done.
That brings me to a deal we have been speaking about quite a lot this week, which is the European trade deal. In October, our , with great fanfare and at some expense, travelled to Brussels to sign an agreement in principle on the European trade deal. I am very sad to report that unfortunately, that deal has not yet been concluded, despite the fact that the Prime Minister has travelled again this week to Brussels, which would have been a great opportunity to conclude that very important deal.
I have more worrying news still to report. We requested from the government the actual documents the Prime Minister signed. We can see the Prime Minister signing it if we look at video of that October 18 event. Here was the response we had from the PCO:
A thorough search of the records under the control of the PCO was carried out on your behalf; however, no records relevant to your request were found.
We would like to hear at some point what the Prime Minister actually signed and what is happening with that deal. We believe the Honduras free trade deal is important, but obviously the European free trade deal is much more important.
In conclusion, we believe absolutely that particularly today, in 2014, in the age of globalization, in the age when technology has truly flattened the world economy, Canada has no choice but to be an energetically and strategically trading nation. That is our path to prosperity for our own middle class, and if we do it right and we do it with pure hearts, as well as with smart brains, we can use trade to be a real way of encouraging the growth of democracy in civil society around the world.
However, I am very sad to say that today in our trade agenda we see Canada falling behind. As the Canadian Chamber of Commerce itself concluded just last month, we have a lagging trade performance. I submit that it is because we are focusing far too much on photo ops, which may have been without an actual document signed. We would love to hear more about that.
We have much less of a clear strategy focusing on big trading partners and on the big places of growth in the world, and much less effective follow-through. We would love to see much more focus on Africa, for example.
Here is what Canada needs: a truly strategic global trade policy, a policy that is about world strategy and fitting Canada into the global economy, a policy that always remembers that we cannot be an effective trading nation without putting our values first, and finally, a trade policy that is not just about photo ops but is about actually getting the deal done.
:
Mr. Speaker, I am pleased to share my time with my colleague from Toronto—Danforth.
It only feels like yesterday that I spoke to this bill. In fact, it was two days ago and it was on this very bill.
I want to begin by saying how disappointed I am that we are ramming this bill through, a bill that has everything to do with the need to respect democratic processes—which we are not doing through this agreement and which is not happening in Honduras—and the need to delve into what this trade agreement is all about. Fundamentally, it is a trade agreement that will not bring benefit to Canadians but will benefit a few people in specific sectors that are close to the government.
I am concerned, not just as a Canadian member of Parliament but as a Canadian, that Canada is embarking on a journey and into a relationship with a country that in recent years has proven its complete disregard for the principles that guide us in this place: democracy, respect for the rule of law, and human rights. We are engaging in a relationship to benefit the very same people who have imposed an oppressive regime that in some cases has been involved in persecution and is as far away from the Canadian value set as we can get.
I rise in this House in consideration of not just the benefit to Canadians, which is not being realized through this free trade agreement, but also of the reality that Hondurans face. While Honduras is not a country that I have had a chance to visit, I have had the experience of travelling in Central America and seeing or hearing first-hand a very dark history that people in countries across Latin America have had with military coup d'états, with the fight for democracy, with the fight for human rights. Sadly, while many Central American countries, such as Chile and Argentina, have shaken off that dark history, Honduras has just recently re-embarked on that same undemocratic dictatorial path.
As we know, Honduras is a very poor country with a seriously flawed human rights record and a history of repressive, undemocratic politics. The democratically elected government of left-leaning President Manuel Zelaya was toppled by a military coup in 2009, and subsequent governmental actions and elections have been heavily criticized by international observers as failing to meet acceptable democratic standards. In 2009, five short years ago, Honduras underwent a military coup, and it continues to be a repressive and regressive environment. Thanks to the current government, this is the country we are now going to engage with as part of this free trade relationship.
We have heard a lot of talk about the underground economy. We have heard about the predominance of the drug trade. We have heard about the lack of legitimate and positive economic opportunities for the people of Honduras. We have also heard how this free trade agreement will not do anything to change that reality. In fact, in many ways it will continue to legitimize a regime that is oppressive toward the Honduran people. As a New Democrat, I am proud to stand with my party in opposition to this bill.
We believe that there are three fundamentally important criteria to assess trade agreements, including this one.
First, does the proposed partner respect democracy, human rights, adequate environmental and labour standards, and Canadian values? If there are challenges in this regard, is the partner on a positive trajectory toward these goals? We know that Honduras has failed in this regard.
Second, is the proposed partner's economy of significant or strategic value to Canada? We know that there is particular interest from the Canadian government in the mining sector and in certain agricultural sectors, but by and large, given that Honduras only represents about 1% of our trade, this will not make or break the Canadian economy by any stretch of the imagination, so this proposed agreement does not meet the second criterion.
Third, are the terms of the proposed agreement satisfactory? Again, it is a resounding fail.
This trade agreement, like every trade agreement that is negotiated by the current government, has been behind closed doors, without the kind of transparent process that we, as parliamentarians, ought to be able to access but, more important, that Canadians ought to be able to engage in.
For all of these three reasons, for all of these three failures, we in the NDP cannot support this free trade agreement.
I want to read into the record some words of people who are very close to the situation in Honduras who have come before Parliament and have spoken very strongly against this agreement.
Stacey Gomez, coordinator of the Canadian Council for International Co-operation's Americas Policy Group, said:
We have long maintained that under the right conditions, trade can generate growth and support the realization of human rights. These conditions simply do not exist in Honduras. Until there is a verifiable improvement in the country’s democratic governance and human rights situation, the Canada-Honduras FTA will do more harm than good.
The Committee of Relatives of the Detained and Disappeared in Honduras said:
One of the main concerns in Honduras is the consistent trend of killings, physical attacks and threats against human rights defenders – including: Indigenous Peoples, Afro-descendant and peasant leaders, Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) activists, lawyers and journalists. All these attacks are carried out with almost total impunity.
Carmen Cheung, a researcher in the International Human Rights Program, said to the committee, on April 10:
These past five years have seen a dramatic erosion in protections for expressive life in Honduras. Journalists are threatened, they're harassed, attacked, and murdered with near impunity, and sometimes in circumstances that strongly suggest the involvement of state agents.... Among the journalists and human rights defenders we spoke with, there is a pervasive sense that they are under threat, and that the state is, at best, unable or unwilling to defend them, or at worst, complicit in the abuses.
These are chilling words from people who are not speaking in the abstract. They work closely on the ground with labour activists, with journalists, with lesbian and gay activists, with indigenous peoples. They know the cost of human life, the cost to democratic rights, freedom of expression, freedom of association, that this military coup has meant to the people of Honduras. They are saying, unequivocally, that “We cannot support this free trade agreement”.
I want to particularly emphasize the comments made by Ms. Cheung and made by the Committee of Relatives of the Detained and Disappeared in Honduras with reference to how state agents are complicit in these abuses.
The current government wants to enter into a relationship and support the state agents who, we are hearing here, are involved in these kinds of human rights abuses.
My question is, what has happened to Canada, a country that over years and through the hard work of Canadians in their insistence that the respect for human rights needs to guide our international work, whether it is trade or our involvement in multilateral institutions, that the importance of human rights is fundamental to who we are as Canadians is clearly not represented in the government's actions through Bill, through this free trade agreement but, furthermore, in a range of actions that the government has shown over its tenure?
That is why I am proud to rise in this House and share the words of human rights activists who are calling upon us to oppose the free trade agreement, who are demanding better for Canadians, who are demanding better for the people of Honduras. I am proud to stand with the party that, in this House, night after night, day after day, is fighting for the very principle that so many Canadians believe is so important to us: human rights and the fundamental principle of democracy.
:
Mr. Speaker, I rise to speak to Bill , with some experience in Honduras. I was a member of the Comisión de Verdad, one of the two truth commissions set up after the coup in 2009. I stepped down when I was elected to the House, but I have been following it ever since, including the report that the commission put out in October 2012, which I may refer to now and again.
It is important to give some human rights context. My colleagues have given lots of reasons why human rights, rule of law and the overall governance structures in a country matter for a free trade agreement. However, it is important to remember that 65% of Hondurans live in poverty and around 46%, almost 50%, live in extreme poverty. As our former ambassador to Costa Rica and Honduras, Neil Reeder, said, “It suffers from extremely unequal income distribution”.
It is a country that not only has serious problems meeting the social and economic rights of its population, but it has become a very repressive state, even though there is the veneer of democracy since the coup and the subsequent election six months after the coup. In 2013, Human Rights Watch's report indicated that 23 journalists had been killed since 2010, and in 2014, PEN International's report told us that 34 journalists had been killed since the coup in 2009.
Before the committee, COFADEH, probably the leading human rights organization in Honduras, led by Bertha Oliva, told us that it had documented at least 16 activists or candidates from the main opposition party before the most recent election, the party that is called “LIBRE”, had been assassinated since June 2012, and 15 others attacked.
The Economist Intelligence Unit, which basically does surveys every few years on countries and their overall state of affairs, downgraded Honduras from what it called a “flawed democracy” in 2008, even before the coup, to a “hybrid regime” in 2012. That is a regime that is not even actually a democracy. From all my experience in the country after eight visits, I can attest to that as being an accurate qualification.
My colleague from has mentioned on occasion, as did my colleague from in his speech, that the situation of the LGBTQ community in Honduras has long been one of great precarity. It was never great, especially for transsexuals who were always subject to extreme violence. However, after the coup in 2009, between 2009 and 2011—only a year and a half, because it is only the first part of 2011 that these numbers count for—35 members of the LGBTQ community were assassinated in ways that were associated with the fact of their membership in that community and the fact that by and large that community supported the efforts of the previous administration and were against the coup. At some level, the coup also resulted in a general opening up or licence for others, such as paramilitary groups and conservative forces in society, to kill with impunity.
I would like to pay tribute to three people before I go on to some of the economic issues.
Walter Trochez is kind of the symbol of the LGBTQ community in Honduras. I talked to his apartment mate about the night that he died. He was murdered by being shot. The apartment mate received Walter's final call just before he lost his life, literally saying “They killed me, they killed me”. This had been preceded by endless encounters with the police where he had been detained, and abductions as well by hooded men. In all of those instances, every one of the three or four instances that the Comisión de Verdad documented, he was taunted with the fact that he was a marica or maricon, which excuse me, translates as “faggot”.
[Member spoke in Spanish and provided the following translation:]
Faggots are not worth anything. Faggots do not have rights.
At the same time, when he was abducted by four armed men and had managed to escape from them, they linked him to the resistance to the coup, so ultimately he was killed for the fact that he not only was an active human rights advocate for the LGBTQ community but also he dared also to support at the political level the resistance to the coup.
I would like to salute Walter Trochez as a symbol of that community's suffering.
I would also like to speak about Eddy, who was the lead security guard for the Comisión de Verdad. He was almost the one person who lost his life during the Comisión's time. We had a couple of Honduran commissioners who had to flee the country, and he almost lost his life.
He was approached by four men with pistols in their hands who tried to shove him into a car in the middle of the street, with all kinds of onlookers. Brave as he was and knowledgeable as he was about what would happen if he ever got in the car, he made a bolt for it. The men shot after him as he was running down the street. He escaped, not without psychological trauma, but with his life.
The last person that I want to pay tribute to is Eva, who is a constituent in Toronto--Danforth. She was recently accepted as a refugee in Canada, having been shot multiple times while tending her small business in Tegucigalpa, by somebody dressed in plaIn clothes, but who all the neighbours identified as a policeman.
That is the kind of context at a broad human rights level. It is important to know that economically, Honduras is an extremely problematic country to be investing in and to have our corporate actors going down and expecting to be doing good, rather than harm.
As the Comisión de Verdad reported—and I will be translating from page 47 of the report—career politicians serve and have served businessmen and leaders of political clans in their demands, creating and reproducing the discourses and the beliefs of the entrepreneurial or business classes and the industrial classes without actually generating conditions for economic prosperity for others. New interests, as well, have begun to interact with the political parties to the point that they have been working with global economic classes to propose whole zones, called “model cities”, that would be completely free from Honduran governance. They would effectively be multinational capital sovereigns.
There is this interpenetration of the six to nine traditional families and the newer groups interacting with various global interests. Frankly, all analyses indicate how they have completely captured the state apparatus, both of the main parties, the executive in terms of the civil service, and, I am sorry to say, much of the judiciary and the police.
In that context, it is important to note that the situation in Bajo Aguan is kind of emblematic. It is one of the worst situations, but it is also emblematic of what can happen.
In February 2014, Human Rights Watch published a report called “There Are No Investigations Here”, documenting how between 150 and 200 homicides in the Bajo Aguan region were alleged to have been committed by security forces hired by large landowners. Many of those landowners are cultivating the land for agri-industrial business in African palm oil for global markets.
The report also shows how there is absolutely no police, prosecutorial, or judicial protection for the campesinos who have been murdered in this fashion.
Only a few months ago, the World Bank Group ombudsman ruled that the World Bank itself had inappropriately invested $15 million of a promised $30 million in a group called Corporación Dinant, which is owned by the Facussé family. The ombudsman said that the World Bank Group should never have given money to that operation because of the involvement of Dinant in conducting, facilitating, and supporting forced evictions of farmers in Bajo Aguan and violence against farmers in and around the plantations, including multiple killings.
I would end by saying that the UN Working Group on Mercenaries in February 2013 also ruled that private security forces in the hands of the larger agricultural and other corporations in Honduras had been responsible for, or there are reasonable concerns that they are responsible for, serious repression in that country. That is the pattern. That is not an environment in which Canadian companies at this time should have any involvement through a free trade agreement.
:
Mr. Speaker, I am happy to be in the House this evening with the opportunity to speak to Bill , an act to implement the free trade agreement between Canada and the Republic of Honduras, and to the other agreements on environmental co-operation and labour co-operation as well.
By way of starting, let me provide a little context for this discussion, taking it away from Honduras and this specific agreement to talk about the broader trade agenda and trade record of the government.
When the Conservatives came into power in 2006, they were spotted an $18 billion current account surplus. That is to say that trade was enriching us as a country, setting aside for the moment the issue of the equity of the distribution of that account surplus. It was indeed a surplus to the tune of $18 billion, no paltry sum.
Today, eight years on, under the Conservative government, we have a current account deficit of $62 billion. That leaves us with a nice round swing number of $80 billion as the negative swing, the delta, the loss, whatever one wants to call it. Part of the problem here is that we are trading raw or barely processed exports, reducing the importance of value-added exports in this trading mix.
Clearly, the government, with its sole, exclusive focus on the export of resources, is causing economic challenges for us in Canada.
I recently had the occasion, as the chair of the Canada-Bangladesh Parliamentary Friendship Group, to talk at the University of Ottawa on development issues for Bangladesh specifically.
The panel invited to speak at the invitation of its His Excellency Kamrul Ahsan was made up of experts with various backgrounds and specialities. It gave me cause to look closely at the trading relationship between Canada and Bangladesh. It would seem to be fairly typical of what is going on with Canada's trading regime. It is not a particularly huge trading relationship, with just over $1 billion worth of goods coming in from Bangladesh and about half of that going out of Canada destined for that country.
What is noticeable is that, apart from a couple of helicopters, Bangladesh is sending to us value-added goods, mainly in the form of garments, but that is not to ignore the development of their own shipbuilding industry and a flourishing pharmaceutical industry. In return, we send them natural resources and unprocessed agricultural products.
It is interesting to note that Honduras has a trade account deficit, but it seems that Canada would be one of the countries with which it has a trade account surplus.
This kind of dismal trading record, established under the government, earns one special recognition. Between 2006 and 2012, Canada had the worst current account deficit when we compared our trading performance against 17 similar countries around the world.
Before the optimists leap to the thought that maybe we have reached the bottom, that the bleeding has stopped and things are on the mend, let me advise that in 23 of the last 24 months, we have experienced a merchandise trade deficit. It brings to mind the definition of madness put forward by, I think, Einstein: to do the same thing over and over again and expect a different result.
That is what we are seeing with the government, tonight and when we discuss trade agreements, talking about how many of these agreements it has signed. Here we go again with Bill .
Contrary to the 14-second soundbites that come from across the floor, we are not anti-trade over here. That would be to take an ideological position and eschew all practical considerations and objectives. That is not what we are about.
That is what those guys do over there, and what the Liberals do, too, as we have seen tonight, although they like to confuse it by saying that they are concerned. They seem to think that free trade agreements are something like hockey cards or some other kind of collectable, and we should just keep signing them and then make triumphant noises, and then collect another one as though that was the end in itself. Never mind that with each one they sign, the current account deficit seems to actually deepen.
The Conservatives do not even read them first. The content does not seem to matter either. The outcome does not seem to matter. Nothing seems to matter, other than getting one signed.
In the grandest farce of all, we have had multiple announcements of the agreement on the comprehensive economic trade agreement with the European Union. The government just could not wait to announce that one; it said there were just details, i's and t's to be crossed and dotted.
The leader of the third party leapt out of his seat enthusiastically at the news to express his admiration and support for the government landing the deal. Nobody on this side of the House, the Liberal leader included, has even read the deal to be able to determine whether or not it is a good deal, worthy of celebration, a deal that might enrich Canada and Canadians. The irony is not lost on us that we have the Liberals tonight calling to see the Honduran deal when they celebrated the European deal sight unseen.
There is a simple reason for all of this. There is no deal. The Conservatives made an announcement about nothing, and the Liberals applauded them and congratulated them heartily upon their announcement of a deal that does not exist.
Word is that our is scrambling furiously over in Europe now, trying to rescue a deal, but we wish him well in securing a deal that would serve Canada and Canadians well. That, after all, would be the only point of such a trade deal, would it not? That is actually a real and open question. We know the answer from the Conservatives and the Liberals. They have answered by way of their actions, their embrace of a deal that is more phantom than real, a deal they have not read because it does not actually exist.
That is the simplistic, ideological reflex of those parties, both the Conservatives and the Liberals, the reflex that Einstein called madness, the reflex that sees a $62 billion current account deficit, more dollars leaving this country through trade than coming in, the reflex that takes us back to a time we were trying to grow out of, the time when we did what was easiest, the time when we did what the rest of the world wanted us to do: just dig it up and ship it out, rip it and ship it, as we say, or grow it and throw it. In support of all of that, of course, they cite an economist born in 1772 as support for this ideological reflex they have.
Therefore, it is time for a change, time for a more thoughtful, purposeful look at trade and what it ought to do for Canada, a look at our objectives. It is time for a look at trade that is sufficiently nuanced to be able to distinguish between partners and the kinds of agreements that are suitable for different trading partnerships.
The comprehensive economic trade agreement may be a template suitable for a large, sophisticated, and developed market like the European Union. We do not know that. We will see whether it serves us well when we get a chance to read it, if we ever do, but that same agreement may not serve as a particularly useful template for a trading agreement with Honduras. Indeed, a trading relationship with Honduras may not even be the appropriate way to engage with Honduras.
Our party believes that there are three fundamentally important criteria for assessing a trade agreement. One, is the proposed partner one that respects democracy and human rights, and does it have adequate environmental and labour standards? If the answer is not clearly yes, then the question becomes this. Is the proposed partner on a positive trajectory towards those goals, at least? Second, is the proposed partner's economy of significance or strategic value to Canada? Finally, if the answer to that strategic question is yes, then the question becomes very much a practical one. Are the terms of the proposed agreement satisfactory? In other words, did we get a good deal? Will Canada benefit from this agreement? Against these assessment criteria, Bill runs into problems right off the bat.
Let me turn now to have a closer look at Honduras. Let us see not just who we are doing business with, but who it is that we are actually proposing to treat preferentially through the passage of the bill.
If we look at the first criterion, on the issue of democracy or respect for democratic rights, we know that the democratically elected government of President Zelaya was toppled by a military coup in 2009, which was widely condemned around the world, including by all Latin American nations, the European Union, the United States, and the UN General Assembly. We know that 94 members of the U.S. Congress have called upon the U.S. Department of State to halt all military aid to Honduras in light of its violent repression of political activity.
If we go to the Economist Intelligence Unit and its report on Honduras, its 2013 Democracy Index ranks Honduras 85th out of 160 countries, which represents no change from the 2012 index. It remains, as my colleague for said earlier in his speech, a “hybrid” regime. That score reflects deficiencies in most categories, “... owing to its low level of institutional development, a weak judiciary, high levels of corruption...and unabated drug- and gang-related violence...”. That is a quote from the Economist Intelligence Unit country report on Honduras.
If we go to other sources, such as the Human Rights Watch, we see that in December 2012 the Honduran Congress arbitrarily dismissed four Supreme Court judges and passed further legislation empowering itself to remove justices and the Attorney General. Again, in November 2011, the Congress passed an emergency decree allowing military personnel to carry out public security duties, which has since been extended. This is the so-called trade by rule of law where Supreme Court justices get dismissed, just like that.
Now all of this spills over into issues plainly of human rights. The Human Rights Watch report on Honduras, as part of the World Report, begins with the sentence: “Honduras suffers from rampant crime and impunity for human rights abuses”. That is where we start, with that report.
Others, including Tasleem Thawar, executive director of PEN Canada, actually gave testimony at the Standing Committee on International Trade on April 10, 2014, which was not too long ago. She said:
...not only have Honduran institutions failed at protecting basic human rights for its citizens; there is a history of government involvement in these human rights abuses. Our research shows that the state not only failed to investigate crimes against journalists; in many cases state actors were themselves complicit in these crimes.
Again, from the Human Rights Watch 2014 report:
Journalists, peasant activists, and LGBTI individuals are particularly vulnerable to attacks, yet the government routinely fails to prosecute those responsible and provide protection for those at risk.
It goes on to say that:
Impunity for serious police abuses is a chronic problem. Police killed 149 civilians from January 2011 to November 2012, including 18 individuals under age 19....
...a May 2013 investigation...suggested police involvement in at least five extrajudicial executions or disappearances...
...more than 90 LGBTI people were killed between 2009 and 2012, and many more subjected to attacks and harassment. The alleged involvement of Honduran police in some of these violent abuses is of particular concern.
All of that is out of the Human Rights Watch report from 2014.
On the issues of environment and labour, I have to express deep skepticism about these co-operation agreements based on some recent inquiries that I made in the form of questions on the order paper.
The Department of Public Works and Government Services advertises the fact that it has a policy to ensure that the goods the department procures are manufactured in compliance with local labour laws, so I asked the minister whether the department procures garments from foreign markets and, if so, from where. The answer is that the government procures garments from around the world, including China, Pakistan, Bangladesh, and indeed Honduras.
I also asked if the departments knew what factories these garments are made in. The answer came back from every department, “no”, with the exception of public works, which said that it was third-party information.
They disavowed knowledge of where these garments were made, rendering the government's policy absolutely impossible to implement and making a mockery of the whole policy and the whole exercise, and this paper social responsibility exercise is perpetrated by our own federal government on these issues. Now we are asked to look at so-called labour and environmental co-operation agreements and find some sense of satisfaction and comfort in those.
My immediate interest in asking these questions had to do with the collapse of the Rana Plaza building that housed a number of garment factories in Bangladesh. That collapse killed 1,135 workers and injured another 2,500, adding to the long column of tragedies, deaths, and injuries in the garment industry.
However, at least in Bangladesh there is broad agreement that the employment laws and the labour laws and the building code are decently formulated laws and that if they are properly implemented in the future, they would provide protection to workers.
Not so in Honduras. According to the AFL-CIO Solidarity Center, Honduran trade unionists are routinely threatened, intimidated, harassed, and even murdered for attempting to form unions, and criminals are rarely brought to justice. Since the 2009 coup, 31 trade unionists have been assassinated and more than 200 injured in violent attacks.
It is worth noting that in response to other questions on the order paper, the responded that they have done no audits for compliance with local labour laws because they had no information to warrant such audits. Never mind the factory collapsing and killing 1,135 people. Never mind the AFL-CIO Solidarity Center having the basic facts of intimidation and assassinations of trade unionists right on its website. All of that should trigger some interest in whether government-procured garments are actually being made in compliance with local labour laws.
Mr. Speaker, how much time do I have left? Two minutes. I see the finds that funny. He has a strange sense of humour, as we have noted over the last three years.
Let me skip to my conclusion, because I do not want to miss that.
Clearly, when one looks through the criteria that our party has spelled out for assessing whether a country qualifies for preferential trading treatment, we can see that Honduras fails quickly and does not qualify. It is worth noting that even if it did not fail on the first grounds, it fails on the second grounds, which have to do with the significance of the economy or the strategic value of an agreement in providing a preferential trading relationship with the country. Honduras is currently Canada's 104th export market in terms of value of exports.
Over the 2007-2012 period, annual Canadian exports to Honduras averaged just $50 million and annual Canadian imports from Honduras averaged $161 million. From the current account deficit, we see that we cannot manage even an equal trading relationship with Honduras under this government. Even internal DFAIT analyses confirm that only marginal benefits to the Canadian economy are expected from the deal. There is in fact nothing to recommend this bill.
It would be a mistake, however, to suggest that the passage of the bill would be a benign act. Let me finish with a quote from Stacey Gomez, the coordinator of the Canadian Council for International Co-operation. She says:
We have long maintained that under the right conditions, trade can generate growth and support the realization of human rights. These conditions simply do not exist in Honduras. Canada should refrain from signing the FTA with Honduras until there is a verifiable improvement in the country’s democratic governance and human rights situation. Until these things are achieved, the Canada-Honduras FTA will do more harm than good.
This bill represents an ethically bankrupt notion of relationships and engagement. It is nothing other than an ideological reflex unpackaged. It suggests that free trade, that is trade with no meaningful conditionality, somehow in and of itself alleviates instead of exploits corruption and poverty, that somehow it will build government capacity instead of exploiting its absence, and that business, in the absence of labour law, will voluntarily leave surplus behind in Honduras, helping social and economic progress in Honduras. Of course, we do not believe that any of that is true.
:
Mr. Speaker, I am pleased to rise this evening to speak to Bill . I will be sharing my time with my hon. colleague from .
I need to begin my comments by strongly underscoring that the New Democrats recognize the importance of trade to our economy, however, we favour expanded trade opportunities and have a long record of supporting Canada's manufacturers and exporters in seeking new opportunities at home and abroad.
With that being said, the New Democrats would prefer to see increased trade with nations that respect Canadian values, particularly when it comes to the protection of human rights and safe working conditions. Further, we believe these trade agreements need to have clearly defined benefits to the Canadian economy such as increased job growth here at home.
The New Democrats support a strategic trade policy where we restart multilateral negotiations and where we sign trade deals with developed countries that have high standards and with developing countries that are on a progressive trajectory, countries like Japan, Brazil, South Africa, for example. These are countries that we should be signing free trade agreements with, not countries like Honduras where drug traffickers operate with near impunity, human rights are regularly abused, democracy is under threat and where there are very low labour and production standards that have the potential to hurt the Canadian economy in a race to the bottom for wages and workers' rights.
To be blunt, Honduras is a country with undemocratic practices, a corrupt government, weak institutions, low standards, insignificant strategic value and a record of human rights abuses. NGOs have documented these serious human rights abuses. Killings, arbitrary detention of thousands of people, severe restrictions on public demonstrations, protests and freedom of expression and interference in the independence of the judiciary are all well established.
Transparency International ranks it as the most corrupt country in Central America and a major drug smuggling centre with known linkages between the ruling party politicians, the police and trafficking.
Expert testimony at the Standing Committee on International Trade reinforced the concerns of the New Democrats about human rights abuses in Honduras and substantiated our refusal to support an expanded trade agreement with a government that was directly involved in perpetrating these abuses against trade activists, journalists and members of the LGBT community.
The executive director of PEN Canada stated:
—not only have Honduran institutions failed at protecting basic human rights for its citizens; there is a history of government involvement in these human rights abuses. Our research shows that the state not only failed to investigate crimes against journalists; in many cases state actors were themselves complicit in these crimes.
Not only is the regime in Honduras a habitual offender of human rights, its policies have also almost exclusively sought to increase what is already the most stratified country in Latin America.
Dr. Rosemary Joyce, an internationally recognized Honduran expert and professor at Berkeley University, stated:
Starting the very day of the coup in 2009 and continuing today, the most salient governmental issues have been the steps taken to enrich a small wealthy elite at the expense of the majority of the Honduran population, leading to the highest level of inequality in Latin America.
Finally, in June 2013, 24 U.S. senators signed a letter expressing concern about the human rights situation in Honduras and requested that Secretary of State John Kerry make every reasonable effort to help ensure that Honduras' November 2013 elections were free, fair and peaceful.
Further, 94 members of congress have called upon the U.S. State Department to halt all military aid to Honduras, in light of its violent repression of political activity.
What we are seeing is a government steadfastly determined to enter into a trade agreement with a corrupt, abusive regime whose sole aim has been to enrich the small cadre of loyalists and friendly business elites at the expense of the remaining 99.9% of Honduran society.
I strongly believe that entering into this agreement would only reinforce the stranglehold of the regime and would be counter to values which Canadians believe our government should be promoting abroad.
Canadians expect our federal government to be a leader on the world stage. That is why most Canadians agree that giving preferential trade terms to corrupt, undemocratic countries that suppress dissent, violate citizens' human rights, and facilitate drug trafficking is the wrong approach to trade policy.
Let me reiterate. New Democrats recognize the importance of trade to our economy. We favour expanded trade opportunities. However, in determining our support for a trade deal, we also consider the fact that trade agreements must provide clearly defined benefits to the Canadian economy, so let us look at the impact the Canada-Honduras trade deal would have on the Canadian economy.
Currently Honduras accounts for less than 1% of our trade and is Canada's 104th-largest export market in terms of value of exports. In 2012, merchandise exports totalled a meagre $38 million, while imports were $218 million, meaning there is already a significant trade deficit between our economies.
Obviously, given these figures, Honduras is not a strategic trade partner. Therefore, a failure to ratify this agreement would not have an adverse impact upon the Canadian economy, while the ratification of the agreement would have no discernible impact upon Canadian exporters.
Since the Conservatives took power, Canada's export performance has suffered badly, going from a significant trade surplus to a huge deficit. My Conservative colleagues often brag about the number of agreements they have signed, but the fact is that they have not finalized even one agreement with a major market that would offer significant benefits for Canadians.
In fact, leaked reports from the Department of Foreign Affairs reveal the Conservatives' pursuit of insignificant agreements like this one with Honduras has tied up resources and compromised Canada's ability to secure agreements with high-standard economies that would offer real opportunities, such as Japan.
This speaks directly to the Conservatives' record on trade. When they came to power, they inherited a current account surplus of $18 billion, but eight years later, Canada's current account deficit stands at $62 billion. That represents a negative swing of $80 billion and an average decline of $10 billion a year.
Canada's trade record vis-à-vis that of our international counterparts emphasizes the failure of the Conservative government to increase export-driven trade, which historically has been a key driver of our economy. Here, between 2006 and 2012, Canada had the worst current account performance when our trade performance is compared with 17 other countries around the world.
While the Conservatives continue to chastise the NDP's position on supporting balanced, mutually beneficial trade agreements, their record on trade, just like their record on so many other important economic files, speaks for itself.
In conclusion, I believe this is the wrong trade deal at the wrong time. Honduras' record on human rights is atrocious, its leadership is corrupt and continues to use the country's public institutions to benefit a select few, and there is no significant advantage for the Canadian economy in signing this deal.
Instead of focusing on marginal trade deals such as this one, we should be looking to strengthening our trading relationships with economies that can offer real benefits to Canada in terms of both cheaper imports and increased exports of manufactured goods, not just raw materials.
That is why I will continue to oppose the bill in Parliament.
:
Mr. Speaker, first, I would like to thank my hon. colleague from for sharing his time with me. I would also like to commend my hon. colleague from for his wonderful speech. Anyone who listened to it understood right away what it was about.
I would like to delve right into the main theme of my speech on Bill . I will start by taking a brief look back in history. I will not go back as far as the 19th century, but it is important to point out that Honduras has been an independent country since 1821.
Honduras has therefore been an independent nation for 193 years. It has made progress and has had highs and lows, but it has carried on. Recently, there have been a lot of problems in the country that have significantly lowered the quality of life for its residents. The biggest blow was the coup against democratically elected President Manuel Zelaya in 2009.
The military then conned the people and ruled for several years until another election was held. The existing government does not really represent any true segment of Honduran society. There is a lot of corruption and human rights are violated. In short, there is no real guarantee of living a decent life there.
When I see the Conservative government bragging and saying that it is going to sign a free trade agreement with Honduras, it is a disgrace to anything that might be considered good about international free trade.
Why? Despite all the advantages and disadvantages of international trade agreements between countries, I believe that the Conservatives look only at the economic aspect of it, the matter of profit and what they can get out of it, since traditionally trade with Honduras has always resulted in a negative balance. We know that. The figures have been mentioned before. It makes no sense. This agreement is of no real economic value to Canada, and the Conservatives are not abiding by the main criteria, as we have already discussed here.
One of those criteria stipulates that the proposed partner's economy must be of significant or strategic value to Canada. However, that does not seem to be the case here. Another criterion stipulates that the terms of the proposed agreement must be satisfactory. That too is not the case.
No good economist would enter into the negotiation of a trade agreement, whether it be between countries or strictly local, without analyzing far more criteria.
Among those criteria, aside from the economic aspect that I was just talking about, there is also the qualitative criterion. The NDP caucus wants the Conservatives to understand that this is the criterion they are failing to meet. They are not taking it into account. What will be the consequences of this free trade agreement that they are trying to sign with Honduras?
Across North America, 25 recognized organizations tried to warn the Conservatives about the risks of signing this agreement. They did not listen. These organizations fully explained and documented the tangible societal consequences this agreement would have. They warned the Conservatives that signing this contract would fuel the social conflict that currently exists. Everyone here knows that, and it has been said many times.
Honduras is having problems right now. Inequalities are getting bigger every year. I do not think it is good business to sign a free trade agreement with a country in that situation. A developed country such as ours, with one of the largest economies in the world, should not engage in this type of negotiation when we know that it will only benefit a small oligarchy in that country. It is because Canadian imports are huge and exports to Honduras amount to nothing.
Another thing that has been swept under this black rug—or perhaps blue if it is a Conservative rug—is an ulterior motive, and that is to allow the ruling oligarchy to become richer.
When the Canadian International Development Agency and the Department of Foreign Affairs and International Trade merged, they studied this agreement. In their report, they concluded that there was a worthwhile aspect to this agreement. Unless I am mistaken, basically, there was protection for Canadian mining interests in the region.
This free trade agreement will produce results similar to the trading outcomes Honduras has had with the United States, particularly with a company called Rosario Mining, which wreaked havoc wherever it went.
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Mr. Speaker, I will be sharing my time with the hon. member for .
In 2013, when I sat on the Subcommittee on International Human Rights, we studied the case of Honduras at length. Therefore, I believe I have enough facts to oppose this bill, which is unacceptable.
The despotic regime that reigns in Honduras is characterized by its anti-democratic practices, its corruption, its failed institutions and its history of human rights violations. Canada should not be signing a free trade agreement with that country.
The NDP believes there are three fundamental criteria when considering a trade agreement. First, does the proposed partner respect democracy and human rights, acceptable environmental and labour standards, and Canadian values? Second, does the proposed partner's economy have significant or strategic value to Canada? Third, are the terms of the proposed agreement satisfactory?
The proposed agreement with Honduras does not meet any of these criteria, as we clearly showed in the previous debates, despite the fact that the Conservatives have used their majority to limit the time to review this bill. Only five hours of debate on a treaty that was negotiated over three years. This is ridiculous. I also find it difficult to understand why Liberal members would agree to signing an agreement with Honduras.
We are promoting an agreement with a brutal dictatorship, and I am choosing my words carefully. By signing this agreement, we are giving legitimacy to a regime put in place following a coup. The Subcommittee on International Human Rights heard several witnesses from Honduras and experts on this issue. I heard horror stories. Since the coup in Honduras, journalists, union representatives and people who are asking for greater democracy are being killed. In fact, they will kill anything they do not like in that country. Honduras is the murder capital of the world, and most of the murders are not even properly investigated by the police.
Professor Gordon of Wilfrid Laurier University, who testified before the committee, said that the possibility of a free election needs to be called into question. Some members of the opposition parties have been assassinated. In 2013, there was an average of 10 killings a month. According to Professor Dana Frank from the University of California, 80% of crimes in Honduras go unpunished. There are many documented cases of police corruption. Between January 2011 and November 2012 alone, the police carried out 149 summary executions of civilians. In January 2013, the United Nations asked for the removal of four judges of the Supreme Court of Honduras for violations of international standards and because there was a serious threat to democracy. In February 2013, the United Nations working group on the use of mercenaries indicated that the Government of Honduras had failed to properly regulate private security companies. These companies are involved in numerous cases of human rights violations, including murders, disappearances, forced expulsions and rapes.
Moreover, censorship is common in Honduras. It is alleged that journalists are corrupted and advertisements are manipulated to ensure that coverage is positive and to silence opponents.
According to the national human rights commission of Honduras, 29 journalists have been murdered since the coup.
This is the question I would ask: if Canadian mining engineers were murdered, what recourse would Canada have? It would have none. There is no justice and therefore murderers are not even prosecuted. It is in the interest of Canadian mining companies to have a certain legal framework in Honduras. I would ask them the following question: what good is a legal framework when there is no rule of law in the country?
Should Canada support, by means of a trade agreement, a government of thugs? The Honduran regime is corrupt. All the stakeholders have said the same thing and even the U.S. Senate acknowledged that this is unacceptable.
Will this agreement benefit Honduras? I seriously doubt it. Two years after the coup, 100% of the increase in income went to only 10% of the population, while poverty increased by 26%. This agreement will only benefit a corrupt elite.
Canada used to be a world leader in foreign affairs, renowned for its ability to help other organizations and other countries become more democratic, freer, fairer to its citizens and more respectful of human rights. However, agreements such as this one, supported by the Conservatives and the Liberals, will make us take a step backwards.
Entering into such an agreement with a corrupt government shows little concern for human rights and sends the message to similar countries that this is acceptable to Canada. The Conservative government and its partners, the Liberals, find that acceptable. We are debating an agreement with a brutal regime, and closure has been invoked.
We are trampling democracy, here and elsewhere, and I am sad to see the Liberal members supporting this process. The Conservative government imposed closure 68 times to end debate. Is that a sign that the government is turning away from democracy?
The agreement with Honduras was negotiated without any transparency and despite repeated requests from stakeholders in various sectors of Canada's economy. The Government of Canada was never willing to make the text of the agreement public during the negotiation process. Given these concerns, I am disappointed that my colleagues from the other parties want to support this treaty. This agreement is stained with the blood of Hondurans.
We risk damaging Canada's international reputation if we enter into a partnership with such a regime. My constituents of Brome—Missisquoi sent me here in the hope of building a different Canada.
In light of the facts that we have been able to show despite the time allocation brought in by the Conservatives, I will not support Bill . I hope that Canadians will remember that the Liberals and Conservatives voted in favour of a tree trade agreement with a brutal dictatorship.