Report

Visit of the Honourable Andrew Scheer, M.P., of the House of Commons, and a Parliamentary Delegation, and Costa Rica,

October 6 - 13, 2012

The Honourable Andrew Scheer, M.P., Speaker of the House of Commons, and a parliamentary delegation, visited Chile and Costa Rica from October 6 to 13, 2012.

The delegation has the honour to present its Report

The Canadian delegation was comprised of the following members:

The Honourable Andrew Scheer, M.P., Speaker of the House of Commons;

Mr. Joe Comartin, M.P., Deputy Speaker of the House of Commons and Chair of the Committees of the Whole;

Mr. Scott Andrews, M.P.;

Mr. Ed Holder, M.P.;

Ms. Kenzie Potter, Chief of Staff, Speaker’s Office; and

Mr. David Gagnon, Secretary to the Delegation.

Context – Chile Chile is a republic with an estimated population of 17.2 million. Executive power rests with the President. He or she is directly elected for a four-year term (reduced from six in 2005) and is assisted in his functions by members of the cabinet. The President cannot be re-elected for a consecutive second term. Legislative power rests with a bicameral National Congress (Congreso Nacional), which consists of a 38-member (Senado) and a 120-member Chamber of Deputies (Cámara de Diputados).

The current is headed by President Piñera who took office in March 2010 with his Coalición por el Cambio – a broad coalition which included the centre-right Alianza coalition, centrist Concertación members and independents. His coalition had a minority in both houses of Congress, with 58 of a total of 120 deputies and 16 of a total of 38 senators.

Chile is one of the fastest growing economies in Latin America and is considered by many observers to have the region’s most solid macroeconomic framework. Over the past 15 years, Chile has recorded an average annual growth rate of 4.1% and per capita incomes have doubled over the same period. Chile’s GDP contracted by 1.7% in 2009 as a result of the global financial crisis and by 2.1% in the first quarter of 2010 due to a major earthquake. However, the country weathered both crises and its economy grew by 5.2% in 2010 and 6.2% in 2011.

The purpose of this visit was to promote parliamentary dialogue and future parliamentary exchanges. The delegation was particularly interested in matters of trade, the economy and agriculture. The visit provided the opportunity to discuss foreign policy on issues of international and mutual interest, and subjects of common interest arising from our membership in multilateral organizations.

Meetings During its visit to Chile, the delegation met with:

 The Honourable Medina, ;

 The Honourable Nicolás Monckeberg Díaz, President of the Chamber of Deputies;

 Mr. Jorge Tarud, President of the Foreign Affairs Commission at the Chamber of Deputies;

 Mr. Roberto Delmastro Naso, President of the Canada-Chile Parliamentary Group at the Chamber of Deputies;

 Mr. Pedro Muñoz, Member of Canada-Chile Parliamentary Group at the Senate of Chile; and

 Mr. Alvaro Clarke, President of ICR Chile.

Meeting with the Honourable Camilo Escalona Medina, President of the Senate The Honourable Camilo Escalona Medina welcomed Speaker Scheer to the Upper Chamber. Speaker Scheer commented on Canada and Chile strong relationship and his hope that it will further develop with this visit. The President of the Senate explained that Chile is a peaceful country with no ambitions of expanding. Turning the discussion to politics, he noted that most politicians in Chile work with each other to reach compromises, something not always reported in the press which tend to highlight political divisions. Canada experiences the same kind of political dynamics, remarked Speaker Scheer. The two agreed that Canada and Chile were like-minded partners on many issues, including trade. The President of the Senate stated that Chile benefits from the Canadian experience in the fields of technology and natural resources development. He described the Chilean economy as very open and mentioned that very few parliamentarians oppose free trade. All agreed to the importance of diversifying trade partners to remain competitive, with particular mention being made of trade with Asia.

President Medina set out some of the challenges in Chile. For example, the inequalities between the rich and the poor in their country could hinder the political stability in the long term if nothing is done to prevent the growing gap. Speaker Scheer indicated that such inequalities also exist in Canada, especially at the regional level. The high number of university graduates without employment was also described as an issue that must be addressed. Meeting with the Honourable Nicolás Monckeberg Díaz, President of the Chamber of Deputies The delegation met with the Honourable Nicolás Monckeberg Díaz, President of the Chamber of Deputies, who explained that Canada is an important partner for Chile. He added that this visit reflects the cordial relationship both countries enjoy. Speaker Scheer remarked that the 15th anniversary of the free trade agreement with Chile is a testimony of the links that unite the two countries. At the President’s request, he commented on student exchanges, saying that Canadian universities have in the recent years increased opportunities for foreign students to come to Canada. The considerable amount of university graduates not able to enter the workforce was discussed. The President explained that the government provides generous student assistance which has helped increase enrolment rate in the universities but has at the same time created a large financial burden. The delegation indicated that some Canadian students choose to go to technical schools after graduating from university in order to secure employment and wondered if this was an option in Chile. The President of the Chamber of Deputies explained that technical schools were readily available to students but were not adequately promoted.

Meeting Mr. Jorge Tarud, President of the Foreign Affairs Commission at the Chamber of Deputies Speaker Scheer introduced members of the delegation to Mr. Jorge Tarud, who in turn indicated that it was a pleasure to meet with them. The Speaker indicated that he had already attended very productive meetings and that the 15th Anniversary of the Free Trade Agreement between Canada and Chile was a good time to strengthen the relationship between the two countries. Mr. Jorge Tarud touched on the importance of parliamentary diplomacy which allows t a frank dialogue between parliamentarians. In his view, face to face meetings such as this one are crucial to improving good relations between countries and have a positive influence on . The delegation indicated their admiration for the leadership Chile has shown in rebuilding its democracy and called for further trade between the two countries.

Meeting Mr. Roberto Delmastro Naso, President of the Canada-Chile Parliamentary Group at the Chamber of Deputies During a lunch with the President of the Canada-Chile Parliamentary Group and several other parliamentarians who have an interest in pursuing good relationship with Canada, participants discussed the importance of the Free Trade Agreement signed fifteen years ago. The general consensus is that it has created wealth and prosperity for both countries. As well, it was pointed out that the agreement could serve as a model to other countries searching for bilateral trade opportunities. Finally, it was agreed that there was a need to keep the Canada-Chile Friendship Groups in both parliaments active. Meeting Mr. Pedro Muñoz, Member of Canada-Chile Parliamentary Group at the Senate of Chile Mr. Pedro Muñoz commenced the meeting by expressing special appreciation for the relationship between Canada and Chile. He called for further exchanges between the two countries. Speaker Scheer praised the level of hospitality of the Chilean people and hoped to soon receive a delegation from Chile. The senator indicated Chile intends to send a delegation to attend the Inter-Parliamentary Union Conference in Quebec City in October. Speaker Scheer indicated that more than a thousand parliamentarians from across the world will participate at the conference. He pointed out that it will be the largest parliamentary assembly hosted by Canada. The significance of the Free Trade Agreement for both countries was also discussed.

Meeting Mr. Alvaro Clarke, President of ICR Chile Mr. Alvaro Clarke provided details of the Chilean pension system to the delegation. He described its characteristics which comprises three pillars. The first pillar is essentially a basic solidarity pension financed by the state. The second pillar is made of citizens’ mandatory contributions while the third is composed of voluntary savings. The presentation allowed delegates to compare this system to the one in Canada.

Other activities The delegation also had the opportunity to attend a working dinner with the Canadian business community at the official residence of the Canadian Ambassador, Ms. Patricia Fuller.

Context – Costa Rica The Republic of Costa Rica is a presidential democracy with a unicameral . Executive power is vested in the president, assisted by two vice- presidents and a 15-member cabinet. The president is elected for a single four- year term by compulsory adult suffrage, and a successful candidate must receive at least 40% of the votes. Ex-presidents may run for re-election after they have been out of office for eight years. The president appoints cabinet ministers and provincial governors and negotiates treaties, which are subject to ratification by the Legislative Assembly. The current president, Laura Chinchilla Miranda, took office on 8 May 2010. Her term finishes in May 2014. President Chinchilla’s party, the National Liberation Party (Partido de Liberación Nacional or PLN) holds the largest faction in the legislature (24 of the 57 seats).

Legislative power is vested in the unicameral 57-seat Legislative Assembly. Deputies are elected to four-year terms by compulsory adult suffrage. Deputies may run for re-election after sitting out one term. The Legislative Assembly enacts laws, levies taxes, authorizes declarations of war, and, by a two-thirds vote, may suspend certain civil liberties in cases of civil disorder. The Assembly meets in regular session twice a year – from May 1 to July 31 and from September 1 to November 30. Special sessions may be convoked by the President to consider specified business.

Costa Rica is the 90th economy in the world as measured by GDP. It enjoyed stable economic growth prior to the global economic crisis and its economic outlook is strongly associated with developments in the global economy, particularly in the U.S., its main trade and investment partner. The Costa Rican economy contracted 1.3% in 2009 but resumed growth in both 2010 and 2011, with an expected growth of 4.4% for 2012.

This visit continued the already well-established parliamentary dialogue and helped strengthen bilateral ties between the parliaments of both countries.

List of meetings During its visit to Costa Rica, the delegation met with:

 The Honourable Víctor Emilio Granados Calvo, President of the Legislative Assembly of Costa Rica;  Mr. José Enrique Castillo Barrantes, Minister of Foreign Affairs of Costa Rica; and  Ms. María Jeannette Ruiz Delgado, President of the Foreign Affairs and International Trade Permanent Commission.

Meeting with the Honourable Víctor Emilio Granados Calvo, President of the Legislative Assembly of Costa Rica The delegation met with the President of the Legislative Assembly and several parliamentarians of different political parties. The meeting attendees noted the key differences between Canadian and Costa Rican parliaments. The Honourable Victor Emilio Granados Calvo explained that parliamentarians are not allowed to run for a consecutive second term in Costa Rica; in Canada it’s the electorate who decide the length of a politician’s career declared Speaker Scheer. A discussion on the advantages and disadvantages of both systems followed. On one hand, knowing you have four consecutive years in power obliges you to take your work more seriously, it was said. On the other hand, it was mentioned that though the Canadian electoral system could produce life- career politicians, the average for parliamentarians is eight years. Also discussed were the Canadian mining projects in Costa Rica and the air transportation agreement signed recently and which should increase the number of Canadians coming to Costa Rica for tourism.

During the address to the plenary session of the Legislative Assembly of Costa Rica that followed the meeting, both Speakers acknowledged the importance of the visit in strengthening the ties between the two countries. Speaker Scheer indicated that Costa Rica is Canada’s largest trading partner in Central America and that agreements such as the air transportation agreement signed in August 2011 have facilitated greater collaboration between Canada and Costa Rica. Meeting with Mr. José Enrique Castillo Barrantes, Minister of Foreign Affairs of Costa Rica Minister Castillo began by expressing his appreciation for the relationship between Canada and Costa Rica. Current negotiations to update the free trade agreement as well as the signing of an air transportation agreement are signs that the two countries are eager to work collaboratively to create new opportunities, said the minister. Also of importance are shared views at the Organization of American States (OAS). On security, Mr. Castillo explained that Central America was prone to drug trafficking and thanked Canada for sending police equipment that will help control organized crime. He also touched on the occupation by Nicaragua of a parcel of Costa Rica’s territory and the need to peacefully solve this issue. He noted that Costa Rica doesn’t have an army and hoped that recent court rulings will convince Nicaragua to repatriate its troops. On education, the meeting attendees pointed out the existence of a youth mobility agreement and its benefits for promoting mutual understanding between the two countries. Finally, it was agreed that there was a need to diversify trade partners through multilateral agreements and organizations with Asian countries.

Meeting Ms. María Jeannette Ruiz Delgado, President of the Foreign Affairs and International Trade Permanent Commission In welcoming the delegation, Ms. Ruiz noted with great interest the signing of the air transportation agreement between the two countries that will contribute to increasing the number of tourists from Canada. Ms. Ruiz also discussed the issue of visas, calling for a reduction in the current waiting times. She said that this issue was part of the discussions surrounding the renewal of the free trade agreement between Canada and Costa Rica. The meeting attendees also spoke about regional parliamentary diplomacy, evoking the importance of ParlAmericas, which some delegates are members. The need to streamline the requirements to invest in Costa Rica and to better promote the potential for tourism in Costa Rica were also briefly touched upon during the meeting.

Other activities The delegation had the opportunity to attend a business roundtable with representatives of the Canadian business community. This event allowed a better understanding of the business opportunities made available to Canadian companies in Costa Rica.

Acknowledgements The delegation expresses its appreciation to the staff of both the Canadian embassies in Chile and Costa Rica for their assistance prior to the visit and during the meetings, and for accompanying them throughout the visits to each of the two countries. In this respect, worth noting was the unconditional support and the availability of ambassadors Patricia Fuller and Wendy Drukier.

Respectfully submitted,

The Honourable Andrew Scheer, M.P., Speaker of the House of Commons

Travel Costs

Visit of the Honourable Andrew Scheer, M.P., Speaker of the House of Commons, and a Parliamentary Delegation, Chile and Costa Rica.

TRAVEL $52,358.27

ACCOMMODATIONS $7,741.15

PER DIEMS $3,854.87

PROTOCOL $756.50

MISCELLANEOUS $314.77

TOTAL $65,025.56