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Core 1..188 Hansard (PRISM::Advent3b2 10.50) CANADA House of Commons Debates VOLUME 144 Ï NUMBER 064 Ï 2nd SESSION Ï 40th PARLIAMENT OFFICIAL REPORT (HANSARD) Friday, May 29, 2009 Speaker: The Honourable Peter Milliken CONTENTS (Table of Contents appears at back of this issue.) Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 3929 HOUSE OF COMMONS Friday, May 29, 2009 The House met at 10 a.m. emerging economies continue climbing the value chain and establishing themselves in an ever-widening range of sectors. In this time of economic uncertainty, with a slowdown in the U.S. Prayers economy, our top commercial partner, and ongoing turbulence in international financial markets, Canadian exporters and investors will continue to be affected. GOVERNMENT ORDERS We have done a good job of riding out the storm, thanks largely to Canada's strengths, like low unemployment, the strongest fiscal CANADA-PERU FREE TRADE AGREEMENT situation in the G7, a sound borrowing system and our endowment of natural resources that continue to be in demand the world over. Ï (1005) However, it is extremely clear that we must remain vigilant. Our [English] Conservative government must continue to fight protectionist measures around the world and continue taking steps to ensure The House proceeded to the consideration of Bill C-24, An Act to Canadian companies remain competitive, maintain their markets and implement the Free Trade Agreement between Canada and the have access to new opportunities. Republic of Peru, the Agreement on the Environment between Canada and the Republic of Peru and the Agreement on Labour The Prime Minister and the Minister of International Trade Cooperation between Canada and the Republic of Peru, as reported understand the challenge. The Prime Minister has committed to (with amendment) from the committee. playing an active role in the Americas and to building strategic The Speaker: There being no motions at report stage, the House relationships with key partners in our neighbourhood. will now proceed, without debate, to the putting of the question on Peru is a leader in Latin America, a lynchpin in the political and the motion to concur in the bill at report stage. economic stability of the region. It has been an economic engine Hon. Gordon O'Connor (for the Minister of International with a GDP growth rate of 9.8% in 2008, the top of Latin American Trade) moved that the bill be concurred in. countries and higher than that experienced by China or India. The Speaker: Is it the pleasure of the House to adopt the motion? Peru also has a solid outward orientation. A leader in trade liberalization, Peru is currently pursuing trade negotiations with a Some hon. members: Agreed. number of countries. Some hon. members: On division. As it stands, Canadian exporters are at an immediate risk of losing (Motion agreed to) markets in Peru due to the entry into force of a trade promotion Hon. Gordon O'Connor (for the Minister of International agreement with the United States on February 1 of this year. Trade) moved that the bill be read the third time and passed. Peru has also recently completed trade negotiations with China Mr. Gerald Keddy (Parliamentary Secretary to the Minister of and EFTA and is negotiating with the EU, South Korea, Mexico and International Trade, CPC): Mr. Speaker, it is an honour to rise Thailand. today to speak to Bill C-24, the Canada-Peru free trade agreement. As members can see, Peru has a very robust international trade As members know, our Conservative government's global agenda. It is an economic engine in the Americas. It is beneficial to commerce strategy includes a re-energized agenda of trade liberal- Peru and beneficial to Canada that we see this free trade agreement ization with our partners around the world. It will be this strategy go forward. that will help to lead Canada out of this recession that is affecting every country in the world today. Our firms and Canadian workers deserve trade agreements that address this situation and allow them to compete in international As a trading nation, Canadian companies, Canadian producers and markets on a level playing field. We need partners like Peru, Canadian investors need access to international markets to stay especially as we move forward on engaging with like-minded competitive. We have entered an age of fierce global competition, as countries throughout the Americas. 3930 COMMONS DEBATES May 29, 2009 Government Orders Canadians will benefit. Peru is already an established and growing government procurement agreement guarantees Canadian suppliers market for our businesses. In 2008, two-way merchandise trade the right to bid on a broad range of goods, services and construction between our countries totalled $2.8 billion. contracts carried out by Peru's federal government entities. With this new agreement, our nations are taking a critical step to intensify our commercial relationship in the years ahead and to create new opportunities for citizens in both countries to prosper. It is no wonder that Canadian businesses in a number of sectors Upon its implementation, Peru will eliminate tariffs on nearly all have been strong advocates of this agreement. Their support has current Canadian exports, including wheat, pulses and mining been crucial throughout the negotiating process that began in June equipment. 2007. The result is something we can all be proud of. With this new agreement, our nations are taking a critical step to intensify our It should be noted that some opposition parties have been holding commercial relationships in the years ahead and to create new up a number of these free trade agreements. At the same time, they opportunities for citizens in both countries to prosper. propose that they continue to support Canadian business and Canadian opportunity, especially Canadian exports because we are an exporting nation. We have negotiated a high quality and comprehensive free trade In wheat and barley alone, in two free trade agreements between agreement, covering everything from market access to goods to Colombia and Peru, roughly $250 million of Canadian trade is at risk cross-border trade and services, to investment and government because these agreements have not passed through the House yet. procurement. Canadian exporter service providers and investors will Ï (1010) benefit, and the agreement will create new opportunities for Canadian businesses and producers in the Peruvian market. Perhaps the members who are intent on holding up these agreements and at the same time are saying that they support Canadian industry, should take a look at this one industry alone where a quarter of a billion dollars are at risk because of opposition However, an effective should do more than eliminate tariffs. It shenanigans, quite frankly, in holding them up. should also tackle the non-tariff barriers that keep a trade relationship Upon its implementation, Peru will eliminate tariffs on nearly all from reaching its full potential. With this agreement, that is just what Canadian exports, including wheat, pulses and mining equipment. we have done, by including new measures to ensure greater Again, that is worth repeating. A variety of paper products, transparency, including better predictability of incoming regulations, machinery and equipment will also enjoy the same benefit. and the right by industry to be consulted at an early stage in the development of regulations, promoting the use of international The Canada-Peru free trade agreement also provides a great standards and creating a mechanism to promptly address problems. opportunity to take our current trade in services to a new level in the years ahead. In 2006, the most recent year where statistics are available, Canada exported $33 million worth of commercial services to Peru. This new agreement provides a wonderful We are taking action on a number of fronts to unlock the trade opportunity to grow this number in the years ahead and continue potential inherent in the Canada-Peru relationship but this agreement boosting the level of cross-border trade enjoyed by our two is significant for other reasons as well. This agreement is also countries. accompanied by important side agreements that demonstrate our joint commitment to corporate social responsibility, the rights of Canadian investors, too, have a significant presence in the workers and preserving the natural environment. Peruvian market. Even before this agreement, our countries made a firm commitment to enhancing two-way investments through a joint foreign investment promotion and protection agreement, or FIPPA, which entered into force in 2007. Canada is one of Peru's largest Many Canadian companies and the Canadian government are at overall foreign investors, with an estimated $2.35 billion worth of the forefront of efforts to ensure accountability and transparency investment stock in Peru in 2008, led by the mining and the financial through renewed commitments to principles of good corporate sectors. citizenship, both domestically and internationally. This FTA builds on the existing FIPPA and gains new ground for Canadian investors. Specifically, it includes strong obligations that will, first, ensure the free transfer of capital related to investments, protect against unlawful expropriation and provide for non- The Canadian government encourages and expects Canadian discriminatory treatment of Canadian investors. In short, we have companies operating abroad to respect all applicable laws and levelled the playing field. international standards and to conduct their activities in a socially and environmentally responsible manner, recognizing that respon- It also provides for an effective, binding and impartial dispute sible business conduct reinforces the positive effect that trade and settlement mechanism. In other words, the agreement provides the investment can have on labour rights, the environment and security, stability and predictability that investors need. Our competitiveness. May 29, 2009 COMMONS DEBATES 3931 Government Orders Ï (1015) understanding of what is going on in Central America and South America.
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