Statement made on 17 June 2009 by Senator Percy Downe
Hon. Percy E. Downe:
Honourable senators, Bill C-24 is before this chamber for third reading. It was referred to the Standing Senate Committee on Foreign Affairs and International Trade on June 9, 2009.
We have heard statistics on how Canada's trade with Peru has grown, and we heard from this government how the Canada-Peru Free Trade Agreement will lead to increased opportunities for trade. We have not, however, heard from stakeholders, such as the agricultural sector, about how they will be affected by the passage of this bill. We have not heard from experts on intellectual property rights on what Canada can do to improve the provisions of this agreement in the future. We have not heard from those concerned about the link between free trade and the government's decision to shift foreign aid priorities from Africa to our trading partners, Peru and Colombia.
Peru is travelling the world negotiating trade agreements with everyone they can: Singapore, China, the EU, Chile and Canada. However, despite a clear willingness on their part to complete trade negotiations with Canada, the federal negotiators were unable to obtain a strong and effective trade agreement for Canada. In a number of sectors, the agreement puts Canadians at a competitive disadvantage from other countries, specifically the United States.
This bill and trade agreement should not be considered in isolation. The prosperity of Canada does not depend on the signing of a free trade agreement with Peru. However, if the results achieved in trade negotiations with Peru reflect Canada's ability to negotiate a strong trade agreement, we are in serious trouble. If this is the best deal we can negotiate with the Republic of Peru, a developing country, what will the Government of Canada be able to achieve negotiating with more aggressive trading partners such as the European Union?
Despite the clear willingness on the part of Peru to complete trade negotiations, this agreement puts Canada at a disadvantage in a number of sectors. To assist the Government of Canada in an effort to prevent the same problems from occurring in future trade agreements and to improve the outcomes, the Standing Senate Committee on Foreign Affairs and International Trade has made a number of recommendations for the government to be attached to Bill C-24.
We expressed our concern that the bill, and the agreement that it enacts, puts Canada in a number of sectors at a competitive disadvantage that we can address.
We recommended that the Minister of International Trade undertake a review of the Canada-Peru Free Trade Agreement, the Agreement on the Environment and the Agreement on Labour Cooperation five years following its implementation to evaluate the trade implications for Canadian exporters and, if necessary, put forward a plan to undertake further negotiations with the Republic of Peru to enhance the agreement.
We also put forward that at a minimum in all future free trade agreements, Canada should seek to obtain a provision as that found in Appendix 1, section 2(d)(ii) of the Tariff Schedule for Peru in the United States-Peru Trade Promotion Agreement. That section allows the United States to automatically obtain any beneficial agricultural-related provision negotiated by Peru and other countries in the future. The Canada-Peru agreement does not include such a clause; therefore, Canada will fail to benefit from future trade measures adopted by Peru that will otherwise benefit other countries.
Finally, we recommend that the Government of Canada ensure that our best negotiators, either inside or outside of the federal government, in the public sector or in the private sector, represent Canada in trade proceedings to obtain stronger and more effective trade agreements. We expressed the view that trade priorities should be excluded from Canada's decisions regarding foreign aid. Let us hope the government follows our advice.
Before concluding, honourable senators, I should like to address the recent violence in Peru between the police and the Aboriginal population in the Amazon. I am sure there is concern from senators on all sides, as Senator Di Nino outlined. It is my hope that this situation improves as soon as possible to restore peace so that all parties can work together to resolve these issues.
I spoke this morning to the Ambassador from Peru to Canada. He advised me that the government has established a commission with representatives from the national government, regional governments and the Aboriginal population, and they are working toward developing new land laws. I am sure all honourable senators join me in wishing them great success.