:
Welcome to the eleventh meeting of this session of the Standing Committee on International Trade.
Today we are beginning our review, pursuant to the order of reference of Monday, of the implementation of the Free Trade Agreement between Canada and the Republic of Colombia, the Agreement on the Environment between Canada and the Republic of Colombia, and the Agreement on Labour Cooperation between Canada and the Republic of Colombia.
We're going to begin the study of this bill with a briefing from witnesses from the Department of Foreign Affairs and International Trade, the Department of Finance, and the Department of Human Resources and Skills Development.
I think we'll begin right away and deal with other business when the witnesses have completed their testimony and questioning.
To begin with, we have David Plunkett back. Mr. Plunkett is the chief trade negotiator for bilateral and regional relations with the Department of Foreign Affairs and International Trade. Also from the department, we have Alexandra Bugailiskis, the assistant deputy minister of Latin America and the Caribbean, who has been with us before; and Matthew Kronby, the director general of the trade law bureau.
Visiting with us again, from the Department of Finance, is the director of the international trade policy division, Carol Nelder-Corvari. Thank you for coming back.
From the Department of Human Resources and Skills Development, we have the director of bilateral and regional labour affairs, Pierre Bouchard. Welcome, Pierre.
Who's going to begin?
Mr. Plunkett will begin with an opening statement, perhaps followed by some brief remarks.
:
Thank you, Mr. Chair, for this opportunity to appear before this committee and speak to , an act to implement the Canada-Colombia free trade agreement and the parallel agreements on labour cooperation and the environment.
[Translation]
This Bill implements the legal framework and legislative amendments required to deepen the economic and social relationship between Colombia and Canada.
[English]
You've already identified my colleagues who are with me. As you may be aware, Carol Nelder-Corvari is also our chief negotiator for this deal.
Canada and Colombia currently have a significant commercial relationship, with trade in excess of $1.3 billion and hundreds of Canadian companies doing business with Colombia. Key Canadian products such as cereals, including wheat and barley, machinery, pulse crops, paper, and motor vehicles are key exports to Colombia, and ensuring their continued competitiveness was a key reason for pursuing an agreement with Colombia.
Under this free trade agreement, Colombia will eliminate tariffs on nearly all Canadian exports. Their removal is important for Canadian exporters, particularly given that Colombia has concluded other trade agreements with key Canadian competitors such as the United States and Europe. By implementing this agreement, our exporters will have a competitive advantage to continue to grow in this market, particularly if Canada’s agreement is implemented before the United States and Europe implement their own deals.
Before turning to other benefits for Canadian businesses, it is important to highlight a recent market access development. On April 9, 2010, and announced that Colombia had reopened its market to Canadian cattle. This announcement followed Colombia’s January 2010 decision to reopen its market to Canadian beef. Canadian beef and cattle exports had previously been banned from the Colombian market due to BSE. Canadian industry has responded very positively to Colombia's decision to resume trade, and this development will complement the tariff reductions negotiated by Carol and her team in this agreement.
Moving beyond trade in goods, this agreement will lead to new commercial opportunities for our investors and service providers. Over 50 Canadian companies have invested in Colombia, principally in the mining, oil and gas exploration, and manufacturing sectors. In 2009, the stock of Canadian investment in Colombia reached approximately $773 million. These investments are leading the way for exports of Canadian-made machinery such as mining equipment and heavy transportation equipment. Once the FTA is implemented, a stable legal framework will be in place for Canadian investors in Colombia.
Canadian services exports to Colombia are in the area of $40 million to $50 million a year and are concentrated in the financial, mining, engineering, and petroleum extraction sectors. Upon implementation, Canadian service providers will be treated the same as Colombian service providers and will enjoy a secure, predictable, transparent, and rules-based trading system. Moreover, Canada obtained the same level of market access from Colombia as they provided to the United States. As a result, Canadian service suppliers will be on a level playing field with their American counterparts in Colombia.
[Translation]
As a comprehensive free trade agreement, obligations are also contained in the agreement on a wide variety of other subjects including financial services, government procurement, electronic commerce, telecommunications, and temporary entry of business persons. While these subjects may not be in the forefront of discussions regarding the benefits of the trade agreement, they are important components to ensuring that Canadian businesses are able to operate efficiently and competitively in the Colombian market.
[English]
As you are aware, in keeping with Canada's approach to free trade agreements, environmental and labour aspects of the economic integration were addressed through agreements on labour and environment. These important agreements contain strong obligations and clearly demonstrate that for Canada and Colombia, trade liberalization does not come at the expense of labour rights and the environment.
To conclude my part, Canadian businesses are not alone in recognizing opportunities in Colombia. In a World Bank study, Doing Business 2010, Colombia ranks as one of the top 10 business environment reformers. It ranked 37th in the category of “ease of doing business”, and it also ranked fifth out of 183 countries with regard to its ability to protect investor rights through the application of the rule of law. Clearly this is a country where opportunities for businesses are only going to increase.
Overall, the free trade agreement will strengthen our bilateral commercial relationship. This agreement has the support of key exporters and investors across Canada, many of whom have appeared before this committee. This is a high-quality and comprehensive trade agreement, and it will allow Canadian businesses to compete and excel in the Colombian market.
:
Thank you, Mr. Chair, for the opportunity to add to the remarks of my colleague and to provide some insight on Canada's broader engagement in Colombia.
Canada has a long-standing, rich, and diverse connection to Colombia that includes a broad range of academic, cultural, and civil society exchanges. As we have reiterated over the course of this debate, we believe that trade and investment relationships serve to broaden this exchange in promoting shared values and best practices and creating new opportunities for people and communities to thrive and prosper.
Colombia has made important strides and shown great resilience toward mitigating the effects of the conflict that has plagued the country for decades. While annual statistics on human rights violations may fluctuate year to year, what we need to focus on is the overall trends, where from 2002 to 2009 Colombia has, according to most sources, including the United Nations and well-respected civil society organizations, greatly improved its performance in important areas such as the general security situation, violence towards unionists and community leaders, homicides, and kidnappings. This progress has been recognized by the international community and international organizations that are present in Colombia.
[Translation]
Colombia has an established democracy, a growing economy, strong institutions, and well organized and extensive civil society. The Government of Colombia has demonstrated its commitment to meeting the challenges it faces through transparent engagement and partnership with the international community. Colombia was the first Latin American country to invite the Office of the High Commissioner on Human Rights to establish a field presence in the country. It has been present in the country since 1997. They have gone further and extended an open invitation to UN Special Procedures. As a result, in 2009 alone, Colombia received four UN Special Rapporteurs: one on extrajudicial executions, one on human rights defenders, one on the independence of the judiciary and one on indigenous peoples. This transparency and openness on the part of the Colombian government to evaluation is unprecedented.
[English]
Canada has a close working relationship with both the Office of the High Commissioner on Human Rights and the UN High Commissioner for Refugees, also present in Colombia. We receive regular updates on the human rights situation, and over the last three years, through CIDA, we have contributed to strengthening the capacity of the state and civil society to respond to the plight of internally displaced people. This includes helping to improve government policies and services to better respond to the needs of Colombia's most vulnerable and improving access to relevant and effective programs, while also strengthening mechanisms for the protection and realization of constitutionally enshrined rights.
United Nations agencies are convinced that real progress in this regard is being made by Colombia's national government, and this is thanks in part to Canadian support.
[Translation]
Though many challenges remain, Canada, the UN, the OAS and many other international partners are supporting Colombia's efforts to meet these challenges. Pursuing increased trade relations is only part of this process.
In addition to our efforts to promote greater prosperity and opportunity for Colombians, Canada has substantial development and peace and security programming activities through our Stabilization and Reconstruction Task Force, which in turn complements the programs provided by CIDA. Canada's efforts in Colombia aim to reduce inequality and poverty and to strengthen peace-building efforts and respect for human rights. These efforts have amounted to $18 million since 2006.
These programs have helped promote peace and reconciliation in Colombia and the region, protect victims' rights and strengthen the country's transitional justice system. Projects also provide vital support to protect the rights of vulnerable groups including women, indigenous peoples and Afro-Colombians.
[English]
In recent years we've seen that the Government of Colombia has taken positive steps that demonstrate its continued efforts to curb violence against trade unionists and fight impunity for the perpetrators of such crimes. Indeed, after her visit to Colombia in October 2008, UN High Commissioner for Human Rights Navi Pillay, while expressing her ongoing concern for the vulnerability of trade unionists, said she was impressed by the increased expenditure on government programs to protect and support vulnerable groups.
One of our current projects, through our stabilization and reconstruction task force, is a program coordinated by the United Nations development program. It will present recommendations to help minimize the impact of violence against union leaders and organized union members and seek improvements to the legislation protecting them. The project, which involves the participation of government, unions, and the international community, consists of a series of studies conducted by six reputable NGOs and peer-reviewed by the National University of Colombia on the nature of violence against trade union members in Colombia. Recommendations for public policy and protection programs for unionists will then be derived from these studies.
[Translation]
Canada is also supporting Colombia through the implementation of labour-related technical assistance projects to promote and enforce internationally recognized labour standards, particularly in the areas of labour inspection, social dialogue, enforcement of labour rights and occupational safety and health.
We also seek to partner with likeminded countries who have an interest in Colombia, to better leverage our efforts. To that end, Canada is an active member of the Group of 24, a group of countries which encourages and facilitates dialogue between the Government of Colombia and international and national civil society organizations working in the country. Within this group, Canada also actively participates in the human rights sub-committee, which focuses on improving conditions for human rights defenders and engaging with other sectors that have been directly affected by violence.
[English]
I've mentioned in the past to the committee the importance and the level of dialogue we're able to have with the Colombians on human rights issues. Not only does our embassy in Colombia closely monitor the human rights situation on the ground, but we also regularly raise issues concerning human rights in meetings with Colombian officials at the very highest levels. Most recently in December of 2009 the Minister of State for the Americas, Peter Kent, met with Colombia's foreign minister, Jaime Bermúdez, at which time they discussed human rights. That same month, our deputy minister of foreign affairs, Len Edwards, also travelled to Colombia for political-level consultations.
Whenever Canadian officials meet with their Colombian counterparts, we endeavour to ensure that human rights are on the agenda. The mature relationship Canada has with Colombia allows us to maintain this open and frank dialogue on human rights with the Colombian government at the most senior levels. As you know, our first successful round of bilateral human rights consultations took place last July, and we're currently exploring dates for this year's consultations. Both Canada and Colombia are committed to holding these consultations on an annual basis.
I'd like to close by saying that there remain great challenges to peace, security, and human rights in Colombia. We continue to monitor the situation closely and react immediately when violations take place. However, we recognize that the Government of Colombia is making efforts to improve the situation, and Canada wants to support those efforts. A strong social and economic foundation and respect for human rights are goals that Canada will continue to help reinforce in Colombia.
Thank you.
:
Thank you, Mr. Chairman.
Welcome to all our guests.
Mr. Chairman, I'm going to take maybe two minutes for my opening remarks, and Mr. Brison will take the rest.
I listened very carefully to both statements. I want to say that about a month and a half ago, we were able to meet with a minister from Colombia. I think her name was Minister Mejia. She was very thorough in giving us actual data on some of the progress that's been made, which you touched upon today. I thank you for confirming this.
I really have one question for both Mr. Plunkett and Ms. Bugailiskis.
You said, sir, to conclude your statement, that “Canadian businesses are not alone in recognizing the opportunities in Colombia.”
In your statement as well, ma'am, you said, “to partner with likeminded countries”.
Well, “to partner with likeminded countries”: should we be delaying ratification of this agreement, would we be losing the opportunity, or that edge, to partner with like-minded countries to progress positively forward?
And to you, Mr. Plunkett, should we be delaying the ratification of this agreement, would Canada be losing some kind of edge, some kind of opportunity?
I'm trying to tie it together in a way similar to the way we lost the competitive edge, if I can use those words, when it came to CAFTA. We didn't ratify it; the United States ratified it by, I think, one vote; now we are, I think, trying to get back to the table. But we lost that competitiveness, if you will...or that, “Hey, we've got the Americans onside now, let's keep talking with the Canadians, and we'll see.”
We know that the Colombians are moving positively forward with other trade agreements. Should they be ratifying with Europe and other countries, once those agreements are ratified, how will our position be going to the table as a country?
:
I'm dredging my memory here, but soon after I took on this position, as I recall this committee put out a report about Canada's free trade agenda more generally. One of the recommendations the committee put forward was that we needed to be pursuing an aggressive trade policy on a bilateral front to make sure we weren't being disadvantaged and that we were taking advantages where they were. This particular case and that of Peru, I think--again from my memory--were being used at the time as examples of where the Americans were ahead of us and we needed to get on with it and try to catch up.
In that regard, I think we are fulfilling the committee's own recommendations, and it certainly is consistent with the approach the government has been pushing for some time now.
There are going to be instances where we're actually ahead of our competition. For example, in the EFTA deal, which we brought in a few months ago, we're ahead of the Americans. That gives our producers a bit of a competitive edge. At other times, we are trying to level the playing field, etc.
So it depends on each market, but where there are opportunities for which business is pushing us to get into a given market—in this case, Colombia—we think it's important that we push forward.
I thank you very much for being with us today. Whenever we have you here, it reminds us of the tremendously high quality of public service we have in Canada and the quality of people we have in our foreign service.
I want to recognize Ambassador des Rivières, who has been a tremendous partner to members of this committee, for her work as well.
As you know, there will be an amendment tabled at this committee. The government has agreed to support a Liberal amendment that will require a prior written agreement between the governments of Canada and Colombia whereby each country, both Canada and Colombia, will provide annual reports to their respective parliaments on the impact of this FTA on human rights in both Canada and Colombia. Just to make it clear, both countries will be reporting on human rights in both Colombia and Canada.
Your former deputy minister of foreign affairs, Peter Harder, has said the amendment is a
significant innovation in free trade agreements in that it provides both the Colombian and Canadian legislatures the opportunity to annually review and assess the human rights implications of the agreement. I expect that future parliaments will build on this precedent when they consider proposed free trade agreements.
It has also received support from civil society leaders in Colombia and union and labour leaders in Colombia.
I'd like to ask you about the capacity within DFAIT to research, to gather information, and to report on that information respecting human rights in other countries, in countries particularly with whom we have free trade agreements and as it would pertain to Colombia.
I'd also like to ask about the degree to which you work with civil society and NGOs in the collection and gathering of that information, because we want to make sure that NGOs and civil society have an opportunity to feed into and to provide information that helps shape these reports.
:
Thank you very much for that question.
We take very seriously our obligations, whether in Colombia or in other parts of the region: the necessity to monitor, survey, report, and more importantly, I think, to build capacity within civil society to ensure that they're able to keep their countries fresh and very solidly democratic.
Our embassy in Colombia is a good-sized mission. The total Canadian staff is about 23. We have about 68 of what we call locally engaged staff. They're already extremely involved and busy with regard to monitoring the human rights situation.
I can show you this book, which is full, from just the past few months, of the reports that we receive.
They are very much engaged with non-governmental organizations, Canadian, international, and local. I asked the other day what the latest tally was. I have a very extensive list here of organizations that they meet with on a regular basis. In the last 13 months, they told me, they had 371 meetings with NGOs. That would be more than one a day, I would suspect. So they're extremely active.
We're also reorganizing within the department to be able to put even more emphasis on democratic reporting. We've established within the region what we call the Andean unit for democracy. It's located in Lima, but it's a regional resource. It's an ability to bring greater expertise to bear and to assist missions in their efforts to monitor human rights, and more importantly to look for niches in which Canada can be helpful. In my presentation I was pointing out some of the excellent programming that I think we're doing with the Colombian government.
I'm very confident in the ability of the embassy to continue to play a very active role in engagement in monitoring themselves personally, but also of course in collecting information from the various organizations, civil society as well as international.
Thank you for coming forward, but I must admit that I'm more disturbed now than I was before you started your presentation.
If the amendment calls upon the Government of Canada to accept whatever reporting mechanism Colombia puts into place to monitor human rights organizations, what we see is the monitoring taking place currently. I must say that I'm deeply disappointed in what is a whitewashing of your presentation.
The number of disappearances has increased; the number of false positives—which are killings, as you know—of mainly Afro-Colombians and aboriginal Colombians who were massacred by the Colombian military, often with rewards and incentives, has increased; and the sexual torture of Colombian women has increased. Yet none of that is reflected in your presentation today.
I think that's unfortunate, because if the debate is whether or not the Colombian government reporting on itself or having some oversight from the federal government would improve the human rights situation, one would have expected that there would have been ongoing monitoring. And nothing of what human rights organizations are saying is reflected in this presentation today.
Now, of course there will be human rights organizations here. Many of them have already indicated that they want to come before committee, so they will have a chance to rebut. But if this is an example of how the Canadian government reports on Colombian human rights violations, I must say that it certainly underscores the argument that an amendment where the Colombian government reports on itself or the Canadian government simply rubber-stamps that report.... I think those concerns will increase after the presentation today.
I'm going to ask you two questions. The first question is around the amendment, and whether you've seen it. I think you've already responded to Mr. Laforest that--
:
Well, hopefully we'll see it soon.
Mr. Chair, I will go on to another subject.
The Chair: Thank you.
Mr. Peter Julian: However, I do think it's in order to discuss the other element, and that's the question of the elections.
We've had, from independent monitoring, very clear concerns raised about fear and intimidation, coercion and fraud, all linked to the current Colombian elections. These are reports that are available from reputable human rights organizations and from election monitoring.
That's not reflected in your presentation today. Are you aware, then, of the concerns around the Colombian elections, and has there been a case in the past where Canada has moved to try to implement legislation that a government or a regime wants at a time when there are concerns about whether free and fair elections can take place?
I certainly cannot think of an example. Normally, Canada steps back during an election process to monitor and ensure that the election takes place in a free and fair manner. I cannot think of a single example of where in the past Canada has moved forward at a time when there are concerns about whether those elections are free and fair, whether there is coercion and fear, whether there is fraud and intimidation taking place during the electoral process, which, as you all know, ends on May 30.
:
According to the independent monitors, it certainly is, but I'll let the independent human rights organizations speak to that.
I want to talk about the business case. In many cases when we've signed bilateral agreements, our exports to those markets have actually gone down. Costa Rica is a notable example. We're talking constant dollars, because otherwise we're talking apples and oranges. Our exports before signing were $77 million in constant dollars; and now, eight years after ratification of Costa Rica, they're $73 million. So we signed this bilateral; there would have been similar comments made before the trade agreement that, “My goodness, there's going to be incredible prosperity for Canadian exports.” But our exports have gone down. In all of the five bilaterals that have been signed, including EFTA, we've actually seen a decrease of $832 million in Canadian exports to those markets since those agreements were signed in 2009.
Since the business case clearly isn't there, what are we doing wrong? What do we have to change? Even in the example of the Colombian market, if we put aside this idea of rewarding the regime when egregious human rights violations are a daily or weekly occurrence, what is the government actually doing for product promotion in Colombia?
:
Your question is somewhat multi-pronged. I'll deal with part of it and then ask my colleagues to weigh in.
In terms of some of the other agreements that we have done, particularly most recently, I think it's important to keep in mind that the EFTA and the Peru deals, which are the two that have just come into effect, have not even been in effect a year yet. I think it's too early to make a judgment on their impact in terms of real numbers, because we haven't even got a full year's statistics yet.
In addition, you're looking at numbers during one of the most difficult economic periods of the last century. There can be all sorts of reasons for numbers to go in any direction.
In terms of Costa Rica, frankly, I don't know. Our job is to build an architecture to try to improve opportunities for Canadian business. We cannot force Canadian business to take advantage of what may or may not be there. So I can't make a judgment as to why Costa Rica is or isn't....
Let me speak to Carol, because she is closer to this particular deal. She can identify some of the specifics as to where we think this will be of benefit to us.
Welcome to our witnesses, and thank you.
I just have a short statement, because it needs to go on the record, Mr. Chair.
Part of the difficulty of listening to the allegations of human rights abuses from is the difficulty that he had come to this committee at one point and made accusations of two separate incidents of indigenous peoples being massacred in the jungle, that it was government forces that did it. When we investigated those reports, it turned out that it was actually the FARC who had massacred those two families of people.
Mr. Peter Julian: A point of order, Mr. Chair.
Mr. Gerald Keddy: Mr. Chair, that points needs to be made: the testimony has to be in order--
:
Thank you for that question.
When I was preparing to come before this committee, I was thinking back; it's been two years since negotiations have been completed. Part of the reason this FTA was aggressively negotiated was due to the recommendations of this committee to undertake defensive FTAs to ensure that we don't become uncompetitive in markets in which our trading partners are negotiating FTAs.
The U.S., of course, has negotiated with Colombia. They have just completed negotiations with the EU as well. We're facing tariffs from 10% to over 100%, so I don't know how the elimination of those tariffs would lead to a decline in exports. Of course, the economic recession has seriously undermined trade around the world.
We have an opportunity here. It's a very strong agreement. There is broad-based support among industry across Canada and among agricultural producers.
Now is the time to move to creating an advantage for Canada, which is what we're trying to do with this agreement and our global commerce strategy in general.
:
I'd like to make another comment, because I think it bears repeating. It has been said at this committee before. When the committee was in Colombia, we met with President Uribe. I'd like to tell you that I was extremely impressed by both President Uribe and his cabinet. They're accused of being a right-wing government, but I would call them a coalition government.
There were people within Mr. Uribe's cabinet from every persuasion, from the far left to the far right to centre-right to centre-left. People who had been kidnapped by FARC are now in cabinet, and people who had been kidnapped by paramilitaries are now in cabinet. To me, they had one unifying detail, and it stood out among them all: they all wanted to pursue a better Colombia, a Colombia that, although steeped in democratic traditions, had faced serious obstacles in the last 20-year period.
They saw themselves coming out of this period. They had safety and the ability to travel. They've not had that for many years in Colombia. No one is saying that the situation is perfect there, but I cannot understand how anyone could say that Colombia has not improved. Colombia, by every standard, has improved in every single area that I can use to mark their progress, from human rights to labour laws to abolition of child labour to a better understanding and protection of the environment, and on and on in every category.
I know you folks have travelled in Colombia and I know you understand what this trade agreement does. I'd like your take on the fact that, yes, there is work to be done, but Colombia is moving in the right direction.
:
Thank you very much, Mr. Keddy.
I can only concur with your assessment. It's always difficult when you're dealing with statistics. I mean, you cannot look at a photo stop; you have to look at the trend lines.
As I said in my opening remarks, that is what we've monitored, and that's what we're hearing reported by very reputable UN organizations, that the trend lines are very positive. There continue to be challenges, but what you have in Colombia is a government that's willing to take on those challenges and to be able to continue to improve.
The reason we're interested in a trade agreement is that we think this is one of many tools in our toolbox that we can use to help the Colombian people to have a much stronger future, to have alternatives, to have greater opportunities, to have prosperity and security in their country, and to become even a better member of our neighbourhood.
Thank you.
I would need to be a bit cautious, given the public nature of the forum. I would say, though, that we lead by example. What I mean is that our interest in engagement on a dialogue on human rights, whether it's with Colombia or Venezuela, or on a free trade agreement in the case of Colombia, is really led by our values--our adherence to open markets and to opportunity. It is not part of a larger geopolitical agenda. I think the best way to promote greater peace, security, and prosperity in the region is really through those three pillars of our engagement policy on democracy, on security, and on prosperity.
The impact, I would think, would be a positive one. I believe very much that when Canada puts forward it best--its values and its principles--it can only help to improve conditions. When countries like Chile, with which we have a free trade agreement, continue to thrive both economically and democratically, it's an example that can speak better than any other speech about the benefits of open trade and democracy.
With regard to a comparison, I would prefer to defer, because I think it's very difficult when you get into the realm of statistics and comparisons. No two countries are ever exactly alike. Their constitutions differ and change.
I just gave testimony earlier today at the Subcommittee on International Human Rights with regard to Venezuela, where the trend line is very disturbing. We are seeing a greater concentration of power. We are seeing--not only us, but also organizations such the Inter-American Commission on Human Rights--decreasing space for opposition, commentary, and freedom of expression. At the same time, the security situation has very much worsened. I think it might be surprising to find out that the homicide rate in Venezuela is actually far higher than it is in Colombia.
From my perspective, this is quite a timely report. A couple of weeks ago I was down in Bogotá and Cali. I have a sister-in-law from Cali, so I was down there on some family business. I've been there before, and it's an absolutely beautiful and spectacular country. We drove an hour outside of Cali in the countryside.
I think the thing that would surprise a lot of people who haven't been there is how secure it is. I didn't see a single police officer, with the exception of a couple of highway cops checking for speeders, as they would in Saskatoon, and I only saw one soldier the whole way. The public image of the country and the reality on the ground are quite different.
I want to follow up on something Mr. Plunkett spoke to, and Mr. Cannis was going this way in some of his earlier questioning: Canada's advantage in ratifying the treaty earlier, relative to the EU and the United States.
I was wondering, Mr. Plunkett, if you and perhaps other witnesses could elaborate in more detail on the advantages Canadian businesses would get if we went earlier. Could you give some specific examples, such as the auto industry--where apparently tariffs in Colombia are dropping 35%--or agriculture and so on?
What are our advantages--speaking very specifically--by getting this done sooner?
As I indicated, this is a very robust market access agreement. Most Colombian tariffs will be eliminated on most Canadian exports immediately upon implementation of this agreement, and that includes wheat, pulses--which are key exports--a variety of paper products, machinery, and equipment.
I think you're thinking of some off-road motor vehicles that are being exported from Canada. Those, I think, are being phased out over a five-year period; I'm not sure, so I'd have to check specifically on that. But for most of our exports, the tariffs will be eliminated immediately, and those tariffs range from 10% to over 100%, depending on what the products are. The rest--
:
Thank you for your question. Let me clarify something for you.
[English]
What I want to be careful about is comparing my data with other data. I'm very certain and confident in my data because I know where I've collected it and I know it comes from reputable sources, from UN organizations and from our embassy. What I'm very careful about is when I start to compare other people's data, sources of which I'm not aware of. That's what I'm just making clear.
I'm very confident the Colombian government takes very good data, but we don't just rely on Colombian sources. We rely very much on international organizations like the UN and as well through NGOs and through our embassy, so I have utmost confidence. I don't want to get into actual percentages and points, but I can tell you that overall, the trend line is very positive. And as I've said, there are occasional fluctuations, there are incidences that happen, which we follow up immediately, but the overall trend line—and the UN organizations will support us in that view—is very positive.
I'd like to thank our guests for coming today. It's nice to have you back to give us updates on what is going on in our relationship, our negotiations with Colombia. And I'm really delighted it's back here in committee so that it can be dealt with appropriately and we go forward.
Mr. Plunkett, you made some reference in your testimony that we had great news. You indicated that just a couple of weeks ago—not even, on April 9—Colombia had reopened its market to Canadian cattle. You acknowledge the work of ministers Van Loan and Ritz in doing this, and we appreciate that thoughtful comment.
Members around this table will understand the importance of exporting cattle around the world, and now that this has reopened, do you have any sense of what the potential is for that, and the timing, what it's going to take to truly get our exports going to Colombia? What would that process be? They obviously can't turn it over on short notice, but can you give us some sense of that, please?
:
Mr. Plunkett, you mentioned that total trade between both countries in 2009 was in excess of $1 billion, specifically $1.3 billion. What is rather interesting is that from 2005 to 2009, Canada's exports grew. There have been some fluctuations, but exports to Colombia have grown by about 35%, and that can only be good for Canadian farmers and businesses.
What I see in terms of agricultural products is the removal of a 16.6% average tariff on beef, pork, wheat, barley, and pulses. That's partly what Mr. Trost has talked about, and I would think that provinces all across the country have the farmers who are impacted by that. On industrial goods an average reduction of 12% will affect mining, newspapers, machinery, and equipment. That is all good news for Canadian exports.
Although we have increased our exports to Colombia in the last five years by some 35%, have you done any projections as to growth in Canadian exports to Colombia once we have completed the free trade deal? I will acknowledge that some of those tariffs are gradual, although many of them are immediately eliminated.