Senator Downe Continues to Urge Federal Government
to Improve the Canada-Peru Free Trade Agreement

June 18, 2009

In his capacity as opposition spokesperson in the Senate for Bill C-24, the Canada-Peru Free Trade Agreement, Charlottetown Senator Percy Downe was pleased that the Standing Senate Committee on Foreign Affairs and International Trade agreed to include numerous recommendations with regard to the trade agreement in a committee meeting held on Tuesday, June 16, 2009.

The recommendations the Senator made will assist the Government in avoiding the same oversights contained in the Canada-Peru trade deal from reoccurring in the many upcoming trade agreements Canada will be making with other countries.

“We expressed our concern that the bill, and the agreement that it enacts, puts Canadians in a number of sectors at a competitive disadvantage with other countries, specifically the United States of America,” explained Downe.

Downe believes that if the results achieved in trade negotiations with Peru reflect Canada’s ability to negotiate strong trade agreements with other countries, we are in serious trouble. Despite clear willingness on the part of Peru to complete trade negotiations with as many countries as possible, Canadian negotiators were unable to obtain a strong and effective trade agreement for Canada.

“If this is the best deal we can negotiate with a developing country, what is the Government of Canada going to be able to achieve in the upcoming trade negotiations with more aggressive trading partners such as the European Union?” asked Downe.

The recommendations attached to the Canada-Peru Free Trade Agreement include the following:

• The committee recommends 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 for undertaking further bilateral negotiations with the Republic of Peru to enhance the agreement.
  
  
• At a minimum, in all future free trade agreements, Canada should seek to obtain a provision as that found in Appendix I, 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.
  
  
• Given the importance of trade for the prosperity of Canadians, it is also recommended that the Government of Canada ensure that our best negotiators, either inside or outside of the federal government, represent Canada in trade proceedings to obtain stronger and more effective trade agreements.
  
  
• It is the view of this committee that trade priorities should be excluded from Canada’s decisions regarding disbursing foreign aid.

Bill C-24, An Act to Implement the Free Trade Agreement Between Canada and Peru, was passed by the Senate on June 17, 2009.

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For further information:
Senator Percy Downe: 613-943-8107
Or toll free at 1-800-267-7362
www.sen.parl.gc.ca/pdowne