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MINUTES OF PROCEEDINGS

Meeting No. 40

Monday, December 13, 2010

The Standing Committee on International Trade met at 3:37 p.m. this day, in Room C-180, 1 Wellington Street, the Chair, Lee Richardson, presiding.

Members of the Committee present: Dean Allison, Ron Cannan, Claude Guimond, Martha Hall Findlay, Ed Holder, Peter Julian, Gerald Keddy, Jean-Yves Laforest, Lee Richardson, Mario Silva and Brad Trost.

Acting Members present: Alan Tonks for John Cannis.

In attendance: House of Commons: Mike MacPherson, Legislative Clerk . Library of Parliament: Simon Lapointe, Analyst ; Alexandre Gauthier, Analyst.

Witnesses: Department of Foreign Affairs and International Trade: Robert Brookfield, Deputy Director, Market Access and Trade Remedies Law Division; Jean-Benoit Leblanc, Director, Trade Negotiations 2 Division. Department of Finance: Gérard Lalonde, Director, Tax Legislation Division, Director's Office. Department of Human Resources and Skills Development: Kim Oliver, Deputy Director, Bilateral and Regional Labour Affairs.

The Committee proceeded to the consideration of matters related to Committee business.

Peter Julian moved, — That the Standing Committee on International Trade suspend its review of Bill C-46 until the government of Panama signs a tax information exchange agreement with Canada and commits Panama to take effective measures with respect to tax evasion and money laundering.

Debate arose thereon.

The witnesses answered questions.

The question was put on the motion and it was negatived on the following recorded division:YEAS: Claude Guimond, Peter Julian, Jean-Yves Laforest — 3; NAYS: Dean Allison, Ron Cannan, Martha Hall Findlay, Ed Holder, Gerald Keddy, Mario Silva, Alan Tonks, Brad Trost — 8.

Pursuant to the Order of Reference of Tuesday, October 26, 2010, the Committee resumed consideration of Bill C-46, An Act to implement the Free Trade Agreement between Canada and the Republic of Panama, the Agreement on the Environment between Canada and the Republic of Panama and the Agreement on Labour Cooperation between Canada and the Republic of Panama.

The Committee commenced its clause-by-clause study of the Bill.

Pursuant to Standing Order 75(1), consideration of Clause 1 was postponed.

The Chair called Clause 2.

On Clause 2,

Peter Julian moved, — That Bill C-46, in Clause 2, be amended by adding after line 7 on page 2 the following:

““sustainable development” means development that meets the needs of the present without compromising the ability of future generations to meet their own needs, as set out in the Brundtland Report published by the World Commission on Environment and Development.”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Peter Julian moved, — That Bill C-46, in Clause 2, be amended by adding after line 7 on page 2 the following:

““sustainable investment” means investment that seeks to maximize social good as well as financial return, specifically in the areas of the environment, social justice, and corporate governance, in accordance with the United Nations Principles for Responsible Investment.”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Clause 2 carried on division.

Clause 3 carried on division.

Clause 4 carried on division.

Clause 5 carried on division.

Clause 6 carried on division.

On Clause 7,

Peter Julian moved, — That Bill C-46, in Clause 7, be amended by replacing line 36 on page 2 with the following:

“rocal trade and taxation transparency, the harmonious development of”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Peter Julian moved, — That Bill C-46, in Clause 7, be amended by replacing line 36 on page 2 with the following:

“rocal trade, the harmonious and sustainable development of”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Peter Julian moved, — That Bill C-46, in Clause 7, be amended by replacing line 4 on page 3 with the following:

“(d) substantially increase sustainable investment oppor-”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Peter Julian moved, — That Bill C-46, in Clause 7, be amended by replacing line 15 on page 3 with the following:

“ers' rights, including the right to collective bargaining, strengthen cooperation and build”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Peter Julian moved, — That Bill C-46, in Clause 7, be amended by replacing line 19 on page 3 with the following:

“(h) promote sustainable development, including sustainable human development.”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Clause 7 carried on division.

Clause 8 carried on division.

Clause 9 carried on division.

On Clause 10,

Peter Julian moved, — That Bill C-46, in Clause 10, be amended by replacing line 4 on page 4 with the following:

“tive of Canada on the Joint Commission. In performing this function, the Minister shall consult on a regular basis with representatives of Canadian labour and trade unions.”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Clause 10 carried on division.

Clause 11 carried on division.

On Clause 12,

Peter Julian moved, — That Bill C-46, in Clause 12, be amended

(a) by replacing line 9 on page 4 with the following:

“12. (1) The Minister shall”

(b) by replacing line 19 on page 4 with the following:

“(2) The Minister of the Environment shall”

“(3) The Minister of Labour shall”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Peter Julian moved, — That Bill C-46, in Clause 12, be amended by adding after line 18 on page 4 the following:

“(1.1) The Minister shall

(a) consult with independent experts on human rights and independent human rights organizations in order to assess the impact of the implementation of the Agreement on human rights in Canada and in the Republic of Panama; and

(b) within 60 days after this Act comes into force, cause to be laid before each House of Parliament a report on that assessment that includes the findings and recommendations of those experts and organizations or, if that House is not then sitting, on any of the first five days next thereafter that that House is sitting.”

The question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 3; NAYS: 8.

Clause 12 carried on division.

By unanimous consent, Clauses 13 to 62 inclusive carried on division.

On new Clause 62.1,

Peter Julian moved, — That Bill C-46 be amended by adding after line 6 on page 58 the following new clause:

“TERMINATION OF APPLICATION

62.1 The provisions of this Act cease to apply one year after this Act comes into force unless, before the expiration of that period, their application is extended by a resolution passed by both Houses of Parliament.”

After debate, the question was put on the amendment of Peter Julian and it was negatived, by a show of hands: YEAS: 1; NAYS: 10.

On Clause 63,

Jean-Yves Laforest moved, — That Bill C-46, in Clause 63, be amended by replacing lines 7 to 9 on page 58 with the following:

“63. (1) This Act, other than sections 59 to 62, comes into force on a day to be fixed by order of the Governor in Council.

(2) The order referred to in subsection (1) may only be made once a tax information exchange agreement that is compliant with the OECD model agreement on exchange of information on tax matters and that does not involve Canada’s forfeiting tax revenues has been ratified by Canada and the Republic of Panama.”

RULING BY THE CHAIR

Bill C-46 implements the Free Trade Agreement and the related agreements on the environment and labour cooperation entered into between Canada and the Republic of Panama and done at Ottawa on May 13 and 14, 2010.

The amendment attempts to insert conditions upon the coming into force of some of the provisions of the bill.

As House of Commons Procedure and Practice (2nd Edition) states on page 769:

“An amendment intended to alter the coming into force clause of a bill, making it conditional, is out of order since it exceeds the scope of the bill and attempts to introduce a new question into it.”

In the opinion of the Chair, the introduction of these conditions is a new concept that is beyond the scope of Bill C-46 and is therefore inadmissible.

Whereupon, Peter Julian appealed the decision of the Chair.

The question: "Shall the decision of the Chair be sustained?" was put and the decision was sustained on the following recorded division: YEAS: Dean Allison, Ron Cannan, Martha Hall Findlay, Ed Holder, Gerald Keddy, Mario Silva, Alan Tonks, Brad Trost — 8; NAYS: Claude Guimond, Peter Julian, Jean-Yves Laforest — 3.

Clause 63 carried on division.

Schedule 1 carried on division.

Schedule 2 carried on division.

Schedule 3 carried on division.

Schedule 4 carried on division.

Schedule 5 carried on division.

Schedule 6 carried on division.

Schedule 7 carried on division.

Schedule 8 carried on division.

Schedule 9 carried on division.

The Short Title carried on division.

The Title carried on division.

The Bill carried on division.

ORDERED, — That the Chair report the Bill to the House.

At 4:46 p.m., the Committee adjourned to the call of the Chair.

Paul Cardegna
Clerk of the Committee

2010/12/15 4:24 p.m.