Panama trade deal heads to final stage

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Published: February 17, 2011

It is a relatively small deal, but the Conservatives have allotted significant parliamentary time to pushing a free trade deal with Panama into law.

Last week, the government received payback when Liberals and Conservatives combined to defeat New Democratic Party amendments that would have taken key provisions out of the bill, C-46.

The Feb. 7 vote was 189-52. The next step for the bill will be final approval in the House of Commons after third-reading debate and then a trip to the Senate where passage is expected to be speedy.

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New Democrats and the Bloc Québecois will try to drag out the final debate as long as they can.

Their chief objections are what they say is Panama’s dismal human rights record and the fact that the country is a tax haven for many Canadian companies and wealthy citizens trying to avoid taxes.

During the final three days of debate on the NDP amendments, government MPs said opposition delaying tactics were hurting farmers’ ability to reap the benefits.

With the support of many agricultural groups whose members export to the Central American country, the government argued that increased access will be important for some sectors.

Witnesses told MPs during committee hearings that the deal would produce annual tariff savings of $150,000 for malting barley, $250,000 for pulses and $750,000 for french fries.

Gerald Keddy, parliamentary secretary to trade minister Peter Van Loan, said those gains were good enough reason to support the bill.

“A 15 percent tariff (reduction) on $10 million worth of product coming from a hundred different farm-gates is a substantial amount of money going back per producer,” he said during earlier debate.

“And I think it does make a difference in Canadians understanding what this agreement is all about.”

Conservatives argued that 94 percent of Canadian exports will be exempt from tariffs.

New Democrat MPs scoffed at the idea that trade to Panama is a priority for farmers.

“It clearly will not be a big deal for Canadian agriculture for exports to this very tiny country,” said Bruce Hyder.

About the author

Barry Wilson

Barry Wilson is a former Ottawa correspondent for The Western Producer.

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