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        Current Events with a Canadian Perspective

 

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10 February 2011

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Linking Trade to Human Rights

 

Trading with countries with bad human rights records can involve moral hazards. Are the principles by which we live worth making sacrifices for? These might include no more cheap goods from China, no more oil for eastern Canada from Saudi Arabia

 

Should Canada be entering free trade deals with the likes of Colombia? The Canadian Labour Congress (CLC) thinks not, saying the country is the worst human rights violator in the Americas.

 

In a letter to the Canadian government in 2007, the CLC listed numerous reasons for its stand, including government corruption, crimes against humanity, and massive human rights violations. In addition, the CLC says Colombia’s government does not share Canadian values of democracy, freedom, and the rule of law.

 

But, the Canadian government thinks it’s a good idea to trade with Colombia. On its Foreign Affairs and International Trade website reported that Canada concluded negotiations toward a free trade agreement with Colombia in June 2008.

 

Aimed at reducing trade barriers, the government says the deal will expand opportunities for Canadian exporters and investors in a broad range of sectors, including agriculture, mining, and financial services.

 

Human Rights Abuses Tied to Drug Trade

The House of Commons Standing Committee on International Trade acknowledged concerns (June 2008).

 

Movice

 

The main problem is a conflict in Colombia (the subject of a street protest above), fueled largely by the drug trade, that “has generated untold numbers of human rights abuses, including kidnappings, targeted killings, and massive internal displacement. Of particular concern in the context of a free trade negotiation is the fact that union leaders and union members are frequent targets of these abuses.”

 

The government completed its negotiations before the Committee’s report and recommendations were finished. However, the Committee still offered its report as a “chance for a period of reflection for the government – an opportunity to step back from the minutiae of detailed negotiations and to consider the broader implications and interpretations of this agreement.”

 

The committee said supporters of the deal argue that political and security conditions in Colombia have improved dramatically; they say murders and human rights abuse have dropped considerably in recent years. “In their view, a trade agreement would not only generate wealth for Colombia and Canada, but would also help the Colombian government to build its legitimate economy and turn people away from illegal armed groups and narcotics production.”

 

But, others pointed out that despite these improvements Colombia still has the worst human rights record in the hemisphere. They felt that “Canada cannot, in good faith, enter a free trade agreement with a country where labour and human rights abuses are so prevalent. To do so would be to implicitly condone those activities…and they believe that, while negotiations may have concluded, Canada should not officially sign any agreement with Colombia until independent organizations verify that human rights violations (there) are a thing of the past.”

 

Trade Condones Human Rights Abuses?

While one side says it thinks a trade agreement would give the Canadian government some clout in continuing to promote improved human rights issues, others say that’s putting the cart before the horse.

 

“Alex Neve of Amnesty International Canada, Maria McFarlane of Human Rights Watch, Pascal Paradis of Lawyers Without Borders, Gerry Barr of the Canadian Council for International Cooperation and Ken Georgetti of the Canadian Labour Congress, argued that signature of (an agreement) with Colombia would appear to condone the country’s deplorable human rights record and implicitly endorse the Colombian government,” writes the committee.

 

“These witnesses noted that rather than sullying its own image through its close relationship with Colombia, Canada needs to work to uphold its reputation as a human rights leader in the international sphere. Signing an (agreement) would only serve to legitimize a government that is clearly not yet deserving of such support.”

 

Opponents felt that rejecting the free trade deal would send a strong signal to the Colombian government that human rights are a vital key to having a good name in the world community.

 

“Although many think Canada should help Colombia deal with the challenges it continues to face, the Committee says they don’t believe a free trade agreement is the answer. Instead, Canada should increase its development assistance and international cooperation efforts in Colombia.

 

“For them, the pursuit of free trade is based on a number of fundamental principles, such as respect for human rights, which must be in place before a trade agreement is signed.”

 

Human Rights in China

If dealing with Colombia is questionable, what about China?

 

Again, many believe that trading with China will give Canada more influence on issues of human rights and governance. And, nobody wants to lose out on the explosive economic growth in China, with its 1.3 billion people.

 

Statistics Canada reports that Canada’s total merchandise trade with China has soared in the last decade. It reached $42.1 billion in 2006 and accounted for five percent of Canada’s world trade.

 

In 1997, China was Canada’s fourth largest trading partner with total merchandise trade of $8.7 billion. By 2003, the country had emerged as Canada’s second largest trading partner surpassing the U.K. and Japan. Imports from China were five times higher in 2006 than in 1997 while exports to the country tripled.

 

The growth in Canada’s merchandise trade with China reflects the boom in China’s economy over a decade. In 1997, the country was the seventh largest economy in the world in terms of Gross Domestic Product. By 2005, it had risen to the world’s fourth-largest economy, smaller than the United States, Japan, and Germany but soaring past France, Britain, and Italy.

 

Since it joined the World Trade Organization in 2001, China has doubled its share of global manufacturing output. This has created an enormous demand for commodities and raw materials.

 

In 1997, wheat was Canada’s largest export to China, accounting for almost 19 percent of the value of overall exports, according to a Statistics Canada report in December 2007. But, by 2004-06, wheat had dropped to only six percent. Instead, China was snapping up more Canadian wood, metals, and other raw materials such as nickel, copper, and metal ores.

 

Shipments of machinery and equipment also rose to meet the growing demands of industrialization.

 

But, human rights abuses remain an issue. Visiting politicians usually talk to Chinese officials on the need to make more progress on rights issues. However, one expert says China knows that Western leaders have to raise the issue to satisfy public opinion in their own countries. But, China sees this as an internal matter, and has long insisted that countries should not interfere in each other’s affairs.

 

Tension has built between Canada and China over the last few years as the federal Conservatives pressed China to improve its democratic record. During the Beijing Summer Olympics in August 2008, then-Foreign Affairs Minister David Emerson said that relations between the two countries are in “a period of renewal.”

 

Prime Minister Stephen Harper was criticized for not joining more than 80 other world leaders for the gala opening of the Beijing Summer Olympics in August 2008.

 

During the 2008 election campaign, Mr. Harper promised to visit China for the first time. He did so in December 2009 and was given a public scolding by Premier Wen Jiabao for snubbing the country.

 

 

© Canada and the World, December 2009

All rights reserved

 

 

 

 

NEW ZEALAND - CHINA TRADE

 

New Zealand was the first developed western country to pass a free trade agreement with China in July 2008. The China Free Trade Agreement Bill started to phase out tariffs on a broad range of goods and services in October 2008. The bill, which passed by a vote of 104 to 17, will phase out tariffs on 96 percent of New Zealand’s exports to China by 2017. Two-way trade between the two countries is worth more than $8.1 billion (N.Z.), or $6.1 billion (Canadian) a year, with Chinese exports making up about 75 percent of the total.

 

“As China sought to join the World Trade Organization, (the United States and other governments) argued that more trade would encourage policymakers to do more to advance human rights…and more trade and cross-cultural interaction would expose the Chinese people to new ideas about their rights. The results have been mixed. China has provided more of its citizens with access to education, credit, travel, and other opportunities, and begun to allow public comment on laws and regulations. But, China continues to suppress political and religious rights, as well as access to information. Policymakers respond differently to China because of its enormous market and political and economic clout. For China, the marriage of trade and human rights is not a marriage of equals. Trade has trumped human rights.”

 

Susan Aaronson, Research Associate Professor at George Washington University, and author (with Jamie Zimmerman) ofTrade Imbalance: The Struggle to Weigh Human Rights in Trade Policymaking,

Global Policy Innovations, April 2008.

 

 

Chinese machinery - which includes computers, refrigerators, and hand tools - rose from the number four spot ten years ago to the largest Canadian import in 2006, making up almost 21 percent of the overall total. Imports of made-in-China electronic sound equipment, toys, and furniture also picked up over the decade.

Conflict has dominated Colombia’s people, politics, and economy for the last 40 years, representing the longest running war in the Western hemisphere.

 

Colombia is the world’s largest producer of cocaine, although the government has spent enormous amounts of money to combat the drug trade.

 

Colombia accounted for only 0.15% of Canada’s merchandise trade worldwide in 2007 and was the source of only 0.12% of imports into Canada.

 

An August 2007 survey by Nanos Research found that 68.6% of Canadians believe the federal government should raise the issue of Tibetan human rights and freedoms with the Chinese government, regardless of its potential impact on trade with China.

 

Since 2002, general violence and the murder rate in Colombia have been cut by 50 percent and kidnappings are down by 90 percent. As well, 30 percent more people now vote in regional elections compared with six years ago, and Colombia’s economy has improved.