Harper exits Honduras with new free-trade deal

Stephen Harper flew home from Honduras brandishing a new free-trade deal that cements deeper Canadian ties to this Central American republic, a country eager to shed its pariah status after a 2009 coup d'état.

The agreement, unveiled Friday, is more of a gesture for Canada than a major trade breakthrough given Honduras's tiny economy – and it puts Ottawa on the defensive over the republic's dismal human-rights record.

Still, it's the latest illustration of the Harper strategy toward the Americas on display during the Prime Minister's six-day tour of the region. In a nutshell it is this: open new markets, back democratic reform and give aid to fight drug cartels and criminals.

In visits from Brazil to Honduras, Mr. Harper demonstrated he's looking to win friends and influence people. Canada's attention here has traditionally waxed and waned, but today it offers Ottawa a way to diversify trade away from the ailing U.S. economy.

Honduras is still recovering from June, 2009, when the military ousted former president Manuel Zelaya, which prompted international condemnation and suspension of the country's membership in the Organization of American States.

After the country elected a new President, Porfirio Lobo, Canada got behind him. The Prime Minister's decision to accelerate free-trade talks in 2010 reflected in part a desire to back Honduras as it rebuilt its democracy.

Mr. Harper's visit Friday was the first made to Honduras by a major leader since the country was readmitted into the OAS in June.

Frequently, Latin American trading partners come with poor records on human rights and a record of environmental degradation. Honduras is no exception.

It has among the highest crime rates in the world outside of a war zone and incidents of abuse, from police brutality, to mistreatment of union leaders, worry human-rights monitors.

Mr. Harper defended his decision to do business there, saying it's a means of bringing prosperity. More than 50 per cent of Hondurans live below the poverty line.

"We know there are significant problems of security and human rights in this country but we have no information to suggest those are in any way perpetrated by the government," the Prime Minister said.

He has no patience, though, for opponents of free-trade deals, saying those that advocate blocking them on grounds of human rights are "selfish and short-sighted" protectionists who would deny Hondurans the gains of commerce.

It's a point that Honduras's Mr. Lobo echoed Friday, saying: "If there is no investment from abroad, we'll never be able to tackle poverty in our country."

While Canada's trade with Honduras is a paltry $190-million annually, Canadians still wield significant influence here. Montreal-based Gildan Activewear, a clothing maker, is the largest private-sector employer in Honduras with 18,000 full-time employees.

Both Gildan and Canadian mining companies came under attack from critics during Mr. Harper's visit, with labour groups accusing the Montreal firm of running sweatshops.

Mr. Harper praised Gildan's conduct in Honduras, but said Canada will not let other companies ruin its national reputation internationally.

"We are always concerned about the image and … record of Canadian companies when they are involved in business anywhere in the world," he said.

"We take that quite seriously because it does affect our reputation as a country."

Mindful of critics – including opponents of Canadian mining practices in the region – the Harper government promises the FTA will be accompanied by "strong parallel agreements" on labour practices and environmental protection.

The Canadian-Honduras free-trade deal must still be ratified by both countries before it can be signed and become legally binding. In Canada that means it must be passed by MPs and senators. The Conservatives control both chambers in Canada so Ottawa's approval is not in question.

The Harper government declined to release a copy of what Canada and Honduras agreed to, saying members of Parliament will get a chance to see the deal before they vote on it.

Carlo Dade, executive director of the Canadian Foundation for the Americas, said Mr. Harper must return to Latin America more frequently to build lasting relationships here.

The Canadian leader can't expect to leave these meetings with a new agreement each visit – "a "piñata from every time," Mr. Dade said.

"You have to make the trips just to keep up and keep from falling behind."