Mr. Speaker, the U.K. is Canada's third-largest trading partner and ally, and with this new relationship, I can see the opportunity for increased trade. However, there have been missed opportunities, and not only with pork and beef.
Like many members of the House, I have met with representatives of 127,000 British state pensioners living in Canada, who have raised the issue of their pensions with me. Those state pensions are equivalent to our Canada pension plan. They and their employers made payments for years before retirement. However, unlike the CPP, their pensions are frozen at the rate they were at when first received and do not increase with inflation. This has been British policy for decades. That does not seem fair to me, because British pensioners are fully indexed in other countries, including the United States.
The Government of Canada has made multiple representations to the U.K. government over the years with the aim of negotiating a social security agreement to end this discriminatory policy, but there has apparently been no willingness on the part of Britain to have such an agreement. The CPTPP was a perfect opportunity to revisit the issue. After all, the British policy comes with a cost to Canadian taxpayers. It has been estimated that this policy costs Canada about $470 million annually.
Canada's social security pensions are indexed, increasing the purchasing power of our citizens wherever they choose to live in retirement and ensuring they have sufficient funds to live. In failing to provide reciprocity, the British government is relying on Canada to provide for its citizens if they should find themselves in need. The Liberals missed the opportunity to address this issue when they negotiated the Canada-U.K. Trade Continuity Agreement. They missed it again when it was not included as a part of the U.K.'s accession to the CPTPP.
The U.K. is Canada's third-largest single-country trading partner for goods: $39.4 billion in 2024. It is also the third-largest single-country trading partner when it comes to services: $21.6 billion in 2024. In the last decade, bilateral trade in goods and services has increased by 52.9%. Working to increase trade with someone we already have a strong relationship with would seem to be a good thing. The U.K. is also Canada's second-largest investment partner. Inbound direct investment to Canada totalled $97 billion in 2024. We want to see that number increase.
Bill C-13, if passed, provides immediate duty-free, quota-free, unlimited access to sweet corn. There is no volume limit, as there was under the previous agreement. It provides more liberal rules of origin for Canadian agriculture export interests, including meat, processed foods, sugar-containing products and pet food. It will provide enhanced protections for investors and their investments in the U.K., with greater predictability and transparency.
Canadian investors will also have access to arbitration for resolving disputes related to U.K. measures that breach CPTPP investment provisions. These are positive outcomes. As well, there will be guaranteed access to U.K. procurement opportunities at all levels of government, including regional and local contracting authorities, as well as guaranteed access to U.K. procurement opportunities undertaken by bodies governed by public law, including schools, universities and colleges, national museums and galleries, and national park authorities. This is good news for Canadian business.
Yes, the government failed to address some of the issues that should have been a priority when it was negotiating this agreement. Our beef and pork industry will still have complaints about the inequity of treatment compared with how U.K. producers are treated in Canada, and those U.K. pensioners living here will continue to be treated as a second-class citizens, unfairly, by their government because Canada's Liberal government did not do the right thing and stand up for fair treatment. I am sad that our government did not take a more principled stand.
However, I think we can all agree that Canada needs more trade and more diversified trade. We have seen the results when we put too many eggs in one basket. Could this bill have been better? I think that is true of any trade agreement. Sometimes compromises are made to allow an agreement to move forward. That may be the situation we find ourselves in here.