Thank you very much, Mr. Chair.
I appreciate the opportunity to provide an update on Canada's negotiations with the European Union toward a comprehensive economic and trade agreement, as the Europeans like to call it, or a free trade agreement with the European Union, as I prefer to call it.
I am joined by our chief negotiator for these Canada-EU negotiations, Steve Verheul.
I'll also speak to culture-related issues within the context of the negotiations.
These negotiations are, without a doubt, the single most significant trade initiative Canada has undertaken since the Canada-U.S. Free Trade Agreement, both in scope and level of ambition. They are at the heart of our government's ambitious trade strategy, a strategy that is creating jobs and prosperity for Canadians.
Over the last five years, we've concluded new free trade agreements with eight countries: Colombia, Peru, Panama, Jordan; and the four countries part of the European Free Trade Agreement: Norway, Switzerland, Liechtenstein, and Iceland. And we are in negotiation with almost fifty more.
Our negotiations with the 27-member European Union are a critical part of these efforts. Free trade agreements are a tremendous opportunity for Canada and a critical part of our focus on the economy and on job creation.
An agreement with the European Union would boost Canada's gross domestic product by $12 billion annually.
It would increase our two-way trade by 20% on an annual basis. These figures are based on a study that was done jointly in advance of the negotiations to determine whether it made sense to proceed with the free trade discussions.
An agreement would give Canada a significant competitive edge over other trading countries. Canada is the first ever developed economy with whom the European Union has sought to negotiate a free trade agreement. Canada would ultimately thus be in a position, should we achieve an agreement, of being the only developed economy in the world with free trade agreements with both the European Union and the United States, the world's two largest economies. That would make Canada a tremendous destination for investment, a tremendous platform from which to do business.
As Canada's economy continues recovering, we need these kinds of benefits. Europeans are excited about these talks, too.
I made a number of visits to Europe over the past year to help build support for the negotiations, and our partners see the many benefits of doing more business with and in Canada. Canada's reputation is very positive, and we're seen as a very good partner. People are increasingly noticing the strength of Canada's economy compared with many other economies at this particular time. So those partners are attracted by our economic stability as well as the quality of our workforce, the most skilled workforce in the world, with the highest proportion of post-secondary graduates of any Organisation for Economic Co-operation and Development country, as well as the strength of our job-creating businesses.
We are proud of our progress so far. Both Canada and the European Union have agreed to a demanding schedule of negotiations. In fact, the sixth round of negotiations took place earlier this month in Brussels and further meetings will take place over the coming months.
So far we have seen very significant progress in areas such as goods, services, investment, and procurement. We're getting closer to an agreement that benefits both sides.
You may know that I had the opportunity to meet with my European Union counterpart, Trade Commissioner Karel De Gucht, most recently this past week, but earlier in December, as part of a stock-taking exercise to determine whether the progress we had made was the basis on which to go forward. We are both pleased with the progress made so far and we agree that the negotiations are on track to conclude. We are also very encouraged by the unprecedented level of cooperation and flexibility we've seen on both sides. Both sides are determined, it seems, to actually work towards achieving an agreement.
Along with our European partners and our provincial and territorial representatives, who have been part of these negotiations from the very start—something, I might add, that has never before happened in Canadian history—our government is working hard to conclude a broad and ambitious agreement that will benefit Canadians across the country.
I would note, however, that we are also hearing some concerns—and in many cases, unfounded concerns—about certain areas under discussion. That includes culture. To many of us, this is a case of déjà vu.
At the time of the signing of the Canada-US Free Trade Agreement, and subsequently the North American Free Trade Agreement, we heard about the “end of Canada,” about how our economy and culture would be overwhelmed by our neighbours to the south. If anything, the opposite happened.
Free trade created jobs and prosperity right here in Canada, and today Canada is the envy of the world, economically and in quality of life.
The opponents of free trade also raised big fears about losing our culture, another fear that did not come to pass.
Our culture is alive and well, and Americans enjoy countless examples of Canadian books, television, music and art. Think of Céline Dion, Shania Twain, and now, Justin Bieber.
The federal government has demonstrated our commitment to culture from the very start. We've committed more than a billion dollars over five years in new and renewed investments for arts, culture, heritage and tourism—with our economic action plan providing about $335 million to directly support Canadian arts and culture.
On the international stage, Canada is actively working with our partners on a variety of co-production treaties and cultural exchange agreements with countries such as China, India, and Colombia. We also enjoy long-standing cultural relations with many key European countries, including France, the United Kingdom, and Germany, to name just a few.
We've also been a global leader in developing and implementing policies and conventions of the United Nations, including the United Nations Convention on the Protection and Promotion of the Diversity of Cultural Expressions.
As you know, the convention recognizes the importance of cultural diversity issues to international social and economic development. It gives countries like Canada the right to adopt policies and measures to protect and promote the diversity of cultural expressions.
The European Union, like Canada, considers the promotion and protection of culture to be an important policy objective. Let's not forget that the European Union is one of the most culturally diverse groups in the world. It's a single market with half a billion citizens across 27 countries, speaking 23 languages. If anybody understands the importance of culture and its place in society, it is the European Union—and that includes in trade negotiations.
As far back as 1989, during the Uruguay Round of negotiations on the General Agreement on Tariffs and Trade, the predecessor to the World Trade Organization, we've worked closely with our European partners to ensure that countries could maintain the ability to address domestic cultural priorities.
In fact, Canada has a solid tradition of negotiating cultural exemptions, including in the Canada-United States Free Trade Agreement, the North American Free Trade Agreement, and many other free trade agreements.
Our current negotiations with the European Union are no different.
I can assure the members of this committee, and all Canadians, that any trade agreement we conclude with the European Union will preserve our respective abilities to pursue domestic cultural policy objectives. Our government remains squarely committed to defending our cultural interests—including in all our trade agreements.
So as these negotiations move forward, I hope that all members—and indeed, all Canadians—will not be distracted by the alarmist, disproven rhetoric from the usual naysayers about Canada's culture and way of life being put at risk by a trade agreement with the European Union.
Rather, I hope they focus on the facts—that Canadian culture is alive, well, and thriving—and on the great potential this agreement holds to create jobs and prosperity for Canadians across the country.
Thank you. I look forward to our discussion today.
Thank you. I look forward to answering your questions, with the help of Mr. Verheul.
