Thank you very much.
Thank you, Mr. Chairman. It is indeed a very great privilege for me to meet with you and your colleagues this morning.
In the next few minutes I'd like to briefly build on Dwain's introduction by outlining some of the conclusions that emerged from the Canada-Arab Business Council-Department of Foreign Affairs Conference on Canada and the Arab World, Trade and Investment Opportunities 2007, which was held just a few weeks ago. Before I do so, let me make several very brief observations. I'm confident that each group that has been asked to address your committee has offered a very similar message--our region, or our country, should be accorded a higher priority by the Government of Canada. We will do the same, but I most sincerely believe that we will do so with stronger facts and with stronger figures. It seems it's often hard for our country to recognize its own vested interests, and the work of your committee is very much appreciated.
During my four-year posting as Canada's ambassador to the United Arab Emirates, our trade increased by over 250%. I should have left that posting with a feeling of accomplishment, and indeed, in many ways I did, but I would be fooling myself if I did not confess, Mr. Chairman, that I personally felt it could have been and should have been a 500% increase during my watch.
The gross domestic product of the Gulf Cooperation Council, the GCC, was $725 billion in 2006 and will grow to $790 billion by the end of this year. Fuelling this growth is an oil wealth and a windfall that is almost unique in history, and it is being converted into an investment boom. There are $1.1 trillion U.S. in projects planned in this region alone. In the UAE, with 10% of the world's oil reserves and a population of four million people, an estimated 15% to 20% of the world's cranes are busy at work in their construction.
It's important to note that it is not only the quantity of Canada's exports to the region, but also their quality. The top 10 Canadian exports to the region are as follows: specialized vehicles, helicopters and planes, flight simulators, motor vehicles, barley, wheat, gold, lumber, electrical apparatus, and machinery parts. That is over 60% manufactured products and I believe a very good balance for our traditional hewers of wood and drawers of water. The flight simulators are an important item to note, with over $250 million worth, as it reflects the very large joint venture that CAE from Montreal has with Emirates airlines in Dubai. Trade follows investment in so many ways.
Canada has several billion dollars invested in the region, and the region has over a trillion dollars in foreign assets, of which billions are no doubt invested here in Canada. DP World is one recent example. In addition, as was said earlier, you must also add the high-value service sector. Canadian engineers, architects, project managers, etc., are very active in the GCC. Their effort makes this in fact a $2 billion market per year.
Canadian business has very clearly shown the way in developing this market. However, what is still lacking is the political and economic architecture to support this rapidly expanding opportunity. Government support, and indeed leadership, has a very important role to play in developing this market, as is evidenced by the actions of other governments. Australia could serve as a very good market.
Two years ago, as Dwain was saying, the Canada-Arab Business Council made three recommendations. I believe they're still relevant. We must take advantage of the existing favourable view of Canada and the growing markets of the region by swiftly acting to build on our momentum.
Secondly, we must build relationships with partner countries. Government figures such as yourselves must be more involved in developing partnerships in the regions through strategic high-profile market visits, delegations, missions, and so on; and government members must continue to support these relationships by participating and hosting return visits. These partnerships are a key element. We should strive to provide a greater infrastructure for government offices in the region, as well as trade agreements, foreign investment protection agreements, and so on.
These recommendations were repeated in the conclusions of our conference, which was held just two weeks ago. Canadian business leaders, Arab and Canadian diplomats, and government officials again came to a similar conclusion. To the list they added and emphasized the need for free trade agreements, and as I said, foreign investment protection agreements, air services agreements, and so on. At present we have, I believe, only three double taxation agreements in the region and one or two air services agreements.
I believe there is a broad consensus as to what has to be done. Minister Emerson reflected that consensus in his speech, as Dwain noted, and of course in the government's “Advantage Canada” documents. The challenge we face, and indeed have faced for a number of years, is to take the necessary action and to commit the necessary resources to accomplish these agreed goals. Simply said, we need to just do it. It takes resources and it takes our collective will. The European Union, the United States, Australia, India, China, Singapore, and many others are steps ahead of us.
Former Trade Minister Peterson set a goal of doubling our trade to the UAE when he visited that country in 2005. That's a reasonable goal and I think one that could be easily attained.
In closing, I hope the committee will come to the conclusion that the GCC and other Arab countries should be viewed as priority markets, and the Canada-Arab Business Council will continue to work collectively with all levels of government and business in building this relationship.
Thank you.