Thank you.
Mr. Chairman and committee members, thank you for the invitation to appear before this committee on international trade.
The Canadian Council of Chief Executives has a long history of support for measures to strengthen our economic relationship with the European Union. The CCCE supports an ambitious and comprehensive economic partnership agreement between Canada and the 27 member states of the EU.
Founded in 1976, the CCCE is a non-partisan organization that engages in public policy research, consultation, and advocacy. Its member CEOs, about 150 in total, lead companies that collectively administer $4.5 trillion in assets, employ more than 1.4 million men and women, and are responsible for a lot of Canada's private sector exports, investment, and training.
Our chief negotiators are meeting this week for the ninth round of negotiations toward CETA. It's a wonder that these negotiations have progressed as far as they have and as quickly as they have, given the economic and political challenges in Europe as well as globally.
The important discussions currently under way to restore health to the European financial system will be important to Canada. Several EU member states are in the throes of a debt crisis that will require great political skill, clarity, and vision to achieve a resolution. Meanwhile, the United States, our number one trading partner, and our number one priority internationally, faces a number of challenges that are familiar to all of us.
All of this is to say that there could not be a more compelling reason to stay the course with the CETA talks. In addition to slower growth in the U.S., in several EU member states, and even in China, we have faced and will continue to face the protectionist impulse in all of its various forms as public sector austerity measures are put into effect. At a time of tremendous global economic uncertainty, successful conclusion of these negotiations toward a comprehensive economic trade agreement will send a powerful pro-growth signal to investors and businesses, both within our borders and beyond. Deeper bilateral economic integration with the EU will bolster confidence and create important new opportunities for workers, businesses, and investors on both sides of the Atlantic.
As you know, collectively the EU represents the world's largest market in terms of gross domestic product, as well as the world's largest importer and exporter and largest investor. Next to the U.S., the EU is Canada's second-largest trading partner and its second most important source of foreign direct investment. Reciprocally, the EU ranks second as a destination for Canadian FDI.
Canada is learning that the first mover advantage can yield benefits. For example, negotiating and implementing the Canada-Colombia FTA gave our world-class western agriculture producers the first mover advantage over their competitors. It has worked very well thus far. The same first mover advantage will be strategically important, in our view, in the Canada-EU context. With the exception of Korea, Canada will be the only developed economy with a CETA or a trade agreement with Europe. As a result, it is our view that Canadians will benefit from the CETA in terms of jobs and growth, precisely because of this first mover advantage.
Canada and the EU should not delay or equivocate or diminish the ambition in the negotiations because of tough issues. Certainly, business leaders on both sides of the Atlantic will continue to pursue opportunities with or without new rules in place, but they will take greater interest in a negotiation that is deep, comprehensive, and meaningful.
Some of the priorities that CCCE has suggested should be part of a final CETA package--and we're not sure they will be part of a final CETA package--include: the elimination of all remaining tariff barriers and resolution of non-tariff trade barriers; the opening of services markets; broad reciprocal access to public procurement; measures to ensure the mobility of skilled personnel and service providers, as well as speedy progress towards mutual recognition of professional qualifications; stronger intellectual property protection, including in copyright, enforcement, and patents; measures to boost technological development and encourage closer cooperation on energy and environment; an ambitious regulatory cooperation agreement with a commitment to action in priority sectors; accelerated convergence in competition policy and tax administration, and we'll see if we can do that; a comprehensive dispute resolution mechanism that would be binding on state-to-state, and to the extent that an investor-state mechanism can be negotiated, we would obviously support it; and, of course, the involvement of our provincial governments in areas of either complete or partial provincial jurisdiction. Enthusiastic engagement on the part of Canada's provincial governments is important to the successful negotiation and implementation of a comprehensive agreement.
The CCCE has emphasized that a Canada-EU economic partnership would possibly be a catalyst for further multilateral liberalization in critical areas. To Canada, the WTO remains the pre-eminent forum for global trade liberalization. Sadly--and just as a bit of a response to the exchange between Mr. MacLaren and the member from the Conservative Party--the Canada-Europe talks are not going to be the catalyst we envisioned a couple of years ago to push the Doha development agenda, which still remains stalled at the WTO.
There's going to be a WTO ministerial meeting this December where some hard questions will have to be asked, and they're going to need answers. Such questions include the following. What now for the WTO and the DDA? How does the WTO frame a forward agenda, given the inability to come to a final deal, which has taken over a decade to negotiate? Should the WTO consider plurilateral negotiations as opposed to continuing with the omnibus multilateral deal? That's an issue that I think some of our negotiators have raised in Geneva.
In 2006-07, CCCE embarked on a strategy to pursue market access opportunities in a number of priority markets in both developed and developing economies. For example, CCCE provided input and supported the perimeter security and regulatory cooperation vision enunciated by President Barack Obama and Prime Minister Harper last February. We hope these action plans will be released soon, because we think we can move the dial a little bit on our trade.
As Bank of Canada Governor Mark Carney has indicated, there is a $30-billion gap in our trade with the U.S. and that needs to be filled. We need to fill this gap and grow our trade even further, but more needs to be done on the Canada-U.S. front. The CETA will help, especially given estimates that our trade could rise by as much as 20% vis-à-vis the CETA being negotiated and agreed upon, but our gaze must also turn to Asia and Latin America.
Just recently, the CEO of Manulife, and my CEO, the Honourable John Manley, visited Japan with a small group of CEOs. The purpose was to discuss an economic partnership agreement and possible trade negotiation with Japan. Tomorrow, the CCCE will release, with the Canada-China Business Council, a paper written by Professor Wendy Dobson on an Asia and China strategy for Canada. The paper calls for the development of a road map of engagement with priority Asian countries, including China, as well as regional groupings like the Trans-Pacific Partnership.
Asia's rise is the single most important force transforming the world economy. The CCCE is planning a major initiative regarding Canada's future prosperity in a world in which economic power is shifting towards Asia.
In August, Prime Minister Harper and Brazil's President Rousseff announced a CEO forum, as well as several other initiatives. We have work under way to try to stand up the CEO forum as quickly as possible to support both the Prime Minister and President Dilma Rousseff with a number of initiatives to enhance our commercial relationship.
Just to wholeheartedly support Mr. MacLaren, we're going to launch the Canada-India CEO forum. The forum should enhance our commercial relationship and provide advice toward the Canada-India economic partnership agreement, which just got under way.
We also have a little bit of research under way on Australia and on whether or not we can enhance our relationship with Australia in a meaningful way.
Canada is deeply integrated into North America, but needs to do more. Canada is a Pacific nation, but must look more intently and with greater purpose towards Asia, China, and Japan. But Canada is also an Atlantic nation, and here I'll repeat what I think everyone at the table knows, but I think it bears putting on the record. We have close linkages with the EU. We share a history. We're home to millions of people of European descent and we share important values and a deep respect for the rule of law and good governance. We're trusted partners. We're members of NATO. We're trying to advance global security mutually. We share a massively important relationship with our common ally, the U.S.
These are powerful imperatives. Coupled with the imperative to achieve greater growth, jobs, and prosperity, this is an irresistible case for Canada and the EU to finish these negotiations as soon as possible in 2012.
Broadly, there is very strong support for closer linkages with Europe. This can't be dismissed by the likes of Maude Barlow and the Council of Canadians. In fact, the report of this committee in 2011, Mr. Chair, suggested strong support for a closer relationship with Canada from the European perspective, so the sentiment is reciprocated that there's strong support for doing something with each other.
Access to markets in Europe for goods, services, and skills are three important benefits of the CETA. In addition, the CETA will allow governments to find cost savings while maintaining service levels through more direct competition for government procurement contracts.
As well, the CETA, through the direct involvement of provincial governments in areas of exclusive or partial jurisdiction, will help build a stronger economic union within Canada.
Finally, in areas where the CETA will open up our markets, partially or wholly, to greater competition, I, for one, am confident that Canadian business leaders, small, medium, and large, will rise to the occasion.
Thanks.