Thank you so much. I would like to apologize to the committee for being late. I unfortunately ended up at your Sparks Street location. I like your old digs, actually, myself.
Thank you, Mr. Chairman, and committee members. Here is a little bit about our organization.
The Canadian Council of Chief Executives is a not-for-profit, non-partisan organization made up of 150 CEOs of Canada's leading enterprises. We engage in an active program of public policy research, consultation and advocacy.
The Canadian Council of Chief Executives represents 150 leading enterprises. Members collectively administer $4.5 trillion in assets, have revenues in excess of $850 billion, and are responsible for the vast majority of Canada's exports and investment in R and D. The council is representative of virtually every sector of the Canadian economy.
It is the strong view of the Canadian Council of Chief Executives that the overall impact of the Canada-European Union comprehensive economic and trade agreement will be extremely positive for Canadian consumers, Canadian companies, and Canadian workers. Our analysis of the agreement indicates an ambitious, far-reaching agreement that will boost economic growth, create jobs, and expand opportunities across the board for firms of all sizes, including small and medium-sized enterprises in virtually every sector. The CCCE would like to extend its congratulations to the Government of Canada; Minister Ed Fast; our chief negotiator, Steve Verheul; and their team for creating a next-generation trade agreement that covers traditional areas as well as regulatory cooperation, government procurement, and, for the first time, a chapter on sustainable development.
The Canada-EU deal also addresses such issues as agricultural protection, and promotes intellectual property as a driver of innovation. This will improve our country's brand and signal to the world that we are capable of negotiating a modern, far-reaching trade agreement. I know that members of this committee are interested in other specific aspects of the deal, including the investor-state provisions. I'd be happy to answer questions on those later.
Twenty years ago our country signed the North American Free Trade Agreement and benefited from a surge in exports, investment, and economic growth. The Canada-EU agreement is the next logical step forward in Canada's global trade agenda.
Based on our analysis, there are three key principal reasons that we feel CETA will be of benefit to Canada.
First, it positions us with privileged access to the world's two wealthiest markets. The agreement also provides Canadian firms with a first mover advantage over their U.S. rivals. Combined with NAFTA, access on top of this to the EU provides Canadian companies with access to over 800 million customers with a combined GDP of $30 trillion.
I've mentioned improved goods and agricultural trade. It's also vital to note that the services sector right now composes 70% of Canada's GDP. International trade and services were worth over 4.5% of our GDP. CETA provides broad and improved market access to a number of sectors, including engineering, professional, and environmental services. Again, this is a very future-facing agreement.
The CCCE also wishes to underscore the improvements that will occur in labour mobility and temporary entry of professionals. In our view, these provisions are of particular importance.
Second, CETA will enhance competition. Canadian consumers and companies will benefit from improved access to European products, components, and services. Eliminating tariffs on European imports will help lower prices in Canada. Canadian consumers will benefit from less expensive products, while businesses will benefit from cheaper imports. In short, CETA is firmly part of a consumer agenda for Canada.
Third, CETA will help diversify Canada's trade and set the stage for talks with Asia. The global downturn brought home to many Canadians the need to diversify our trade and lessen our dependence on the U.S., which currently buys 70% of what we export in terms of goods. Canada-U.S.trade is a mainstay of our economy, and this will not change. We should do everything in our power to strengthen it. But we need to be working equally hard to expand our trade with other regions, the EU in particular.
Canada has not concluded a single free trade deal with a large economy since NAFTA in 1994. With CETA, Canada can reclaim its former role as a leader in the global move towards trade liberalization. We would note that Mexico has had an FTA with the EU since 2001. Our ultimate objective should be eventually creating a NAFTA-EU free trade area once the U.S. has concluded with the EU.
Canada does not need to choose between such agreements as CETA and a separate push into emerging markets. We can and must pursue both. The Canada-EU deal establishes a template for other trade negotiations, including those with India, Japan, and the countries of the Trans-Pacific Partnership. The CCCE also feels that Canada should explore a strategic partnership with China, similar to what China enjoys with Australia.
In conclusion, given the export-oriented nature of the Canadian economy, the conclusion of a deal of this magnitude with a partner as progressive and as dynamic as the European Union is to be warmly welcomed. Canada is the eleventh-largest economy in the world, yet we are only 35 million people. Our prosperity and jobs depend on exports. Our prosperity and jobs depend on trade. CETA, alongside NAFTA, provides access to the customer base that firms require to create jobs and grow in Canada.
Finally, real results will only come when this deal is in force. The Canadian Council of Chief Executives encourages federal, provincial, and territorial officials, as well as the European Parliament and member states, to proceed as quickly as possible towards final approval and ratification.
Thank you.