The EU is currently Nova Scotia's second-largest trading partner. With CETA, we're able to open up markets to 500 million people, giving Canadian and Nova Scotian businesses preferred access to EU markets.
Products such as seafood, forestry, pulp and paper, agrifoods, chemicals, and plastic products are worth over $445 million annually in exports for Nova Scotia's economy. The EU is the largest importer of seafood in the world, with 40% of trade activity in that industry. Some of you know that we have seafood in this part of the world, and hopefully you've tried it in the last couple of days.
CETA will lower tariffs on forest and wood products, metals and minerals, and fish and seafood. This trade agreement holds new potential for our seafood export sector with the elimination of the 8% tariff on fresh lobster, frozen scallops, and other seafood. Once CETA comes into force, 96% of EU tariff lines for fish and seafood will be duty free, rising to 100% by CETA's seventh year.
With approximately 18% of EU contracts linked to business services, this agreement also opens up opportunities in the fields of architecture, engineering, construction, environmental services, technology, and marketing consultancy, among others.
Through our port, railway, and world-class airport, Halifax is well positioned to be the departure and the receiving point for European goods. I know that Nancy Phillips, who is a colleague of Fred's at GHP and is very involved in the Greater Halifax Partnership and gateway council, presented to you yesterday some of the benefits to us as a gateway. Be assured that the potential as a gateway, not just for Halifax but regionally, is very real.
As we look to uncover opportunities for increased trade and investment as a result of the $115 billion in megaproject activity currently under way or slated to be under way in Atlantic Canada, Europe is a key market for many of the project components, labour, and supplies. Halifax would be the natural receptacle and transshipment point, making the best use of the Halifax Stanfield International Airport, which is an award-winning airport. Last year it opened up its new runway, which allows us to receive the largest cargo planes in the world and, perhaps with this deal, opens up the possibility of our having better air access into major European airports. We have great potential.
We have two super post-Panamax container terminals, CN Rail, a strong logistics and warehousing sector, and excellent class one highway infrastructure. Our city can effectively move goods in and out of the Canadian marketplace and beyond. Through CETA we can build on $4.6 billion worth of imports from the European Union that were cleared in Nova Scotia as recently at 2010.
On procurement, while CETA has positive implications for our port, the gateway, and business generally, we're also watching CETA's impact on procurement processes in many ways. We appreciate that defence contracts, including for us the $25 billion Irving shipbuilding contract, are protected under CETA, as procurements and shipbuilding are excluded from coverage for both the EU and Canada. Non-defence shipbuilding could see more European competition in Canada due to decreased tariffs.
There is an apparent imbalance that's of some concern as are implications from municipal procurement policy and practice. The majority or HRM's construction projects will fall below the $7.8 million threshold for construction-related tenders and so will not be subject to CETA regulations. That said, the goods and services and utilities-related thresholds are somewhat lower than those sought by FCM, as you know. This means that our procurement processes may take longer because of the requirement to put opportunities to market for a longer period to ensure EU suppliers have an opportunity to respond.
CETA also means that HRM's ability to implement a buy-Canada or buy-local preference is somewhat restricted to purchases and tenders below the CETA threshold. Halifax Regional Council has recently requested a report from staff on the buy-local provisions. We don't have that yet. It is coming this winter and it will outline the impacts in more detail. I do note that CETA appears to protect our discretion to use local criteria in evaluating submissions for municipal tenders and requests for proposals, if we choose to go that route.
It is my hope that this agreement, once fully realized, will be the beginning of a strong new relationship, not only among countries, but between municipalities and the federal government, and will bring new opportunities to Halifax. Our municipality appreciates the federal government's commitment to respecting FCM's seven negotiating principles, and we will monitor those closely. While full details remain to be confirmed, we are optimistic that the final agreement will address those principles.
Cities are increasingly being recognized as not only the home of most of Canada's key infrastructure requirements, but also as key partners in economic development. All parties in the House of Commons have recognized that municipalities control approximately 60% of Canada's infrastructure but only collect 8% of total tax revenues, and I think that all parties understand that we must work collectively to address that imbalance.
Actions taken by any level of government affect the others, and we need to consult and work with each other. I am pleased that FCM has been involved in the evolution of CETA and look forward to further interaction as this deal develops. All levels of government will need to work hard to ensure that Halifax and other Canadian municipalities are ready to take best advantage of the opportunities presented by CETA and, I would add, a significant marketing effort should be taken to help Canadian businesses get exposure in European markets as well.
Thank you very much.
I look forward to any questions you may have for either me or my colleague, Fred Morley.
Thank you.