Good evening, Madam Chair, members of the committee and fellow panellists.
I am honoured to bring remarks on behalf of the Associated Equipment Distributors, AED, to the committee this evening.
Madam Chair, I also want to publicly recognize your work on construction and infrastructure policy issues over many years and to, of course, thank you for taking the time to address our association's membership during their visit to Ottawa in the last Parliament. Your leadership is very appreciated by our members on both sides of the border.
AED is the international trade association representing companies that sell, rent, service and manufacture equipment used in construction, mining, forestry, power generation, agriculture and industrial applications—products essential to building and maintaining critical infrastructure, including roads, bridges, pipes and waterways. Additionally, we provide equipment vital to natural resources and agricultural sectors across Canada.
Our member companies operate and have locations in Canada, the United States and Mexico. In Canada, our members have more than 420 locations that employ 27,000 hard-working men and women in rewarding careers. In North America, every year these predominantly small and medium-sized, family-owned businesses generate over $60 billion U.S. in revenue. While based in the United States, AED is truly an international trade association. In fact, in 2021, AED's board chair will be an executive from a Canadian-based company.
AED has been a leading advocate for modernizing a trilateral North American trade agreement both in Canada and the United States. As a pro-free trade organization, we made the accord's ratification a top policy priority in Washington. AED worked closely with congressional leaders in a bipartisan manner, and I was honoured to be present last month at the White House when the President signed the agreement into law.
I'd like to congratulate all parties for their efforts to deliver a trilateral trade agreement that will continue to align Canadian, American and Mexican interests. However, it's now time for Canada to join its partners in the United States and Mexico to complete ratification of the Canada-United States-Mexico agreement by swiftly approving the enabling legislation in the House of Commons, and ultimately the Senate of Canada, to provide much-needed trade certainty for the Canadian equipment sector.
The Canadian equipment sector, which relies on cross-border trade between the United States and Mexico, is particularly susceptible to economic uncertainty because essential goods and commerce flow across the southern Canadian border every day. This makes quick approval vital to our industry's prosperity. Efficient delivery of heavy equipment, machinery parts and services helps keep costs low for our customers—the farmers, the road builders, the contractors—and provincial and local governments across the country. Rising costs result in less capital to invest in businesses, employees and job creation. Delays in product delivery create inefficiencies and postpone major infrastructure projects that benefit Canadian citizens and commerce.
Ratification of CUSMA would be a win for all Canadians, and its prompt ratification is essential to the prosperity of the equipment sector. AED believes that CUSMA strikes the right balance between protecting Canada's interests and ensuring the free flow of commerce and goods in North America.
We have advocated for a quick resolution of these negotiations both in Ottawa and in Washington, D.C., and have promoted the benefits of reaching a deal quickly in both countries to deliver business confidence, which is a key driver of new investment in the construction, energy and agricultural sectors. We have made every effort to ensure that both Canada and the U.S. are aware of the difficulties that would come from a bad deal or a long, drawn-out process.
I am appearing before you today to appeal to your sense of urgency and to underscore the point that we need a resolution quickly. Mexico and the United States have ratified this agreement and are ready to proceed. AED is calling on parliamentarians to ratify the agreement promptly.
If amendments are suggested, the deal will have to be reopened. Businesses operating in natural resources, construction and agricultural sectors will be facing delays.
Stakeholders from across industries have been broadly supportive of concessions made in Canada and the U.S. to arrive at this agreement. It is time to move forward.
In closing, I wish to commend the efforts of Canada's negotiating team for its approach to working with its counterparts in the United States and Mexico. I also wish to express thanks to the members of this committee from all parties who are working to ensure that the agreement receives a comprehensive hearing while also taking measures to ensure that it can come into force quickly. By modernizing and strengthening the trade ties among the three countries, CUSMA will help restore predictability and trade certainty to North American equipment markets, creating an environment for greater investment, well-paying jobs and sustained growth.
I thank the committee for its time.