Mr. Speaker, I am pleased to participate in the debate on Bill C-57, an act to implement the agreement establishing the World Trade Organization.
I would like to reflect today on how important the adoption of this legislation is to the economy of Canada in general and to the economy of my riding of Bramalea-Gore-Malton in particular.
In order for this government to meet its objective of creating jobs and improving the economy of Canada, it must enhance the ability of the nation to export to the rest of the world. The legislation before us will play an essential role in improving Canada's access to the ever-growing international markets. By
creating a more open and stable international trading environment, the agreement establishing the World Trade Organization will generate and increase Canadian exports and investments.
Canadian governments have long recognized the importance of efforts to liberalize trade. Canada ranks among the top trading countries in the world.
Over the past two decades Canadian exports have grown faster than exports from Europe and at about the same pace as U.S. exports. The free trade agreement signed with the U.S. in 1989 has resulted in an annual gain in real income in the range of 2.5 per cent.
Every region and every sector of the Canadian economy has benefited from the liberalization of Canada's trade with its most important trading partner.
A recent study by the C.D. Howe Institute on the effects of the FTA concluded that Canada's exports to the United States over the first three years of the agreement performed the strongest in those sectors that were liberalized by the agreement, particularly non-resources based manufacturing.
Bramalea-Gore-Malton is in a region of the country that depends most significantly on non-resource based manufacturing. Provisions of this bill dealing with agriculture are extremely significant in that for the first time the agriculture sector will be brought under the rules-based multilateral regime.
The significance of these changes will be reflected in my riding in the improvement of market opportunities for processed foods. We must support this legislation to ensure that Canadians will be able to take advantage of improved access to markets.
In the industrial products sector, for example, the Uruguay round agreement provides for reductions in the tariffs by one-third and tariffs in 10 sectors have been eliminated entirely.
In terms of improving trade opportunities, Canadian exports to the European Union will benefit from tariff reductions of almost 60 per cent. Tariffs on Canadian exports to Japan will be reduced by 70 per cent.
These tariff reductions will have a significant impact on companies in Bramalea-Gore-Malton that export to either Europe or the emerging markets of the Pacific rim.
Better access, reduced tariffs and a competitive attitude recognizing the worldwide opportunities presented will be the cornerstone of growth in the future.
This bill is also significant to my riding because for the first time trade in services and trade related intellectual property are brought within the framework of multilateral rules. These rules will provide a stronger basis for the development and transfer of technology.
The agreement promotes continued liberalization of trade in services and intellectual property in an area estimated to be worth some $2 trillion annually. Increased growth in this sector is anticipated and in fact corporations within my riding are well placed to benefit from expanding opportunities in these sectors.
It is significant that the negotiations leading to the establishment of a World Trade Organization benefited greatly from the process of consultation that has taken place.
The business and agricultural communities, as well as the provinces, were closely consulted throughout the course of the negotiations. The fact that prior consultation was designed into this process means that the results reflect the realities of doing business in all regions of the nation.
The legislation before us is extremely important as the World Trade Organization will replace the existing GATT. The World Trade Organization along with the World Bank and the International Monetary Fund will now operate in concert as the foundation of a worldwide financial and commercial structure. The significance of this should not be underestimated as the development of new global trade rules and negotiations aimed at furthering liberalization of trade worldwide will now be provided with a forum.
My support of this bill reflects not only the benefits that will accrue to my riding, but the benefits that Canada as a nation will no doubt enjoy. I urge my fellow members to support Bill C-57 and swiftly move to the establishment of the World Trade Organization.