Mr. Speaker, I am going to be splitting my time with the hon. member for London West in the discussion on Bill C-17, an act to amend the Telecommunications Act and the Teleglobe Canada Reorganization and Divestiture Act.
We have heard the legislation before the House is a necessary step toward implementing the GATS agreement on basic telecommunications and liberalizing global telecommunications. That agreement covers more than 69 countries with more than 90% of the world's $880 billion telecommunications market. It liberalizes basic telecommunications services which includes voice and data but not broadcasting.
It is a good deal for Canada. It will dramatically expand the $880 billion world market in telecommunications services, creating a demand for Canadian products and services. That will lead to more high quality jobs and economic growth.
Telecommunications are vital to Canada and have always been, ever since Alexander Graham Bell invented the telephone. Canadians have gone on to become leaders in the telecommunications industry.
In Canada we already have in place the world's first coast to coast commercial microwave network, the world's longest fibre optic communications network, the world's two longest competitive cellular networks, the world's first national digital microwave network, and the world's first domestic geostationary satellite telecommunications network.
It is easy to see why the telecommunications industry is an essential component of the Canadian economy. It employs some 115,000 people and accounts for 3.36% of our GDP. These are high wage jobs with average weekly earnings that are 44% higher than in all industries combined. Telecommunications is also a pivotal enabling technology that is increasingly an integral part of all types of businesses and public sector agencies.
The bill now before the House continues the liberalization of Canada's telecommunications market begun more than 10 years ago. We have already seen the benefits of that domestic liberalization for Canadians and Canadian telecommunications companies. Now we will see them in the international arena.
One of the government's key objectives during the GATS negotiations was to gain more access to foreign markets for Canadian telecommunications companies. That goal was achieved. These companies will now have more secure access to markets like the United States, the European Union, Japan, and the developing markets of Asia and Latin America.
As part of the deal Canada will make a number of changes to its domestic regime. We have made the following undertakings.
We will remove all restrictions on the use of foreign controlled global mobile satellites that provide services to Canadians.
We will end the Telesat monopoly on fixed satellite services.
We will maintain our transparent and independent regulatory and competition regimes.
We will end Teleglobe Canada's monopoly on overseas traffic and its special ownership restrictions which prohibit investment by foreign telecommunications carriers.
We will allow 100% foreign ownership and control of international submarine cable landings in Canada.
We will however continue our overall foreign investments rules to ensure that our industry remains Canadian owned and controlled.
The agreement on basic telecommunications is also an international milestone. GATS which came into effect on January 1, 1995 is the first ever multilateral set of rules for trade in services. It covers almost all the service sectors, including with this agreement basic telecommunications services. The new agreement establishes a clear set of multilateral rules in a sector that previously had no rules. Licensing processes will be governed by clear rules and disputes will be resolved in a timely manner through the WTO dispute settlement process.
The WTO dispute settlement understanding, or DSU, provides a number of mechanisms to resolve disagreements, including consultations, panels and reports. The objective of this process is to arrange either the withdrawal of the offending measure or if that is impractical, compensation to the injured third party.
This dispute settlement process provides the safeguards needed to ensure that countries respect their commitments. It is this mechanism that underpins the entire agreement. Without it no participating nation could have confidence that the terms of the agreement would be respected. And without it no telecommunications company could have the confidence necessary to make investments.
The dispute settlement process also provides Canada with a guarantee that the improved access we have won to the U.S. market is secure. Under the agreement, reciprocity tests in the FCC licensing process will be severely restrained.
Canada has one of the most open telecommunications markets in the world but the government believes strongly that an open market is not just about ownership. It requires a commitment to clear, transparent and consistently applied ground rules that ensure access and fair treatment.
With this agreement Canada has secured the commitment and the many benefits the agreement will bring to Canadians. Canadian businesses and consumers will benefit from enhanced services provided by an emerging global telephone system by establishing a transparent and predictable framework for trade and investment in telecommunications services.
The agreement will create a demand for Canadian products and services as it opens the doors to foreign markets. This will support a strong domestic communications industry and ensure that Canadians will continue to enjoy excellent communications services at competitive prices.
Given our many accomplishments in information and communications technology, there can be no doubt that Canada is poised to take full advantage of the newly expanded global markets in telecommunications services.
Technologies that are Canadian specialties are already creating whole new industries. Knowledge based industries are growing faster than any other sector in the Canadian economy.
As one of the most wired countries in the world, Canada has the communications and network infrastructure necessary to take full advantage of the information technologies such as electronic commerce.
The government consulted extensively with the telecommunications industry and with consumer groups before signing the agreement and found strong support for it. Now it will be up to Canadian industry to move forward in the global arena and take full advantage of the opportunities presented by this agreement.
In conclusion I urge the House to act quickly in passing this bill.