Mr. Speaker, I want to stress the importance for Canada to meet the challenges of globalization. Our country is well known for its active participation and for the leadership it has often displayed in the development of an international trade system.
Canada's vitality is quite impressive. Our country is among those that rely the most on foreign trade. Indeed, foreign trade accounts for more than 40% of our gross domestic product, the highest percentage among all G-7 members. Our favourable trade balance increased from $7 billion in 1991 to $41 billion in 1996. The total value for Canadian exports of goods and services was a record $280 billion in 1996, almost twice as much as in 1989.
Through its trade policy, Canada seeks to promote the constant improvement of the quality, accuracy and scope of international rules on trade and investment.
Over the past 50 years, our country has been a leader in the development of rules for international trade. We contributed to the establishment of GATT, in 1947, and to the gradual improvement of these rules during successive negotiations rounds that led to the Uruguay Round, in 1994. Canada can be proud of the rules that now exist under the World Trade Organization for goods and services.
It is only natural that we would support changes to include something as critical as international investment. In the current context of globalization, direct foreign investment goes hand in hand with trade. The two cannot be dissociated.
The government's role in developing trade is to support Canada's businesses in such a way as to maximize their chance of success in foreign markets and thus to help create and maintain jobs everywhere in Canada.
For Canadians, there has never been a better time for exports and for taking advantage of international investment opportunities. Markets are opening up, trade barriers are dropping, and goods and services are moving freely between countries.
Foreign investment in Canada triggers employment and growth. Too often, too much attention is paid to the heavy impact of direct foreign investment on Canadian employment and prosperity. Three out of ten jobs in Canada are directly or indirectly linked to direct foreign investment in Canada. More than 50% of exports and 75% of manufactured exports are directly linked to direct foreign investment in Canada.
Every $1 billion in investments contributes to the creation of over 45,000 jobs over five years.
Direct foreign investments bring new technologies to Canada and bring new production processes on line more quickly. New technologies make it possible for Canadian businesses to maintain or even increase their competitive edge, both in world and domestic markets.
Finally, the liberalization of financial markets and the relaxation of restrictions on foreign investment no doubt explain the remarkable vigour of Canadian direct investment abroad in the 1980s.
This investment provides an increasingly vital contribution to our economic prosperity. Since 1996, the value of Canadian direct investment abroad has surpassed the value of foreign direct investment in Canada.
Canadian direct investment abroad has tripled since 1986, reaching a figure of $194 billion in 1997. The growth of this investment also reflects a new approach to emerging economies.
These investments are a source of substantial revenues and dividends for Canadians and allow our businesses to compete internationally. Canadian investment abroad produces benefits at home for research and development activities, growth and export opportunities, thus creating jobs in Canada.
By investing their own resources in target countries, Canadian companies are displaying confidence and thus positioning themselves favourably to take advantage of potential trade opportunities.
An increasing number of Canadian competitors are very actively promoting and expanding their businesses worldwide.
Canada would like a set of internationally accepted rules on foreign investment, just as there are rules on foreign trade.
Our objective is very clear. The Government of Canada wants to conclude a good deal at the right moment. We do not want to sign just anything at any old time. Therefore, if OECD countries reach an agreement that serves the interests and respects the values of Canadians, in keeping with our specificities and the exceptions we put forward, we believe such and agreement would be beneficial to Canada. But our commitment goes further than that. Our government has been consulting Canadians since the negotiations started and will continue to do so.
We have consulted the provinces, the NGOs, and of course Parliament. In this regard, I will remind members of the House of Commons that last November, at the request of the Minister of International Trade, the Sub-committee on International Trade, Trade Disputes and Investment of the Standing Committee on Foreign Affairs and International Trade held public hearings on the MAI. In December, the committee tabled its report with as its main recommendation that we continue to participate in the MAI negotiations.
The Bloc Quebecois concurred in the report. Last week the government tabled its response to the report. In short, the government accepts all 17 recommendations. At the recent annual meeting of OECD ministers, the Minister of International Trade unequivocally restated Canada's basic position in these negotiations. The ministers agreed to keep on negotiating without setting any specific deadlines. This is in keeping with Canada's position to take the time to negotiate the best possible agreement.
The government will keep on consulting as many groups as possible to ensure that Canada's positions reflect the interests of all Canadians.