Mr. Speaker, I am pleased to speak to Bill C-32, an act to implement the free trade agreement between the Government of Canada and the Government of the Republic of Costa Rica.
We have heard some interesting discussions this morning, most recently by one of the members of the New Democratic Party. I would like to put a few facts on the table as we hear a lot of the doom and gloom about the recent free trade agreements.
In the last decade or so, Canada has participated in a number of significant trade deals including the Free Trade Agreement in 1989, the North American Free Trade Agreement in 1994, the Canada-Chile Free Trade Agreement in 1997. More recently negotiations are well under way on the FTAA, the free trade area of the Americas, the goal being to bring 34 nations under a single trading area by the year 2005.
Let us look back at what the successes have been. Today, Canada and the U.S. enjoy $1.4 billion daily in trade between our two nations. There are over 200 million crossings a year between Canada and the United States. This is a huge benefit to Canadians as a result of the Free Trade Agreement. I acknowledge it is not perfect and I will get into a few of those areas, but today Canada enjoys an $18 billion trade surplus with the United States.
Trade agreements have been good for the Canadian economy, highlighting our competitiveness as a trading nation and strengthening Canada's national identity. Canada depends on free trade to promote economic growth, create jobs and sustain our standard of living. Trade generates over 40% of Canada's GDP. One in every four jobs in Canada is a direct result of these free trade agreements.
We have heard some concerns with respect to this latest free trade agreement with Costa Rica. I acknowledge that there are concerns on both sides, but by and large the benefits far outweigh the concerns. When NAFTA was being negotiated, similar concerns were being raised. People had concerns about various sectors, but by and large the Canadian economy has grown substantially. Again, Canada and the United States enjoy $1.4 billion of trade daily between our two countries.
Right now trade between Canada and Costa Rica is $269 million annually. By moving ahead with this free trade agreement I believe trade will grow and it will benefit Costa Ricans and Canadians.
Canada imports a number of goods from Costa Rica: fresh fruit, coffee, raw sugar, flowers, woven apparel, electrical machinery and preserved food. At the same time Canada exports paper, paperboard, fish, auto parts, plastics, wood, potatoes and wheat, among other things to Costa Rica. Our agricultural sector is looking for enhanced markets. There are opportunities.
One of the concerns on the Canadian side is that of sugar. The sugar refineries in Canada have raised concerns and I hear what they are saying. There are no sugar refineries in Costa Rica and only raw sugar is exported which our sugar refineries need. However, at the same time the Costa Ricans are worried about frozen potatoes, french fries. There are great opportunities for us there.
I am trying to make the point that there are always going to be concerns, as there were with NAFTA and other free trade agreements. However, at the end of the day Canadians have risen to the challenge. It has been great for our economy and great for producing jobs.
This free trade agreement would mean the elimination of Costa Rican tariffs on almost 94% of Canada's current agricultural and agrifood exports to Costa Rica. This means that our agricultural producers will get better access to these markets. The amount of $269 million annually is obviously not large but it is a base amount which can grow.
The reality is that our trading barriers, the economic borders between our nations, have been evaporating for years. We can look at what has been happening in Europe. It is becoming one of the most powerful trading blocs globally. It seems to have eliminated all of the economic borders and has come down to one trading bloc. That is what we are moving toward in the year 2005 with the free trade area of the Americas. This agreement is just one small part in the move in that direction. I think it is going to be good for Canada and Cost Rica.
Some members have raised issues about environmental and labour standards. It is important that we put all the facts on the table. Side agreements were negotiated which included two parallel accords, one on environmental co-operation and another on labour co-operation.
In the spring I was with the minister on a trip to Costa Rica for the final negotiations of the trade agreement. I had an opportunity to meet with some of the government members and the minister in Costa Rica on this issue. They were as concerned as we are about the environment and labour standards. I think this is a win-win situation for both sides.
An environmental side agreement will promote a strong, ongoing environmental partnership based on environmental commitments. The labour accord will provide a framework for dealing with labour issues in the context of trade agreements and demonstrates Canada's commitment to promote workers rights in the context of trade liberalization in the Americas.
It is no secret that there are issues regarding labour standards in Costa Rica. It is a developing nation. We should not be looking at this negatively. Canada has an opportunity to help improve Costa Rica's labour standards as it moves through this.
Our commitment to try and increase labour standards can help pave the way. We can be a model for two smaller nations population-wise because each has approximately 30 million people. We can demonstrate our impact on helping to bring up Costa Rica's labour standards.
I acknowledge the concerns of the sugar refineries in Canada. However, looking back to NAFTA and other free trade agreements we have signed, if every concern raised was enough to scuttle the deal or was enough to say stop, then we would get left behind.
The reality is that the Americas, Canada and North America are moving to a trading bloc. We have to lead the way. We want to be out in front. We want to ensure that we provide every Canadian with new opportunities. We want to ensure the opportunity for real permanent job growth. This is the way it is going to happen. Sitting back and taking a cautious approach is not going to help Canada. We need to be bold, to take risks and to move forward.
Industry will rise to the occasion. It will create real, meaningful, lasting jobs. We cannot sit back and wait for the government to create jobs. Those jobs are not permanent. That does not work. It gives people a false sense of security.
By and large although there are concerns on both sides, the positives far outweigh the concerns. The pros are there. It is going to set a model as we move forward in the negotiation of the free trade area of the Americas. That is happening between 34 nations, and both Costa Rica and Canada are a part of that.
Let us get out in front. Let us demonstrate that we can make this work. Let us increase that trade. Let us open up new markets for some of our agricultural producers who are looking for new markets. At the same time, as with our sugar refineries, let us try to deal with the challenges as they come forward.
As I said, right now Costa Rica does not refine sugar as it has no capacity to do so. It only exports raw sugar. There may be opportunities there for our sugar refineries to increase.
Again, we should be bold and move forward. The members of the Progressive Conservative Democratic Representative coalition will be supporting the bill.