Mr. Speaker, I am pleased to join in this important debate where elected members of parliament from all parties have the opportunity to share their thoughts and concerns about this important process and to reflect the concerns and feelings of their constituents. This is the place for elected members of parliament to make their views known, and I am pleased to do so.
The Americas is one of the world's most dynamic regions. Though its 800 million people are not even one-sixth of the world's population, they account for more than one-third of the world's economic activity. At about $17 trillion dollars, the combined gross domestic product of the Americas is greater than that of the European Union. It is no wonder then that the leaders of the western hemisphere believe in the potential of the Americas. They knew that their countries could work together more efficiently on every front, social, political and economic, to promote democracy, development and growth.
At the Miami summit of the Americas in 1994 leaders endorsed a declaration and plan of action that expressed their common commitment to strengthening democracy and creating greater prosperity. They also committed themselves to practical measures to improve health care, to increase access to quality education, to protect biodiversity, to take collective action against the scourge of drugs and corruption, and to expand and deepen the dialogue with civil society on regional priorities.
At the second summit in Santiago in 1998 this co-operation was carried forward and deepened. Once again leaders endorsed action to support the development of democratic institutions, protect human rights, and enhance transparency and respect for the rule of law. They gave specific instructions to begin the process of negotiating the free trade area of the Americas. Once it is complete the FTAA will be the world's largest free trade area.
The summit of the Americas process offers numerous opportunities to further enhance Canada's openness to the western hemisphere. The FTAA is one of the most tangible opportunities on the economic front with its potential for enhanced market access for Canadian exports.
If there is one sector where new access could lead to significant benefits for Canada and Canadian business, it is services. The services sector is a key engine of Canada's economy. It is responsible for more than two-thirds of Canada's GDP, almost three-quarters of employment, 10.5 million jobs and nearly 90% of new job creation in Canada. It is leading the transformation of the Canadian economy into a knowledge based economy.
Many employees in the services sector are highly educated and enjoy weekly earnings well above average. Services are at the heart of Canada's innovative society. For example, telecommunications, financial services and technical business services are among the most innovative industries in Canada.
As a leading trading nation Canada counts on its services exports to strengthen its prosperity. Not counting Canada's direct investments abroad in services companies, Canada is the 12th largest exporter of services in the world, exporting some $51.8 billion worth of services in 1999 alone.
Canadian companies like SNC Lavalin, Teleglobe, Enbridge and Hydro-Québec are among the world's leaders in their fields. Their expertise is sought across the hemisphere.
Those services exports only account for 12% of total Canadian exports. Canada's trade in services is increasing at a much faster pace than our trade in goods. Given the importance of trade for our economy we can say without fear of exaggeration that improving market access abroad for our services providers is vital to sustaining our prosperity.
The argument for supporting Canada's services exports is particularly strong when it comes to the Americas. Canada's commercial services exports to FTAA countries, excluding the United States and Mexico, were worth $1.9 billion in 1998, up from $787 million in 1993 and growing at an average annual rate of 19% during that time. Countries such as Argentina, Chile, Costa Rica, Venezuela, Colombia and Brazil are all key existing or potential export markets for Canadian services providers.
Three sectors are particularly noteworthy: telecommunications, financial services and engineering services. The Canadian telecommunications sector is enjoying tremendous success, exporting services valued at over $2 billion per year and employing some 104,000 people. As a consequence, since 1993 the sector has been growing by over 9% per year.
Canadian exporters of telecommunications services face market access and regulatory restrictions in some countries of the hemisphere in part due to the presence of telecommunications monopolies in addition to a lack of transparency, predictability and timeliness in the process for awarding operating permits and licences or prohibitive fees for licensing or interconnections. Reducing such barriers would significantly increase export opportunities for Canada's telecommunications companies.
In recent years Canada's financial institutions have been very active in Central and Latin America. One leading example is Scotiabank which is active in Argentina; Chile, where its subsidiary is the seventh largest bank in the country; Brazil; Costa Rica; Belize; El Salvador, with 33 branches in that country alone; Guyana; Panama; Peru; Uruguay; and Venezuela.
Another good example is the National Bank which recently teamed up with three U.S. venture capital companies and a local Chilean partner to form the Corp Banca Consortium to purchase banking institutions in South American countries. The same is true for the insurance sector. Our insurance companies have in fact identified Latin America as a growth market for the future.
Another sector where Canadian expertise is renowned around the world is engineering and other related services. Canada is currently the world's third largest exporter of engineering services. The very high calibre of Canadian engineers is internationally recognized. Business opportunities are significant, especially in Central and Latin America where Canadian engineer expertise in resource based, energy related and infrastructure projects is in high demand.
In this regard Hydro-Québec's recent acquisition of Chile's Transelect, which owns 50% of Chilean power transmission lines, is a good example of the type of business opportunities the countries of the western hemisphere have to offer. This is why Canada is actively participating in services negotiations under the free trade area of the Americas.
Canada has much to gain from the establishment of a comprehensive set of rules on trade and services under the FTAA. Canada's general objective in the services negotiations is to seek improved market access for Canadian services providers under a transparent and predictable rules based system. In the elaboration of FTAA rules on services Canada will be guided by its existing rights and obligations in the North American Free Trade Agreement, the Canada-Chile Free Trade Agreement and the WTO General Agreement on Trade in Services, more commonly known as GATS.
These objectives can be achieved without putting at risk the values all Canadians cherish. The FTAA services chapter will allow countries to file exceptions for those measures they wish to maintain. In addition, and I wish this to be very clear, nothing in these negotiations will jeopardize our health and public education systems. They are not negotiable.
We have heard fearmongering as late as today at the Standing Committee on Foreign Affairs and International Trade. It is absolutely ill-founded, incorrect scaremongering to suggest that our public health system and our education system are on the table. They are not negotiable.
I have shown how much services and service exports contribute to the dynamism of the Canadian economy. I have shown how world competitive Canadian telecommunications, financial services and engineering services, to name only three sectors, look to the Americas for their market growth. I have tried to show how we will shape the rules of the game to achieve our objectives without imperilling the things we hold dear.
Let us join the hemisphere's leaders in having confidence in ourselves and in our region. We now have the stability, the transparency and the economic growth record that allows trade to increase and thrive. The countries of the region are good economic partners for Canada and for each other. For all of us, the FTAA is a vote of confidence in our common future.
I appreciate the opportunity to participate in the debate. I can tell the House that the Minister for International Trade, the Minister of Foreign Affairs and I are taking very careful note of what hon. colleagues raise this evening.