moved that Bill C-31, an act to establish the Department of International Trade and to make related amendments to certain acts, be read the second time and referred to a committee.
Mr. Speaker, today I have the great pleasure of rising to speak on the legislation that would formalize the establishment of the Department of International Trade. In this work, I am very pleased to have the assistance of the parliamentary secretary for new and emerging markets.
On December 12, 2003 the governor in council passed an order separating the Department of Foreign Affairs and International Trade into two separate departments.
The legislation before us today would codify the changes made by that order. It would mark a milestone in the creation of the departments which have been functioning independently since the Prime Minister's announcement more than a year ago.
The purpose of the new department is simple: international trade and wealth creation for Canadians.
International policy is an extremely complex and multi-faceted area, bringing together aspects as varied as human rights, development, diplomacy, defence, international security and trade.
In this new century, Canada's active involvement in the global arena must rest on integrated strategies that take into account the relationship between these various aspects. In our department, however, our priority is obviously international trade.
Bill C-31 would establish a Department of International Trade headed by a minister responsible for the overall direction of the department, both in Canada and abroad. The powers, duties and functions of the minister are set forth in clauses 6 and 7 of the bill stating in particular that:
6.(2)--The minister shall--
b) conduct and manage international negotiations;
(c) conduct and coordinate Canada’s relations regarding international trade and commerce and international investment;--
(e) foster the development of international law and its application as it relates to Canada’s international trade and commerce and international investment--
- The Minister may, with the approval of the Governor in Council, enter into agreements with the government of any province or any of its agencies respecting the carrying out of programs--
Behind these words lie the realities of our new global economy. It is a world in flux, with business internationalizing at a dizzying pace and carrying us along with it. Trade investment and all other elements of modern commerce fix us firmly in that economy, from science and technology partnerships to licensing arrangements, from geographically dispersed design and innovation and thousands of small and medium-sized firms through to global distribution of world renowned goods and services. We prosper as a nation because we do well in the global economy. It is that prosperity that gives us the choices that make us who we are in social programming, in culture, in sustainable economic development, and all the myriad contributors to that very high quality of life that makes Canada the envy of people around the world.
Continuing to succeed in international commerce is not a matter of chance. It is a matter of vital interest to all Canadians, and that is why the bill is before the House, to create a Department of International Trade to champion our international competitiveness through negotiations, through commercial relations and the expansion of trade, commerce and investment, through the security of a fair and transparent legal regime, and through programs delivered with our partners in the federal government, the provinces and territories, the Canadian business community and other stakeholders.
I remind hon. members that exports lie behind one in four Canadian jobs, that exports of goods and services are 38% of our GDP, or nearly a trillion dollars per year, and that two-way trade with the U.S. is running at over $1.2 million a minute. The stock of foreign investment in Canada now tops $357.5 billion and, more important perhaps, direct investment by Canadians abroad is now nearly $400 billion.
There is not one business in Canada which does not depend directly or indirectly on export sales or imported input, foreign technology, the skills of our immigrants or, in a nutshell, one aspect or the other of international trade. There is not one Canadian who does not contribute in some way to the global economy. Even in our trade with the United States, we supply them and, in turn, they supply the world.
That is how Canadian avionics ends up onboard the European Airbus. The same is true of the operation of our supply lines here, in Canada. While a growing number of businesses are turning to the foreign market, others are selling their services on the domestic market without realizing that they are contributing to the international competitiveness of their clients.
Canadian prosperity is anchored in our global economy, and that is why the government has made a priority of sustaining our international competitiveness. The last Speech from the Throne challenged Canada to elevate its economic performance to the next level through a commitment to excellence, a vision directed outward to the challenges and opportunities the world presents.
International trade and investment is one of those five key elements that were outlined. Even if International Trade Canada will not exist in law until the bill is passed, I can assure the House that we exist in fact and we are hard at work helping Canadians meet the challenges of our modern economy. We have tools for all critical business needs, beginning with the front line cultivation of leads and contacts and business intelligence for our clientele delivered to 1,200 registered Canadian business clients through the department's virtual trade commission.
The tools are only as useful as the purpose they serve. Ours serve in particular to secure and improve access to the North American market and to ensure that Canadian businesses have access to opportunities increasingly found in new economic powers such as China, India and Brazil.
We want to position Canada advantageously in global value chains through innovative approaches and through closer economic cooperation with established economic powers like the EU and Japan.
This work is not just carried out abroad. It is hard to determine the true boundaries of our economy. That is why, in keeping with the approach set out in the Speech from the Throne, we are working to ensure that no internal factor contributing to innovation and competitiveness is neglected. If we do not succeed nationally, we cannot succeed internationally.
I would like to remind the House of some of the challenges we face and some of the things we have done.
First, thanks to our continuing close partnership with Foreign Affairs Canada, and I appreciate the cooperation and goodwill of my colleague, the Minister of Foreign Affairs, we have managed an important and complex transition while improving our level of service to business. The department now services our clientele from 12 regional offices across Canada and through our trade offices in over 140 cities worldwide.
We are deepening our partnerships with business, provinces, territories, municipalities, and other stakeholders. I shall personally be meeting with my provincial and territorial colleagues in Winnipeg in 10 days to exchange advice and perspectives on international commercial challenges and opportunities. This is part of our ongoing dialogue with all Canadian stakeholders.
I would add that the hon. members have been and—I hope—will continue to be independent sources of advice in the pursuit Canada's strategic objectives in international trade.
I am grateful that the subcommittee, chaired by the hon. member for Scarborough Centre, will be undertaking nationwide hearings on these issues.
Our key economic partnership is with the United States and our relationship with Mexico is rapidly gaining in size and maturity.
The Prime Minister and President Bush agreed last December that we had to break the vicious cycle of protectionism that has clouded the effectiveness of the NAFTA dispute settlement mechanisms in areas such as softwood lumber, but the political weight of protectionist interests will not just go away: we need to cultivate allies, to show how two closely knit economies jointly facing an increasingly competitive global environment cannot allow these aberrations to happen.
Accordingly, we have continued to increase our representation in the U.S. regions under the ERI, under which we have opened seven new consulates and upgraded two more to consulates general. This strategy allows us to extend our ability to advocate for Canadian interests, not just in the disputes I have mentioned but also on varied and important subjects such as energy or access for our agricultural commodities such as wheat, beef and swine.
This initiative will help us forge closer ties with opinion- and decision-makers across the U.S. and I plan to build on this solid base by personally leading advocacy days in key U.S. centres. I look forward in this endeavour to the active participation of parliamentarians from all parties.
Looking to the future, the Prime Minister and President announced a new partnership, a partnership for prosperity and security. The commercial component aims to expand our opportunities by making our businesses more competitive in the global marketplace. This builds on decisions by my NAFTA counterparts and me, dealing with the NAFTA work program itself.
Another accomplishment of the past year was the launch of the Canada-Mexico partnership. This provides opportunities for small and medium sized enterprises, enhances trade and investment flows, promotes links among cultural, research and academic groups, and increases our respective economies' global competitiveness, all within the North American context.
In planning for the future, we cannot lose sight of what is important today. We have defended Canada's interests in softwood lumber by taking action through NAFTA and the WTO and by working in close cooperation with the provinces and the industry. We have achieved some success. We will maintain our resolve while being flexible in our determination to find a lasting and fair solution to this problem.
We will use the tools at our disposal to defend the interests of our wheat farmers, among others, who are faced with American protectionism.
Canadians have important interests in many areas of the world, from Austria to Chile, from Russia to the Arabian gulf. I would like to speak, however, about the European Union and Japan, which are truly important economic partners for Canada on trade and investment and on science and technology grounds, to say nothing of how they, like the United States, are movers and shakers in the value networks that increasingly characterize world production.
We agreed on a framework for a Canada-EU trade and investment enhancement agreement last March to consolidate and extend the economic partnership in ways that complement the WTO's market access focus. We both now are negotiating mandates.
The U.K., Germany and France and other European states are among our most important partners and investment goals. This is a relationship clearly worth investing in. Equally important are the bilateral discussions launched with Japan to structure a new framework for enhanced economic relations.
I am also developing an aggressive new approach to positioning Canadian business in emerging markets such as China, India and Brazil, as well as other partners strategically positioned in relation to them, such as Korea. To shape this strategy and assess priorities we have conducted consultations, including recent round tables with business, academics and civil societies. This dialogue is ongoing.
We are already taking measures to expand our options. The Prime Minister announced the opening of exploratory talks on a possible free trade agreement with Korea. I have already sent a team to get the discussions underway.
Last year we resumed talks with China and India on negotiations for protecting investments. In November, I headed a trade mission to Brazil. I have just gone back to China, where I accompanied the Prime Minister and I foresee sending a trade mission to India in early spring. The hon. Gar Knutson, the Minister of State for International Trade for New and Emerging Markets, led a trade mission to Central America.
As well, the hon. parliamentary secretary for new and emerging markets undertook a recent trade mission to Syria, the U.A.E., Qatar, Yemen and Egypt.
There is much more I could mention, from the World Trade Organization's Doha development agenda, to other elements of our activist trade and investment policy agenda, to the very way my department is being organized to seek out and deliver new solutions in support of various client groups such as SMEs, various drivers of competitiveness like science and technology and investment, and various challenges to be overcome on the way to success in established and in emerging economic partners.
There will be other opportunities to discuss broad strategy or specific issues such as the annual trade update. Right now I look forward to working with all members of Parliament to promote Canada's prosperity through enhanced trade and investment, and I humbly seek members' support for this bill, Bill C-31, so that the important work we are doing together might continue.