Mr. Speaker, last week, when discussing this issue, I talked quite a bit about the perils of protectionism and the advantages of trade. Today I will elaborate further on those components.
Trade also gives consumers more choice. We can think of all of the things that would disappear if our imports were taken away from us: food, clothing and other products that used to be, at some times, considered exotic. This is not just a question of consumers buying foreign-finished products. Imports are used as materials, components and equipment for local production. If trade allows us to import more, it also allows others to then buy more of our exports. That means that trade increases our incomes.
The advantages of trade spread to every part of our economy and touch every Canadian, from the farmer growing wheat to the engineer designing tractors, from the factory worker producing aircraft to the supplier providing aircraft parts. Trade's bottom line is our people and the jobs that it provides them with. One in five jobs in Canada is linked to international trade. We export more than half of our manufactured goods.
Let us look for a moment at our trade with the United States as an example. Canada and the U.S. are each other's most important partner in economic growth. Since the Canada-U.S. Free Trade Agreement was signed in 1988 and then NAFTA in 1992, there is no doubt that our bilateral trade has been one of the major components of economic growth.
During these two decades, Canada-U.S. trade has tripled. Investment flows have also increased substantially. Two-way trade crosses the Canada-U.S. border at the rate of $1.7 billion a day. I would just ask members to think about that scale. That is well over $1 million per minute of trade. It is estimated that over three million jobs in Canada depend on our trade with the U.S.
Given this scale of success, it is clear that protectionism is our mutual adversary. Protectionism, quite frankly, is the greatest ideological threat in this global recession. Restrictions on trade reduce real growth prospects in both the developed and the developing world. Restricting imports might look like an effective way of supporting an economic sector, but doing so biases the economy against other sectors that should not be penalized.
We are committed to respecting and upholding our trade commitments with our partners. We expect our partners to do the same.
To come out of this global recession, we need to continue to trade with as few barriers as possible. The Great Depression taught us that the downward spiral of protectionism will only lead to more dire situations. That is why our economic action plan protects Canadians during the global recession, not by restricting trade but by promoting it.
Our Budget Implementation Act revoked additional tariffs in order to increase international trade. Our plan works to create new, good jobs for the future and to equip our country for successes in the years ahead. It is designed to stimulate economic growth, to restore confidence and to support Canadians and their families during the global recession.
It takes action to build infrastructure, stimulate housing construction, and support businesses and communities. It also helps reduce taxes, freezes EI rates, and assists Canadians through the Canada skills and transition strategy. It also improves access to financing and strengthens Canada's financial system.
Members do not have to take my word for it or your word, Mr. Speaker, or even the word of other members in the House here. This initiative has in fact been praised by the International Monetary Fund, a respected international body. In a recent report, they called it “large, timely and well targeted”.
They said our immediate focus should be on implementing the budget to mobilize spending.
We are acting through the most appropriate means to protect our economy and Canadians affected by this downturn. That includes the tax system. It includes the employment insurance program. It includes direct spending by federal and provincial governments. It also includes lending by crown corporations, and it includes partnerships with the private sector.
What it does not include is a return to the perilous ideology of protectionism.
Canadians know that in this global economy we cannot simply build a fortress and lock ourselves inside. That would be destructive.
I believe the evidence before us can lead to only one conclusion. Therefore I call upon my colleagues in the House to emphatically oppose the bill which quite frankly would be dangerous to the health and welfare of every Canadian.