Madam Speaker, I am pleased to rise in the House today to talk about the Canada-Colombia free trade agreement, an agreement that is part of our aggressive free trade agenda at a time when Canadians need it most.
Since 2006, our government has continued to expand Canada's trade network around the world. We have begun discussions for trade agreements with the European Union and India. We have completed free trade agreements with the European Trade Association, Peru, Jordan and Panama. We have completed our free trade agreement with Colombia as part of our strategy to open doors for Canadians at a time when it is most welcome. The time to implement this agreement is now.
I would like to take this opportunity today to look at our relationship with Colombia through two different lenses, the lens of trade in services and an investment lens.
Let us start with the benefits of this trade agreement to Canadian service providers. From financial services, legal services, engineering and architecture to high technology, the opportunities are there. Canadian service providers already have a substantial presence in the Colombian market. Our service exports to Colombia are in the area of about $80 million to $85 million each year. Driving these numbers are Canadian financial, mining, engineering, petroleum extraction sectors and tourism.
Services sectors like these in Canada stand to benefit greatly from the new free trade agreement. They will be able to enjoy a secure, predictable, transparent and rules-based trading environment. It also gives Canadian service providers an added measure of confidence. They can now plan for the future, knowing that under this agreement, they will be treated the same as Colombian service providers.
Moreover, our two countries have agreed to begin discussions on mutual recognition agreements, starting with engineering, that allow for our standards and qualifications to be recognized in each other's country. This will save service providers in both nations time and money and let them get to work more quickly in each other's market.
For these reasons, our free trade agreement with Colombia provides a great opportunity to take our current trade in services to a new level in the years ahead. Our services sector is an engine of our economy. In total, it is responsible for 71% of our gross domestic product. Development of new market opportunities is our priority. Helping the Colombian government on the trade and investment front is a way to do this. For Canadians during this period of global economic uncertainty, it is important to keep markets open.
The free trade agreement with Colombia will help increase the competitiveness of Canadian exporters at a time when they need it most. The free trade agreement with Colombia will engage rather than isolate Colombia to ensure a brighter future.
These are just some of the factors driving Canadian investment into the Colombian market. Free trade accounts for three in four Canadian jobs. That is why I am so pleased to see that our free trade agreement with Colombia opens up many new doors for Canada's services sector.
We already know that this agreement gives Canadian services providers greater access to the Colombian marketplace than ever before. It is now time to ensure that Canadian service providers can take advantage of the opportunities and remain competitive globally.
I would like to look more closely at what the Canada-Colombia free trade agreement means for Canadian investors. Two-way investment is an absolutely critical driving force in today's economy. Investment links our business to global value chains and to the technology and expertise they need to forge a wide range of commercial links with our partners around the world. That is certainly the case for Canada.
At the end of 2008, Canada was a net provider of foreign direct investment, or FDI, with the overall stock of Canadian FDI valued at approximately $637 billion. The inward stock is impressive as well, with foreign-held direct investment in Canada totalling $509 billion that same year.
Investment with our partners, inward and outward, is enormously important. That is certainly the case with Colombia. The Colombian workforce is highly skilled, qualified and trained, giving global investors, including Canada, more and more confidence in the Canadian marketplace as well as the Colombian marketplace. Thanks to the dedication of the current Colombian government, we see steady improvements in the security and stability of Colombia, to the point where the stock of Canadian investment in Colombia reached over $1 billion in 2008.
We expect this number to continue to grow over the next two years, thanks in great part to Colombia's burgeoning oil and gas and mining sectors and to Colombia's great need for infrastructure.
These are just a few areas where Canada has significant interest and can offer a lot to our Colombian partners going forward. Therefore, it should come as no surprise that our investment relationship with Colombia figured prominently in our free trade negotiations.
For Canadian and Colombian investors alike, the free trade agreement offers an unprecedented level of stability, predictability and protection, one that will help us take our investment relationship to a new level in the years ahead. The agreement establishes a stable legal framework that gives Canadian investors the predictability they need and deserve.
At the same time, strong obligations will ensure the free transfer of investment capital and protect against expropriation. It also gives investors access to transparent, binding and impartial dispute settlement processes. In short, under the free trade agreement, Canadian investors will be treated, with very few exceptions, just as well as Colombian investors.
For Colombian investment in Canada, we have taken steps to ensure that we maintain full policy flexibility in key areas, like health and public education.
From the outset of the global economic downturn, our Prime Minister has been very clear that trade and investment hold the key to helping the world economy recover. That is why our government is continuing to move forward on an aggressive free trade agreement agenda that puts a strong focus on creating new partnerships with key nations around the world.
To create new commercial opportunities around the world, we need to be doing everything we can to open doors for Canadians and to work with our partners to help Canadians succeed. That includes service providers and investors. That is why I ask for all members to show their support for the Canada-Colombia free trade agreement not only on behalf of Colombians but Canadian investors and the Canadian economy.
One thing it is important for me to point out as a rural member of Parliament coming from eastern Alberta is that it is critically important for our beef livestock and pork sectors to have opportunities open up. The Minister of Agriculture and Agri-Food has done a tremendous job going around the world opening up new markets for our farmers and investors.
It is, however, difficult when we get these free trade agreements, which our own farmers and constituents say are tremendously important, people like Jurgen Preugschas from my riding, who is the president of the Canadian Pork Council. He came to the agriculture committee and said that they absolutely need this free trade agreement to be ratified and moved forward in the House of Commons. He explicitly looked at the NDP members of Parliament and said that this had to happen. It is free trade agreements like this that will continue to move not only our global economy to recovery but the Canadian agriculture sector to the recovery it needs and to expand and open up markets.
Opposition members often ask how much trade we really do with Colombia. When it comes to pork, it is essential to know the industry and the market and to understand that while these niche markets may not always be huge, they provide a very important market for us to send products that other countries do not necessarily want. They provide added value to our carcasses and farmers and the $1 or $2 extra that it adds on pork means a lot of money in rural Canada.
I know the NDP is predominantly a party of downtown Toronto and downtown Sudbury, but at the end of the day, we need to represent rural Canadians as well and we need to come to this place and get together.