Mr. Speaker, I appreciate the opportunity to speak to this piece of legislation again. Having been involved in not quite all of the hearings of this committee, which have been fairly extensive with over 130 representations by around 100 witnesses, the international trade committee has studied the Canada-Colombia free trade agreement in a very thorough and solid way.
This trade agreement is good for Canada and that is the predominant reason why we as members of Parliament should vote to support this trade agreement. In particular, this trade agreement is really good for agriculture, an industry that is of prime importance to my province of Saskatchewan. The way that this free trade agreement is structured there will be an immediate elimination of certain tariffs on certain agricultural products that come from Canada. This would affect our lentils industry, barley, wheat, oats, grains which are predominantly not produced in Colombia, but grains that we compete against other countries such as Argentina, Brazil and the United States in exporting to Colombia.
This is very important because it deals with one of the criticisms that opponents have made against the agreement, that it will somehow devastate small Colombian farmers. To those critics I should point out that under the structure of the small Colombian farm, the predominant crop is beans. Under this agreement the Colombian government rather prudently protects its small one, two, three acre farmers with a much slower 20-year reduction of the tariffs on beans. Since Canada does not export great amounts of beans to Colombia, it is not of major importance to us.
This agreement is also good for Canada because it helps our manufacturing industry. While we do not always think of ourselves as being in head-to-head competition with the United States when we export Ford, GM or Chrysler products, in the situation with Colombia we right now face the same tariff, but that tariff would be eliminated. So car dealers and car manufacturers from southern Ontario will be able to export and the 35% tariff would be eliminated, so they can then export directly into the Colombian market. This will give them a massive advantage over United States exporters who wish to follow up, particularly as the United States Congress is dragging its feet when it comes to the implementation of its free trade agreement.
One of the advantages that has not be noted too often in this debate is the advantage that Canada will incur under this agreement in the area of services. Services as investments are important engines of the Canadian economy. For example, the service sector contributes to 71% of Canadian GDP and three out of four jobs. There will be opportunities in Colombia for Canadian companies in areas such as financial services, legal services, engineering, architecture and high technology. Canadian service providers are already providing services to help develop the Colombian economy, estimated to be about $80 million to $85 million per year.
This is important in areas such as engineering. Colombia is a country that has had severe civil wars over the last many decades, but it is starting to rebuild its infrastructure. If anyone has been there recently there are highway construction projects. The building of infrastructure in Colombia is very important and Canadian engineering firms can be a part of that development. Therefore, being able to recognize credentials back and forth would save both Canadian and Colombian providers time and of course money.
This agreement removes barriers to entry at the border such as quotas and labour market evaluations which makes the entry of investor service providers and traders into both countries easier. With the ability to move key personnel to different positions with reasonable timeframes, businesses can operate more successfully.
We already know that this agreement gives Canadian service providers greater access to the Colombian marketplace than ever before. It is therefore now time to ensure that Canadian service providers can take advantage of these opportunities and remain competitive in the Colombian market by passing this agreement.
At the end of 2009 the stock of Canadian direct investment in Colombia was $773 million and this trade agreement will establish a stable legal framework for Canadian investors in Colombia. Strong obligations will ensure the free transfer of capital and protect against expropriation without prompt and adequate compensation.
Another element of this free trade agreement is the recognition of the role of governments to promote corporate social responsibility principles with investors. We had the privilege in committee of listening to corporations, including the largest mining company in the country of Colombia, and what it is doing to promote education and social well-being in and around the regions where it works. It was encouraging to hear about the development, to hear that Colombian enterprises, on average, re-invest 3% of their sales into corporate social responsibility compared to 1.5% in Europe, for example.
Overall, investment links mean 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. Investment with our partners, inwardly and outwardly, is incredibly important and that is certainly the case with Colombia.
Over the last few years we have seen increases in the security and stability of Colombia, and that has been important. These are some of the factors that are helping to drive Canadian investment in this new frontier market with new opportunities.
Canadian investments in Colombia are expected to grow, particularly in the oil and gas and mining sectors, and Canada has significant interest and expertise to offer our Colombian partners going forward. For Canadians and Colombians alike, the free trade agreement offers an unprecedented level of stability, predictability, and production to assist in taking our investment relationship to a new level in the years ahead.
Since the beginning of the global economic downturn, this government has been very clear that trade and investment hold the key to world economic recovery. That is why the government is continuing to move forward with aggressive free trade agendas around the world that put a focus on creating new partnerships with key nations around the world.
To create new commercial opportunities around the world, we need to do everything we can to open the door for Canadians and that includes promoting free trade agreements, not just with our traditional partners in Europe and the United States but everywhere around the world.
I would like to deal with some of the criticisms that have been addressed in regard to this agreement. While I believe that the predominant purpose of the House is to vote according to the interests of Canadians, the arguments against this legislation have been based on the fact that it is a bad deal for Colombians.
Having watched the results of the first round of the presidential election and the elections for congress earlier this year, I am a little puzzled as to why critics continue to say that because the Colombian people have overwhelmingly voted for parties and candidates who are favourable to this agreement. In fact, the two candidates in the runoff for the presidency, Mr. Mockus of the Green Party and Mr. Santos of the La U Party, are both supporters of this agreement. They both see this as enhancing the prosperity of Colombia.
Critics have said there are supporters of this agreement who have abused human rights, but I would also note that there are opponents of this agreement who have abused human rights. To argue that this is the major basis to vote for or against it is stretching logic as to why we should be for or against it. We should be in favour of this agreement because not only does it enhance the economics of Canada but also job creation for our country. It does the same in Colombia.
It makes a better life for average Canadians and Colombians. Undoubtedly, this agreement will have a greater impact on Colombia than it will on Canada, but it is a positive agreement that will help our farmers, manufacturers and service industries.
I ask all members to vote for this agreement, an agreement which respects human rights and builds the economy in both countries.