The member is deserving of applause. Let me tell my colleagues that they should also feel comfortable interrupting my comments with their applause at any time throughout my remarks.
Let me talk about the success of the blue sky policy. So far, the government has negotiated 70 reciprocal air agreements that allow foreign carriers to provide choice to Canadian passengers and Canadian carriers to reach foreign markets. This means lower prices and more travel opportunities for Canadian vacationers. It means more job-creating and wealth-generating opportunities for Canadian airline companies.
Our government's policy approach to air transport negotiations with other countries has involved a proactive effort to expanding these agreements. It seeks to negotiate reciprocal open sky agreements when it is in the overall interest of Canada. We promote long-term sustainable competition in this important sector of our economy because it is when choice and options for travellers and shippers grow that the benefits flow to the Canadian people. The policy is therefore pro-consumer in its outlook.
Embedded in the policy are the particularities of the Canadian aviation system. We have a low population density and a large territory. All of our carriers are private companies. We commercialized our main airports and we are now liberalizing our relationships with international partners in an orderly fashion.
The decision by successive governments, Liberal and Conservative, over the last two and a half decades toward a liberalized, free enterprise, pro-market air transportation system has been an unmitigated success for the country. Our airports prior to this transformation were money sucking state-supported institutions that were dilapidated and had fallen behind. Now, if we look at the enormous success of our airports, they actually employ more people, provide far greater traffic and they are recognized as some of the best in the world. The Ottawa international airport, under the wise leadership of Paul Benoit, has been one such example.
However, the success in commercialization and liberalization should not stop there. We need to expand its reach so that the Canadian people can benefit from literally a world of choice when seeking air carrier options and Canadian air carriers can benefit from a world of consumer demand.
Canada is at the forefront of letting market forces determine the level of air services. This also means that we pay attention to situations that create an unlevel playing field for the industry. We have carefully and prudently analyzed country by country and we have managed to conclude that 70 countries are compatible with us for these air agreements.
In this context, the blue sky policy is not a one-size-fits-all approach to air transportation. We evaluate each on its own merits to determine how far we will go. We consider the commercial interests of Canadian carriers and airports; the likelihood and extent of new Canadian and foreign services, giving preference to early start-ups; the size and maturity of air transportation markets and potential for future growth; foreign governments' requests for negotiations; Canada's trading objectives; safety and security; and Canada's foreign relations.
Our policy puts a legal framework within which carriers make their own decisions based on their commercial considerations. We do not dictate which airline will offer service and where. Instead, we will negotiate an air transportation agreement and work closely with our partners to ensure carriers make use of the flexibility offered to them. In other words, we are unleashing the power of free market competition to create jobs for people who work for the airlines and choice for the passengers who fly on them.
The results speak for themselves. Canada is now at a point where 72% of our international passenger traffic is covered by an open agreement. Before blue sky, we had an open agreement with two partners. We now have open agreements that cover more than 43 countries.
In addition, Canada has concluded or offered open agreements to countries representing collectively 91% of our international two-way merchandise trade. This is proof that the implementation of the policy has supported our trade objectives.
The implementation of the policy has also benefited the tourism sector. All of the priority markets of the tourism commission have been added to the expanded air transport agreements. In 2011 alone, Canada expanded agreements with Brazil, Mexico, Japan and China, which will be the largest outbound tourist market in the world by the end of this decade. In the future our efforts will continue, with focus on Asia and Latin America.
The policy is consistent with a number of our economic action plan objectives. It expands trade, builds on the gateways and corridors initiative and reaches out to the Americas.
Stakeholder engagement is key to the implementation of this process. For example, aviation industry stakeholders are regularly consulted and they have been supportive and have formed part of the process.
Several foreign airlines have either entered or expanded their services into Canada. For their part, Canadian carriers have increased their total number of outbound international flights by 56% since 2006 and the number of direct international destinations by 11%. These are the results of an open, free enterprise, global trading economy that we are building in this country.
I will close by pointing to the conclusions of this evidence. Free enterprise competition expands choice for consumers, opportunity for investors and jobs for employees. We must always look for opportunities to knock down the barriers of government, to expand freedom for Canadians and to allow the prosperity that always comes with freedom to bless our land.