Mr. Speaker, it is a great pleasure to rise in the House today to talk about the Canada-Honduras free trade agreement.
As we know, our Conservative government is committed to protecting and strengthening the long-term financial security of hard-working Canadians. The creation of jobs and economic growth for the benefit of Canadian businesses, workers, and their families continues to be our focus. That is why we will continue to deliver pro-export leadership.
In 2012, Canada exported almost $39 million worth of merchandise to Honduras. Trade with Honduras creates jobs and economic growth for Canadians. This is a high-quality, comprehensive agreement that would increase trade and investment between our two countries. Canadian exporters have an excellent opportunity to expand as Honduras markets grow, with GDP growth reaching almost 4% in 2012. The government is steadfastly committed to promote free trade in order to support economic growth and to create jobs for Canadians. To this end, our government has embarked on one of the most ambitious pro-trade plans in Canadian history, and this agreement is an important part of that plan.
Today I would like to spend a few minutes talking about the new export opportunities this trade agreement would provide to Canadian producers, processors, and manufacturers. Once implemented, the agreement would improve market access for Canadian goods into Honduran markets by lowering trade barriers, such as tariffs, which would increase Canadian exports to Honduras. Soon Canadian businesses will enjoy the same access to Honduran markets as those in the United States and the EU, which already have trade agreements with Honduras in force.
This agreement would help level the playing field and maintain the competitiveness of Canadian companies doing business in Honduras. Today Canadian exports to Honduras face an average tariff of 10.5% for agricultural products and 4.5% for non-agricultural products. Once the Canada-Honduras free trade agreement is in place, Honduras would immediately eliminate tariffs on almost 70% of its tariff lines covering goods imported from Canada, with most of the remaining tariffs to be phased out over a period of five to 15 years. The elimination of the vast majority of Honduran tariffs would benefit numerous sectors of the Canadian economy across many regions of the country.
Let us look at the impact of the agreement in detail. One sector that would see the benefits is the agriculture and agrifood sector. In 2012, Canada exported close to $3.3 million worth of agricultural products to Honduras. Canada's agriculture and agribusiness sector is innovative and competitive and is becoming increasingly focused on international markets. Trade agreements like this one help create new opportunities for Canadian producers and processors to export their high-quality products around the world.
The elimination of Honduran tariffs on agricultural products under this agreement would help Canadian exporters gain new market access in Honduras. This would mean more jobs and economic opportunities for Canadians. Since the range of products produced throughout Canada that would benefit from this agreement is so wide, allow me to mention just a few examples.
This agreement would eliminate the Honduran tariffs of up to 15% on pork. This is outstanding news for our hard-working farmers in Ontario and Quebec. Likewise, the removal of tariffs of 15% on beef would benefit producers in Alberta and Saskatchewan, while the elimination of tariffs of up to 15% on processed potato products, including french fries, would bring positive impacts to growers and processors in Manitoba, New Brunswick, and even Prince Edward Island. Saskatchewan producers also stand to gain from this agreement with the elimination of the 5% tariff on linseed oil.
Companies producing plastics and chemical products are employing Canadians throughout our country. Companies located in Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, and Saskatchewan are already exporting Canadian products to Honduras. In 2012, Canada exported $9.1 million worth of chemical products and almost $937,000 of plastics to Honduras. With tariffs of up to 15%, it is not hard to imagine how the complete elimination of Honduran tariffs in these two sectors could allow Canadian companies to enjoy enhanced market opportunities to export a diverse range of products.
Canada is a renowned worldwide manufacturer of high-quality wood and pulp and paper products. Our country is blessed with vast and abundant forest land, and our companies and workers possess the expertise to transform the natural resource into value-added products. In 2012, Canada exported $1.2 million worth of forestry products to Honduras. Again, considering that Honduras maintains a tariff as high as 15% for these products, Canada's past exports in this sector are only the tip of the iceberg of what could possibly be exported in the future. The elimination of all tariffs by Honduras in this sector would unleash important gains for Canadian forestry products.
Other products that would benefit from this agreement are vehicles and auto parts. Manufacturers in Ontario, for instance, could seize new export opportunities that would be created by this agreement.
Canada has exported products such as specialty vehicles, including tractors, buses, and construction vehicles, and automotive parts to Honduras. While some automotive parts and certain types of vehicles already enjoy duty-free access to Honduras, there are tariffs ranging from 5% to 15% that are applicable. With this agreement, they would be completely eliminated.
Canada has one of the world's most valuable commercial fishing industries. While Canada's exports of fish and seafood to Honduras have historically been low, Honduras' high tariffs of up to 15% for these products are certainly a factor that has contributed to this situation. The complete elimination of Honduran tariffs under the agreement would allow Canadian fishers and fish and seafood processors from Nova Scotia and Newfoundland and Labrador, for instance, to fully capture the export opportunities the Honduran market has to offer.
This agreement is about creating future opportunities for our exporters and producers to grow and diversify their markets. Our government is creating the right conditions for this to happen. Knowing the ingenuity of our companies and how innovative and hard working Canadians are, we know that removing trade barriers, including tariffs, stimulates job creation and achieves economic prosperity for all Canadians.
Allow me to touch briefly on the various sectors that comprise our advanced manufacturing industry. I am talking here of sectors as varied as aerospace, industrial machinery, and information and communication technology. Again, Honduras applies a high 15% tariff on imports of products in these sectors, which can certainly hinder Canadian competitiveness in that market.
The agreement would completely eliminate all Honduran tariffs on these products, which would allow Canadian companies to take advantage of these new possibilities. Manufacturers in British Columbia, Alberta, Manitoba, Ontario, and Quebec can expect to enjoy these positive benefits.
There are many more examples I could cite, but the fundamental point is that comprehensive tariff elimination under the Canada-Honduras free trade agreement would create the potential for increased Canadian exports to Honduras. This would mean more jobs for Canadian families and more prosperity for our economy, and it would benefit every part of our country.
Throughout the negotiations for this agreement, government officials consulted with a wide range of stakeholders, and the message was clear: Canadian companies and exporters look forward to the implementation of this agreement and the benefits it will create.
Canadians value the real and tangible benefits that free trade brings to our country, and that is why Canadian companies support our government's initiative to forge new trade opportunities around the world. Our businesses deserve the right to compete on a level playing field with their U.S. and E.U. counterparts as they market around the world.
I had the opportunity to be in Honduras. I went to see a manufacturing company called Gildan, which manufactures clothing in Honduras. It is a Canadian company that has done very well there. As we toured the plant and facilities there, we could see that it was a first-class, very well-run facility that Canadians could be proud of. It was something we might see in downtown Montreal, downtown Toronto, or any other place in Canada, because the company was allowed to use the codes and the regulations used in Canada.
The workers from Honduras would travel for miles to apply for work there, because it provided economic benefits for them and their families. We talked to some of the employees. They really understood the importance of trade and what it meant to them personally and to their families. It allowed them to provide a good quality of life and a good income for their families. Those are some of the benefits we will see in Honduras as we do more trade with that country.
I also have beef producers in my riding who bring in workers from Honduras. They are some of the best workers they have.
As we look at the connections between Canada and Honduras and Canada and other Central American countries, they are getting closer all the time, and we are learning from each other. They are learning from us what is acceptable and what is not acceptable as far as human rights and things like that, and we are learning about their needs and requirements and how we could help them become better individuals. Not only that, but their country could become one of the more outstanding countries. Somewhere down the road, they can look back at their history and say that they were there, and look where they are today. Canada can help them get there.
Mr. Speaker, I appreciate the time to speak on this agreement, and I look forward to the questions.