Mr. Speaker, I am pleased to rise today in the House to talk about the Canada-Honduras free trade agreement.
Our Conservative government has made very clear the priority it places on implementing free trade agreements that will help Canadian business compete in overseas markets. In an export-driven economy, Canadian companies, producers, and investors grow when they have greater access to international markets. One in five jobs in Canada are related to trade. It is clear that jobs in communities across Canada depend on the business we do with other countries.
Our Conservative government committed to protecting and strengthening the long-term financial security of hard-working Canadians, and this is why this government has established the most ambitious pro-trade plan in Canadian history. We recognize that bilateral and regional trade brings ever-increasing prosperity to Canada and Canadians.
By signing these trade agreements, the Government of Canada helps increase the export of Canadian products to rapidly growing markets around the world, such as Honduras. Deepening our trade relationship with these emerging markets is important for jobs and for the long-term prosperity of the Canadian economy. Trade agreements promote Canadian exports to foreign markets by increasing the flow of products to FTA partners. In fact, statistics demonstrate that trade flows more than double with our FTA partners after 10 years.
Numerous studies have demonstrated the positive impact of trade agreements on various sectors of the economy. For example, it has been shown that the free trade agreement between Canada and the United States led to an improvement of 13.8% in productivity in the Canadian manufacturing sector, a remarkable trade-related achievement. In turn, this increase in productivity led to higher wages and higher standards of living.
The Conservative government understands that by improving access to foreign markets for Canadian businesses, we are supporting domestic economic growth and are creating new opportunities for Canadians. The benefits these trade agreements provide are clear. That is why our government is in the midst of the most ambitious pursuit of new and expanded trade and investment agreements in Canadian history.
Since 2006, Canada has concluded free trade agreements with 10 countries: Colombia, Jordan, Peru; the European Free Trade Association member states of Iceland, Liechtenstein, Norway, and Switzerland; Honduras; Panama; and most recently, South Korea. As well, the historic agreement with European Union represents the most significant trade initiative since the North American Free Trade Agreement and could potentially boost our bilateral trade with this important partner by 20%. It would also provide a $12 billion annual boost to Canada's economy, which is equivalent to a $1,000 increase in the average Canadian family's income, or almost 80,000 new jobs.
At a time of such economic uncertainty, Canadian companies welcome the many benefits a Canada-EU trade agreement would bring. We are also intensifying our focus on the Asia Pacific region. On October 8, 2012, Canada officially joined the trans-Pacific partnership. This initiative is currently being negotiated by a group of 12 countries, which includes Australia, Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, Vietnam, and now Japan. TPP membership will bring jobs, growth, and prosperity to hard-working Canadians. The potential benefits of this initiative are enormous. The TPP market represents more than 658 million people and a combined GDP of over $20.5 trillion.
Just last week, the Minister of International Trade announced the launch of the fifth round of negotiations toward a free trade agreement with Japan. In addition, Canada is working to modernize its existing bilateral free trade agreements with Chile, Costa Rica, and Israel. These were signed under the former Liberal government, so of course we need to improve them.
All these initiatives are critical for the economic future of our country. To grow at home, Canadian enterprise must be allowed to succeed abroad. It must be able to compete in a predictable, transparent, and rules-based trading environment. More importantly, Canadian firms must be able to compete on a level playing field. They must not be at a competitive disadvantage in markets where other countries have trade agreements in place.
There are a growing number of countries where Canadian companies are at a competitive disadvantage, because their competitors have preferential market access under some form of preferential trade agreement. This is precisely what will continue if we do not sign these trade agreements. Honduras is an example of this.
While the House debates the merits of a trade agreement with Honduras, the United States and the European Union are moving toward implementation of their respective trade agreements with this prosperous economy. The United States-Honduras trade promotion agreement entered into force in 2006. Honduras signed a free trade agreement with the European Union that entered into force on August 1, 2013.
Many Canadian goods and services are in direct competition with those of the United States and the European Union in Honduras. Those trade agreements will provide American and European firms with preferential access to the Honduran market for a number of products that are key exports of Canadian firms. Right now, Canadian firms exporting goods such as frozen french fries, pharmaceuticals, pulp and paper, and vehicles are at a competitive disadvantage. They continue to face difficulties because products from the United States enjoy preferential access.
In my home province of Saskatchewan, export sectors include linseed oil, industrial machinery, plastics, pulses, and beef and pork. All of these sectors would have preferential access after ratification of the agreement.
Canada cannot afford to sit on the sidelines while other countries vigorously pursue trade deals to secure better market access for their products and services. The Conservative government will not stand by and let Canadian companies compete on an uneven playing field. It is imperative that we implement the Canada-Honduras free trade agreement to ensure that Canadian companies remain competitive in the Honduran market and reap the benefits of this trade agreement.
The benefits to Saskatchewan and to all of Canada that would be generated from this trade agreement are very clear.