Mr. Speaker, others have mentioned in the House the many benefits this agreement would bring to Canadians. Today, I would like to speak of the importance to Canadian investors. Foreign investment is crucial to any modern economy. It not only brings with it jobs, but it increases the transfer of knowledge, efficiencies, and economies of scale to the host economy.
Foreign investment builds people-to-people ties, helps strengthen the country's competitiveness, and in turn paves the way for new opportunities for Canadian companies in dynamic fast-growing markets around the world, markets like Honduras.
Investment opportunities help Canadian companies remain globally competitive by ensuring their integration into the global economy. At the end of 2012, Canadian direct investment abroad had reached an all-time high of $711.6 billion. The value of the stock in foreign direct investment within Canada is also impressive. By the end of 2012, Canada had attracted more than $633 billion in foreign direct investment.
The global economy has faced tremendous challenges over the last few years; but throughout, Canada proved to be a safe harbour as the global economy faced challenges. It is no wonder Canada has proven to be such a draw for foreign investment.
Canada is home to 26 of the Financial Times global 500 companies. More top companies have headquarters in Canada than in Germany, India, Brazil, Russia, or Italy.
Canada has outpaced its G7 partners, with its economy growing the fastest in the last 10 years as a result of low corporate taxes, prudent fiscal management, a business climate that rewards innovation and entrepreneurship, and an open economy that welcomes foreign investment.
That being said, we all know Canada is not an island. We are not immune to the global economic turbulence. That is why we remain focused on helping create more jobs for today and tomorrow with ambitious pro-trade and pro-economic growth measures.
Canada must remain vigilant to ensure that our economic fundamentals remain strong at home and that Canadian businesses continue to have an increasing number of investment opportunities abroad. This is why it is important for us to leverage the investment relationships we have around the world with countries like Honduras.
Canadian direct investment in Honduras was estimated by Statistics Canada to be $105 million at the end of 2007. This was predominantly in the financial services and mining sectors, both of which offer strong potential for growth; and these opportunities are just the beginning for Canadian investors.
We have heard about the tremendous opportunities that exist in Honduras with respect to large infrastructure projects. These projects include the building or improvement of ports, roads, hospitals, bridges, and airports. A country like Canada, with so much expertise in these areas, can take advantage of these significant opportunities in Honduras.
Just these few examples clearly illustrate how important it is to enhance our investment relationship with countries like Honduras.
A free trade agreement with Honduras would provide investors from both countries with the benefits that come with enhanced investment protection and stability. These provisions, which would promote the two-way flow of investments, provide a range of obligations that benefit investors from both countries. They are designed to protect investment abroad through legally binding rights and obligations. The investment obligations of this agreement incorporate several key principles, including treatment that is non-discriminatory and that meets a minimum standard, protection against expropriation without compensation, and the free transfer of funds.
In short, Canadian investors would be treated in a non-discriminatory manner. This dynamic would help foster an investment relationship between our two countries and pave the way for an increased flow of investments in the years ahead.
This agreement would also provide investors with access to transparent, impartial, and binding dispute settlement.
I would like to make clear to the House, however, that while this agreement would ensure that investors and their investments are protected, it would not prevent either Canada or Honduras from regulating in the public interest with respect to such areas as health, safety, and the environment. This is the position our government has consistently taken in our trade and investment agreements.
The investment provisions also include an article on corporate social responsibility. This provision recognizes that Canada expects and encourages Canadian companies operating abroad to observe internationally recognized standards of responsible business conduct. This provision also helps level the playing field for Canadian investors when they invest abroad, by encouraging CSR principles among all investors.
Fundamentally, this agreement would send a positive signal to our trade and investment partners around the world. The agreement would enhance investment opportunities for Canadian investors in one of the most dynamic markets of the Americas. To date, Canadian companies have shown a significant interest in investing in the Honduran economy.
It is important this legislation moves quickly through this House. As time lapses, opportunities for Canadian investors are placed at risk. That is why it is critical that Canadian companies have the ability to strike while the iron is hot.
The United States is Canada's biggest competitor in Honduras, and many Canadian goods and services compete directly with those of the United States in Honduras. Our government will not stand by and let Canadian companies compete on an uneven playing field.
I encourage all members not to delay approval of the agreement. Our government has been very clear that trade and investment are vital to economic growth and the long-term prosperity of Canadians. That is why our government continues to move forward with an ambitious pro-trade plan that focuses on creating partnerships in key markets around the world.
Our government is committed to doing everything we can do to open doors for Canadians. That is why I ask all hon. members to show their support for the Canada-Honduras free trade agreement.