Mr. Speaker, I am delighted to join in this debate today in response to the motion from my colleague regarding the acquisition of Stelco by U.S. Steel in 2007 under the Investment Canada Act or the ICA.
The motion calls for three things: (a) for the government to apologize to the people of Hamilton for approving the deal with U.S. Steel; (b) to release publicly the ICA commitments with U.S. Steel; and, (c) take action to ensure the pension benefits are protected.
My colleagues have clearly addressed, in both first reading and again today, why the government is against this motion. Therefore, I am not going to repeat a lot of the points that were raised by my colleagues. Rather, I rise today to speak to the importance of foreign investments to Canada's continued economic growth.
The motion suggests that U.S. Steel's current situation reflects a flaw in Canada's foreign investment policy, a suggestion that is simply not supported by the facts. Foreign investment is vital to sustaining Canada's strong record on economic growth and job creation. By introducing a competitive tax system and reducing red tape, our government has created an attractive economic climate for both domestic and foreign investment.
More competition means Canadians get goods and services at lower prices, workers can find higher-paying jobs, and Canadian businesses find themselves better equipped for success in global markets. Key to this strong business environment is Canada's foreign investment framework, promoting investments that are in Canada's interests. Indeed, the positive benefits of foreign investment are well-established. Let me outline a few.
First and foremost, foreign investment increases productivity. This is reflected in higher-paying jobs for Canadians.
Second, foreign investment provides new capital that Canadian firms need to grow and excel. New technologies and innovative business practices allow Canadian enterprises to compete on the world stage. Foreign investment is particularly critical for unlocking the full value of Canada's natural resources. It is also important for helping the manufacturing sector, which accounts for half of business research and development in Canada.
Third, foreign investment allows Canadian businesses to access the knowledge, capabilities and management expertise of world-leading businesses. This exposure can increase the productivity, efficiency and competitiveness of Canadian firms. Foreign investment also provides Canadian businesses with access to new markets. Foreign investment can provide an unparalleled opportunity for our exporters to diversify their sales by accessing the world's most rapidly growing economies. It is critical for integrating Canadian firms into global value chains. Many Canadian suppliers were initially selected for their proximity to larger firms. Over time, these Canadian companies have since developed their own leading-edge specialized skills and technologies.
To continue to realize the full benefits of foreign investment, Canada must maintain the economic conditions necessary to attract foreign investment. Canada's economic performance under this government has been very strong relative to other industrialized countries coming out of the 2008 global economic downturn. Canada has been widely applauded for having weathered and recovered quickly from the global economic downturn and foreign investors have taken notice.
Since that time, Canada has achieved one of the best job creation and economic growth rates in the G7. This achievement is all the more remarkable when taking into account the global economic uncertainty that we have witnessed over recent years.
According to Statistics Canada, Canada's economy was the first among G7 nations to recoup the employment losses recorded during the downturn. The ICA framework rewards initiative and innovation, and makes Canada an investment destination of choice for international investors.
Our government has kept taxes low for Canadians and for Canadian businesses, supporting job creation, growth and investment. We have introduced a successful formula for foreign investment by leveraging abundant energy resources with a capacity for innovation, a fiscally stable and predictable economy, and a competitive business environment. Our plan for jobs and growth has resulted in significant investments to promote innovation, foster research and development, and ensure that Canadians are equipped with the skills and training they need to succeed in a globalized economy.
Businesses operating in Canada also benefit from the advantages provided by our sound financial institutions, our highly skilled labour force, and our world-leading capabilities in science and technology. In short, we have put in place the foundation to make Canada a world leader today and for future generations.
In addition to these measures, our government is committed to open borders and free trade. History has shown that trade is the best way to create jobs and growth, and boost our standard of living.
Our government has worked diligently to secure access to new markets and increase exports of Canadian goods and services to global markets, providing new and diverse opportunities for Canadian companies.
In fact, when our government took office in 2006, Canada had free trade agreements with five countries. That was not good enough for a country where 60% of GDP and one in five jobs were tied to trade. We now have free trade deals with 43 countries, a record that includes the two largest markets in the world, Europe and the United States. We are pursuing trade and investment agreements with many more, including large markets such as China, India and Japan, and also as part of the trans-Pacific partnership.
Our government will continue to attract the benefits of foreign investment to Canada by maintaining policies that support economic growth. Foreign investment review as part of the Investment Canada Act is a key part of Canada's economic framework. Our balanced approach ensures that foreign investment transactions are reviewed on their merits based on the long-term interests of the Canadian economy. Foreign investment has boosted Canada's productivity, created jobs, and enhanced research and development undertaken in Canada. These investments have also clearly demonstrated to the world that Canada is open for business.
In conclusion, our government has demonstrated its commitment to ensuring that Canadian businesses can compete in both domestic and international markets.
In order to prosper, create jobs, and maintain a high standard of living for Canadians, it is important to have modern policies in place that encourage trade and investment. Under our government, we will continue to attract world-class companies with high-paying jobs, leading to strong, sustainable economic growth and prosperity for all Canadians.