Mr. Speaker, I will be sharing my time with the member for Oakville.
I will first address free trade in general by way of introduction and then address the comprehensive economic trade agreement in particular.
In properly managed economies, free trade regimes result in increased prosperity for all partners. This is uncontroversial economic theory and practice. This increased shared prosperity results from efficient economic specialization; each partner does what it does best, and this results in more efficient production within partner economies. More efficient production means increased net wealth for free-trading partnerships. Properly devised free trade results in a net increase in jobs and decreased prices for consumers. More employment and lower prices combine to increase the wealth available for free-trading societies.
This legislation would implement such a properly devised, progressive free trade agreement.
However, we have seen skepticism about free trade around the world lately. Why is there legitimate worldwide concern about free trade? There is such concern because governments have not always properly addressed the broader implications of free trade. With this fair and responsible agreement, our government will do so.
What are the often ignored implications of free trade? They are basically twofold. Governments have not always properly recognized that free trade hurts some citizens, despite the general increase in prosperity. Governments have not always helped sufficiently those negatively impacted. Such assistance can include measures for retraining; assistance to shift to new sectors, markets, or products; and measures to deal with unemployment and economic disruption. Our government will take the necessary measures to assist those negatively impacted by this agreement.
A further legitimate concern is that governments have not always had the wisdom and willingness to ensure that the general prosperity resulting from free trade is equitably shared throughout society. Many governments have been content to see the economic benefits flow disproportionately to the very few. Our government will take measures to ensure that any general increase in prosperity, including that flowing from increased free trade, will be shared in an inclusive manner, including especially the middle class and those working hard to join it.
After consulting and listening to Canadians, and guided by our principles, we are addressing these two areas. We are pursuing free trade in a fair and responsible way. Our free trade will reduce inequality and enhance inclusive growth.
There are other less valid reasons to oppose free trade. Some opposition to free trade flows from xenophobia, a fear of and unwillingness to deal with foreigners. When people struggle economically, they can become fearful and susceptible to calls for protectionist measures. The world saw this phenomenon in the years preceding World War II. Such inward turning contributed to the start of that horrific conflict.
We reject xenophobia. We will keep Canada open to and engaged in the world.
This is the right thing to do. It is also Canada's surest route to continuing inclusive prosperity.
History has useful lessons to consider. What was the world reaction to the Great Depression of the 1930s? There was a general protectionist response by the world's economies. Countries erected trade barriers. Countries pulled back from free trade. Did these fear-based responses help these countries and the world? The answer is no, they did not. In fact, these measures exacerbated the problem. They prolonged the Great Depression and caused more economic disruption.
These economic lessons were so clear that after World War II, the international community signed GATT, the General Agreement on Tariffs and Trade, in 1947, which is now the World Trade Organization. This reaction was specifically designed to combat self-destructive trade protectionism. The free trade effects of that regime were largely responsible for the unprecedented, prolonged post-war prosperity.
How should we respond to our great recession of 2008, under which shadow we still live? Should we make the same mistakes our ancestors made in the 1930s? Should we retreat from free trade? Should we become more protectionist? Will becoming less open to international trade help us? The clear answer is no.
Now I wish to deal specifically with the free trade agreement before us, the comprehensive economic trade agreement. CETA is an ideal complement to our current trading arrangements with the world's largest market, the United States, with whom, with Mexico, we are now linked in the North American Free Trade Agreement.
We came to this agreement only after extensive consultation with stakeholders, and only after listening to interested Canadians. CETA will now link us to the world's second-largest market, the European Union. Acknowledging the long-standing, mutually beneficial effects of NAFTA does not prevent us from duplicating the benefits of that arrangement with other countries. We can now forge a new and exciting free trade relationship with Europe.
Canadians can only benefit from diversifying our trading markets and supply sources to the broadest possible number of countries in the world. Free trade links us with a broad range of countries, grows our economy, and protects us from the inevitable ups and downs in different countries' and different regions' economic and political cycles.
In addition to the benefits of the size of Europe's markets, Europe has the further advantage of sharing with Canada much history and culture. There is a natural affinity between Europe and Canada.
While free trade does not require a similarity of outlook, such similarities make all relationships, including economic relationships, that much easier.
We have much in common with Europe. We share approaches to the rule of law, democratic government, workers' rights, investment, research, and even government regulations. All these linkages will ease our interactions with Europe on multiple levels. Examples of these similar views in CETA are its provisions recognizing labour protection and priorities. In addition, each partner has the right to set distinct environmental priorities.
Many Canadians can trace their roots back to Europe. Many Canadians still have links with Europe. Canada and Europe can use those linkages for our mutual benefit.
Canadians of Dutch heritage will help us sell to the Netherlands. Canadians of Portuguese ancestry can help us invest in Portugal, and Polish Canadians can help forge economic links with Poland.
Let us consider snapshots of some likely effects of CETA. Bombardier will be able to strengthen and grow its European market, keeping good jobs here in Ontario and Quebec. Clearwater Seafoods in Atlantic Canada is well positioned to take advantage of this trade agreement to provide Canada with more exports and Atlantic Canada with more jobs.
The Canadian Agri-food Trade Alliance applauds the government for signing CETA. Its members, including cow producers and soy and canola farmers, many in Canada's prairie provinces, are eager for this agreement, because they will sell more products to Europe, bringing back profits and keeping jobs in Canada.
Canada's forest products companies will be able to sell more to Europe. We are currently only 11th as a supplier of such products to Europe. Tariffs on forestry products will drop from 10% to 2% to 0%. This means more jobs and prosperity in British Columbia and elsewhere across Canada.
For these reasons, this agreement has extensive support from our business community. They see opportunity. CETA will provide direct benefits to Canadians, who will find temporary access to Europe enhanced under its provisions for the increasingly important service sectors. Not only will they take Canadian ideas and approaches to Europe, they will bring European ideas and approaches back to Canada. This will vastly increase the ability of the Canadian organizations to which they belong to compete, innovate, and thrive around the world.
The comprehensive economic trade agreement is one of those rare golden opportunities for Canada to live up to its progressive principles and for Canada, along with its European partners, to reap economic benefits and an increase in generally inclusive prosperity. We are standing by our ideas of openness and engagement. We are also pursuing inclusive and enduring prosperity for all Canadians.