Madam Speaker, I am very pleased to rise in the House today to speak to Bill C-30, an act to implement the comprehensive economic and trade agreement between Canada, the European Union, and its member states.
A trade agreement of this nature is long overdue and has long been fought for.
Before I speak to the merits of this agreement, I want to join my colleagues in thanking the members for Abbotsford and Battlefords—Lloydminster for their long years of work to negotiate this agreement, as well as all of the members of the previous and current governments who had a hand in establishing, negotiating, and concluding this agreement.
I also want to thank the Right Honourable Stephen Harper for his leadership on this and many other trade files. Under his leadership, we signed more trade agreements than any other Canadian government.
Members could probably take it as a given, by virtue of my membership in this party, that I am a strong proponent of free trade. With the recent waves of protectionist sentiment sweeping the globe, it is important to once again reiterate the benefits of freer trade, and why a country like Canada must continue to reach new markets for our products, investment, and labour.
I want to talk about four points today: the objective benefits of free trade; the benefits of free trade to Canada, and the specific components of CETA that benefit Canada; the specific benefits of CETA to my home province of Alberta; and the benefits of CETA for accessing EU government procurement business.
Trade is good for Canada. We have an enormous amount of products, resources, and skills that require access to other markets in order to reach a meaningful potential. The EU represents roughly 500 million people and almost $20 trillion in economic activity. The EU's annual imports alone are worth more than our entire GDP. These are customers and businesses that Canada needs to access in order to maximize our economic growth.
We strongly support international trade initiatives which strengthen the bonds with friendly countries, increase economic productivity, and drive prosperity and job creation. When we complete trade deals, Canadian job prospects increase substantially as we access larger markets. Prices for goods decrease as we eliminate tariffs on goods entering our country. The benefits to Canadian consumers, Canadian workers, and Canadian businesses are enormous, and CETA helps us realize these benefits on a bigger, global scale.
Specifically, CETA is projected to lead to a $12 billion annual increase to Canada's economy, which is equivalent to adding $1,000 dollars to the average family income every year, or almost 80,000 new jobs. Nearly 100% of all EU tariffs on non-agricultural products will be duty-free, and nearly 94% of EU tariffs on agricultural products will be duty-free. This is an offer we cannot refuse.
More importantly, for my constituents in Edmonton West, and those of my colleagues across Alberta, CETA will increase Alberta's economic potential to a substantial extent. The European Union is already Alberta's fourth largest export destination, and is our third-largest trading partner. For the past five years, on average Alberta has had exports of $1.4 billion to the European Union, driven by the agricultural, metals and minerals, and advanced manufacturing sectors.
Once in force, CETA will eliminate tariffs on almost all of Alberta's exports, and provide access to new market opportunities in the EU. CETA includes provisions that ease regulatory barriers, reinforce intellectual property rights, and ensure more transparent rules for market access. CETA will provide Alberta exporters with a competitive advantage over exporters from other countries that do not have a free trade agreement with the EU.
On the day CETA's provisions enter into force, 98% of EU tariffs on Canadian goods will be duty-free, including those on key Alberta exports, such as metals and mineral products, manufactured goods, and chemicals and plastics. For agricultural and agri-food products, almost 94% of EU tariffs on Canadian goods will be duty-free, which rises up to 95% once all phase-outs are complete, seven years after CETA enters into force. This duty-free access will give Canadian agricultural goods, such as beef, pork, and bison, preferential access to the EU market.
I do not think I need to tell the House how important beef is to the Alberta economy, but I do want to mention some specific potential benefits to industries affected by the tariff reductions listed in CETA.
According to the CBC, with CETA, Canada is poised to supply about 1% of the European Union's beef needs under the new pact, which could mean almost $600 million in revenue.
In addition to beef and agriculture products, CETA would also provide for increases in eligible trade for products with high sugar content. I want to talk about a small business in Edmonton that started in a basement in Sherwood Park. It is a much-renowned startup company called Jacek Chocolate Couture. It has expanded from Sherwood Park to downtown Edmonton and now to Canmore, Alberta. The company sells its famous chocolates across our entire country, and now could reach a massive new customer base, growing its revenues and creating new jobs.
We know how things are tough in Alberta right now. Therefore, it makes perfect sense that we approve this trade agreement which would have demonstrable benefits to Alberta's industries. This agreement would create jobs by opening the European Union's market to more Alberta goods and would lower prices for importing EU products. Lower prices and more customers for business are exactly what Alberta needs right now.
Specific to oil and gas, CETA would increase market access for Alberta products. This comes at an ideal time, as supplier diversification is one of EU's top energy priorities. Currently, Russia holds over 30% of the EU's oil and gas market share, placing it first. Canada comes in 26th, with just 1%.
It is well known that Russian President Putin uses his country's oil and gas reserves as a weapon and, given that Russia supplies almost a third of the European Union's oil and gas, his position is strong. The EU needs to diversify and wants to diversify, and Alberta has plenty to offer. As CETA would eliminate tariffs on oil and gas products, Canada and Alberta are well poised to fill this gap and become a crucial energy ally. This is an opportunity that we should not and, frankly, cannot pass up.
The elimination of tariffs and barriers would also have advantages to procurement opportunities. Under CETA, Canadian firms could bid on contracts to supply their goods and services to the three main EU-level institutions: the European Commission, the European Parliament, and the European Council. Canadian firms would also be able to bid on EU member-state government contracts and those of thousands of regional and local government entities.
The EU procurement market is worth $3.3 trillion annually, and holds significant potential for Canadian suppliers. This kind of preferential market access would benefit Alberta-based multinational firms such as PCL and Stantec, who both have their headquarters in Edmonton. Indeed, by virtue of the fact that Alberta has long been the entrepreneurial province, there are hundreds if not thousands of businesses in Edmonton, Calgary, and throughout Alberta that would benefit from access to this $3.3 trillion procurement market.
Trade is good. Trade lowers prices and enables competitive and valued Canadian businesses to expand, hire new employees, and prosper in a globalized world. Free trade would allow billions of dollars in Canadian exports to reach new markets, and ensure that European goods flow in at competitive prices for Canadian consumers. Free trade would help Alberta's businesses grow and prosper at a time when Alberta needs it most.
I am proud to support this agreement that would help Alberta's small and large businesses, Albertan consumers, Canadian industry, and Canadian producers, and that would also deepen the long-standing ties between Canada and Europe.