Madam Speaker, I rise this evening in strong support of Bill C-30, an act to implement the Comprehensive Economic and Trade Agreement between Canada and the European Union and its Member States and to provide for certain other measures.
It has been a long time coming, more than a decade, and there have been so many people who have been involved on the Canadian side in helping shape CETA. Certainly, much credit is owed to Canada's world-class trade negotiators, who for 10 years did much of the heavy lifting. I would be remiss if I did not acknowledge several hon. members in this House who played an instrumental role in concluding CETA.
Much credit is due to the hon. members for Abbotsford and Battlefords—Lloydminster. Under their leadership, Canada reached an agreement in principle with the European Union in 2014.
Credit is also owed to the hon. member for York Centre, who, as Canada's international trade minister, commenced the negotiations with the European Union back in 2009, and did a lot of the early heavy lifting, as did Stockwell Day when he was the minister of international trade.
Credit is owed to our current Minister of Foreign Affairs, who, in her previous portfolio as Minister of International Trade, helped get CETA across the finish line.
Finally, credit is owed to former Prime Minister Stephen Harper. It was Prime Minister Stephen Harper who had a great vision when it came to market liberalization and free trade. For 10 years, Prime Minister Harper presided over a decade of success when it comes to trade, including the signing of 46 historic free trade agreements, CETA being the largest of those free trade agreements. Indeed, CETA is the largest free trade agreement since NAFTA.
Canada is a trading nation. Two-thirds of Canada's GDP is tied to trade. One in five jobs is tied to trade. Since the ratification of the Canada-U.S. free trade agreement in 1988, trade between Canada and the United States has flourished. Each and every day there is some $2 billion in trade occurring between Canada and the United States. Of course, Canada has preferential access to the U.S. market through NAFTA.
With CETA, Canada stands to gain preferential access to the largest economy in the world, the European Union, which is comprised of 28 member states, has a population of more than 500 million people, and boasts an annual economic activity of nearly $20 trillion.
What is more the European Union is the largest importer in the world, which complements Canada's export-driven economy. Canada already does a lot of trade with the European Union. The European Union is Canada's second largest trading partner. Each and every year, Canada does approximately $80 billion to $90 billion in trade with the European Union.
Over the years, Canada's economic ties with the European Union have been strengthened. When we look at exports, for example, we have seen exports to the European market increase from some $17.9 billion in 1997 to $40 billion today. With CETA, Canada's economic and trade ties to the EU promises to grow even stronger. Indeed, an early Canada-EU joint study projected that bilateral trade between Canada and the European Union stands to gain by some 20%, thanks to CETA.
For my province of Alberta, CETA is nothing short of a big win. The European Union is Alberta's fourth largest export destination. It is also Alberta's third largest trading partner. Simply put, what CETA means for Alberta is the elimination of almost all EU tariff lines on Alberta exports destined for the European market.
Under CETA, EU agricultural and agri-food tariff lines will be eliminated, 94% will be eliminated immediately. That number will eventually rise to 95%. With the elimination of those agricultural and agri-food tariff lines, there are tremendous opportunities for Alberta's large and vibrant agricultural and agri-food sectors.
In that regard, the Canadian Agri-Food Trade Alliance projects that Canadian agri-food exports to the European Union will grow by some $1.5 billion, thanks to CETA.
It is not just the agricultural sector that stands to benefit from CETA, frankly it is all sectors of the Canadian and Alberta economies. That is because under CETA, nearly 100% of non-agricultural tariffs will be eliminated. That presents enormous opportunities for many sectors, including the service sector.
The service sector comprises about 54% of Alberta's GDP; 1.5 million Alberta jobs are tied to the service sector. Under CETA, Canadian service suppliers stand to gain the best market access to the European Union compared to the EU's other free trade partners. What that means is new markets and new opportunities for Alberta and Canada's service suppliers.
Investment is important to the Canadian economy, and it is absolutely crucial in connecting Canada to global supply chains. When we look at, for example, investment, Canadian foreign direct investment to the European Union last year equalled $210 billion. That is roughly 21% or 22% of Canadian foreign direct investment directed into the European Union.
What CETA promises investors is to help facilitate investment, both for Canadian investors and European investors. Not only that, CETA means more certainty, more transparency, and more protection for investors.
While there is much to be proud of and much to look forward to with CETA, it is not entirely good news, because when our government left office 15 months ago and passed the torch to the Liberal government, we gave the government, essentially, a free trade agreement with the European Union on a silver platter.
For whatever reason, the Liberals decided that it somehow was not good enough, that they would reopen it. What did that result in?
It resulted in a lesser deal for Canada when the European Union made the commitment to regional governments to put in agricultural safeguards to protect against import surges. When we talk about investment, which is very important and a very important aspect of the CETA agreement, there is also some uncertainty surrounding the investor state settlement dispute process, which will not be part of the provisional coming into force of this agreement, which it was under the deal that was negotiated by our previous Conservative government.
It is not all good news, but that should not take away from the fact that on the whole, CETA is a good deal. In that regard, when we take a step back and look at CETA, and what it means for Canada, one important fact is that it will mean that Canada will have preferential market access to both the United States and the European Union, the two largest economies in the world.
Combined, the United States and the European Union represent about 50% of global GDP. From a strategic standpoint, CETA is a big win relative to the United States, inasmuch as Canada would get first mover advantage in relation to the European Union.
That presents many opportunities for Canada in terms of becoming an investment gateway for European Union investors seeking access to the United States market for NAFTA, and an investment gateway for U.S. investors seeking access to the European Union market.
CETA means more trade, more opportunities for Canadian businesses, and it means more jobs for Canadians. After 10 years of hard work and tough negotiations, Canada is on the cusp of achieving this historic free trade agreement.
For jobs, for growth, and for the long-term prosperity of Canada, let us get it done. Let us get CETA across the finish line. Let us pass Bill C-30.