Madam Speaker, I will be splitting my time with the member for Vaughan—Woodbridge.
I am pleased to have the opportunity today to speak in favour of Bill C-79, an act to implement the comprehensive and progressive agreement for trans-Pacific partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP, as this historic trade agreement is now known, would benefit Canadians from coast to coast to coast and across all sectors of our economy.
Through the CPTPP, our government is demonstrating our commitment to growing our economy and strengthening the middle class by expanding and diversifying Canada's trade and investment relations. Canada as a nation builds on trade and as a medium-sized economy, trade is fundamental to our continued prosperity and economic growth.
While Asia has more than doubled in importance as a destination for Canadian goods and services since the turn of the century, Canada has lost market share to our competitors that have pursued closer integration with the region's fastest growing economies. The CPTPP will help remedy this. It will be the cornerstone agreement for Canada to diversify our trade and investment toward Asia and enhance our export presence in the region.
The 11 CPTPP members represent a total of 495 million consumers and 13.5% of global GDP. Canada's exports to our CPTPP partners totalled nearly $27 billion in 2017. The CPTPP would provide Canadians with the tremendous opportunity to continue to expand their business in Asia.
Trade has long been a powerful engine that drives the Canadian economy. Canadian jobs and prosperity depend heavily on our connectivity with other countries around the world. In fact, one in five jobs in Canada is related to exports, while Canadian exports amount to nearly one-third of Canada's GDP.
Opening borders to trade and investment and diversifying our trading partners has the potential to boost Canada's wealth and make us less vulnerable to changing conditions in any one market. Canadian small- and medium-sized enterprises in particular are looking for our government to open up new markets for potential exports, and the CPTPP will help us deliver on this task.
Implementing and ratifying this trade agreement will strengthen our economic ties with the 10 other CPTPP members, which include seven new free trade agreement partners: Australia, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam.
Once the CPTPP enters into force, Canada will have preferential access to 51 different countries through 14 trade agreements, representing nearly 1.5 billion consumers and over 60% of the global economy.
The CPTPP is projected to boost Canada's GDP by $4.2 billion over the long term and that growth will be driven by increased exports of goods and services, and increases in investment. This means more jobs and more prosperity for Canadians.
For trade in goods, the CPTPP would help Canadian businesses increase their sales and profits by virtually eliminating all tariffs, most of which would be eliminated upon entry into force of the agreement and establishing mechanisms to address non-tariff barriers to create more predictable and transparent trading conditions.
The CPTPP would allow Canadian companies to level the playing field with competitors that currently enjoy preferential access to key markets like Japan, Malaysia and Vietnam, while gaining a competitive advantage over other countries that currently do not have the same level of access. It would help Canadian companies to establish customer relationships, networks and other joint partnerships and offer Canada the opportunity to further integrate with global supply chains.
Opening up new markets for our products means that Canada would be at an advantage to export more agriculture and agri-food, fish and seafood, industrial machinery, and everything in between.
In Newfoundland and Labrador, this would mean new markets or reduced tariffs not only for our fish, seafood, metals, minerals and forestry products, but also for the specialized industrial products our industry has pioneered in the offshore.
Opening up new markets for our fish and seafood industry would mean more opportunities for shrimp, salmon, halibut, lobster, clams, mussels and snow crab, supporting close to 76,000 Canadian jobs based mostly in rural and coastal communities like mine, to help expand the over $85 million in regional trade that we have enjoyed over the past two years.
In the case of metals and minerals, it means expanded market share for the petroleum and iron ore products sold from my province to Asia.
Opening up new markets for our manufacturing sector means Newfoundland companies in the aerospace and marine technology sectors like Kraken Robotics, PAL Aerospace, Virtual Marine, SubC Imaging, and others in our oceans supercluster would have new opportunities to compete fairly in the trans-Pacific region.
I have mentioned just a few portions of Canada's vibrant economy. There are many more sectors whose exporters would benefit from the CPTPP. Securing preferential access to CPTPP markets means that almost all Canadian products could be exported to our new partners without facing tariffs. Upon full implementation of this agreement, 99% of tariff lines of CPTPP parties would become duty-free, covering 98% of Canada's current total exports to these markets.
The benefits of the CPTPP do not stop there, however. In addition to addressing traditional trade policy issues like tariffs and technical barriers to trade, the CPTPP also covers trade in services, investment, intellectual property, government procurement and state-owned enterprises. Companies in my riding, and ridings all across the country, would have access to Asia-Pacific countries that would not exist for countries that have not joined the agreement.
These parts of the agreement serve to provide Canadian companies, service providers and investors alike with transparency, predictability and certainty in their access to CPTPP markets.
For example, the national treatment and most favoured nations provisions combined with a ratchet mechanism would mean that Canadian service providers and investors would have access to CPTPP markets, and these would improve over time as they take steps towards greater liberalization, including when these other partners complete free trade agreement negotiations with other countries around the world. It will mean that the CPTPP would not only open up new markets for Canada today but that our access would improve in the future and over time.
This is complemented by the commitments made on government procurement in the CPTPP, which establish fair, open and transparent rules for competitive procurement markets. Canadian businesses would enjoy equal treatment vis-à-vis domestic suppliers when bidding for government contracts in CPTPP markets. As a result, Canadian suppliers would benefit from new opportunities in markets such as Australia, Brunei, Malaysia and Vietnam, while gaining expanded government procurement access within existing FTA partners like Chile and Peru.
It is now clearer than ever that the CPTPP is a big deal for Canadian businesses and workers. We are making good on our commitment to create opportunities for small and medium-sized enterprises and generate economic growth that will benefit all Canadians. This agreement tears down barriers and builds a bridge across the Pacific for Canadian exporters of goods and services.
With the CPTPP, Canada would send a clear signal to the world that it stands firm in its support for the free, rules-based international trading system. In the wake of rising protectionism and sentiments like that around the world, the ratification of the CPTPP would not just secure economic benefits for us today, but also solidify our role in the economic architecture of Asia in the future.
When Canadian companies are given the opportunity to compete on a level playing field, they win. This agreement would extend our playing field to 60% of the global economy. That is the potential for a lot of wins for companies, innovators, those working in trade-related industries, the service sector supporting those industries, those looking to invest in Canada and Canadian companies looking for capital to expand their businesses.
For these reasons our government is committed to ratifying and bringing the CPTPP into force and it is why I encourage hon. members of the House to support the bill before us today.