Madam Speaker, our government firmly believes that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the CPTPP, will make it possible to expand and diversify Canada's trade and investments in the fast-growing Asia-Pacific markets, and it will create greater economic prosperity for Canadians.
The agreement will guarantee that the benefits derived from trade will be widely shared, particularly by allowing small and medium-sized businesses, the SMEs, to easily capitalize on the opportunities created by the agreement.
Exports are vital to the health and vitality of Canadian businesses, and Canadian SMEs play a key role in the growth of Canada's trade and economy. In fact, SMEs are the backbone of the Canadian economy. They represent over 99% of all businesses, 90% of all private sector jobs, and 10.7 million workers. What is more, they generate nearly 40% of Canada's gross domestic product.
However, only 11% of Canadian SMEs take advantage of foreign markets, and our government is determined to foster conditions that will increase that percentage. Exports are vital to Canada's economic growth. Our government will help small businesses expand their operations to new markets abroad by promoting exports through the negotiation and implementation of free trade agreements such as the Canada-European Union Comprehensive Economic and Trade Agreement and now the CPTPP.
The CPTPP will enable Canadian SMEs to move into the dynamic Asia-Pacific market through agreements that seek to simplify the export process and increase SMEs' participation in global supply chains. This agreement will strengthen our economic ties with some of our existing free trade partners, such as Chile, Mexico, and Peru, while obtaining preferential access to the markets of seven new free trade partners, namely Japan, Malaysia, Vietnam, Australia, New Zealand, Singapore, and Brunei.
In addition, the CPTPP will eliminate tariffs and improve access to all these markets for Canadian businesses, including SMEs. Once it is implemented, 86% of tariffs from signatory counties will be instantly eliminated, which will also apply to Canadian exports to CPTPP countries worth an average of $28.3 billion annually in the years 2015 through 2017. Once the agreement is fully implemented, signatory countries will eliminate 99% of tariffs, which will also include Canadian exports to CPTPP countries worth an average of $32 billion annually between 2015 and 2017.
This enhanced market access will make our SMEs more competitive and position them for success. This will also give Canadian SMEs greater opportunities to diversify their exports at a time when it is of critical importance to do so.
The agreement provides for deals on greater market access for our service sectors and financial services, as well as a comprehensive package of provisions on investment protections built on a strong investment dispute resolution mechanism. Those provisions will greatly benefit our SMEs, since non-tariff barriers have a disproportionate impact on small and medium-sized businesses.
The CPTPP offers a first in Canada when it comes to free trade agreements: it contains a chapter that specifically guarantees that small and medium-sized businesses can benefit from the opportunities the agreement creates. This separate chapter underscores the importance of SMEs, which are the backbone of our economy and a driver of economic growth.
These provisions will also guarantee that our business owners and small businesses have access to the information they need and will help Canadian businesses easily explore and enter into CPTPP markets as they prepare to achieve positive results.
Through a committee and co-operative mechanisms, CPTPP signatories will be able to share best practices on how to support their businesses through seminars, workshops, and other skills enhancement activities in order to help their businesses capitalize on the opportunities provided by this agreement.
The CPTPP will open up new market opportunities for Canadian businesses of all sizes, in all sectors, and in all regions of the country. In the coming months, we will be talking to small and medium-sized businesses across Canada to make sure they have the knowledge and tools they need to benefit from this historic accord.
At the same time, we will be working to help Canadian small businesses grow, expand their operations, boost their productivity, innovate, and explore export opportunities so they can thrive and create good middle-class jobs.
Asia is important to Canada and our small and medium-sized businesses. Asia's contribution to the global economy is growing, and our exports to the region have more than doubled.
The CPTPP is key to fulfilling our government's promise to diversify trade. It will enable Canadian businesses to pursue trade and investment opportunities in what is a dynamic and rapidly growing region.
Because Asia is so highly integrated and adaptable, access to new markets is just one way we will benefit from the CPTPP. The agreement will give Canadian businesses of all sizes a chance to hook into various regionally integrated value chains with global reach.
Ambitious agreements with high standards such as the CPTPP will help strengthen the international system founded on solid rules and institutions that support global supply chains, ensure that the rules are fair and maximize the benefits of trade for all.
By increasing in a responsible manner our economic ties with our Asian partners, we are keeping our promise to create opportunities for economic growth that will benefit Canada's middle class. This agreement will in fact create opportunities that help Canadian entrepreneurs and small and medium-sized companies to grow their operations and prosper, as well as create good jobs for the middle class.
We are here to help Canadians move forward, grow and be successful abroad while creating a good economic climate with durable sustainable growth for everyone.