Mr. Speaker, our government strongly believes that the comprehensive and progressive trans-Pacific partnership agreement, or CPTPP, will help increase and diversify Canada's trade and investment in the rapidly growing Asia-Pacific markets and improve Canadians' economic prosperity. At the same time, the agreement will ensure that the benefits of trade are widely shared, in particular by making it easy for small and medium-sized enterprises, or SMEs, to take advantage of the opportunities it offers.
Exports are essential for the health and vitality of Canadian businesses and Canadian SMEs play a key role in increasing trade and economic growth in Canada. Indeed, SMEs are the backbone of the Canadian economy. They represent more than 99% of all businesses, 90% of all private sector jobs and 10.7 million workers and they generate nearly 40% of Canada's gross domestic product.
I forgot to mention, Mr. Speaker, that I will be sharing my time with the member for Winnipeg Centre.
Only 11% of Canadian SMEs benefit from foreign markets, however, and our government is committed to helping increase that. Exports are vital to the growth of Canada's economy. That is why our government will help small businesses expand into new markets abroad by promoting exports through the negotiation and implementation of the free trade agreements, such as the Comprehensive Economic and Trade Agreement, CETA, between Canada and EU; and now the CPTPP.
The CPTPP will enable Canadian SMEs to enter the dynamic Asia-Pacific market through agreements that simplify the export process and increase SME participation in global supply chains. This agreement will strengthen our economic ties with some of our current free trade partners, such as Chile, Mexico, and Peru, while providing preferential market access to seven new free trade partners: Japan, Malaysia, Vietnam, Australia, New Zealand, Singapore and Brunei.
In addition, the CPTPP will eliminate tariffs and improve market access for Canadian companies, including SMEs. Upon implementation, 86% of signatory countries' tariffs will be instantly eliminated. This will apply to Canadian exports to CPTPP countries, with an average value of $28.3 billion per year between 2015 and 2017. Once the agreement is fully implemented, signatory countries would eliminate 99% of their tariffs. This will apply to exports to CPTPP countries that average $32 billion per year between 2015 and 2017. This increased market access will make our SMEs more competitive and position them for success. It will also create opportunities for Canadian SMEs to diversify their exports at a time when this is extremely important.
The agreement provides for enhanced market access agreements for our financial services and service sectors and a comprehensive set of investment protection provisions based on a strong dispute resolution mechanism for investments. These provisions will greatly benefit SMEs as they are disproportionately impacted by non-tariff barriers.
In addition, the CPTPP will be a first in Canada in terms of free trade agreements in that it contains a chapter that specifically guarantees that small and medium-sized enterprises will be able to take advantage of the opportunities it creates. This separate chapter highlights the importance of SMEs, which are the backbone of our economy and an engine of economic growth.
These provisions will ensure that our entrepreneurs and small businesses have access to information tailored to their needs, making it easy for Canadian companies to explore and navigate their way around CPTPP markets and prepare for their successful business ventures.
Through the efforts of the committee, as well as collaborative mechanisms, CPTPP signatories will be able to share best practices on how to support their businesses and to co-operate through seminars, workshops, and other capacity-building activities aimed at helping their businesses seize the opportunities created by the agreement.
The CPTPP will increase market opportunities for Canadian companies of all sizes and in all sectors and regions of the country. In the coming months, we will reach out to small and medium-sized enterprises across the country to ensure they have the knowledge and tools they need to take advantage of this historic agreement. At the same time, we will work to help Canadian SMEs to grow, expand their activities, increase their productivity and be innovative and export oriented so they can prosper and create good jobs for the middle class.
Asia is important to Canada and to our small and medium-sized enterprises. Indeed, that region's contribution to the global economy continues to grow and Asia's importance as a destination for Canadian exports has more than doubled.
The CPTPP is a cornerstone of our government's commitment to trade diversification. It will enable Canadian businesses to trade and invest in this dynamic and rapidly-growing region. Since Asia is a highly integrated and adaptable region, the benefits of CPTPP go well beyond access to new markets. This agreement will provide Canadian companies of all sizes with opportunities to enter into various regionally integrated value chains that are global in scope.
Ambitious agreements with high standards, such as the CPTPP, will help to strengthen the rules-based international system and its solid institutions, promoting global value chains and ensuring a level playing field that maximizes the benefits of trade for everyone.
By responsibly expanding our economic ties with our Asian partners, we are delivering on our promise to create economic growth opportunities that will benefit Canada's middle class. This agreement will create opportunities for Canadian entrepreneurs and small and medium-sized enterprises to expand their activities, prosper and create good jobs for the middle class. We are here to help Canadians, to help them move forward, to grow and succeed abroad, while creating an environment conducive to sustainable and lasting growth for all.