Mr. Speaker, it is great to be back, to be able to speak on Bill C-79 and, in particular, to be able to speak to trade.
I believe trade is part of Canada's DNA, from our beginnings with the fur trade to today, where we are a leader globally when it comes to mining, minerals and exploration. We can look at all the other sectors, be it agriculture, manufacturing, innovation and tech, and Canada is a leader.
I want to leave a statistic with the Chamber that really highlights how important trade is to Canada and how great a job we do at trade globally. We are 0.5% of Canada's population, but we do 2.5% of all global trade, five times our population. That just shows, globally, that we are a trading nation.
We look at CETA, where we were able to sign that agreement and open up another market of over 500 million people and over $20 trillion GDP in that market. Now, we look at the CPTPP and we look to Asia as another opportunity for Canada to be able to trade our great goods and services, a market of about 500 million people and $13.5 trillion GDP.
We are able to now talk about some of the benefits we will be able to experience from CPTPP if we were to sign on. Looking at our industrial and manufacturing sectors, located right in Mississauga East—Cooksville, we have Maple Leaf, a great company. They do a great deal of export. Having these tariffs stripped away from many of the countries in Asia that are part of the CPTPP that they work with will mean more jobs here in Canada and will give us greater market access.
I have heard from my constituents and the businesses in my area that this is the way forward.
Mississauga is Canada's sixth-largest city and we continue to grow, mostly through companies that are export oriented. Those export-oriented companies are producing the best jobs. Whether it be automobiles or medical devices, metals, chemicals or plastics, they are all essential components to our national economy, employing 1.7 million full-time and highly skilled Canadians, and contributing close to 11% of Canada's GDP.
Our government firmly believes that the CPTPP is the ideal agreement for Canadians and our economy. This is a high-level trade agreement that will increase Canadian exports and help us to succeed in foreign markets as a cornerstone of our government's comprehensive efforts to enhance Canada's engagement with dynamic, fast-growing and increasingly influential Asian markets. It is an important part of our commitment to diversify trade, grow our economy and strengthen our country's middle class.
Trade and investment flows between Canada and Asian economies have increased significantly since the turn of the century. From 2014 to 2016, Canada's exports of industrial and manufactured goods to the CPTPP countries accounted for an annual average of $22.4 billion. By eliminating now nearly 100% tariffs on manufactured goods, including some tariffs that are as high as 85%, a high barrier, and creating mechanisms to address non-tariff barriers to trade, the CPTPP will create opportunities for world-class Canadian businesses to increase their sales.
Once the agreement enters into force, it will enable Canadian exporters to access diverse and internationally integrated value chains. On day one of the agreement coming into force, there will be no tariffs on over 87% of industrial tariff lines, covering Canada's exports to CPTPP markets, worth an annual average of close to $20 billion over a two-year period.
What will this mean for individual industries? Allow me to provide just a few examples for Canada's multi-billion dollar chemicals and plastics industry.
The CPTPP will provide opportunities for companies in Ontario, the hub of Canada's plastics industry, to cutting-edge mechanical facilities in Alberta with improved market access. This industry will improve its annual average of $1.1 billion in exports to the CPTPP countries by eliminating tariffs that are as high as 50%. What a difference that will make in our exports of plastics.
With respect to metals and minerals, a sector contributing nearly 600,000 jobs here in Canada and exporting $5 billion in goods to CPTPP markets, the agreement would result in the elimination of all tariffs, again some as high as 50%. As a result, highly sought-after Canadian aluminum, steel, iron, petroleum products and precious metals will become even more competitive in such markets as Japan, Australia, Malaysia and Vietnam.
Canada's information and communication technologies sector, critical to major urban centres across Canada, is also well positioned under this agreement to meet growing needs within established and developed markets in the Asia-Pacific. In addition to eliminating tariffs, the agreement will protect companies from having to divulge their proprietary information in order to sell their products in these markets.
In the auto sector, our government listened, and listened a lot, to what Canadians had to say and made their concerns a priority. As part of the negotiations, Canada has obtained bilateral cover letters from Australia and Malaysia to establish more liberal rules of origin, which will allow our automotive manufacturers to take advantage of the preferential tariff treatment in these markets without having to adjust their current production models.
We also achieved bilateral results with Japan and Malaysia on standards and regulations in the automotive sector, a key demand from industry stakeholders as these non-tariff barriers were impeding our export abilities.
These are just a few examples of areas that could benefit from the CPTPP. By making Canadian industrial and manufacturing exports more competitive, reducing the red tape that impedes access to dynamic and growing markets, this agreement would provide Canadian businesses with significant opportunities to increase profits and create new jobs.
Beyond tariff reduction, another aspect of the CPTPP that stands to benefit Canadian companies in these sectors is the area of intellectual property. The agreement's provisions on intellectual property cover virtually all areas regarding trade and IP, including copyright, patents, trademarks, geographical indication, industrial designs, domain names and enforcement. Most importantly, the protection and enforcement of IP rights will help protect Canadian innovation and investment as our businesses trade abroad. For Canadian businesses, one of the most significant barriers to trade in some markets is uncertainty over the protection of intellectual property, including whether their intellectual property rights will be respected and enforced.
Intellectual property is valuable property and this agreement establishes a clear and predictable standard on IP rights and enforcement in the Asia-Pacific region. This will allow Canadian creators, innovators and investors to conduct trade with our new CPTPP partners with the assurance that their products will be protected while benefiting from the same rules as other parties within this agreement. In turn, this will encourage investment in innovative technologies in Canada and allow Canadians to develop and market their brands in the region.
As a result, innovative Canadian companies will be better positioned to commercialize their products in both established and fast-growing Asian markets. In addition to tariff reduction and IP rules, the agreement also addresses costly and time-consuming non-tariff barriers that make it difficult for Canadian companies to enter these foreign markets. Commitments by CPTPP members to cut away that burdensome and restrictive regulatory red tape in such sectors as cosmetics, medical devices, pharmaceuticals and ICT will provide Canadian manufacturing exporters with greater certainty and predictability that the competitive benefits their products receive from tariff elimination will be fully realized.
By establishing an effective and transparent rules-based trade system in one of the world's most dynamic and growing regions, the CPTPP will lay the groundwork for exporters in our industrial and manufacturing sectors to take advantage of these opportunities. This is why I am encouraging all of my hon. colleagues to support Bill C-79 and allow for the swift implementation of this important agreement.