moved that the bill be read the third time and passed.
Mr. Speaker, today I rise on behalf of my colleague, the Minister of International Trade Diversification, to speak to Bill C-85. The bill calls on the government to take all necessary legislative steps to ratify the modernized Canada-Israel Free Trade Agreement, or CIFTA, something I encourage all members to support.
CIFTA is now a modern, forward-looking trade agreement that would better serve the sophisticated Canada-Israel trade relationship, while providing a framework to ensure the benefits of trade are more widely shared. Our government has said from day one that trade and open markets are vital for Canada's economic prosperity. Canada is a trading nation. We know that increased trade creates more and better-paying jobs. In fact, Canada is one of the most open G7 countries, rating second for trade and first for foreign direct investment as shares of GDP. Canadian exports of goods and services were equivalent to just over one-third of our GDP.
On trade diversification, the government is pursuing an ambitious trade diversification agenda, one that will make Canada the most globally connected economy in the world. Allow me to provide a few examples of this.
In October, Canada ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, with a speed reflecting the importance of this deal to farmers, ranchers, entrepreneurs and workers in all industries across Canada. This historic trade agreement came into force on December 30, 2018, and now Canadian businesses will have preferential access to over 500 million consumers, resulting in long-term gains for Canada in excess of $4.2 billion.
In September, we marked the one-year milestone of provisional application of the trade agreement with the European Union, the Comprehensive Economic and Trade Agreement or CETA. In this past year, Canadians added $1.6 billion in increased export to Europe and saw a 20% growth in container traffic at the Port of Montreal. We can just imagine the opportunities for Montrealers, Quebeckers and Canadians once this agreement is also passed.
We are also updating existing trade agreements with important partners to better match the realities of the 21st-century economy. We have a new agreement with Ukraine in place since 2017 and on Tuesday, a modernized and inclusive agreement with Chile came into force. The Canada-Chile Free Trade Agreement distinguishes Canada as the first G20 country to adopt a gender chapter in a free trade agreement.
We are modernizing the Canada-Israel Free Trade Agreement in the legislation before us today to enhance our relationship with this historical ally.
Finally, the government is actively pursuing opportunities in other important and fast-growing markets and making inroads. Canada is in FTA negotiations with its partners in the Americas, namely the Pacific Alliance and Mercosur, and is exploring possible FTA negotiations with ASEAN. Taken together, Canada has 14 FTAs in force covering 51 countries, connecting our businesses to 1.5 billion of the world's consumers.
While market access is vital, it alone does not create jobs and prosperity for Canadians. Our businesses need the right tools to actively pursue international opportunities, especially in markets covered by our trade agreements. That is why the fall economic statement proposed an export diversification strategy to grow Canada's overseas exports by 50% by 2025, with more assistance for small and medium-sized businesses to help them explore new export opportunities.
The trade diversification strategy will focus on three key priorities: first, investing in infrastructure to support trade; second, providing Canadian businesses with the resources to execute their export plans; and finally, enhancing trade services for Canadian exporters. We know that when we diversify our markets abroad we create well-paying jobs at home for the middle class and those working hard to join it.
Our efforts signal to the world that trade matters, that rules matter and that we will not be drawn into a world of protectionism. We firmly believe our international trade relationships are mutually beneficial. This is demonstrated in the modernized CIFTA, the Canada-Israel Free Trade Agreement before us today.
Since CIFTA first came into force over two decades ago, two-way merchandise trade between Canada and Israel has more than tripled, totalling $1.7 billion last year. This is a testament to how FTAs help advance trade, yet there is room to grow and deepen the commercial relationship. Israel's economy has significant potential and offers diverse commercial opportunities for Canadian businesses given its well-educated population, solid industrial and scientific base and productive natural resource sectors, in particular agriculture and agri-tech.
By providing expanded market access and more predictable trading conditions, the modernized CIFTA would enable Canadian companies to take meaningful advantage of these opportunities. That is why Bill C-85 before us today is so important. Allow me to elaborate further on this point by turning to how this tangibly translates into real benefits for Canadian businesses.
Canada and Israel agreed in 2014 to modernize CIFTA, which, at the time, was a goods-only trade agreement. The result of those negotiations is an agreement that updates four of the original chapters, including dispute settlement to bring CIFTA up to the standard of a more recent trade agreement. It adds nine new chapters, including intellectual property and e-commerce. We have negotiated rules that are designed to help address non-tariff barriers, contribute to facilitating trade and reduce some of the costs to companies for doing business.
We also have improved the terms of market access for Canadian companies. Once enforced, close to 100% of all current Canadian agriculture, agri-food and seafood exports to Israel will benefit from some form of preferential tariff treatment, up from the current level of 90%. Meaningful market access for Canada's agriculture and agri-food processors was a key interest in these negotiations and the government delivered, including unlimited duty-free access on sweetened and dried cranberries, baked goods and pet food.
These important tariff outcomes for the agriculture and agri-food sector place Canada on a more level playing field with exporters from the United States and the European Union, which are our key competitors in this sector. They also give Canadian companies a leg-up on competitors in other countries that do not have a free trade agreement with Israel. In exchange, Canada agreed to eliminate tariffs on certain targeted Israeli agriculture and agri-food imports, such as certain fish and nuts, some tropical fruit and certain oils.
I want to reassure all hon. members and all Canadians that a modernized Canada-Israel Free Trade Agreement, like its predecessor, fully respects Canada's supply management system. I am pleased that the negotiated outcome has the support of key Canadian agriculture stakeholders, including Pulse Canada, the Canola Council of Canada, the Canadian Vintners Association and companies including the processing of potatoes, cranberries, soybeans and pet food. These are only a few of the opportunities the modernized CIFTA provides.
I would like to now speak to an important aspect of the government's trade agenda that aims to ensure these opportunities are more widely shared among Canadians.
An important aspect of the modernized CIFTA is its forward-looking framework that includes new chapters on trade and gender, small and medium-sized enterprises, labour and environment, as well as a new provision on corporate social responsibility. This modernized agreement also provides institutional mechanisms to monitor or address human rights-related matters in the context of the trade agreement, including references and provisions relating to workers' rights and working conditions, responsible business conduct, transparency and anti-corruption. In this regard, this modernized agreement is a new forward-thinking partnership that reflects who we are as vibrant, diverse, open and democratic societies and as in the original CIFTA, just as with all Canada's FTAs, this modernized CIFTA can be terminated by either party unilaterally at any time for any reason.
Some inclusive trade highlights are the new chapters on trade and gender and on small and medium-sized enterprises. Both provide a framework for parties to work together to help ensure women and small and medium-sized enterprises can more fully benefit from the opportunities created by this modernized CIFTA. Each chapter establishes a bilateral committee to oversee activities, including co-operation and promotion activities that provide information and enhance the ability of women and small and medium-sized enterprises to benefit from the opportunities created by this modernized CIFTA.
The new gender chapter acknowledges the importance of incorporating a gender perspective in economic and trade issues to ensure that economic growth can benefit everyone. This chapter has it. This chapter builds on the work accomplished in Canada's first gender chapter, which was negotiated through the modernized Canada-Chile Free Trade Agreement. Only the third chapter of its kind, it is also the first such chapter negotiated by Israel. CIFTA's gender chapter, for the first time ever, will include a measure of enforceability through dispute resolution.
The new corporate social responsibility article affirms Canada and Israel's commitment to encourage the use of voluntary CSR standards by enterprises, with specific reference to the government-backed OECD Guidelines for Multinational Enterprises, to which Israel and Canada are both parties.
The modernized agreement contains a new chapter on labour that commits both parties to enforce their laws in this area, which must respect the International Labour Organization Declaration on Fundamental Principles and Rights at Work. The new labour chapter provides protections for occupational health and safety, acceptable minimum employment standards and non-discrimination for migrant workers.
Allow me to draw to the attention of all hon. members that the successful negotiation of a high-quality labour chapter with Israel was a significant step in modernizing CIFTA. It is the first such chapter negotiated by Israel in a free trade agreement. The United States-Israel Free Trade Agreement does not include labour provisions. The EU-Israel association agreement, the legal basis for EU trade relations with Israel, makes only a few references to labour, with no enforceable obligations.
The modernized CIFTA is also the first time Israel has negotiated a chapter on the environment in a free trade agreement. The new environment chapter contains robust commitments, including to maintain high levels of environmental protection as we intensify our trade relationship. Importantly, both Canada and Israel commit to not lowering our levels of protection in order to attract trade or investment.
Our two countries, Canada and Israel, have a deep history. Canada's strong friendship and partnership with Israel spans more than 70 years and stretches back even further to the arrival of the earliest Jewish settlers in Canada more than 250 years ago, the first of successive waves of immigrants who would leave lasting and indelible impressions on the fabric of our Canadian society, economy and political landscape.
Today there are more than 350,000 Canadians of Jewish faith and heritage in Canada who are an important source of information and support in the political and commercial spheres for both Canada and Israel. There are also approximately 20,000 Canadians currently living and working in Israel. The Minister of International Trade Diversification had the opportunity to meet with some of these individuals during his visit to Israel last year.
For those in the House today who may not know, Israel has a long-standing reputation for technological prowess and a well-developed scientific and educational base. We know this very well in the riding of Waterloo. We see room to expand and build partnerships in these sectors and in many other areas.
When our Minister of International Trade Diversification was in Tel Aviv last September, he announced a pilot program to facilitate new cybersecurity solutions for the energy sector that will consider Israeli options to address the needs of Canadian natural gas delivery companies.
There are also great prospects for forging increased partnerships in the areas of joint research and development. Canadian and Israeli firms have joined forces to develop an ultraviolet water monitoring system that would ensure the safety of drinking water, and there are even more possibilities on the horizon that will change countless lives in communities around the world. Our government firmly believes that these kinds of global partnerships are needed now more than ever.
In conclusion, Canada represents just 0.5% of the world's population, but we account for five times more in global trade. Our continued competitiveness depends on businesses, including small and medium enterprises, pursuing trade opportunities and that we support them in doing so.
Successful trade provides for good employment opportunities. With one in six Canadian jobs linked directly to exports, our government is deeply committed to growing trade and expanding opportunities for all Canadians.
I therefore urge all hon. members to support Bill C-85 to enable Canada to do its part to bring the modernized Canada-Israel Free Trade Agreement into force on a timely basis and to support Canadian companies as they seek to benefit from the opportunities it offers.
This legislation should be passed today so that the Senate can also do its due diligence. I thank members for their work in helping this legislation move forward rapidly.