Madam Speaker, it is a pleasure to rise and speak to Bill C-4 today in the House of Commons. The Canada-United States-Mexico trade deal is legislation we are all very proud of. I want to start by complimenting the minister on the tremendous work she has done and for the time, dedication and commitment to Canada in every line and chapter in the agreement.
This is the first occasion I have had since the election for me to thank the people of my riding for supporting me and electing me to the House of Commons to represent them in this mandate. I want to thank them for having confidence in me and for supporting the agenda we have worked on together for the people of Labrador. I certainly want to thank the many volunteers who worked on my campaign and all campaigns. As parliamentarians, we know how important it is to have the support of communities and individuals. Their work is so valuable in getting our messages out during the election.
As most members know, I come from a province that is hugely dependent on oil and gas development. We are very proud of the industry we have built. We know that energy within Canada in itself is an industry that has allowed our country to grow. It is a huge export commodity. It is one of the pieces dealt with throughout the trade agreement with the United States and Mexico.
I represent a riding that is not only one of the largest producers of hydro development power in Canada, but also through our partnerships with Hydro-Québec, we are able to see a lot of that export of power going into the United States as well. My riding is also the largest exporter of iron ore in Canada and one of the largest exporters of nickel. We know how important it is to have good trade agreements. We know how important it is to have strong allies and strong export markets. That translates into jobs at home and a stronger economy. It also helps so many families in many industrial sectors.
This is a remarkable time in Canada as we enter into this Canada-United States-Mexico agreement. I believe the outcomes in this agreement are good for all Canadians in every sector.
I want to talk about the energy sector because it is one of the sectors that is critically important to both the Canadian and North American economies. Our natural resources place Canada among the largest energy producers in the world. I am very happy to represent a riding and province that contribute in a major way to that energy production in the world market.
In 2018, Canada's energy sector directly employed more than 270,000 people. It indirectly supported over 550,000 jobs, which is quite substantial in terms of the employment generated through this particular sector. Including indirect activities, the sector accounts for 11% of the nominal gross domestic product of the country. Therefore, it was important that a key objective in the negotiations was to address the needs of the sector. This had to be a priority.
Provisions that govern trade in energy goods in Canada, as well as in other regions, are found throughout all of the agreement. It is not just in one particular chapter. It is spoken to in various places throughout the agreement.
It speaks to a number of things. One is national treatment and the other is market access, which we have heard a lot about with many other resource sectors. It speaks to the rules of origin for the energy sector, customs and trade facilitation, as well as cross-border trade in both services and investment.
Commitments from the original NAFTA agreement were brought forward to ensure that exports of Canadian energy products would continue to benefit from duty-free treatment in both the United States and Mexico, which was critical to the industry. Likewise, imports of energy products into Canada will continue to be duty free as well, ensuring that importers have access to these products without the extra cost of tariffs. We know how critical that is to the survival and stability of those investors and those resource sectors.
I am not going to expand upon each of those sectors, but I want to expand on the rules of origin, because the CUSMA addresses a long-standing request that had been there from Canadian industry. That was to resolve a very technical issue that was related to the use of diluent, a petroleum-based liquid that is often added to crude oil to ensure that it flows properly through pipelines. The issue had previously added upwards of $60 million a year in duties and other fees to our exporters in Canada, which was a burden. It was felt to be unnecessary, and they lobbied for a long time to have that removed because it was a huge cost to Canadian businesses. Under the new agreement, that particular issue around the rules of origin was dealt with, allowing the energy sector in Canada to gain financially from that change.
In addition to the provisions that govern energy that are found across the agreement, both Canada and the United States also agreed to a bilateral side letter on energy co-operation and transparency. I mention that because the United States, as we have all said and recognized many times, is Canada's most important trading partner when it comes to energy, as it is for many other resource sectors. The U.S. also accounted for 89% of our total energy exports in 2018. That is 89% of our total exports.
Due to the importance and integrated nature of this relationship, the CUSMA includes new provisions on energy regulatory measures and regulatory transparency that are tailored directly to trading needs between Canada and the United States. The side letter that was signed committed to provisions that would help Canadian stakeholders with more assurances and transparency with respect to the authorization process and allow them to participate in the energy sector in the United States.
Both parties have agreed to publish this information now. They have agreed to an application process, have agreed on monetary payments and have agreed on timelines. All of this is providing for stability and certainty in the industry. It is giving investors the opportunity to make important deals in full knowledge of the scope and lay of the land and without being exposed to unexpected changes. This in itself was key for the industry, and it is one of the pieces that they have been very pleased to see negotiated directly between Canada and the United States.
I know I am running out of time and that we have to conclude, but I am happy to resume this debate and talk more about the energy sector and the export sector under this agreement at another time.