Mr. Speaker, today is a first for me too. I have never shared time with a Conservative member of Parliament. I want to thank, in the spirit of co-operation, the Conservative member of Parliament for Battle River—Crowfoot.
I welcome the opportunity to rise in the House today to speak to the investment chapter and the investment dispute resolution mechanism in the Canada-U.K. trade continuity agreement. I will begin by emphasizing that maintaining the robust investment relationship Canada has with the U.K. is a top priority for our government. As we are all well aware, Canada and the U.K. have historically enjoyed a mutually advantageous trade and investment relationship. Our bilateral investment relationship, which was already strong, has grown rapidly under the Canada-European Union Comprehensive Economic and Trade agreement, or CETA.
The U.K. is Canada's largest market in Europe and is a key source of foreign direct investment. Indeed, the U.K. is Canada's fourth most important source of foreign direct investment. In 2019, the FDI stock from the U.K. was valued at over $62 billion. Canadians are also seeking investment opportunities in the U.K., with our FDI stocks in the U.K. valued at over $107 billion in 2019, making the United Kingdom Canada's second-largest direct investment destination.
The trade continuity agreement that was signed by Canada and the U.K. on December 9, 2020, would ensure that both parties can sustain and build upon this important relationship by preserving the benefits of CETA in a new bilateral agreement. More importantly, as this trade continuity agreement is based on CETA, an agreement Canadians are already familiar with, it provides continuity, predictability and stability for Canadian businesses, exporters, workers and consumers. This stability is more important than ever as we grapple with the COVID-19 pandemic.
Once the trade continuity agreement is ratified and fully implemented, it will continue to maintain predictability and protect Canadian investors as well as preserve CETA's high-standard provisions on dispute settlement. Canada's businesses have told us that what they want most at this time is stability, and the continuity agreement would provide that as we continue to work toward a new comprehensive bilateral free trade agreement with the U.K. that best serves Canada's interests over the longer term.
I will elaborate on two very important parts of the trade continuity agreement: the investment chapter and the investment dispute resolution mechanism, the purpose of which is to protect Canadian investors.
As stated by my colleagues, the trade continuity agreement is an interim agreement that replicates CETA's provisions to ensure the stability of Canadian businesses during the unique situation Brexit has presented. As such, the comprehensive investment chapter of CETA was effectively replicated in the trade continuity agreement to ensure a smooth transition and provide predictability for Canadians. This will ensure that Canadian investors, as well as Canadian financial institutions with investments in the U.K., receive the same high standard of investor protection under this agreement that they were provided under CETA.
I will elaborate on the investment dispute resolution provision.
The trade continuity agreement replicates the CETA investment dispute resolution provisions, including CETA's permanent investment tribunal and appellate tribunal, with only minor technical changes to reflect the replacement of the 28 EU member states with the U.K. However, the investment dispute resolution provisions will be temporarily suspended upon entry into force of the trade continuity agreement, pending a review by parties. The purpose of this review is to consider the approach to investment dispute resolution that best reflects the bilateral relationship between Canada and the U.K. The review would be set to commence within three months of entry into force of the trade continuity agreement and should be completed within three years, unless extended by agreement of both Canada and the U.K. If Canada and the U.K. do not agree on an approach to investment dispute resolution, or to extend the review process within three years, the CETA-like investment tribunal and appellate tribunal would apply, provided that equivalent CETA provisions have entered into force.
While this trade continuity agreement would protect Canadian investors, it would also maintain Canada's right to regulate in the public interest. As in CETA, the trade continuity agreement would require both Canadian and foreign investors to abide by Canada's laws and regulations in areas such as the environment, labour, health care and safety.
Through the unprecedented Brexit transition process our government strived to provide Canadians with certainty and security. This objective was made all the more important with the added economic consequences and uncertainty resulting from the COVID-19 pandemic.
Our government takes great pride in achieving this trade continuity agreement with the United Kingdom. The objective in negotiating this agreement has always been to create a temporary measure to ensure stability for Canadian businesses during the Brexit transition process. To be clear, the trade continuity agreement is good for Canadian and U.K. investors and for the strong mutually beneficial trade and investment relationship our nations have built over 150 years.
While CETA will continue to govern Canada-EU trade, this trade continuity agreement will provide predictability and remove uncertainty for Canadians doing business with and in the U.K. This agreement is not only about ensuring continuity and maintaining the status quo, but is also essential in setting the stage for our future trade relations with the United Kingdom.
It is critical that the trade continuity agreement be ratified and implemented as soon as possible to ensure certainty for businesses. Therefore, I urge all hon. members to support Bill C-18 and allow the government to move ahead and implement the Canada-U.K. continuity agreement in a timely manner.