Madam Speaker, it is a pleasure for me to speak today to this important bill. It is of particular interest to me because I was a member of an all party committee that studied this very issue.
Over a year and a half ago a group of us went to countries such as China, India, South Korea, Japan, Malaysia, Singapore and Thailand, and had a chance to see firsthand the emerging markets in that area. I do not think anyone can question that this is where the future lies. Canada needs to position itself very squarely in their view.
I would like to mention a few statistics that we received when we were there. People will probably have heard this already, but it confirms the importance of the market in the Asia-Pacific region. One of the statistics we heard when we were there is that 60% of the building cranes in the world were in China. Second, China, in the year that we were there, was going to be introducing 40 new models of vehicles which ties into my third point which speaks to the middle class in both China and India.
If China is introducing 40 new vehicles, obviously there are people there who are going to buy them, so the world is changing rapidly and the Asia-Pacific market is changing rapidly. These figures may change, but we are told that between 150 million and 250 million middle class now exist both in India and China, but these figures vary depending on who is speaking.
When we were in China, we were told that a port is being built there that will be able to service 15 times what Vancouver is able to service at this time. So again, everything that is done in that area is done on a huge scale. It is very important that we be present there to accommodate further trade.
We were also told that, in terms of education, India alone is producing between 250,000 and 300,000 engineers a year. If I look at Manitoba, where I am from, I believe that our faculty is probably producing between 100 and 150 engineers a year. When we look at those numbers, it is absolutely mind boggling. If people think that the quality of education is inferior, they really need to take a second look at this. We had an opportunity to visit some of those universities and the quality of education is absolutely world class.
I am very pleased and I applaud the hon. ministers of Transport, Industry, Public Safety and Emergency Preparedness, and Western Economic Diversification for having recognized the importance of this market and for having recognized the importance of establishing a Pacific gateway strategy.
I am told the strategy will see up to $590 million invested in specific areas to help Canada deepen its economic links with the Asia-Pacific region and ensure that Canada remains a key trading partner of the world's most powerful emerging economies.
The strategy and the proposed Pacific gateway act currently before Parliament is about positioning Canada to take full advantage of global commerce and ensure lasting prosperity for Canadians. Thanks to Canada's rich cultural diversity, our nation already has many people to people links to the world beyond our borders.
One of the things we established when we were there was the importance of these people to people links, the importance of student exchange programs to ensure that in the future these people continue doing business with each other. We found in Hong Kong, for instance, that many students had studied at McGill University. They are currently preferring Canadian businesses at this point because of their connection to Canada. That is a very important part of what we would like to do.
However, the time has come to build more economic links as well. With the global economy shifting into high gear, Canada needs the infrastructure to support these links and ensure that Canada is well positioned to benefit from the emerging markets of the world.That is what the Pacific gateway strategy is all about.
Today, I would like to talk about what this plan means for Canada's trade and its aim to make Canada the premier gateway between the North American market and the vast emerging markets of Asia. Indeed, the strategy's initiatives will go a long way to furthering our goals under Canada's international commerce strategy outlined by the Prime Minister last April as part of Canada's international policy statement.
As the statement makes clear, global business is evolving at an increasingly rapid pace. What is driving this change are advances in information and communications technology, lower transportation costs, and reduced barriers to trade and investment.
A business as usual approach no longer works. Canada's future prosperity depends on the rapid, seamless, and secure movement of people, goods, investment and knowledge. It depends on developing high efficiency trade corridors with the economic powerhouses of the world.
Until recently, Canada's trade corridor could be best described as a north-south corridor. The United States has been our number one trading partner and continues to play an essential role in Canada's economic life. These days, remaining globally competitive means looking beyond North America, especially to the emerging markets of the Asia-Pacific region.
Economic powerhouses like China and India represent the future of world trade. Take China for instance, the world's fastest growing economy. It is currently the world's seventh largest economy and the prospects for future growth look very bright. Canada has already made a number of important links to this exciting market. China is our second largest two-way trading partner with total trade valued at $30.8 billion in 2004.
The Pacific gateway strategy is all about strengthening links with economies like China and making a series of key investments that will position Canada's west coast as a nexus for our trade with the Asia-Pacific region.
Investments of up to $590 million will go toward improving our transportation system, including our ports, whose capacity is being stretched to its limits; ensuring a smooth flow of goods across our borders; helping to develop common harmonized standards with the Asia-Pacific region; and of course developing future initiatives that will strengthen the Pacific gateway in the years to come.
It is interesting to note that our committee's recommendations discussed exactly this. A lot of the problems are not in Asia. A lot of the issues that we have to deal with are actually here in Canada like better preparing our businesses to deal with the different business environment in the Asia-Pacific region. I am thrilled to see that we are moving on this. It is a great initiative and that is why I am pleased to be speaking on this topic.
Fortunately, Canada is very well positioned to take full advantage of increased trade with the Asia-Pacific region. Canada is blessed with many geographic advantages. By boat, Canada's west coast ports are about two days closer to Asian markets than any other port in the western hemisphere. In fact, the port of Vancouver handled a total of 73.6 million tonnes of cargo in 2004, a 10% increase from the previous year. This is directly attributable to increased trade in the Asia-Pacific region, particularly with China.
Our railways offer among the most affordable freight rates in North America. Our trucking industry is highly competitive and efficient, and a key link to the American marketplace.
We cannot overlook the importance of our proximity to and effective transportation links with the American marketplace. This is a valuable advantage, one that emerging markets in the Asia-Pacific region certainly appreciate.
Canada's many advantages clearly demonstrate that building links to the Asia-Pacific region means more than having the best goods and services in place. Today's demands for rapid just in time service also means that successful nations will be the ones that make the most of their geographic advantages by getting their logistical houses in order.
Getting products and services to market smoothly and efficiently is fast becoming an essential component of a nation's trade. That is why I am happy to see that the Pacific gateway strategy not only recognizes Canada's many advantages, but it also puts forward a plan to strengthen these advantages and ensure that our transportation system, telecommunications, border procedures and regulatory standards give our nation a clear, competitive edge in the global marketplace.
I should also point out that this initiative reaches far beyond western Canada. Strengthening our position in global commerce is a priority for the entire country.
The link is undeniable. Our total trade is equivalent to over 70% of our GDP and one in five jobs is trade-related. That is why the strategy investments are being spent directly on priorities that affect the entire country. For instance, the central and Atlantic provinces exported over $8 billion worth of goods to Asia in 2004, 82% of which depended on efficient marine transportation and port infrastructure, a key component of the strategy. The strategy's investments to improve the flow of goods across our borders will affect all border provinces, not just British Columbia.
I am also pleased to note that there are a number of similar initiatives underway to promote this gateways and corridor concept across the country, in Montreal, Halifax, southern Ontario and Manitoba. I can speak to the Manitoba corridor which is the north-south corridor, which opens up a market of 80,000 people in the American Midwest. It has been an essential part of the Manitoba strategy to develop links with cities such as San Antonio and Chicago. It has worked extremely well. I am very pleased that we are doing this now on an international basis with the Asia-Pacific region.
These kinds of strategic initiatives are essential for Canadian trade obviously. They reflect the importance that all regions of Canada place on boosting our share of the global marketplace and they represent an important step in attracting the kind of investment that will spell real benefits for Canadians in the future.
Together with the groundbreaking Pacific gateway strategy and act, these initiatives will help ensure that Canada remains a key player in global trade for generations to come.
