moved that the bill be read the third time and passed.
Mr. Speaker, it is indeed a pleasure to rise in the House today to talk about the importance of the Canada-Panama free trade agreement. As the hon. members of the House may know, negotiations for this agreement were concluded and announced in August 2009 when the Prime Minister travelled to Panama City. In May 2010, the agreement was signed and it was first tabled in Parliament later that year.
Nearly two and a half years later, the Canada-Panama free trade agreement is still in Parliament pending ratification. In fact, members may recall that former ambassador Francisco Escobar had taken a keen interest in this file. He had his term extended with the prospect of getting this deal done before he left Canada and returned to Panama. Unfortunately, that did not happen because of delays caused by the opposition members, specifically the New Democrats who, as we know, are anti-trade and anti-investment.
The New Democrats have accused our government of trying to fast-track the Canada-Panama free trade agreement through Parliament. We are talking about two and a half years and it is still not done because of all kinds of delays and obstacles presented by the New Democrats. To date, we have spent almost 60 hours debating the merits of this agreement.
What the opposition members do not realize is that trade and investment drive economic growth and job creation here at home in Canada. As members know, Canada's economic fundamentals lead much of the developed world. Our growth rates and our job creation record are the best among the G7. Yet, these are very fragile times for the global economy and that is why we are using trade and investment to open up new opportunities for Canadian companies around the world. We need to provide them with opportunities to be successful, to grow their businesses and to take advantage of some of the fastest-growing economies in the world. Latin America is one of those areas and Panama has been a special target for us. We have a very good relationship with the Panamanian government, which also recognizes that expanded trade is important for its long-term prosperity.
The fact of the matter is that reaching a trade agreement with a key hemispheric partner such as Panama is a logical step in our policy of pursuing deeper integration and closer co-operation throughout the Americas. In fact, we have an ambitious plan to expand Canada's footprint in Latin America. Our Conservative government recognizes that protectionist restrictions stifle our exporters and undermine Canada's competitiveness. On the world stage, Canada has been a champion in the fight against protectionism. We promote free and open trade around the world. We have collaborated with some of our key partners around the world to drive home the message that protectionism is toxic to the global economic recovery. We also understand that in order for our companies to succeed, we need to create the right conditions for their success through freer and more open trade.
This agreement with Panama would help do this by providing Canadian businesses with improved market access for goods and services and a stable and predictable investment environment. We want to ensure that when Canadian investors look to Panama as a place for investment, there are clear sets of rules in place to address the investment and also the dispute resolution process. The Canada-Panama free trade agreement would also eliminate tariffs in a range of sectors, including industrial, agricultural, forestry goods and of course fish and seafood. It would also expand market access for Canadian service providers in information and communications technology, in energy and in financial services. Something a lot of Canadians do not recognize is that 71% of Canada's GDP is driven by the services industry. It is the largest industry in Canada.
When we forge new opportunities around the world for Canadian businesses to trade and invest, we also want to provide them with opportunities to build on our strengths in the services sector, strengths in areas such as engineering. A lot of Canadians do not understand that Canada is the fourth largest exporter of engineering services in the world. We are world leaders in that area, but unfortunately there are sometimes barriers to allowing our engineering firms to compete abroad. We are removing those barriers by engaging in free trade negotiations, especially with countries such as Panama.
Just to provide some context, Panama is a dynamic and fast-growing market for Canadian exports, one that has continued to grow despite a time of global uncertainty. In fact, our bilateral trade with emerging economies such as Panama is growing very rapidly. Those are our growth opportunities around the world. Over the past five years, bilateral merchandise trade between Canada and Panama has increased by 105%. That is a staggering figure and it really frames how important it is for us to deepen our trade and investment relationship with Panama.
To ensure that Canada's economy continues to grow, we must forge closer economic ties and seize new opportunities with thriving and emerging economies such as Panama. Our bilateral trade with Panama has been growing rapidly because the Panamanian economy is in the midst of a period of impressive economic expansion. In 2011, Panama's real gross domestic product growth was a stunning 10.6%. That is just in one year. According to the International Monetary Fund, Panama's GDP will continue to grow at over 6% per year over the next five years. By any standard, that is remarkable growth in these very difficult global economic times.
Where there is rapid growth, there are also significant commercial opportunities, especially for Canadian businesses, which are world leaders in many different sectors. Sadly, the New Democrats do not believe that Canadian businesses and workers should have these opportunities. They do not believe that our businesses can compete. They do not believe that trade creates jobs and economic prosperity for Canadians and our international partners. In fact, the NDP believes in an inward-looking Canada, a Canada that cowers in the face of competition.
Our Conservative government categorically rejects that view and vision for Canada. We believe that Canadians have proven time and time again that we can compete with the very best and win, and we will continue to do so as our government opens up new markets.
However, we see efforts in the House by New Democrats to characterize themselves as pro-trade. They refer to it as fair trade and we all know across Canada that fair trade, when it is defined by the NDP, means no trade. There is not one trade agreement that they do not criticize. There is not one trade agreement that they see as moving Canada's trade objectives forward.
When they speak of being born-again free traders, it belies the fact that, for example, the NDP member for Ottawa Centre asked dismissively, “Does anyone really think that signing a free trade agreement with Panama will lead to the economic prosperity of Canada?” There are others. For instance, the NDP member for British Columbia Southern Interior recently wrote that trade agreements “threaten the very existence of our nation”.
Can anyone imagine that trade agreements are threatening our very existence as a nation? Quite the opposite is true. Trade is a key driver of economic growth and prosperity in Canada. In fact, Canada is one of the great free trading nations of the world and we benefit from more open and freer trade.
Then there is the former NDP trade critic, the member for Windsor West, who supported the Canadian auto workers' call to abandon our current negotiations for free trade agreements with countries such as Japan and the European Union. That is pretty sad. We reject that approach to trade. We also reject the New Democrats' approach to investment, which is to say no, and they have done that again in recent weeks.
According to the International Monetary Fund, Panama's GDP is recording very significant growth. It opens up new opportunities for Canadians to sell their products and their expertise into the Panamanian market. For example, Canada's agricultural exporters, on whose products Panama currently maintains tariffs reaching peaks of as high as 260%, those tariffs would be eliminated under this agreement.
Our government is proud to be promoting an ambitious pro-trade plan that is opening up these markets, removing those tariff and non-tariff barriers to ensure we can compete effectively and drive economic growth right here at home.
The opportunities for Canada are not limited to exporters. It has been widely reported that Panama is undertaking an ambitious $5.3 billion project to expand the Panama Canal. In fact, the canal's expansion project is already under way. The ongoing operation and maintenance of the canal is expected to generate significant opportunities for Canada's investment community in the years to come.
Furthermore, Panama has announced an infrastructure plan valued at $13.6 billion over five years in its effort to become a trade and logistical hub in the region. Canada is one of the leaders in infrastructure and related technology. We have some of the top firms in the world that are experts in infrastructure, construction and development.
The more that time passes by, the more that opportunities for Canada's exporters and investors are placed at risk. That is why the House must act quickly to ensure that Canadian companies have the competitive advantage to see some of the growing commercial opportunities in Latin America, and specifically in Panama.
I would remind the House that Panama has already concluded free trade agreements with the United States and the European Union, two of our fiercest competitors. Panama's free trade agreement with the European Union could enter into force as early as the end of this year. More pressing is the fact that the United States-Panama trade agreement entered into force on October 31, 2012, just two days ago.
What does that mean to Canadians? We have lost first mover advantage. We had an opportunity to get this done sooner but because of the opposition parties and the obstacles raised by the NDP, the anti-traders, the anti-investment folks on the other side of this House, we have lost that first mover advantage. Now, the United States and its exporters and its investors will have a leg up on Canada. What a shame.
While Canadian companies continue to face duties, our American counterparts are already seizing the excellent opportunities freer and open trade has brought to their workers and businesses. Now, of course, Canadian products are at a competitive disadvantage due to prohibitive duties, while 87% of products from the United States now enjoy duty-free access.
We have missed that window of opportunity to take the lead. This will adversely impact the Canadian manufacturers, producers and exporters who want to grow and expand their commercial ties with Panama. It is absolutely imperative that we implement this agreement to defend the competitiveness of Canadian firms in Panama and solidify our Canadian presence in a growing and strategic market.
Our Conservative government clearly understands that our standard our living and Canadians' future prosperity will be generated by deepening and broadening our trade and investment relationships around the world, especially in the highest and fastest growing markets of the world.
Opening up new markets in Panama and increasing Canadian exports will benefit workers and businesses in every region of our country. We have already lost tremendous opportunities in Panama by waiting to implement this agreement. It is time to get this bill through the House.
I ask that all hon. members of this House, on both sides of this House, support the swift ratification of the Canada-Panama free trade agreement.
