Mr. Speaker, it is a pleasure to rise in the House for this ongoing debate on the Canada-Colombia free trade agreement. I think we have had over 50 hours of debate, both in the Chamber and at committee, on Colombia already. I am hoping to hear something new in these closing hours of debate today. So far I have not but I am still hopeful that something else will perhaps come up that we have not been aware of.
This is a good agreement for Colombia and Canada. It has a number of additions to it. Here in the Chamber I would like to publicly thank the hon. member for Kings—Hants for his intervention and the assistance of the Liberal Party on this agreement because it will benefit not just Colombians, who desperately need this agreement, but Canadians as well.
As the global economy continues to recover, one thing is clear: free and trade and partnerships, not protectionism, hold the key to long-term prosperity. Canada's approach has been to keep the doors to diversifying global trade open and this agreement is part of that strategy. We are aware that Colombia is already a significant trading partner for Canada, with two-way trade totalling over $1.3 billion in 2009. Colombia is an established market for Canadian exports and holds significant potential for Canadian businesses, the potential we need to continue to work toward a fragile recovery and continue to move forward in these very difficult economic times.
Over the past five years, Canadian merchandise exports to Colombia have grown by 55%. Colombia is also a strategic destination for Canadian investment, with the stock of Canadian investment in Colombia reaching over $1.1 billion in 2008. A country like ours, with so much expertise, can offer a lot to Colombia. Canadian engagement on trade is a key factor to the development of a safe, secure and prosperous Colombia. I think that all of us in the House would be in agreement on that point.
Canadian businesses currently are and have the potential to further become important players in the Colombian market. We need to be able to compete with those who are there, countries like the United States. Looking beyond investment services and market access for goods, this agreement is a comprehensive free trade agreement with terms that extend well beyond these subjects to include other areas of importance to Canadian businesses.
The free trade agreement provides comprehensive terms of the agreement in areas such as financial services, temporary entry of business persons, electronic commerce and telecommunications, and competition, monopolies and state enterprises.
For the second year in a row, the World Economic Forum ranked the Canadian banking system as the soundest in the world in its annual report on global competitiveness. Canadians can be proud. This is an area where Canada is truly excelling. Across the Americas, Canadian banks are helping foster economic growth through access to credit and other financial services. The Canadian financial services sector is a leader in providing high-quality and reliable financial services. This agreement includes comprehensive obligations for the financial services sector, including banking, insurance and securities.
These terms go beyond those already agreed to at the World Trade Organization and ensure that the Canada's financial services sector can compete with its American competitors in Colombia. These market access commitments are complimented by key terms that ensure non-discrimination, provide a right of establishment for financial institutions and promote regulatory transparency in the financial sector.
Those are key elements that our sector is seeking to ensure it is able to compete in an increasingly competitive global market. This government is responding to this demand.
Another important area included in this agreement to ensure that businesses are able to fully maximize the opportunities in Colombia is temporary entry for business persons. Our government is responding to this demand.
This is an important issue for Canadian businesses to ensure their employees are able to work in Colombia and is a natural complement to market access for goods, services and investment. In recognition of the significant number of Canadian companies operating in the region, the agreement removes unnecessary barriers impairing the ability of companies to bring in the skilled workers they need. This would include impediments such as the requirement for labour certification tests, quotas, proportionality requirements or any prior approval procedure. The agreement extends to an extensive list of professions, including various technicians and provisions for spousal employment.
This goes beyond coverage previously achieved in any Canadian free trade agreement. We are tearing down the barriers to trade when Canadians need it most.
The strength of this trade agreement does not stop there but also extends into the areas of electronic commerce and telecommunications. Electronic commerce is an important addition to the previous free trade agreement in light of the importance of ensuring that new digital economy issues, such as protection of personal information, consumer protection and paperless trade, are not overlooked.
Those issues are increasingly important for businesses in the 21st century and Canada and Colombia have recognized this fact. Colombia has agreed to a permanent moratorium on customs duties for products delivered electronically. This includes items such as electronic software, music purchased online and digital books. This moratorium is important not only for businesses but consumers as well.
In addition to electronic commerce, telecommunications provisions were also included to support the competitive development of the telecommunications sector. The obligations contained in this agreement go beyond Colombia's current obligations through the World Trade Organization. Through this free trade agreement, Canadian telecommunications service providers would be able to compete with their American counterparts in the Colombia market.
Clearly, there are many benefits of this free trade agreement with Colombia that go beyond trade, goods and investment.
The final area that I would like to touch on is the terms in this free trade agreement related to competition, monopolies and state enterprises. This agreement meets Canada's objective of ensuring that anti-competitive business practices do not undermine the benefits of trade and investment liberalization achieved in the overall agreement.
Canada and Colombia will co-operate on issues related to the competition policy through their respective authorities. The obligations ensure that Canadian companies doing business in Colombia are treated fairly with respect to their investments.
Overall, this is a high quality and comprehensive trade agreement. This is a market where many key exporters have seen enormous potential. Colombia has stable political institutions, progressive laws and strong pro-market orientation.
These strong economic fundamentals were noted by the World Bank in its report, “Doing Business 2010”. No less than the World Bank has rated Colombia among the top 10 countries in the world for regulatory reform and the best country in Latin America for doing business.
Quite frankly, if we listen to some of the rhetoric that has taken place in the House about Colombia and then look at such respected institutions as the World Bank, there is a serious dichotomy, a serious split between the reality of what major players in the world's economy, such as the World Bank, are saying and what the critics of this free trade agreement are saying.
Colombia is well positioned to weather the global economic crisis. The country has sound macro-economic policies and improved security, which have resulted in favourable economic conditions and stronger demand for imported products. This represents new opportunities for Canadian exporters.
This free trade agreement has the support of key exporters and investors across Canada. Its passage through the House will ensure that Canadian business is able to take advantage of the opportunities in this important market. Our government believes that our businesses can compete with the best in the world and this agreement will help them do it.
The world is quickly discovering the benefits of doing business with Canada and we are there to assist to make that happen.