Mr. Speaker, it is an honour and a pleasure to speak to Bill C-24, a bill dealing with trade liberalization and market access.
Bill C-24 is just another step that our government is taking to help Canadians compete and succeed in the global economy. Our global commerce strategy includes a re-energized agenda of trade liberalization with our partners around the world.
As a trading nation, Canadian companies, Canadian producers and Canadian investors need access to international markets to stay competitive. We have entered an age of fierce global competition as emerging economies continue climbing the value chain and establishing themselves in an ever-widening range of sectors.
In this time of economic uncertainty. where a slowdown in the U.S. economy, our top commercial partner by far, and ongoing turbulence in international financial markets will continue to affect Canadian exporters and investors, we have done a good job of riding out the storm. thanks largely to Canada's strengths, strengths like low unemployment, the strongest fiscal situation in the G7, a sound borrowing system and our endowment of natural resources that continue to be in demand the world over.
We could add to that fiscal attribute by recognizing the fact that Canada's banking system is the most stable and best banking system in the world today.
We should also recognize the fact that our public pension plans have sound fiscal footing, unlike many public pension plans around the world.
It is clear, however, that we must remain vigilant. Canada must continue to fight protectionist pressures around the world and continue taking steps to ensure Canadian companies remain competitive, maintain their markets, and have access to new opportunities.
We have done something about that. Our government understands the challenge. Canada has committed to playing an active role in the Americas and in building strategic relationships with key partners in our neighbourhood. Our neighbourhood certainly is the Americas. The government's policy of re-engagement with the Americas has made a lot of economic sense. It is only reasonable, practical and intelligent foreign policy and trade policy on Canada's behalf that we have become more active in the Americas at our very own doorstep.
In Latin America, Peru is a leader, a lynchpin in the political and economic stability of the region. It has been an economic engine with a gross domestic product growth rate of 9.1% in 2008, near the top of the Latin American countries. Peru also has a solid outward orientation. A leader in trade liberalization, Peru is currently pursuing trade negotiations with a number of countries. We need partners like Peru, especially as we move forward on engaging with like-minded countries throughout the Americas. Canadians will benefit. Peru is already an established and growing market for our businesses. Exports like wheat, pulses and mining equipment are just part of that picture.
Canadians also offer services in the financial and engineering fields and this activity is driving strong, two-way commerce between our businesses. In 2008. two-way merchandise trade between our countries totalled $2.8 billion. Canadian exports. like cereals, pulses, paper, technical instruments and machinery, were all a part of this success.
Peru is an important supplier to Canada of gold, zinc, copper and petroleum,
Canadian investors, too, have a significant presence in the Peruvian market. In fact, Canada is one of Peru's largest overall foreign investors with an estimated $1.8 billion worth of investment stock in Peru in 2007 led by the mining and financial services sectors. It is no wonder that Canadian businesses in a number of sectors have been strong advocates of this agreement. Their support has been crucial throughout the negotiating process which began in June 2007.
The result is something we can all be proud of. With this new agreement, our nations are taking a critical step to intensify our commercial relationship in the years ahead and to create new opportunities for citizens in both countries who will be able to prosper.
We have negotiated a high quality and comprehensive free trade agreement covering everything from market access for goods to cross-border trade and services to investment and government procurement. Canadian exporters will certainly benefit. The agreement would create new opportunities for Canadian businesses and producers in the Peruvian market. Under the agreement, Peru will immediately eliminate its tariffs on nearly all current Canadian imports with remaining tariffs to be gradually eliminated over the next five to ten years.
Canadian producers will enjoy immediate duty-free access to Peru products like wheat, barely, lentils and peas. A variety of paper products, machinery and equipment will also enjoy the same benefit.
However, an effective free trade agreement should do more than eliminate tariffs. It should also tackle the non-tariff barriers that keep a trade relationship from reaching its full potential. We have done that by including new measures to ensure greater transparency, including better predictability for incoming regulations and the right by industry to be consulted at an early stage in the development of regulations, promoting the use of international standards and creating a mechanism to promptly address problems.
We are taking action on a number of fronts to unlock the trade potential inherent in the Canada-Peru relationship.
However, this agreement is significant for other reasons. It also includes important side agreements that demonstrate our joint commitment to corporate social responsibility, the rights of workers and preserving the natural environment. Our nations recognize that prosperity must not come at the expense of the environment and workers' rights.
This agreement paves the way for significant dialogue on other areas of mutual interest, including poverty reduction and trade related cooperation. In fact, this approach builds on our successful experience with free trade partners such as the U.S., Mexico, Chile and Costa Rica. The agreement will provide an opportunity to grow business and investment between Canada and Peru. We anticipate that freer trade will promote economic growth and employment and help Peruvians reduce high levels of poverty.
CIDA has contributed significantly to developing and enabling environment for trade and investment in Peru by improving the economic governance through the development of Peru's natural gas and mining regulatory frameworks, building its capacity to protect the environment, managing social conflicts by promoting corporate social responsibility in Peru, supporting work on improved labour administration, promoting democratic governance, meeting developmental targets and supporting the FTA negotiations on trade related cooperation between Canada and Peru.
The Canada-Peru free trade agreement builds on our work by including a number of development friendly provisions. It improves market access for Peru to Canada and allows Peru to adjust to freer trade with Canada. For the first time in a Canadian free trade agreement, Canada has agreed to the incorporation of a chapter on trade related cooperation that will help Peru maximize its opportunities under the free trade agreement. Through these measures, as well as the parallel agreements on labour and the environment that my colleagues have previously outlined, the Canada-Peru free trade agreement stands as a comprehensive and wide-ranging agreement.
It is also another example of Canada's re-engagement in the Americas. Our government is committed to working closely with our partners throughout the hemisphere to deepen our economic and security ties and promote stability, security and prosperity. The Canada-Peru free trade agreement is an important part of these efforts. It will also help us expand upon the friendship and cooperation our countries enjoy and create new economic opportunities for Canadians and Peruvians alike.
We share a belief that open markets and international trade are the best hopes for fostering development and our common security in the hemisphere.
We recognize that prosperity cannot take hold without security or, in the absence of freedom and the rule of law brought about through the pursuit of democratic governance, a good, healthy democracy cannot function without a sound underpinning of personal security and the chance to improve living standards through increased trade and investment. That is why we are committed to working closely with partners like Peru to influence positive change throughout the region and promote the principles of sound governance, security and prosperity.
Taken together, these agreements mark a new chapter in the Canada-Peru relationship, one that will forge an even stronger bond between our nations in the years ahead. They also mark yet another milestone in Canada's trade policy. In this day of fierce global competition and overall economic uncertainty, I am proud to say that we are taking the measures necessary to continue creating a resilient and competitive Canadian economy in the years ahead.
I ask for the support of all hon. members as we continue these efforts and create new opportunities for all Canadians to thrive and prosper in the global economy.
