Mr. Speaker, I thank the House for its consent to speak today.
The bill is yet another protectionist measure emanating from the benches opposite. It would require that every department and agent of the Government of Canada give preference to Canadian products when purchasing goods and services. It would apply not only to every department and agent of the Government of Canada, but to any crown corporation and any foundation with 75% of its income or funding coming from the government.
The best way to promote jobs and growth in our country is not by protecting Canadians from foreign competition, but by preparing for it. The best defence is a good offence. The best way to create jobs and growth is to guarantee that our products and services have access to worldwide markets. The best way to do that is to ensure that the world markets, including our own, stay open to competition.
The bill runs completely counter to the work of the last 20 years to guarantee access to international markets. Beginning with the Canada-U.S. Free Trade Agreement signed in 1988, the Government of Canada has entered into many free trade agreements to ensure this access. These include agreements with Mexico, as part of the North American Free Trade Agreement; with Chile, Israel, Peru, Colombia, Costa Rica; and Iceland, Liechtenstein, Norway and Switzerland as part of the agreement with the European Free Trade Association.
As we look forward, we know that as small market economy Canada's future growth depends on our ability to reach markets beyond our own borders. That is why, at the Canada-European Union Summit in Prague earlier this year, the Prime Minister announced the historic launch of negotiations toward an economic partnership between Canada and the 27 member states of the EU.
Canada is, and always will be, a trading nation. One in five jobs in Canada is linked to international trade and 70% of our GDP is dependent on it. Consider, for example, the significance of our trade with the United States. Canada and the United States are each other's most important partner in economic growth. Since the Canada-U.S. free trade agreement was signed in 1988 and then NAFTA in 1992, there is no doubt our bilateral trade has been one of the major components of economic growth.
During these two decades, Canada and U.S. trade has tripled. Investment flows have also increased substantially. Two-way trade across the Canada-U.S. border at the rate of $1.7 billion a day, over $1 million a minute. An estimated three million jobs in Canada depend on our trade with the United States.
Given this scale of success it is clear that protectionism is our mutual enemy. In fact, it is a threat to our economic recovery. Indeed, it places restrictions on free trade and real growth prospects in both the developed and developing world alike.
Protectionist policies might look like an effective way of supporting economic growth, but our companies cannot compete if they are coddled. In fact, such actions prepare Canadian business not to compete on the world stage at all, but to fall behind under protectionist measures.
In addition, we are committed to respecting and upholding our trade commitments with our partners and we expect our partners will do the same. To come out of this global recession, we need to continue to trade free of barriers. The Great Depression taught us that the downward spiral of protectionism only leads to a more dire situation. That is why our economic action plan protects Canadians during the global recession, not by restricting trade, but by promoting it.
Our Budget Implementation Act revoked additional tariffs to increase international trade. This plan works to create good jobs for the future to equip our country for success in the years ahead.
We are acting through the most appropriate means to protect our economy and Canada is affected by the downturn. That includes the tax system, the employment insurance program and by direct spending by federal and provincial governments. It includes lending by crown corporations and partnerships in the private sector. What it leaves behind is protectionism, in the dustbin of history where it belongs. Canada knows we cannot build a fortress and lock ourselves inside it.
I believe the evidence before us can only lead to one conclusion. Therefore, I call on my colleagues in the House to oppose the bill.