Mr. Speaker, I am pleased to rise today as the proud member for Rivière-des-Mille-Îles.
The trans-Pacific partnership is a very important agreement. As the member for Edmonton Centre said earlier, Bill C-79 is historically significant. It opens up a new market of 500 million consumers. This will help SMEs and create jobs for the middle class. It is something that is very important to me.
For two and a half years I was a member of the Standing Committee on International Trade, where we studied this agreement. We visited this country from coast to coast, meeting people in many towns and cities in every province. We wanted to give everyone a chance to have their say on this very important matter. We also met with many representatives from the labour movement, civil society, business associations and chambers of commerce. We were also the first committee to have open-mic meetings so that everyone would have a chance to speak, and we certainly took their comments into consideration.
Let's think about it: eleven countries, namely Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam managed to come together to reach such an important agreement. We are opening up access to these markets and that is very important. We already have a free trade agreement with Europe, we will have one with Asia-Pacific countries, and we are currently negotiating to open up markets. With all these free trade agreements, Canada will be well positioned to grow the middle class and create good jobs for our SMEs.
I am very pleased to talk about the CPTPP and the positive impact it will have on businesses in Canada's industrial and manufacturing sectors.
My riding is a suburb north of Montreal with a huge number of SMEs and businesses that work in the aerospace, agrifood, and food processing sectors. These sectors produce a wide range of products across the country from cars to medical equipment, metals, chemical products and plastics. They are key components of our country's economy that employ 1.7 million highly qualified Canadians full time and account for nearly 11% of Canada's GDP.
Our government firmly believes that the CPTPP is an ideal agreement for Canadians and for our economy. This is a top-notch trade agreement that will help increase Canadian exports.
As a cornerstone of our government's comprehensive effort to enhance Canada's engagement with the dynamic, fast growing and increasingly influential Asian markets, it is an important part of our commitment to diversify trade, grow our economy and strengthen our country's middle class. Trade and investment flows between Canada and Asian economies have increased significantly since the turn of the century. From 2014 to 2016, Canada's exports of industrial and manufactured goods to CPTPP countries accounted for an annual average of $22.4 billion.
By eliminating nearly 100% of tariffs on manufactured goods, including some tariffs that are as high as 85%, and creating mechanisms to address non-tariff barriers to trade, the CPTPP would create opportunities for world-class Canadian businesses to increase their sales. Once the agreement enters into force, it will enable Canadian exporters to access diverse and internationally integrated value chains. On day one of the agreement's coming into force, there will be no tariffs on over 87% of industrial tariff lines covering Canadian exports to CPTPP markets worth an annual average of $19.5 billion from 2015 to 2017.
What does this mean for our industries? Allow me to provide a few examples.
For Canada's multi-billion dollar chemicals and plastics industry, the CPTPP will provide opportunities for companies, from those in Ontario, the hub of Canada's plastics industry, to cutting-edge chemical facilities in Alberta. With improved market access from the elimination of tariffs of as high as 50%, this industry will increase its annual average of $1.1 billion in exports to CPTPP markets.
With respect to metals and minerals, a sector contributing nearly 600,000 jobs across Canada and exporting $5 billion in goods to CPTPP markets, the agreement will result in the elimination of all tariffs, some as high as 50%. As a result, highly sought-after Canadian aluminum, steel, iron, petroleum products and precious metals will become even more competitive in such markets as Japan, Australia, Malaysia and Vietnam.
Canada's information and communication technologies sector, critical to major urban centres across Canada, is also well positioned under the CPTPP to meet growing needs within established and developing markets in the Asia-Pacific. In addition to eliminating tariffs, the agreement will protect companies from having to divulge their proprietary information in order to sell their products in CPTPP markets.
Our government listened to what Canadians had to say about the auto industry and made their concerns a priority. As part of the CPTPP negotiations, Canada obtained bilateral side letters from Australia and Malaysia in order to establish more liberal rules of origin, which would allow our automobile manufacturers to benefit from preferential tariff treatment on those markets without having to change their existing production models. We also reached bilateral agreements with Japan and Malaysia regarding standards and regulations in the automobile industry, a key demand of industry stakeholders.
Those are just a few examples of the industries that could benefit from the CPTPP. By making Canada's industrial and manufacturing exports more competitive and by cutting the red tape that hinders access to dynamic, growing markets, the CPTPP will give Canadian businesses significant opportunities to increase their profits and create new quality jobs for the middle class.
Beyond tariff reduction, another aspect of the CPTPP that stands to benefit Canadian companies in these sectors is in the area of intellectual property. The CPTPP's provisions on intellectual property cover virtually all areas of trade and IP, including copyright, patents, trademarks, geographical indication, industrial designs, domain names, and enforcement. Most importantly, the protection and enforcement of intellectual property rights will help protect Canadian innovation and investment as our businesses trade abroad. For many Canadian businesses, one of the most significant barriers to trade in some markets is uncertainty over the protection of intellectual property, including whether their intellectual property rights will be respected and enforced.
As a result, innovative Canadian businesses will be better able to market their products on the established, rapidly expanding Asian markets.
Beyond tariff reduction and intellectual property rules, the CPTPP also addresses the costly non-tariff obstacles preventing Canadian companies from entering foreign markets. All CPTPP members have committed to eliminating restrictive red tape in sectors such as cosmetics, medical instruments, pharmaceuticals, and ICTs, and this will give Canadian manufacturing exporters greater certainty and predictability with the competitive advantages they have gained.
The CPTPP marks a very important step in the history of trade in Canada. This agreement will be instrumental in diversifying our markets and promoting economic prosperity here at home. By establishing an effective, transparent, rule-based trade system with one of the most dynamic and fastest growing regions in the world, the CPTPP will open up new possibilities for exporters in our industrial and manufacturing sectors.
I also want to point out that we secured a cultural exception, which is very important for Quebec and for official languages.