Madam Speaker, I appreciate the opportunity to speak to the motion today. Canada and the United States have long enjoyed one of the most productive, collaborative and mutually beneficial bilateral relationships in the world. It is a partnership of neighbours forged by geography, ennobled by shared values, enriched by common interests, maintained through deep people-to-people connections and reflected in powerful economic and security ties.
Our two countries enjoy the largest trading relationship in the world. We defend and protect North America. We are stewards of our shared environment. We stand on the world stage to respond to pressing global challenges together. This has been true over the course of history. It is true today and it will be true in the days and years to come.
These are not merely words or abstractions. This deep relationship between our two countries is reflected in the relationship between our leaders. Just two weeks ago, President Biden made Canada his choice as his first call to a foreign leader. Together, the Prime Minister and the President reaffirmed our shared values and interests both at home and on the global stage.
Just this past Monday, the Prime Minister spoke with Vice-President Kamala Harris, also her first call to a foreign leader. As many members of this chamber know, the Vice-President has a special relationship with Canada. She recalled her years spent in my hometown of Montreal with fondness. In fact, she went to school in my riding.
I spoke to my counterpart, Secretary Blinken, almost immediately after his appointment, when we reaffirmed the special relationship our countries shared and committed to working together on our shared priorities.
This personal connection is something I share. I spent many memorable years living in the United States, where I trained alongside American astronauts and where my children were born.
If I may begin by talking about COVID-19, the fundamental priority we share with the United States is to end the global pandemic. The spread of COVID-19 has caused upheaval in both Canada and the United States, and we have taken unprecedented action to combat the pandemic, support our citizens and stabilize both economies.
The pandemic has also highlighted how our important and unique bilateral relationship has shaped the way we have managed our co-operation in these uncertain times. Last March, Canada and the United States arrived at a far-reaching agreement to limit discretionary travel across the border, an understanding that has been extended several times by mutual agreement. The magnitude of this decision cannot be overstated. Ours is one of the busiest land borders in the world, with approximately 400,000 people crossing it on any given day.
The smooth flow of people and goods across this border is vitally important to both economies and communities on both sides. In the face of such high stakes, our two countries collaborated in an orderly fashion and quickly arrived at an agreement aimed at limiting the spread of the virus. The agreement has resulted in a 90% reduction in the number of travellers crossing the border while maintaining the flow of essential goods and travellers.
This collaboration set the tone for subsequent co-operation in getting our citizens home, ensuring the continued operation of our supply chains or assisting each other in the production and procurement of medical supplies and other essential goods. A striking example has been our co-operation to procure personal protective equipment, or PPE. As in so many other countries, Canada-U.S. trade in PPE is bilateral and reciprocal. Our collaboration allowed for the smooth flow of PPE across the border and into the hands of health care workers in both countries.
Canadian and American partners are also working together and investing in research to fight the virus with collaboration on 15 different diagnostic and vaccine projects.
Let me say a few words about our trading relationship with the United States.
In 2019, bilateral trade of goods and services totalled $997 billion. That is more than $2.7 billion in trade every day. Our level of economic integration is unique. Approximately 77% of Canadian exports to the U.S. are inputs used to make goods in the U.S. In addition, what we sell to the U.S. contains, on average, roughly 21% American content. We make things together and add value together. Canada is the number one market for most U.S. states, 32 in fact in 2019, and over 74% of Canada's goods exports go to the U.S.
The U.S. is the single greatest investor in Canada. In 2019, U.S. stock investment in Canada was $455 billion, representing nearly half of all investment in Canada.
The enduring trade relationship that has helped build this remarkable regional economic engine, starting with the Canada-U.S. Free Trade Agreement in 1989 and continuing with the NAFTA agreement in 1994, has been a model of success for the world. Over generations, Canada, the United States and Mexico have built the biggest economic region in the world, encompassing a $32.2 trillion regional economic market, representing more than 492 million consumers.
We renewed our commitment to the trilateral commercial relationship with the entry into force of the Canada-United States-Mexico Agreement, CUSMA. This new NAFTA addresses modern trade challenges, reduces red tape at the border and provides enhanced predictability and stability for workers and businesses across the integrated North American market. Crucially, the new agreement preserves virtually duty-free trade in North America and ensures the continued predictable and secure market access for Canadian exporters to the United States. These outcomes reinforce integrated North American supply chains and help enhance our competitiveness globally.
Of course, the government also recognizes the critical role energy plays in our trade relationship. Jobs, economic security and competitiveness on both sides of the border depend on our bilateral energy trade. Canada and the United States have a unique energy relationship. We know that the United States is Canada's most important market for energy. In turn, Canada is the largest and most secure foreign source of energy for the United States, including crude oil, natural gas, hydroelectricity and uranium.
In 2019, 91% of Canada's energy exports were destined for the U.S., totalling nearly $125 billion in value. The reverse was also true. Canada is the second-largest market for U.S. energy exports, and these exports play an important role in ensuring Canada has a reliable and secure energy supply.
The truth is that Canada and the U.S. have a highly integrated energy infrastructure system, which allows for the optimization of current global competitiveness, benefiting both Canada and the U.S. We know that the energy sector provides thousands of well-paying, middle-class jobs on both sides of the border.
An essential element of this energy system is a cross-border energy infrastructure, including pipelines. As the Prime Minister said directly to President Biden during their call two weeks ago, “we are disappointed but acknowledge the President’s decision to fulfill his election campaign promise on Keystone XL.”
This said, the Canadian oil industry moves through over 70 pipelines, creating one of the most integrated energy systems between two countries. We will continue to make the case that to continue to deliver and enhance the benefits of Canadian oil and gas to the U.S. we need to build and maintain the necessary infrastructure to get products where they are needed.
I would be remiss if I did not also mention our ongoing legal challenges related to Line 5. Our government has been clear. This pipeline, including the tunnel project under the Straits of Mackinac, is crucial to economic and energy security on both sides of the border. There is no question of Line 5's importance. It supports thousands of jobs in Ontario, Quebec and western Canada. It is essential for keeping the lights and heat on for thousands of Canadians and Americans. It provides a critically important fuel source for farmers and industry.
Line 5 has been operating safely for 68 years. A comprehensive nine-month review concluded that it would not affect protected public uses of Michigan's water resources. Even Michigan state's own environmental body has said that the project is safe.
These are the arguments our government has been raising with American officials and we are using every tool at our disposal to see to it that Line 5 continues its operation. We continue to promote our other sources of energy as well.
On electricity, exports of Canadian hydroelectricity provide clean, renewable, firm 24/7 baseload to many U.S. states. Electricity crosses the U.S.-Canada border along more than 30 major transmission lines, unrestricted by physical barriers, as part of an effective, efficient and highly integrated North American energy grid.
This highly integrated system benefits both Canada and the United States. Operators consistently take advantage of spare energy capacity in neighbouring jurisdictions to optimize their own systems. Ratepayers benefit from a more reliable and resilient electrical system that spans the international border.
Canadian hydro also contributes to U.S. energy security and helps states meet critical greenhouse gas emission reduction targets and move to a low-carbon economy.
Canada is also a leader in nuclear energy. Canada supplies the U.S. with 33% of the fuel used for its reactors, which in turn generate one-fifth of U.S. electricity. Industry and government in both countries are also collaborating on developing advanced nuclear technology, including the next-generation small modular reactors.
In the current context of a global pandemic, it is clearly more important than ever that we work closely to ensure a secure, reliable, sustainable supply of energy sources for North America and the world.
Of course, energy security is only one important factor in our region's safety and overall security. Canada and the United States work closely together in the area of national and international defence.
Canadians and Americans have depended on each other for decades. From the Halifax explosion to the beaches of northern France in World War II, from the hours and days following the September 11, 2001, attacks to the wildfires that devastated California and Oregon last fall, Canadians and Americans have faced the great challenges of the continent and the world side by side.
Today, hundreds of members of the Canadian Armed Forces continue to serve alongside their U.S. allies across America and around the world. The job of protecting the North American homeland continues under the watchful eye of Canadian and American aviators, sailors, soldiers, police officers and firefighters.
A further element that unites us is our shared natural environment.
For example, Canada and the U.S. share many waterways that mark or cross our shared border from the Great Lakes to rivers such as the mighty St. Lawrence. The shores of these lakes and rivers are home to tens of millions of Americans and Canadians, and decisions made within the basins of one country have consequences for the other. Hence, their joint stewardship is a cornerstone of Canada-U.S. relations.
Finally, despite so much progress together, we must acknowledge that our societies face similar difficulties and shameful legacies. Canadians continue to grieve alongside our American friends at the countless victims of police violence around the world. These are not isolated incidents or elsewhere problems.
Prejudice, discrimination and violence are a lived reality for too many people in Canada, just as they are elsewhere. In the face of these injustices we must be clear. We condemn anti-Black racism and systemic discrimination in all its forms. That is what thousands of principled Americans and Canadians have been doing throughout our two countries and we continue to admire and honour their work.
We hear the same calls for a more inclusive and just society here in Canada, where systemic racism is a problem every single day. Canada is not a bystander. As neighbours, this is a burden our two societies share, and we must do better together. Indeed, when the Prime Minister spoke with the vice-president this past Monday, he underscored the need to promote diversity, inclusion and mental health, as well as the importance of addressing online hate, firearms trafficking and gender-based violence. Just yesterday, we listed the white supremacist group the Proud Boys, and others, as a terrorist organization. Our fight against the forces of intolerance and racism is unequivocal.
It is clear that the Canada-U.S. relationship can withstand and even grow in the context of extraordinary challenges. After all, our relationship is a model for the world.
The Prime Minister and President Biden agreed to meet to further the important work of renewing the close and enduring friendship between Canada and the United States. Canada is pleased that this meeting will be taking place and is looking forward to future co-operation.
It is crucial to find partners that we can trust and who will stand by us, even amid the world's relentless challenges. For Canada and the U.S., those partners are each other. We will remain partners, friends, allies and neighbours.
