Mr. Speaker, I am happy to rise in the House today to speak in support of private member's Motion No. 387, which calls on the government to continue the implementation of Canada's international air policy, the blue sky policy.
Since its inception in 2006, the blue sky policy has received wide support from air industry stakeholders. It has also produced tangible results for all regions in Canada: travellers, shippers as well as the business and tourism sectors. During the first hour of debate, some members of the opposition expressed some concerns about the blue sky policy, particularly regarding the benefits of air transport agreements negotiated under the policy.
I would like to comment on this point. I would also like to stress that cabotage is explicitly excluded under the policy. As was mentioned previously, the policy calls for a proactive approach to the expansion of Canada's air transport agreements, and in particular the negotiation of reciprocal open skies type of agreements when in the overall interest of the country. These negotiations are handled on a case-by-case basis, and the commercial interests of Canadian airlines and airports are a primary driver when we decide with which country to negotiate.
The government also attempts to negotiate agreements that will result in new or expanded air services in the short term while trying to preserve existing services valued by Canadian communities. In this context, it is fair to say that the search for real benefits for Canadians is at the core of the decision to negotiate new or expanded agreements; otherwise, the government simply does not proceed.
The principle of real Canadian benefits is embedded in the policy. This is why the government takes issues related to a level playing field and the displacement of current air services very seriously. For instance, when we identify risk factors related to direct or indirect support by foreign states, or when a foreign carrier would reasonably be expected to offer a level of service that could reduce or eliminate competition on some routes, we would take a more prudent position. To do otherwise could result in net losses for Canada.
I would like to stress to members of the opposition that level playing issues are important for the government, given that our air industry is deregulated and run by the private sector. It largely functions without financial government support, contrary to what we see in the vast majority of countries around the world, including our most important trading partners. In this context, it is important that our air carriers be able to compete on fair terms under air transport agreements. Again, this is one reason why the blue sky policy is not a one-size-fits-all approach to air transport negotiations.
In recent years, some people have argued that Canada's approach to air transport liberalization should be the same as that of the United States. Let me address this point. The United States has a substantially bigger air travel market than Canada, which is very attractive to foreign carriers. This larger market can sustain more competition. Not surprisingly, the United States has more air carriers, large and small, that are active in international markets. It also has more low-cost carriers. The American approach to air transport negotiations is therefore suited to a different air industry, economic size and geographic characteristics.
It is also important to recognize that the outcome of each negotiation always depends on the willingness of other countries to conclude an agreement on terms that are beneficial to Canada. There have been many instances in the past where our negotiating partners were not ready to expand the agreement as much as we had hoped. In such cases, we have had to manage our negotiating leverage carefully in order to achieve our objective in the long run.
The blue sky policy takes into consideration the unique characteristics of the Canadian aviation system: population density, economic size and geography. It is a balanced policy that is made in Canada, for Canada. Since 2006, it has produced positive results for all regions of the country. Looking forward, we will continue to be strategic and seek net gains for Canadians.
Since 2006, the government has concluded new or expanded air transport agreements with close to 70 countries. For example, we have concluded a comprehensive agreement covering all the 27 member states of the European Union, and open sky type agreements with Ireland, Iceland, New Zealand, Barbados, the Dominican Republic, Costa Rica, South Korea, El Salvador, Switzerland, Trinidad and Tobago, Jamaica, Brazil, Honduras, Nicaragua, St. Martin and Curaçao. We have expanded agreements with Mexico, Japan, Jordan, Singapore, the Philippines, Morocco, Cuba, Egypt, Algeria, China and India.
Finally, we have new first time agreements with Kuwait, Serbia, Croatia, Panama, Turkey, South Africa, Ethiopia, Tunisia, Qatar, Colombia and Senegal. We hope to announce more new and expanded agreements in the future.
It must be noted that the vast majority of our air transport agreements have more rights than Canadian or foreign carriers actually use. Consequently, the storyline of the blue sky policy is not one of constraints, but one of valuable available opportunities. Looking at the future, we will continue to provide business opportunities for Canadian carriers and airports to expand their commercial activities.
Let us also not forget that it is up to the carriers to make business decisions and to offer new air services based on actual demand and market viability. We use every opportunity to engage our international partners to conclude new or expanded air transport agreements. On top of conventional face-to-face meetings, Canadian officials are also proactive in setting up meetings on the margins of major events at the International Civil Aviation Organization in Montreal, such as the General Assembly or during negotiation conferences organized by that organization.
These engagement efforts have led to the expansion of many agreements and the conclusion of several open sky type agreements such as the Canada-Brazil open sky agreement. They are also cost effective.
I mentioned earlier that an important driver of the blue sky policy is the commercial interests of Canadian airlines and airports. There is in some quarters a perception that the policy has disproportionately benefited our carriers. This is a misperception. Canadian airports have also benefited from the conclusion of expanded air transport agreements.
For example, in recent years the Vancouver International Airport has experienced a net increase in the number of flights to and from the Asia-Pacific region, in particular, from the Philippines, New Zealand, China and South Korea.
The Calgary International Airport has also increased its connectivity to Japan, a direct result of the 2011 air transport negotiations with that country.
Toronto's Pearson International Airport has seen an increase in the number of flights to Latin America, Africa and Asia.
The Montreal-Trudeau Airport has benefited from additional services to sunny destinations and Europe.
The interests of Canadian airports will continue to be considered in view of the broad economic interests of the communities they serve.
It is worth repeating that the blue sky policy also supports tourism development. For instance, all key priority markets of the Canadian Tourism Commission have been the focus of significant liberalization efforts, which have resulted in open agreements with France, Germany, Brazil and South Korea. Expanded agreements were also concluded with Mexico, China, India and Japan.
The United Kingdom and the United States are covered by open skies agreements concluded before the policy was adopted in 2006. Finally, there are unused traffic rights in our agreement with Australia, which could allow new services to take place in the short term.
Under the federal tourism strategy, Transport Canada regularly consults the tourism industry for the development of Canada's proposed calendar of air transport negotiations. In addition, Transport Canada has conducted outreach activities for the purpose of increasing industry awareness about the opportunities available under current bilateral air transport agreements.
The blue sky policy has also supported our international trade objectives. For instance, since November 2006, Canada has concluded an open agreement, or has offered such an agreement to a large majority of countries targeted by the global commerce strategy.
While it is true that aviation considerations remain the primary driver of air transport negotiations, the broader economic benefits of an ever-increasing number of international services over time is fully recognized. This growing network of flights improves our connectivity to our key trade and tourism markets as well as consumer choice and convenience.
The blue sky policy is the right policy for Canada. I am confident that the continued implementation of the blue sky policy will provide net benefits for Canada and will help us build a viable air industry as well as a stronger economy.