Madam Chair, I will present for about eight minutes, followed by questions for the minister.
This government is committed to increasing trade and attracting job-creating investments in Canada, expanding trade with fast-growing markets, and, a new government priority, advancing Canada's progressive trade agenda. To achieve these goals, the Minister of International Trade is working closely with colleagues at Global Affairs Canada, including the hon. Minister of International Development and La Francophonie, as well as colleagues in other departments, to address trade issues in a complementary and mutually reinforcing manner.
My remarks will focus on the initiatives to advance Canada's economic interests through trade and investment promotion and attraction, trade diversification, and our progressive trade agenda.
Trade is at the core of Canada's past, present, and future. It is, of course, a part of our history and our prosperity. Trade is central to maintaining and improving the standard of living for Canadians. One in five Canadian jobs is related to exports, and these are good-paying jobs.
We also know that sectors and companies that trade internationally are more innovative and more competitive. The global environment is ever changing. Currency fluctuations, government regime changes, and political and security situations, for example, are among many factors with an enormous impact on the conditions under which Canadians operate in a trading environment.
In many countries in the western industrial world, we are also seeing a growing concern that international trade and globalization in general have not lived up to their promise, the promise of jobs, growth, and prosperity for workers and their families. These sentiments have resulted in a growing opposition to trade agreements, particularly with some of Canada's major trading partners, including in the U.S. and the EU. This is why, more than ever, Canada needs a strategy that considers this reality. Our response is threefold.
First, as Canada's chief marketing officer, the Minister of International Trade is leading the charge for our trade commissioner service, which works diligently to promote Canadian capabilities in the U.S. and around the world to help firms succeed and sell Canada to investors. A key focus of the strategy will be securing and advancing our commercial interests in the U.S. market, which remains the primary driver of Canada's trade performance. With our trade and investment strategy, we will be expanding programs like CanExport to help new and existing firms navigate not only the U.S. market but also global markets, with targeted financial assistance.
Second, we wish for Canada to be an attractive investment destination and to strengthen the Canada brand internationally. The implementation of the invest in Canada hub by the end of 2017 will help enhance Canada's attractiveness for foreign direct investment, making it simpler to invest in Canada and to strengthen the government's capacity to market Canada as a premier destination for investment.
Third is an ambitious trade negotiations agenda. To expand Canada's free-trade agreements globally, the government works hard to build and maintain a network of trade agreements that will provide greater market access for Canadian businesses. This ambitious trade negotiation agenda includes new and modernized trade agreements, which help companies access new markets. First is by providing preferential access over many competitors, or at a minimum, to level the playing field. Second is by fostering a more predictable and transparent trade environment. Third is by integrating Canadian companies with global value chains.
I would now like to turn to some of the trade initiatives that are central to this trade negotiation agenda.
The swift implementation of CETA with the EU remains our number one trade priority. This gold standard agreement is great news for Canadian companies, as it will lower the cost of doing business. Canada is moving forward with approval domestically, and in fact, it received royal assent yesterday. Businesses will be able to immediately take advantage of CETA's economic benefits. With provisional application, 98% of EU tariff lines will be duty-free for Canadian goods, and an additional 1% will be eliminated over a seven-year phase-out period. Global Affairs Canada is working with our partners in the private sector and with provinces and territories to organize events that will help Canadian businesses better understand the benefits of CETA.
An important focus of Canada's trade negotiations agenda is to expand and deepen our links with fast-growing markets. In 2016, emerging markets accounted for only 10.4% of Canadian exports, which means that there is a lot of untapped potential there. With emerging markets such as China, India, and Southeast Asia, economies that are expected to continue outperforming established markets for the foreseeable future, it is even more important to explore these high-growth prospects.
China is a good example. The size and rapid growth of the Chinese market presents opportunities for Canadian companies in a wide variety of sectors. China represents the largest share of Canadian exports that is not already covered by an existing free trade agreement or the concluded CETA.
We have been working with China on exploratory discussions since the fall, and have held two face-to-face exploratory meetings so far. A third set of discussions is scheduled for July in Beijing.
We are also committed to hearing the views and feedback of Canadians. We launched public consultations on March 4, and the minister and I have been actively involved in public consultations. The outcome of the exploratory discussions and what we hear during the consultations will inform the government's decision on whether to launch free trade agreement negotiations.
With respect to other partners in Asia, Canada is considering how best to advance its trade objectives in the Asia–Pacific region and members of the trans-Pacific partnership countries. The hon. minister continues to remain engaged with these countries on next steps.
Key among these partners, of course, is Japan. Canada is eager to enhance our economic and commercial partnership with Japan and is in discussions with Japan on how best to do this.
The Government of Canada is also committed to expanding trade relations with partners from the Association of Southeast Asian Nations. Our ongoing work with ASEAN members on a free trade agreement feasibility study reflects our commitment to expand our free trade agreements globally and seek opportunities for Canadian businesses.
We are also engaged in trade negotiations with India, and are exploring trade opportunities in Latin America, particularly with Mercosur members.
Underpinning these trade initiatives is the development of the government's progressive trade agenda, which recognizes that trade policies need to respond meaningfully and contribute to broader economic, social, and environmental policy priorities. We need to communicate clearly and demonstrate to citizens the concrete difference that trade makes in their lives. We need to ensure that trade works for everyone, including women, youth, indigenous peoples, and small and medium-sized enterprises.
Canada is looking to take a leadership role internationally and we are taking every opportunity to advance this in the international community.
For Canada, what a progressive trade agenda means is negotiating strong provisions in areas such as labour, environment, gender, and government's right to regulate in our trade agreements. It also includes a focus on transparency in the negotiation process and requires inclusive consultation.
Last, supporting the progressive trade agenda with complementary domestic policies will help to ensure more inclusive economic growth so the gains from trade are broadly and equitably shared and create jobs for the middle class.
Now, I have some questions for the minister.
As a member of Parliament representing British Columbia and a fourth generation Vancouverite, I am very proud that B.C. is the gate to Asia-Pacific. That is because of the rich history of the west coast of Canada. It truly is where east meets west, and has for well over a century. It is also because of the concerted effort for decades on the part of all three levels of government and business to build the Asia–Pacific gateway, including the country's largest port, the port of Vancouver, and the Vancouver International Airport.
This year, YVR was voted best airport in North America for the eighth consecutive year at the Skytrax World Airport Awards. These awards are as a result of 13.8 million passengers voting, and YVR broke all records. No airport has ever won this eight years in a row. As well, YVR has six Chinese airlines flying across the Pacific, which is two more than its closest competitor in North America. This is not just demand driven; YVR has set out intentionally to attract this kind of investment and provide this kind of service.
I also know that provincial governments and businesses across the country take an active interest in Asia's markets, with a network of provincial trade offices throughout the region as well as those of the federal government.
I was in Vietnam, Singapore, and Brunei a few weeks ago, promoting softwood lumber and Canada's progressive trade agenda.