Mr. Speaker, thank you for allowing me this opportunity to speak about the wonderful Canada-EU comprehensive economic and trade agreement, popularly known as CETA.
This landmark initiative will increase prosperity across society in a manner that conforms with important societal values. It is the most progressive agreement Canada and the European Union have ever negotiated. It is also a groundbreaking agreement in opening the doors to increased access to the EU market for Canadian companies. CETA sets new standards in trade in goods and services, non-tariff barriers, investments, government procurement, as well as other areas like labour and environment.
The economic benefits to both Canada and the EU will be significant. Experts predict that once implemented, CETA will increase bilateral trade in goods and services by more than 22%, fostering growth and employment on both sides of the Atlantic.
Just as important, the agreement will also help facilitate investment in each other's territories, a significant factor in achieving prosperity and job creation. Foreign direct investment is an important driver of economic growth, with new investments by foreign firms able to provide a boost to national income and create jobs for Canadians. FDI can also promote trade by facilitating value chain linkages and improving access to new technologies.
A shining example of the benefits that European investment has brought to Canada is Europe's largest engineering company and manufacturer of medical diagnostics equipment, Siemens AG. The German engineering and electronics conglomerate has been operating in Canada for over 100 years. Headquartered in Oakville, Ontario, Siemens Canada has more than 60 facilities across the country and more than 4,800 employees delivering solutions in knowledge-based industries, such as sustainable energy, intelligent infrastructure, health care, and the future of manufacturing.
This includes investments such as the Smart Grid Centre of Competence that was opened in January 2013 in Fredericton to support New Brunswick Power and the modernization of its electricity system in a multi-year partnership.
In February 2014, Siemens became a founding partner of the Advanced Energy Centre, within the MaRS Discovery District in Toronto. This centre's mission is to foster the adoption of innovative energy technologies in Ontario and Canada, and to leverage those successes and experiences into the international markets.
These investments are examples of how investment from the EU, which will be further facilitated by CETA now, will maximize the potential of Canada's highly educated workforce and foster its continued development while working toward the betterment of Canadian and global societies through technology.
Let me give an example. Last year, Canada's direct investment in the EU totalled $210 billion while European investment in Canada totalled $242 billion. CETA includes provisions aimed to facilitate increased investments, providing investors with greater openness, stability, transparency, and protection of their investments.
While the agreement helps to promote EU investment in Canada, it also provides advantages and protections to Canadian companies seeking to expand their footprint in the world's second-largest economy. CETA includes provisions to facilitate investment, to protect investors against such practices as discriminatory treatment, uncompensated expropriation, arbitrary or abusive conduct, and to ensure that capital may be freely transferred.
CETA's obligations are backed by a mechanism for the resolution of investment disputes, including both a first-instance tribunal and an appellate tribunal. When an investor submits a claim, the permanent and independent tribunals will determine whether a governmental measure is inconsistent with CETA's investment obligations and whether the investor has suffered a loss as a result.
One of the most important things our government did after taking office was to listen to the critics of CETA, both in Canada and in Europe, and to understand some of the legitimate anxieties people had.
We heard many concerns regarding investment in CETA. We have worked with Canadians, including industry and civil society alike, and with our EU partners to address these concerns to prove that a progressive trade policy, like CETA, is needed and possible in Canada.
Our government made changes to the mechanism for the resolution of investment disputes. We established a permanent tribunal and appellate tribunal, whose members are selected by Canada and the EU for fixed terms. We also introduced more detailed ethical requirements for members of those tribunals.
The CETA negotiations provided a great opportunity to innovate, and our government fully seized that opportunity and developed a new and improved approach to investment chapters in Canada's free trade agreements.
The changes we made to CETA in addressing the important issues voiced by Canadians and EU citizens alike represent a starting point in the development of the government's progressive trade agenda. It is an agenda that is linked to the government's domestic policy, focused on reducing inequality and enhancing our inclusive growth through such things as investment in infrastructure and increasing the child benefit. The idea is to ensure that trade policy makes more meaningful contributions to this overall agenda and that trade is done in a way that Canadians believe works for them.
Canada will continue to seek and implement innovative ways to enrich the economic relationship we have with valued partners, with the aim of achieving prosperity for all. However, it is important to our government that we ensure this is done in an inclusive and responsible manner. We are seeing this realized in CETA before our very eyes. This is a great first step.
