Madam Speaker, I am pleased to rise today to speak to Bill C-79, an act to implement the comprehensive and progressive agreement for the trans-Pacific partnership between Canada, Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
What would the bill do? Bill C-79 would implement the CPTPP that was signed in San Diego on March 8 and would make all legislative changes required to ratify the CPTPP.
The CPTPP will benefit a wide range of sectors and industries across Canada, from beef and barley to forestry products and seafood. The agreement will enhance the competitiveness of businesses and services, while protecting and preserving our unique culture. Through this agreement, we will improve market access for Canadian businesses and bring economic prosperity to Canadians. We are ensuring real progress.
In my riding of Don Valley East, the many representatives of businesses whom I met over the summer through my meets and greets and coffee meets were thrilled that we were diversifying our markets. They believed it was a long time in coming.
I would like to provide a brief background on the bill.
The CPTPP is one of the largest free trade agreements in the world, comprising 11 countries. The CPTPP was concluded on January 23 and signed on March 8. The parties are now undertaking their respective domestic procedures for ratification and implementation before the agreement can enter into force. The CPTPP represents a trading block of 495 million people and a combined GDP of $13.5 trillion or 13.5% of the global GDP.
In light of all of these positive benefits that would accrue to Canada, our government is committed to the swift ratification and implementation of the comprehensive and progressive agreement for the trans-Pacific partnership. Why? Because this trade agreement will open up markets of an additional 500 million consumers, approximately 15 times the population of Canada, and this is positive because it also represents a combined GDP of $13.5 trillion or 13.5% of the global GDP.
What would this mean for businesses?
In my riding, business people are keen to see the progress and how it will benefit them and the people they employ. Therefore, to them and all businesses interested in this agreement, the agreement will provide preferential market access for Canadian exporters to key markets in the Asia-Pacific region. It will provide additional market access that Canada has with the existing FTA partners: Chile, Mexico and Peru. It will add valuable new market access opportunities with Australia, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam. It will level the playing field for Canadian businesses competing in markets where other countries already have FTAs and in some cases it will create a first-mover advantage over other foreign competitors, especially in the Japanese market.
Through the CPTPP, our government is signalling that it is working hard to diversify trade so the middle class can compete and win on the world stage.
Here are some examples of what the CPTPP will benefit. In the agriculture sector, when the CPTPP enters into force, more than three-quarters of agriculture and agri-food products will benefit from immediate duty-free treatment, with tariffs on many other products to be phased out gradually. This will create new markets for Canadian pork, beef, pulses, fruit and vegetables, malts, grains, cereals, animal feed, maple syrup, wines and spirits, and processed goods. This is a win-win. In my riding, the businesses are very keen on it.
In the fish and seafood area, the CPTPP will eliminate 100% of tariffs on Canadian fish and seafood products. The vast majority of tariffs will be eliminated immediately while a small number will be phased-out over periods of up to 15 years. Tariff eliminations will make Canadian exports of a wide range of products such as salmon, snow crab, herring roe, lobster, shrimp, sea urchins, and oysters more competitive. This is real progress for our fishing industry.
In the area of industrial goods, under the CPTPP, 100% of tariffs on industrial goods and consumer products will be eliminated. The majority of Canadian industrial goods exported to CPTPP countries will be duty free immediately upon entry into force of the agreement, with most remaining tariffs on industrial goods to be eliminated within 10 years, which is another win for all Canadians.
In the forestry and value-added wood products area, the CPTPP will eliminate tariffs on all Canadian exports of forestry and value-added wood products. Many tariffs will be eliminated immediately upon entry into force of this agreement, while others will be phased-out over periods of up to 15 years.
The majority of the businesses in my riding are either in the service industry, investment or government procurement. In the service industry, the CPTPP will provide Canadian service suppliers with more secure access through greater transparency and predictability in the dynamic CPTPP regions. This is important because of governance and transparency issues. I have been travelling across Commonwealth countries and these issues prevent our investors from going there. Therefore, this area will be critical for businesses to look at before they go into different countries. I have many innovative firms in my riding that provide excellent, high-paying jobs, and they are looking for assurance that this portion of the agreement for services where it provides transparency and predictability is very strongly adhered to.
In the investment area, Canadian investors in the CPTPP will benefit from a comprehensive set of investment protection provisions, including against expropriation and denial of justice, backed by a robust mechanism for the resolution of investment disputes. This is critical for Canadian companies as well. As we go around the globe, people may be a little reticent to invest when they do not know what the investment climate is or whether there will be nationalization or any such thing.
In the area of government procurement, the CPTPP will create significant commercial opportunities for Canadian companies in the area of government procurement by improving upon existing access for Canadian businesses in Chile and Peru, and creating new opportunities in Australia, Brunei, Malaysia, and Vietnam. This will allow Canadian companies to compete equally with domestic suppliers in these markets for contracts involving covered goods, services, and construction services.
There are also non-tariff measures that will be advantageous to Canadian businesses, such as new rights and obligations regarding sanitary and phytosanitary measures. This is what we faced when we went into the agriculture and agri-food industries in India.
For the SMEs that are job creators in Canada, the CPTPP is good news. The CPTPP will make it easier for Canadian SMEs to explore and navigate the markets.
There are so many reasons for the House to support the passing of this bill.
