Mr. Speaker, it is a pleasure to rise today and speak in favour of Bill C-30 and the comprehensive economic and trade agreement between Canada and the European Union.
Canada is a trading nation. A trade agreement with the European Union is good business for Canada. The European Union market opens incredible opportunities for Canadian businesses. The EU is the world’s second largest economy and is Canada’s second largest trading partner after the United States. It is also the world’s second largest importing market for goods.
CETA is a comprehensive trade agreement that would cover virtually all sectors and aspects of Canada-EU trade. Once implemented, approximately 98% of EU tariff lines on Canadian goods would be duty-free.
Canadian service providers would benefit from greater access to the EU, the world’s largest importer of services.
CETA would also provide investors with greater stability, transparency, and protection for investments in the EU while significantly expanding Canadian access to EU government procurement contracts.
To make a specific case for CETA, I would like to reflect on the advantages of CETA to my community of Oakville. Oakville is home to many advanced manufacturing companies, which form a dynamic cluster of businesses supporting innovation and growth. Our manufacturing standouts include Ford Motor Company of Canada, UTC Aerospace Systems, GE Water & Process Technologies, and Dana Incorporated, an auto parts manufacturer.
With respect to the aerospace industry, CETA would offer tariff elimination, opening of government contracts, and regulatory co-operation.
With respect to automotive parts, given the integrated nature of Canada’s automotive supply chain, it is important that there are rules of origin that accommodate significant levels of foreign value-added. CETA would allow Canadian passenger vehicles that meet a minimum percentage of domestic content to qualify for duty-free exchange.
For other manufacturers, the EU represents an unprecedented opportunity for Canadian businesses. Pre-Brexit, with its $22-trillion economy and more than 500 million consumers, the EU is the world’s largest integrated market. The potential value of access to the EU is quantified in a 2008 study, which estimated that CETA could lead to a $12-billion increase to Canadian GDP and an increase in bilateral trade of over 20%.
A growing cluster of financial and professional service companies are taking advantage of Oakville’s workforce capabilities to drive innovation and build sector leadership. In Oakville, there are 13,000 highly skilled and experienced knowledge workers. Also, Oakville is home to Sheridan College, one of the world’s leading animation centres.
Oakville has the people, the partners, and the business knowledge to bring new technology to the world. For ICT workers, professionals, and businesses, CETA allows for tariff elimination, regulatory co-operation, temporary entry permits, and access to government procurement contracts.
CETA also has provisions for recognition of professional certifications, including legal, accounting, and architectural designations.
Ford Canada, located in my riding of Oakville, is very supportive of CETA. The EU market represents a significant global market for vehicles. In 2015, total vehicle sales in the EU countries were 15.5 million vehicles, ranking the EU as the third largest vehicle market in the world behind number one China, with over 24 million units sold and number two, the U.S., with over 17 million sales.
Access to this large new vehicle market for Canadian produced vehicles would help diversity and grow Canadian exports of vehicles and our auto parts. Dianne Craig the president and CEO of Ford Motor Company of Canada, states that, “Ford is a global company built on free trade. …Ford has supported trade deals with trading partners that result in the opportunity to increase the two-way flow of trade.” That is what CETA does.
In 2016, Ford of Canada began exporting the Ford Edge, built in Oakville, to the EU. This includes building vehicles in Canada with right-hand drive and diesel engines designed for that market. Canada’s decision to sign CETA contributed to Ford’s decision to expand production of the Ford Edge in Oakville for export to the EU market.