April 27, 2012
MP Dean del Mastro highlights the benefits that the potential Canada-EU trade agreement would bring to the Peterborough riding
“An ambitious agreement with the European Union would be a big win for workers, businesses and families right here in our communities,” said Del Mastro. “Throughout the province, hard-working families will benefit, especially in key sectors of our local economy such as agriculture and manufacturing.”
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, delivered a keynote address at the Economic Club of Canada in Ottawa to mark events being held nationwide, which highlight the benefits an ambitious trade agreement would bring to every region of the country. “A trade agreement with Europe is a key part of our government’s pro-trade plan to create jobs, growth and long-term prosperity for hard-working Canadians,” said Minister Fast.
“More than 60 percent of Canada’s annual income (gross domestic product) and the jobs of one in five Canadians are generated by trade,” said the Minister. “An ambitious trade agreement with the European Union would benefit Canada significantly: a 20-percent boost in bilateral trade and a $12-billion annual increase to Canada’s economy. That translates to an increase of $1,000 in the average Canadian family’s income or 80,000 new jobs, which would benefit all regions of our country. This is why workers and businesses of all sizes, across all sectors of our economy, strongly support a Canada-EU trade agreement.”
The EU is Canada’s second-largest trading partner and the world’s largest integrated economy, with over 500 million consumers and a GDP of over $17 trillion. The ongoing trade negotiations with the EU represent Canada’s most significant trade initiative since the North American Free Trade Agreement (NAFTA).
BACKGROUNDER - BENEFITS FOR ONTARIO OF A POTENTIAL CANADA-EU TRADE AGREEMENT
Jobs, growth and long-term prosperity for hard-working Ontarians
An ambitious trade agreement with the European Union would be of significant benefit to Canada, resulting in a 20-percent boost in bilateral trade and a $12-billion increase in Canada’s annual GDP.
That translates to an increase of $1,000 to the average Canadian family’s income, or 80,000 new Canadian jobs—which is the equivalent of adding the number of jobs currently in the city of Kingston to the Canadian economy.
Many of Ontario’s key sectors would benefit from an ambitious Canada-EU trade agreement:
Agriculture
- This sector employs more than 92,000 Ontarians.
- Agricultural products are a significant exporting sector for Ontario to the EU, with exports worth an average of almost $500 million a year between 2009 and 2011.
- An ambitious Canada-EU trade agreement would lock in permanent duty-free access on key Ontario interests, such as oilseeds and pulses.
- Eliminating tariff barriers would increase sales of Ontario’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Ontarians through more jobs, higher wages and greater long-term prosperity.
Electronics
- This sector employs more than 41,500 Ontarians.
- Electronics is a significant sector for Ontario, with exports to the EU averaging $1.3 billion annually between 2009 and 2011.
- Current EU tariffs on Canadian electronics average 3 percent, with peaks of 14 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales in the lucrative EU market of 500 million consumers. This would create jobs, growth and long-term prosperity for Ontario’s businesses, workers and their families.
Chemicals and plastics
- This sector employs more than 87,000 Ontarians.
- The chemicals and plastics industry is one of Ontario’s top exporting sectors to the EU, with exports worth an average of $1.1 billion annually between 2009 and 2011.
- Current EU tariffs on chemicals and plastics average 4.9 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales of Ontario’s world-class chemical and plastic products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Ontarians through more jobs, higher wages and greater long-term prosperity.
Industrial machinery
- This sector employs more than 5,500 Ontarians.
- Industrial machinery is a significant exporting sector for Ontario to the EU, with exports worth an average of $533 million a year between 2009 and 2011.
- Current EU tariffs on industrial machinery average 2.1 percent, with peaks of 8 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales of Ontario’s world-class industrial machinery in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Ontarians through more jobs, higher wages and greater long-term prosperity.
Services
- The services sector, overall, employs more than 4.5 million Ontarians.
- The services sector is a key driver of Ontario’s economy, accounting for 76 percent of the province’s total GDP in 2010.
- In 2010, the EU’s services import market totalled $1.4 trillion.
- Current EU trade barriers on Canadian services are citizenship or residency requirements, lack of temporary entry rules, and ownership and investment restrictions. These trade barriers would be reduced under an ambitious Canada-EU trade agreement, directly benefiting businesses and workers in this vital Ontario sector.
Investment
- Direct investment by Canadian companies in the EU totalled almost $173 billion in 2011, representing over 25 percent of Canadian direct investment abroad. The same year, direct investment from European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
- Ontario businesses currently have significant investments in the EU in a wide variety of sectors, including agriculture, automotive, financial services, renewable energy, transportation, and information and communications technology.
- Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for Ontario’s investors and businesses and reduce the risks associated with investing abroad. This would lead to greater two-way investment, which would help create jobs and long-term prosperity for hard-working Ontarians.
Government procurement
- Workers in Ontario and the rest of Canada employed in fields such as engineering, architecture and technology could benefit from greater access to the EU’s procurement market, which is worth an estimated $2.4 trillion.
- Greater access to the world’s largest procurement market would benefit workers and their families in sectors that are vital to Ontario’s economy.
