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StarBuzz Online - Toronto

Thursday, March 31, 2011

HARPER COMMITS TO JOB-CREATING TRADE AGREEMENTS

StarBuzz Weekly, Toronto-March 31, 2011-HARPER COMMITS TO JOB-CREATING TRADE AGREEMENTS
HALIFAX – Today, Prime Minister Stephen Harper announced that a re-elected Conservative Government will aim to complete bilateral free trade negotiations with the European Union by 2012 and with India in 2013.
“Canada is a trading nation,” Harper said.  “Canadian businesses and their workers succeed and prosper when they have stable and secure access to markets and customers around the world.”
“That’s why since taking office we have made expanding and improving access to foreign markets such a priority.  New free trade agreements have been signed with eight countries and negotiations are underway with 50 more, including the European Union and India,” Prime Minister Harper added.  “Deepening our trading relationships is key to the Next Phase of Canada’s Economic Action Plan in order to complete our recovery, create jobs and strengthen families’ financial security.”

The completion of these two historic free trade agreements will build on Prime Minister Stephen Harper’s strong record of standing up for Canadian businesses and their workers by obtaining secure and stable access to important emerging export markets.  Free trade agreements with the European Union and India will provide improved access to over 1.7 billion new customers for Canadian businesses.
 
The Ignatieff Coalition partners, the NDP and Bloc Québécois, would derail these negotiations and threaten Canadian businesses’ access to these large markets.  Given that the NDP opposed every free trade agreement concluded by Stephen Harper’s Government, their role in the Coalition constitutes a critical risk to these negotiations unless Canadians return a stable national majority Conservative Government.

Prime Minister Harper noted that the Ignatieff-led Coalition has the wrong priorities, with their agenda to raise taxes on Canadian businesses and to turn back the progress on international trade.  “The choice is clear,” Harper said.  “Canadians can choose between a stable national government with a low-tax plan that will create jobs by expanding trade, and Michael Ignatieff’s high-tax agenda that will put our businesses and workers at a severe disadvantage relative to our international competitors.”

BACKGROUNDER


March 31, 2011

BACKGROUNDER

THE ISSUE

Prime Minister Harper’s Conservative Government is focused on creating jobs and completing the economic recovery.

Canada is a trading nation. Canadian businesses and their workers require secure access to foreign markets to sell their goods and services.

Canadian businesses’ need for secure and stable access to export markets became even more apparent during the recent global economic recession when a number of other countries considered protectionist measures.

That’s why our Government has made securing access to traditional markets — like the United States — and expanding access to new markets — like the European Union and India — key parts of Canada’s economic agenda.

We are strengthening our access to the United States market through the Border Vision agreement that Prime Minister Harper signed with President Obama in February. This agreement will reduce barriers to cross-border trade and cut red tape for businesses operating on both sides of the border.

We are also seeking improved access to other markets that are growing in importance for Canadian businesses. Since taking office, we have signed free-trade deals with eight countries [1] and are in negotiations with 50 others.

At present we are negotiating historic free trade agreements with the European Union and India. Combined, these two markets represent over 1.7 billion consumers for Canadian exporters. Improved access would be of significant benefit.

These two agreements are vital for Canadian businesses and workers so that they can benefit from a level playing field with other countries when exporting their goods and services abroad. Participation in sales to these growing economies will lead them to invest and create jobs in Canada.

These agreements are key ingredients for creating and protecting jobs in the years to come.

Here are the facts:



Existing trade between Canada and the European Union (EU):



The EU is currently Canada’s second-largest trading partner. In 2009, over $44 billion in Canadian goods and services were exported to the EU and over $54 billion in EU goods were imported into Canada.

In 2009, the EU invested over $163 billion in Canada, making it Canada’s second-largest source of foreign direct investment. In 2009, a little more than a quarter of Canada’s total foreign direct investment, representing over $148 billion, was made into the European Union, making Canada the EU’s fourth-largest source of foreign direct investment.

Benefits of a Free-Trade Agreement:

The benefits of a free trade agreement with Europe would include:

A 20 per cent increase in bilateral trade.

A $12-billion boost to Canada’s economy (GDP).

Preferential market access for Canadian businesses to the world’s largest single common market, foreign investor and trader.

Increased access to the EU’s government procurement market, worth approximately $2.3 trillion.

Increased access for Canadian products in many sectors, including fish and seafood, forestry products, aerospace, chemicals, plastics, aluminum, cars and car parts, and agricultural products.

Greater opportunities for service providers, including making it easier for Canadians to work in Europe.

And increased predictability for both Canadian and European investors.



Existing trade between Canada and India:



India is a vital trade partner for Canada. Last year, bilateral merchandise trade totalled $4.1 billion. Despite a slight decline due to the global economic recession, Canada’s trade with India has grown steadily since the Conservative Government took office in 2006, and direct investment between Canada and India has quadrupled. In 2009, at the invitation of the Indian Prime Minister, Canada’s Prime Minister Stephen Harper made an official visit to India. Both leaders paid tribute to the strength and importance of the large Indo-Canadian population and committed to stronger ties between the two countries.

Benefits:



A $6-billion boost to Canada’s economy (GDP).

Preferential access to one of the world’s largest and fastest-growing economies.

Increased access for Canadian products in many sectors including agriculture, fish and seafood, forestry, mining and natural resources, services, and manufacturing.



THE PLAN

Despite the Ignatieff-led Coalition’s actions to put their interests ahead of those of Canadian families, a re-elected Conservative Government will aim to complete the negotiations with the European Union by 2012 and with India in 2013, so that Canadian businesses and workers can benefit from secure access to these two important markets.

The benefits for Canadian businesses and workers and to the Canadian economy are critical. We will see these negotiations through and continue to expand and improve access to new and emerging markets so that Canada’s economy remains strong.

THE CHOICE

Stephen Harper’s Government will continue to put Canadian businesses and workers in a competitive position in the global economy.

We will continue to secure improved access to traditional export markets and expand access to new and emerging markets so that Canadian businesses can hire and invest.

This stands in strong contrast to the approach taken by the previous Liberal government.

The Liberals’ inaction on free trade hurt Canadian businesses by putting them at a disadvantage relative to their international competitors.

While other countries were signing new free trade agreements to give their businesses and workers an advantage in the global economy, the Liberals did virtually nothing.

They negotiated only three free trade agreements during their 13-year term.

And an Ignatieff-led Coalition with the NDP — who remain ideologically opposed to free trade, despite its benefits for Canadian businesses and workers — would jeopardize the trade-dependent sectors of the Canadian economy. The NDP has opposed every free trade agreement concluded by Stephen Harper’s Government.

When it comes to standing up for Canadian businesses and workers, improving access to important export markets for their goods and services and creating jobs, Canadians have a clear choice.

Canadians can choose between Stephen Harper’s low-tax plan for jobs and growth that makes free trade and access to new markets a priority, and the Ignatieff-led Coalition’s high-tax agenda that will stall the recovery, kill jobs and hurt Canadian businesses and workers.

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