Parliamentary Secretary Keddy Highlights Benefits of Ambitious Canada-EU Trade Agreement for Atlantic Canada

Jobs, growth and long-term prosperity is Harper government’s top priority, says Parliamentary Secretary Keddy

October 26, 2012 - Gerald Keddy, Parliamentary Secretary to the Minister of International Trade, for the Atlantic Canada Opportunities Agency and for the Atlantic Gateway, today concluded a three-day visit to New Brunswick, Newfoundland and Labrador, and Nova Scotia to promote the benefits of a Canada-EU trade agreement. In Sydney, Nova Scotia, his final stop, he held a round-table discussion with exporters and local representatives of small and medium-sized enterprises.

“As Canada’s closest gateway to Europe, the Atlantic provinces stand to benefit from a trade agreement with the EU,” said Parliamentary Secretary Keddy. “This agreement presents new and exciting trade opportunities for our vast community of small and medium-sized companies. Facilitating greater access to the lucrative EU market will translate into more jobs and enhanced prosperity for workers and businesses in every Atlantic province.”

“Our government is committed to creating jobs and growing the Canadian economy,” said Minister Fast. “People across Canada recognize that opening new markets in Europe and increasing Canadian exports will benefit workers and businesses in every region of our country. As an example, I welcome the motion by mayors of municipalities across the Atlantic provinces supporting the conclusion of a Canada-EU trade and economic agreement.”

In Newfoundland and Labrador, Parliamentary Secretary Keddy met with members of the local fisheries industry to highlight the vast benefits a Canada-EU agreement will bring to Atlantic Canada’s world-class fish and seafood industry.

“The EU is the world’s largest fish and seafood market, with a global import market averaging $25 billion annually between 2009 and 2011,” said the Parliamentary Secretary. “Lowering tariff barriers through a Canada-EU trade agreement would boost Newfoundland and Labrador’s world-class fish and seafood sector, directly benefiting fishermen, processors and workers alike by creating more jobs, higher wages and greater long-term prosperity.”

In Fredericton, New Brunswick, Parliamentary Secretary Keddy met with business leaders from the province’s key wood and wood products industry.

“The workers and company representatives I met here in Atlantic Canada are very excited about the benefits that closer ties with the European Union will bring,” said Parliamentary Secretary Keddy. “Opening new markets for our exporters and reducing tariffs and other barriers to trade will make Canadian wood and wood products more competitive and will boost sales for companies like those I’ve just visited—benefiting workers and families in New Brunswick and across Atlantic Canada.”

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.

A trade and economic agreement with the European Union would be expected to bring a 20-percent boost in bilateral trade and a $12-billion annual increase to Canada’s economy. That translates to a $1,000 increase to the average Canadian family’s income, or 80,000 new Canadian jobs. That’s like adding the total number of jobs currently in the city of Moncton to the Canadian economy.


Gerald Keddy, Parliamentary Secretary to the Minister of International Trade, for the Atlantic Canada Opportunities Agency and for the Atlantic Gateway, meets with key stakeholders and workers from the New Brunswick lumber industry in Fredericton.

Left to right: Luc Ouellet, Vice-President, New Brunswick Woodland Operations, Acadian Timber; Jonathan Levesque, Vice-President, Marketing and Development, Groupe Savoie; and Parliamentary Secretary Keddy. 

- 30 -

Backgrounders detailing the benefits for New Brunswick, Newfoundland and Labrador, and Nova Scotia of a potential Canada-EU trade agreement follow.

For further information, media representatives may contact:

Rudy Husny
Press Secretary
Office of the Honourable Ed Fast
Minister of International Trade and Minister for the Asia-Pacific Gateway
613-992-7332
rudy.husny@international.gc.ca

Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
Follow us on Twitter: @Canada_Trade

Backgrounder - Benefits for New Brunswick of a Potential Canada-EU Trade Agreement

Jobs, growth and long-term prosperity for hard-working New Brunswickers

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 income (gross domestic product).

That translates to an increase of $1,000 to the average Canadian family’s income, or 80,000 new Canadian jobs—which is like adding the number of jobs currently in the city of Moncton to the Canadian economy.

Many of New Brunswick’s key sectors would benefit from an ambitious Canada-EU trade agreement:

Fish and seafood

  • This sector employs more than 7,000 New Brunswickers.
  • The EU is the world’s largest fish and seafood market, with a global import market averaging $25 billion annually during 2009-2011.
  • Current EU tariffs on Canadian fish and seafood average 11 percent, with peaks of 25 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of New Brunswick’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit New Brunswickers through more jobs, higher wages and greater long-term prosperity.

Wood and wood products

  • This sector employs more than 4,000 New Brunswickers.
  • Between 2009 and 2011, New Brunswick exported an annual average of $15.7-million worth of wood and wood products to the EU.
  • Current tariffs on Canadian wood and wood products average 2.2 percent, with peaks of 10 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of New Brunswick’s world-class wood and wood products in the lucrative EU market of 500 million consumers. This would directly benefit New Brunswickers through more jobs, higher wages and greater long-term prosperity.

Agriculture

  • This sector employs more than 5,000 New Brunswickers.
  • Between 2009 and 2011, New Brunswick exported an annual average of $3.8-million worth of agricultural products to the EU, of which many are dutiable.
  • Tariffs on key New Brunswick exports to the EU, such as maple syrup (EU tariffs of 8 percent) and prepared potatoes (EU tariffs of 14.4 to 17.6 percent) would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of New Brunswick’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working New Brunswickers through more jobs, higher wages and greater long-term prosperity.

Services

  • The services sector, overall, employs more than 250,000 New Brunswickers.
  • The services sector is a key driver of New Brunswick’s economy, accounting for 74 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 New Brunswick 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 by European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
  • New Brunswick businesses currently have significant investments in the EU in a wide variety of sectors, including agriculture, forestry, manufacturing and aerospace.
  • Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for New Brunswick’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 New Brunswickers.

Government procurement

  • Workers in New Brunswick 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 New Brunswick’s economy.

Benefits for Newfoundland and Labrador of a Potential Canada-EU Trade Agreement

Jobs, growth and long-term prosperity for hard-working Newfoundlanders and Labradorians

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 income (gross domestic product).

That translates to an increase of $1,000 to the average Canadian family’s income, or 80,000 new Canadian jobs—which is like adding the number of jobs currently in six cities the size of Corner Brook to the Canadian economy.

Many of Newfoundland and Labrador’s key sectors would benefit from an ambitious Canada-EU trade agreement:

Fish and seafood

  • This sector employs more than 9,000 Newfoundlanders and Labradorians.
  • The EU is the world’s largest fish and seafood market, with a global import market averaging $25 billion annually during 2009-2011.
  • Current EU tariffs on Canadian fish and seafood products average 11 percent, with peaks of 25 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminated tariff barriers would increase sales of Newfoundland and Labrador’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit Newfoundlanders and Labradorians through more jobs, higher wages and greater long-term prosperity.

Services

  • The services sector, overall, employs more than 160,000 Newfoundlanders and Labradorians.
  • The overall services sector accounted for 59 percent of the province’s economy 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 Newfoundland and Labrador 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 by European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
  • Newfoundland and Labrador businesses currently have significant investments in the EU in sectors such as agriculture, and ocean and petroleum technologies.
  • Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for Newfoundland and Labrador’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 Newfoundlanders and Labradorians.

Government procurement

  • Workers in Newfoundland and Labrador 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 Newfoundland and Labrador’s economy.

Benefits for Nova Scotia of a Potential Canada-EU Trade Agreement

Jobs, growth and long-term prosperity for hard-working Nova Scotians

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 income (gross domestic product).

That translates to an increase of $1,000 to the average Canadian family’s income, or 80,000 new Canadian jobs—which is like adding five times the number of jobs currently in the cities of New Glasgow to the Canadian economy.

Many of Nova Scotia’s key sectors would benefit from an ambitious Canada-EU trade agreement (CETA):

Agriculture

  • This sector employs almost 5,200 Nova Scotians.
  • Between 2009 and 2011, Nova Scotia exported an annual average of $46-million worth of agricultural products to the EU.
  • An ambitious Canada-EU trade agreement would lock in permanent duty-free access for Nova Scotia’s key exports, including frozen blueberries ($37.1 million; tariffs suspended temporarily), fresh blueberries (tariffs up to 9.6 percent) and fresh apples (seasonal tariffs).
  • Eliminating tariff barriers would increase sales of Nova Scotia’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Nova Scotians through more jobs, higher wages and greater long-term prosperity.

Fish and seafood

  • This sector employs over 10,000 Nova Scotians.
  • The EU is the world’s largest fish and seafood market, with a global import market averaging $25 billion annually during 2009-2011.
  • Current EU tariffs on Canadian fish and seafood products average 11 percent, with peaks of 25 percent. These high tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of Nova Scotia’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Nova Scotians through more jobs, higher wages and greater long-term prosperity.

Wood and wood products

  • This sector employs nearly 3,200 Nova Scotians.
  • Nova Scotia is a significant exporter of pulp and paper, with exports worth an average of $68 million a year between 2009 and 2011.
  • Nova Scotia also exported wood and wood products worth an annual average of $41.7 million between 2009 and 2011.
  • Current EU tariffs on Canadian wood and wood products average 2.2 percent, with peaks of 10 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of Nova Scotia’s world-class wood and wood products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Nova Scotians through more jobs, higher wages and greater long-term prosperity.

Chemicals and plastics

  • This sector employs nearly 5,000 Nova Scotians.
  • Between 2009 and 2011, Nova Scotia exported an annual average of $3.5-million worth of chemicals and plastics to the EU.
  • Current EU tariffs on Canadian chemical and plastic products average 4.9 percent. These tariff barriers would be eliminated under an ambitious Canada-EU trade agreement.
  • Eliminating tariff barriers would increase sales of Nova Scotia’s world-class chemical and plastic products in the lucrative EU market of 500 million consumers. This would directly benefit hardworking Nova Scotians through more jobs, higher wages and greater long-term prosperity.

Services

  • The services sector, overall, employs nearly 340,000 Nova Scotians.
  • The services sector is a key driver of Nova Scotia’s economy, accounting for 78 percent of the province’s total annual 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 Nova Scotia 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 by European companies in Canada totalled almost $161 billion, representing over 26 percent of total foreign investment in Canada.
  • Nova Scotian businesses currently have significant investments in the EU in many sectors, including agriculture.
  • Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for Nova Scotia’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 Nova Scotians.

Government procurement

  • Workers in Nova Scotia and the rest of Canada employed in fields such as engineering, architecture and technology would 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 Nova Scotia’s economy.