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Minister Shea Highlights P.E.I.’s Iconic Products as Beneficiaries of Canada-EU Trade Agreement
Deeper trade with European Union will increase sales of iconic Canadian products, bringing jobs and long-term prosperity to hard-working Islanders, says Minister Shea
November 16, 2012- The Honourable Gail Shea, Minister of National Revenue, participated in an event today in Prince Edward Island as part of a week-long series of national outreach activities featuring some of Canada’s most iconic brands and products. Minister Shea showcased P.E.I.’s world-famous potato industry as one of many provincial export sectors that will benefit from a Canada-EU trade agreement.
“Our government is committed to creating jobs and growing the Canadian economy,” said Minister Shea to members of the P.E.I. Potato Board in Charlottetown. “Key to these efforts is opening new markets, like the EU, that appreciate the iconic products and brands that Canada has to offer—products that we as Canadians are proud of. A comprehensive economic and trade agreement with the European Union will bring benefits to various sectors of P.E.I.’s economy, including our potato industry and the entire agriculture sector.”
Between 2009 and 2011, P.E.I. exported an annual average of $5.3-million worth of agricultural products to the EU, making agriculture one of P.E.I.’s largest exporting sectors.
“The potato industry in P.E.I. creates a total economic impact of more than $1 billion and directly or indirectly employs over 12 percent of the Island workforce,” said Gary Linkletter, Chairman of the P.E.I. Potato Board. “The reduction of EU tariff barriers on Canadian agricultural products has the potential to increase sales, growth and prosperity for our province’s important agriculture sector.”
“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 Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway. “That is why our government is undertaking the most ambitious trade expansion plan in Canadian history, which includes a comprehensive next-generation trade agreement with the European Union. A trade agreement with the European Union is 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 jobs.”
The EU is Canada’s second-largest trading partner and the world’s largest integrated economy, with more than 500 million consumers and a GDP of over $17 trillion.
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A backgrounder detailing the benefits for P.E.I. of a potential Canada-EU trade agreement follows.
For further information, media representatives may contact:
Office of the Honourable Ed Fast
Minister of International Trade and Minister for the Asia-Pacific Gateway
Trade Media Relations Office
Foreign Affairs and International Trade Canada
Follow us on Twitter: @Canada_Trade
Backgrounder - Benefits for Prince Edward Island of a Potential Canada-EU Trade Agreement
Jobs, growth and long-term prosperity for hard-working Islanders
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 twice the number of jobs currently in Charlottetown and Summerside to the Canadian economy.
Many of Prince Edward Island’s key sectors would benefit from a Canada-EU trade agreement:
- This sector employs approximately 3,700 Islanders.
- Between 2009 and 2011, P.E.I. exported an annual average of $5.3-million worth of agricultural products to the EU.
- An ambitious Canada-EU trade agreement would lock in permanent duty-free access on key P.E.I. export interests, such as, frozen blueberries, frozen French fries and potato flakes and could provide new export opportunities for P.E.I. for processed foods.
- Eliminating tariff barriers would increase sales of P.E.I.’s world-class agricultural products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Islanders through more jobs, higher wages and greater long-term prosperity.
Fish and seafood
- This sector employs nearly 3,900 Islanders.
- Prince Edward Island’s main exports to the EU are fish and seafood products. Between 2009 and 2011, P.E.I. exported an annual average of $19.6-million worth of fish and seafood products to the EU.
- 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 P.E.I’s world-class fish and seafood products in the lucrative EU market of 500 million consumers. This would directly benefit P.E.I. through more jobs, higher wages and greater long-term prosperity.
Chemicals and plastics
- The chemicals and plastics industry is a growing sector for P.E.I., with exports to the EU worth an average of $2.3 million a year between 2009 and 2011.
- Current EU tariffs on chemical and plastic products average 4.9 percent. These tariff barriers could be eliminated under an ambitious Canada-EU trade agreement.
- Eliminating tariff barriers would increase sales of P.E.I.’s world-class chemical and plastic products in the lucrative EU market of 500 million consumers. This would directly benefit hard-working Islanders through more jobs, higher wages and greater long-term prosperity.
- The services sector, overall, employs nearly 54,000 Islanders.
- The services sector is a key driver of P.E.I.’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 P.E.I. sector
- 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.
- P.E.I. businesses currently have significant investments in the EU in a wide variety of sectors, including fish and seafood, manufacturing, building products and bioscience.
- Putting predictable investment rules in place and guaranteeing access to EU markets will help create a level playing field for P.E.I.’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 Islanders.
- Workers in Prince Edward Island 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 P.E.I.’s economy.
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