Our government has taken steps to open new markets and expand global trade opportunities for all Canadian businesses.
Today we know that trade and investment are the twin engines of economic growth - and this is especially true for Canada where one in five jobs are related to exports and where trade is equivalent in size to some 60 per cent of Canada's annual gross domestic product. Because trade is vital to Canada's economic growth, our government is undertaking the most ambitious trade expansion plan in our nation's history to create jobs in every region of the country.
By actively pursuing new trade and investment opportunities, we are providing Canadians with access, on preferred terms, to the largest, most dynamic and fastest growing economies and regions in the world. So far we've done a lot.
Altogether, Canada currently has 20 free-trade initiatives underway covering 76 countries. We recently announced an agreement in principle with the European Union - the world's largest trading bloc, representing some 500 million people and an annual economic activity of over $17 trillion.
I'm very pleased to note that last week, Prime Minister Stephen Harper announced that our government has completed negotiations for a free trade agreement with South Korea - the fourth largest economy in Asia, with an annual GDP of $1.2 trillion and a population of 50 million. The agreement - our very first in Asia - is projected to create thousands of jobs for hardworking Canadians by boosting Canada's economy by $1.7 billion and increasing Canadian exports to Korea by 32 per cent.
The Canada-Korea Free Trade Agreement will make it even easier for Canadian businesses to use Korea as an entry point to that country's global trading relationships and allow them to tap into Korea's links to global value chains.
Our free trade agreement with Korea will benefit consumers and businesses in all regions of Canada, including right here in Delta, Richmond and Greater Vancouver particularly in the seafood, value-added wood products, agriculture and industrial products sectors.
This agreement will level the playing field for Canadian companies who compete fiercely with Korea's other trading partners, including the United States and the European Union, which already have free trade agreement with Korea. For example, under the agreement all South Korean tariffs on fish and seafood products will be eliminated with nearly 70 per cent eliminated in the first five years. The same is true for the agriculture and agri-food industry, which will see an 86.8 per cent reduction on tariff lines.
Across the country, federal ministers and members of parliament are meeting with hardworking Canadians, business and industry leaders, and other key stakeholders highlighting the numerous benefits the Canada-Korea Free Trade Agreement will bring to every region in Canada. As Prime Minister Harper noted, the Canada Korea Free Trade Agreement will serve as a gateway to the larger Asia-Pacific region.
Our government remains focused on creating jobs and growth, while keeping taxes low. Good economic management requires tough decisions, a focus on priorities, and sound judgment. We believe that expanding and diversifying our trading relationships around the world is one of the best ways to achieve these goals.
Unlike our government, the opposition parties have no plan for the economy and no plan to create jobs. Instead, they want higher spending and higher taxes that will kill jobs, stall our economic recovery and make it harder for families to get by.
Every middle class family knows that budgets don't balance themselves. To reach our goals, governments as well as businesses need to embrace change and be nimble. We need to be bold and daring in our approaches to expanding trade.
This is what the Canada-Korea Free Trade Agreement is all about.
