SPEECHES
January 19, 2005
SHANGHAI, China
2005/2
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NOTES FOR AN ADDRESS BY
THE HONOURABLE JIM PETERSON,
MINISTER OF INTERNATIONAL TRADE,
AT A PLENARY SESSION OF THE
CANADA TRADE MISSION TO CHINA
It is a pleasure to be in a room with 219 leaders of Canadian organizations who share
my enthusiasm about the great economic miracle that China truly is. From my
discussions with Ambassador Joseph Caron and Consul General Robert Mackenzie, I
understand that Shanghai is China’s largest commercial centre. And I can see for
myself the rapid urbanization and progress in Shanghai that has contributed to a better
life for its citizens.
This delegation encompasses companies with a long history in this market, as well as
newcomers. China and Shanghai are not markets for everyone—but if you are here, it
shows that you are serious. Long-term relations and partnerships are our goals.
Participants in this Canada Trade Mission are here to witness the Chinese economic
transformation first hand. China’s economy has been expanding at an impressive rate,
with almost 40 percent growth over the last four years. Indeed, China’s remarkable and
sustained economic expansion in recent years has become an important engine of
economic growth around the world.
Chinese industries are moving rapidly up the value chain, especially in the
manufacturing sector. An increasing number of Canadian companies and organizations
are doing business in China and working with Chinese partners precisely because they
understand the need to participate in this transformation.
Canadian companies and their government see that the train is leaving the station and
they want to catch it. If we don’t, someone else will. In short, in today’s interdependent
world, China’s continued success is vital to our continued success.
Canada and China have a long history of collaboration and deep ties of friendship. No
person exemplifies this better than Norman Bethune, who was born in my home
province of Ontario in 1890. Pierre Trudeau continued in this tradition when he became
the first prime minister of Canada to officially visit China in 1973. We are reliable
partners: Canada made the “China connection” well before other Western countries did.
Since 1788, Chinese people have played a key role in building Canada into the
successful, diverse and vibrant nation it is today. Almost one million Chinese Canadians
make Canada their home. And, conversely, some 200,000 Canadians have made
China theirs. Last year, roughly 30,000 students of Chinese origin studied in Canada.
And that number is on the rise. Their areas of interest? High-end studies such as
engineering and sciences.
Like China, Canada is a trading nation with similar geographic assets and comparable
challenges in linking together people from far-flung regions.
China is now Canada’s largest Asian trading partner. Globally, China is Canada’s
second largest two-way trading partner with over $23 billion in bilateral trade in 2003.
Preliminary figures for 2004 indicate growth of more than 30 percent in two-way trade
between our two countries.
Our work together transcends onto the global stage, in multilateral institutions such as
the World Trade Organization, APEC [Asia-Pacific Economic Cooperation] and the L20.
Canada and China have a shared stake in a strong global trading system. Canada and
China both know that a fair and efficient system of trade benefits everyone—that
prosperity and exports go hand in hand.
China—as evidenced by the number of Canadians in this room—is at the top of
Canada’s priority list as an export market and investment destination.
Let me now direct my remarks to our Chinese guests:
I stand here today as a salesman of sorts for the Canadians in this room who have so
much to offer. They represent a wide range of sectors of the Canadian economy.
If you are looking to build linkages in legal services, you can do it here today. If you
want to hook up with world-renowned Canadian aerospace companies, you can do that,
too. Agriculture and agri-food? Those opportunities are here. If you are looking to make
inroads in education, that’s also possible during this trade mission.
Canada can offer China know-how in many sectors including mining, energy, oil and
gas, the environment, biotechnology, pharmaceuticals, finance, culture and automotive
parts.
And please don’t forget that we want you to come and visit us as tourists, just as we
visit you.
Canadians understand that the advantages of closer economic cooperation with China
are not limited to industries. Our economic cooperation benefits our scientific and
technological institutions, our environment and our societies.
Indeed, our joint future, to a large degree, includes trade and investment linkages as
well as science and technology. With respect to trade, Canada’s exports to China at the
end of 2003 amounted to $4.7 billion; and even with growth of over 30 percent in 2004,
this is clearly not enough. We need to do a better job of encouraging Canadian
investors and connecting them with the right kinds of opportunities here in China. Again,
that is why we are here.
I look forward in the coming days to meeting with representatives of your governments
and your communities to see how regulatory and other barriers can be brought down.
When we planned this mission, the goals were clear: to introduce more Canadians to
China, and to work with Chinese leaders to decrease the barriers to trade and
investment. I am delighted that we can also celebrate the success of some of our
companies with a signing ceremony.
Let me turn to the investment side of Canada’s relationship with China. There has been
some progress in recent years in this area, but the figures underscore the need to work
harder to expand this aspect of our relationship.
In 2003, Canadian direct investment in China was $542 million and Chinese investment
in Canada was $422 million. Neither amount is enough to build our future relationship.
This comes at a time when China attracts more foreign direct investment than ever,
ably competing with the number-one power in the world, the United States.
Agreements such as the Foreign Investment Protection Agreement that we are
currently negotiating with China will go a long way toward offering businesses in both
countries the confidence they need in our respective regulatory environments. It will
also send an important signal to businesses that together we recognize the benefits of
their investment and that we are prepared to put a framework in place to help them
grow and progress.
We are excited about the potential for greater Chinese investment in Canada. Allow me
to talk a bit about why you should invest in Canada. The Economist Intelligence Unit
ranked Canada number one in its global business rankings, identifying Canada as the
best country in the world in which to conduct business over the next five years.
We are a multicultural and open society. Our workforce is well educated. We have
superior health care and education systems, a stable and competitive financial sector,
and world-class communications and transportation infrastructure to offer you.
Canada’s natural resources are the envy of the world. Our country’s finances are
sound. Last year, we balanced our seventh consecutive budget, a record no other
major industrialized country can match.
Another factor I hope you will consider is our position as the gateway to North America.
If you are looking to access the world’s largest and richest market, the United States,
the best place from which to serve and supply it is Canada. As a NAFTA partner,
Canada is the biggest client to 38 American states and accounts for approximately
20 percent of all U.S. exports.
Our largest trade and investment partner is naturally the United States, and we can help
Chinese businesses succeed in that market.
I have been candid—perhaps too much so—in saying that Canada has a long way to
go to gain a stronger foothold in China. I am here this week, as is Canadian Prime
Minister Paul Martin, to tell you that we want to be China’s partner for the future. We
want to get our foot firmly in the door.
And recognizing that China has its own challenges, Canada would like to contribute to
your future success. Do you need technical assistance on environmental and
intellectual property issues? Can you maintain your extraordinary growth in the face of
inflation, capital allocation concerns, banking sector challenges and an aging
population?
We think so, if your current success is any indication.
In conclusion, let me reiterate: Canada and China have been very good partners in the
past. I hope this mission can be the start of an even deeper relationship and a stronger
connection.
I offer my congratulations on your past successes and my best wishes for the future
successes that Canada and China will forge together.
Thank you.
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