NEWS RELEASES

November 14, 2005 (5:45 p.m. EST)
No. 214 

MINISTER PETERSON WELCOMES PROPOSED NEW INVESTMENT IN INTERNATIONAL COMMERCE AND LAUNCHES CAN-TRADE

International Trade Minister Jim Peterson today welcomed confirmation in the Economic Statement of an unprecedented $470-million proposed investment in Canada’s global competitiveness and launched CAN-Trade. Driven by the Department of International Trade, CAN-Trade is a key part of the government’s action plan for securing Canada’s future prosperity.

“CAN-Trade is about supporting Canadian business success in a 21st century economy way,” said Minister Peterson. “It responds directly to the needs identified by Canadian businesses, particularly small and medium-sized enterprises (SMEs). It will give them the support they need to carry our nation’s business to the next level, especially in light of opportunities presented by emerging global powerhouses such as China, India and Brazil.”

“Today’s global marketplace is evolving at a blinding pace and is presenting new and exciting opportunities at every turn,” added the Minister. “Other nations are seizing these opportunities. Canada needs to do the same, and we need to do it better than our competitors.”

CAN-Trade is built on four key activity pillars, which are designed to provide businesses with the right support, at the right time and in the right places:

•         Communicating the Challenge: ensuring a much greater awareness among Canadian businesses, especially SMEs, about the challenges and opportunities they face in the global economy and the numerous government programs and services available to help them succeed;

•         Showcasing Canada to the World: promoting Canada as a highly attractive international centre for talent, innovation, investment, value-added production and trade;  

•         Securing International Markets: realigning our approach to trade agreements and advocacy to build, in real time, the rules foundations that give Canadian companies the confidence they need to do business abroad now and in the future; and

•         Winning in the Global Marketplace: partnering with SMEs in the risks they face when penetrating emerging markets and adapting to the 21st century; and transforming front-office (Trade Commissioner sales team) and back-office (sector specialists, economic analysts, etc.) integration and approaches to help clients deal with new business models.

CAN-Trade builds on Canada’s remarkable record of success in international trade. It recognizes that, in today’s rapidly changing global economy, to stand still is to fall behind. It is based on the simple reality that Canada’s continuing prosperity hinges on how well we respond to emerging global economic opportunities and sources of competition, how well we support our business community in these endeavours, and how well we position Canada as a location of choice for foreign investors and skilled workers.

“Canada has a great story to tell. It’s a story of a stable business environment, a talented, innovative workforce, and scientific and technological excellence. We must now step up our efforts to tell our story in the boardrooms of the world, the places where decisions are made that will shape our economic future,” said Minister Peterson.

“CAN-Trade will ensure that Canada has the right foundations in place for success in the new global economy. It is critical for securing our nation’s prosperity, now and in the future,” he added.

CAN-Trade Budget Breakdown

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Backgrounders are attached.

For further information, media representatives may contact:

Jacqueline LaRocque
Director of Communications
Office of the Minister of International Trade
(613) 992-7332

Media Relations Office
International Trade Canada
(613) 995-1874
http://www.international.gc.ca

WHAT IS CAN-TRADE?

The Economic Statement’s confirmation of $470 million for CAN-Trade represents a critical investment in Canada’s global competitiveness—one that recognizes the direct link between global commerce and Canada’s continuing prosperity.

Driven by the Department of International Trade, CAN-Trade is a key part of the government’s action plan for securing the nation’s future prosperity. It brings together the resources, modern commercial framework and public- and private-sector partnerships required to provide integrated 21st century support to Canadian businesses and communities—support that will stimulate their engagement in a rapidly changing global economy.

It also ensures that Canada has the right foundations in place to succeed in a new international marketplace characterized by lightning changes in technology, global supply chains and highly competitive emerging markets. As such, it is critical to ensuring prosperity for Canadians, now and in the future.

CAN-Trade is about supporting Canadian business success in a 21st century way, by:

•         Communicating the Challenge: cultivating a much greater strategic global awareness among Canadian businesses and ensuring that they understand the challenges they face and the tools available to ensure that they succeed;

•         Showcasing Canada to the World: promoting Canada as a highly attractive international centre for talent, innovation, investment, value-added production and trade;

•         Securing International Markets: realigning the approach to trade agreements and advocacy to build, in real time, the rules foundations that give Canadian companies the confidence they need to do business abroad now and in the future; and

•         Winning in the Global Marketplace: partnering with SMEs in the risks they face when pursuing emerging markets and adapting to the new commercial challenges of the 21st century through an enhanced suite of customized services and support.

CAN-Trade focuses on the needs of SMEs and on the opportunities and challenges presented by emerging global powerhouses such as China, Brazil and India. It draws on extensive consultations with Canadians and their business and community leaders.

CAN-Trade builds on Canada’s remarkable record of success in international trade. It recognizes that, in today’s rapidly changing global economy, to stand still is to fall behind. It is based on the simple reality that Canada’s continuing prosperity hinges on how well the Department of International Trade responds to rapidly emerging global economic opportunities and to new sources of competition; how well it supports the business community in these endeavours; and how well it positions Canada as a location of choice for foreign investors and skilled workers.

RATIONALE FOR CAN-TRADE

Trade is the lifeblood of Canada’s economic strength. Canadians have long looked beyond our small domestic markets for growth opportunities—Canada is one of the world’s top traders and most open economies.  

Trade is equivalent to more than 70 percent of Canada’s GDP (source: International Policy Statement).

•         One in five Canadian jobs is dependent on trade.

•         Strong exports enable the ongoing creation of jobs and wealth.

•         Imports give consumers choice and lower costs.

•         Foreign investment—both into Canada and by Canadians investing abroad—creates wealth and boosts our innovation and competitiveness.

However, fundamental forces are reshaping the global landscape—and Canada’s economic future along with it.

Global opportunities are as abundant as ever, but new sources and forms of competition are emerging at a dizzying pace. For example:

•         Financial capital, knowledge and intellectual property, and skilled workers are all moving more freely around the world.

•         New business models are constantly emerging, often around the concept of regional and global value chains, presenting both risks and opportunities for all companies, including small and medium-sized enterprises. 

•         New players like China, India and Brazil are positioning themselves as poles of production, innovation and investment. At the same time, they are making inroads into many traditional Canadian markets. Still others, like Ireland and Australia, are beating Canada at its own game.

Canada’s prosperity—and the quality of life that Canadians have come to enjoy—cannot be taken for granted, nor can the nation’s success in world markets.

Adapting to strengthen the competitive game

For generations, Canadians have readily blazed trails to places unknown. Again and again, this relatively small nation has risen to the challenges of the day, and found new and creative ways to generate wealth and prosperity.

Once again, it is time to shift gears. Time to strengthen the competitive game. Time to adapt Canada’s competitive approaches to a climate where the lines between domestic and international commerce are vanishing. A global outlook is no longer an option, but a matter of survival.

THE CAN-TRADE PILLARS: COMMUNICATING THE CHALLENGE

The Need

Many Canadian businesses—especially SMEs—lack the time and resources to stay abreast of the constantly shifting threats and opportunities presented by today’s global marketplace. They are also unfamiliar with the government tools in place to ensure that they have a competitive advantage. 

These companies are at risk of losing ground to better informed, better supported, and better equipped international competitors.

The CAN-Trade Response

Beginning in 2006, the International Trade Minister will spearhead an aggressive national awareness campaign to increase Canadian businesses’ awareness of global challenges and opportunities. This initiative will be undertaken in close partnership with other levels of government and the business community to ensure maximum impact.

The campaign will aim to ensure that all Canadian businesses understand the importance of incorporating a strategic global perspective into their planning and decision making. It will make them aware of the new tools available to help them succeed, including, among others, the new Global Success Fund.

Specific Actions

The CAN-Trade awareness campaign will include:

•         outreach through business publications;

•         a sustained engagement and dialogue with business, drawing on public- and private-sector experts from a broad range of backgrounds. This initiative will be aligned with small business information shows taking place in every region of the country, and will feature woman, youth and first nation entrepreneurs who are already succeeding in the new global economy;

•         current, real-time, business-relevant information on current global threats and challenges; and

•         enhanced participation in domestic trade shows (both seminars and booths) to encourage smaller businesses to adopt a global perspective when shaping their business strategies.

THE CAN-TRADE PILLARS: SHOWCASING CANADA TO THE WORLD

The Need

In today’s global economy, business leaders scour the world for competitive advantage, while nations compete aggressively to position themselves as the location of choice for different parts of the supply chain process. In this environment, Canada must excel at promoting its world class-attributes. Given aggressive showcasing of national strengths by competitors like Australia and the UK, and the global allure of China and India, Canada must provide more support on this front. 

The CAN-Trade Response

CAN-Trade is about putting Canada firmly and sustainably on the international radar screen as a centre of global commerce and excellence in talent, innovation, investment, value-added production and trade.

The government must demonstrate to the world that Canada is the best North American platform not only for NAFTA business but for global business as well.

CAN-Trade will position Canada with international decision makers who don’t currently “think Canadian” often enough when choosing business partners or investment locations.

The government must boost Canada’s international profile and visibility as a nation of dynamic and innovative businesses, and as a location of choice for talent and investment.

Canada’s sectoral and regional strengths must be aggressively showcased—including our capacity for cutting-edge science, information and communications technology and innovation.

Specific Actions

The department will:

•         increase the number of strategic trade missions—particularly to emerging markets—and integrate investment and technology activities. These missions will be led by very senior government officials and ministers, including, where appropriate, the Prime Minister;

•         develop and host an annual Global Technology and Innovation Summit to bring the world’s best to Canada and to provide a stage for Canadian technology companies to showcase their capabilities to the world;

•         increase Canadian participation in world-class international trade shows, as well as the leading technology and investment conferences around the world; and

•         establish a Canada Business Leaders Program to encourage successful private-sector representatives to promote Canada around the globe.

THE CAN-TRADE PILLARS: SECURING INTERNATIONAL MARKETS

The Need

Canadian businesses need to focus their attention on commercial success, not on navigating complex and unpredictable trade rules and the risks of outright protectionism. Canadian businesses rely on the Government of Canada to negotiate the global trade rules that provide certainty and a level playing field. However, traditional approaches are no longer enough—the expanding range of international business activity dictates that policy and advocacy efforts must be shifted accordingly.

The CAN-Trade Response 

CAN-Trade will see the government strategically realign its international negotiating efforts and resources on opening doors for Canadian business and building confidence where, when and how they need it.

We will complement our full and effective engagement in promoting and protecting Canadian interests through the WTO, NAFTA and our other bilateral free trade agreements by working with the business community to develop new and different kinds of agreements that can be negotiated more quickly, and that are meaningful to businesses’ near-term needs in those markets.

CAN-Trade also provides new resources to fortify the defence of Canadian trade and investment interests around the world.

Specific Actions

The department will:

•         launch new free trade and foreign investment protection and promotion agreement (FIPA) discussions when it is clearly in our broad national interests to do so; conclude ongoing FIPA negotiations with India and China;

•         pursue new and different kinds of agreements that are critical to building confidence with faster turnaround—like air services agreements, standards and regulatory cooperation agreements, tax treaties, science and technology agreements, and so on; and

•         dedicate more resources to monitoring and enforcing existing agreements—such as NAFTA and the WTO—given increased protectionism in key markets.

THE CAN-TRADE PILLARS: WINNING IN THE GLOBAL MARKETPLACE

The Need

Canadian businesses—particularly smaller companies—do not have the resources to gather and synthesize the kinds of information they need to build global business strategies. They have also been quite clear that they need relevant and timely intelligence on local business conditions, business opportunity leads, and key local contacts. They have said that they value Canada’s Trade Commissioner Service—but it needs to do more. They have said that they do not have the resources required to handle the front-end financial risk associated with penetrating new and emerging markets.

The CAN-Trade Response

CAN-Trade is about offering Canadian businesses the timely and relevant market intelligence and support they need to sharpen their competitive edge globally.

CAN-Trade will lead to a significant expansion of our network of Trade Commissioners—particularly in emerging markets. It will lead to a strategic realignment of our front- and back-office client service development and management capacities. And it will establish a mechanism for writing down the upfront financial risk associated with the penetration of new and emerging markets by SMEs that are clearly ready for the challenge.

Specific Actions

In China, for example, the Department of International Trade will increase its Trade Commissioner Service presence in China from five to up to 25 cities over five years.

In addition, the department will:

•         launch a Global Success Fund to better position up to 5,000 Canadian firms, in particular SMEs, in priority markets such as China and India;

•         continue to work closely, on behalf of business, with partners—including the provinces and territories—to ensure that services are effectively coordinated and accessible to businesses across every sector and in every region of Canada;

•         realign front-office (Trade Commissioner sales team) and back-office (sector specialists, economic analysts, etc.) integration and approaches to help clients deal with new business models. This will be facilitated by a new strategic service hub for business that will integrate sectoral knowledge of Canadian capacities with global opportunities; and

•         strengthen the government’s ability to provide companies with timely and relevant advice on how to address corporate social responsibility issues (including health, safety and environmental issues) in emerging markets and beyond.