NEWS RELEASES

February 8, 2005 (12:45 p.m. EST)
No. 28

MINISTER PETERSON ANNOUNCES TRADE MISSION TO INDIA AND RESULTS OF EMERGING MARKETS ROUND TABLES

In a speech to the Canadian Manufacturers & Exporters at the National Manufacturing Summit in Ottawa, International Trade Minister Jim Peterson today announced that he will lead a trade mission to India in the spring. This mission, Minister Peterson’s third to an emerging market, will include visits to Delhi and Mumbai (formerly Bombay), bringing together Canadian and Indian business people, promoting science and technology collaboration and strengthening our bilateral trade, investment and scientific relations.

“These trade missions are a cornerstone of the new emerging markets framework under development within the new International Trade department,” said Minister Peterson. “These missions are providing invaluable insights about Canada’s opportunities and challenges ahead and the programs and tools needed to support Canadian exports and investments.”

The trade mission to India will come on the heels of successful missions to China and Brazil, which were attended by a total of 324 Canadian companies and government departments and agencies and resulted in the signing of more than 100 commercial agreements.

Minister Peterson also welcomed the release today of the emerging markets round tables summary report as a key contribution to the Government of Canada’s emerging markets framework. The three round tables with the business, academic and non-governmental organization communities were held in November and December 2004.

“Canadians are optimistic that Canada will meet the challenges and opportunities in emerging markets,” said Mr. Peterson. “These round tables also confirmed the strong support for an approach that will extend and draw upon Canada’s unparalleled relationship with the United States.”

The report, entitled Emerging Markets: Will Canada Meet the Challenge?, is available on the International Trade Canada Web site at http://www.itcan-cican.gc.ca/em_mark-en.asp.

Further consultations with Canadians on emerging markets will be carried out in the weeks ahead by members of the Subcommittee on International Trade, Trade Disputes and Investment of the House of Commons Standing Committee on Foreign Affairs and International Trade. For more information about these consultations, please consult the attached terms of reference or contact the Subcommittee Clerk, Eugene Morawski, at (613) 992-5023 or SINT@parl.gc.ca.

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Three 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

Backgrounder

QUICK FACTS ON INDIA

•         India and Canada enjoy a solid commercial relationship. India is Canada’s largest trading partner in South Asia, a region that includes the countries of Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

•         The active promotion of trade and investment by both countries resulted in trade valued at more than $2 billion in 2003.

•         Total Canadian merchandise exports to India grew from $674 million in 2002 to $764 million in 2003, an increase of 13.4 percent. The value of total Canadian exports of services to India reached $290 million in 2002.

•         Canada’s strong and growing trade relationship with India is enhanced by the vibrant Indo-Canadian community and bilateral business groups such as the Canada-India Business Council and the Indo-Canada Chamber of Commerce.

•         Canada wishes to foster more Canadian foreign direct investment in India as it offers significant opportunities for Canadian expertise and technology in sectors such as agriculture, information technology, transportation, biotechnology and financial services.

•         As part of our expanded vision for trade with India, Canada is actively engaged in multilateral trade negotiations to address barriers such as import duties, the regulatory framework and the protection of intellectual property rights.

•         Canada is also currently negotiating a foreign investment promotion and protection agreement with India. This reciprocal agreement will protect and promote bilateral foreign investment through legally binding rights and obligations.

•         The Canadian government will continue to raise awareness in the Indian business community about Canada’s strategic advantage as a cost-competitive country so that Indian companies see the benefits of investing in Canada in order to serve the North American market.

Backgrounder

INTERNATIONAL TRADE CANADA FACT SHEET:

ROUND TABLE TALKS WITH STAKEHOLDERS ON EMERGING MARKETS

The complete report, entitled Emerging Markets: Will Canada Meet the Challenge?, is available on the International Trade Canada Web site at http://www.itcan-cican.gc.ca/em_mark-en.asp.

Overall Themes

Government action should include:

•         a whole-of-government approach to supporting Canadian business and investment interests in emerging markets;

•         building upon NAFTA as part of an Emerging Markets Framework;

•         greater focus of the resources allotted to trade policy, trade development and investment instruments; and

•         trade and investment objectives that are integrated with considerations of good governance, social justice and humanitarian goals.

Key Findings

•         A multidimensional approach, incorporating policy, promotion, branding, links to investment, science and technology, commercialization, education and skills, and immigration, is required for an effective and appropriate commercial engagement. The framework must balance a variety of interests and concerns.

•         Government must facilitate trade and investment flows to help businesses grow and maintain market access with key countries; negotiate foreign investment promotion and protection agreements (FIPAs); and provide companies with one-stop shopping on market intelligence, technology intelligence and financial assistance. In an increasingly globalized economy, FIPAs or other safeguards may be critical, whereas free trade agreements may not always be.

•         Our Emerging Markets Framework should be tailored to Canada’s export strengths in services, high tech and education and should have a strong focus on Canadian small and medium-sized businesses.

•         Canada must continue to have an influential role in multilateral trade discussions and should actively pursue bilateral agreements.

•         Negotiation of FIPAs is critical to protecting Canadian investments in emerging markets.

•         Research and development and educational linkages with emerging markets are key to successful engagement and essential in maintaining Canadian competitiveness.

•         There is a need to upgrade domestic transportation infrastructure.

•         There is a need to strengthen official representation on the ground in emerging markets and better leverage the support of Canadian trade and business organizations present in these countries and engage ethnocultural communities in Canada.

Here are some suggestions on the role of government:

•         Help small and medium-sized enterprises meet the challenges of entering emerging markets.

•         Help companies already in emerging markets to expand.

•         Address visa issues that can derail business delegations.

•         Facilitate investment in emerging markets.

•         Ensure that Canada’s trade remedy system is responsive to Canadian firms facing unfair competition domestically.

•         Reflect Canadian values in promoting social and human development in emerging markets through Canada’s Emerging Markets Framework.

•         Further promote and brand Canada together with the private sector.

•         Meet the challenges posed by intellectual property rights and standards, and strike the right balance between bilateral and multilateral aspects of trade.

•         Further strengthen the Canada-U.S. commercial relationship, as it is key to Canadian success in emerging markets and should remain Canada’s top priority. This need was confirmed by participants.

Backgrounder

DRAFT TERMS OF REFERENCE

It is proposed that the House of Commons Subcommittee on International Trade engage in active consultations across Canada with small and medium-sized enterprises, multinational enterprises, business associations as well as other interested organizations and individuals, with a view to providing the Government of Canada with additional information and feedback on the Emerging Markets Strategy, which is being developed by International Trade Canada.

In particular, the Subcommittee’s consultations could focus on the following:

•         Information on the kind of policy instruments that would be most useful, either to improve market access or to facilitate business. Does Canada need more free trade agreements? Are there other agreements, like investment protection or more specialized accords on standards recognition, customs duties, double taxation, pensions or movement of persons, that would be useful?

•         The type of services and programs, advice and information that would best support Canadian business, large or small, in emerging markets. Keeping in mind budgetary restraints, what kind of assistance could the government offer that would most effectively support their strategies?

•         Proposals on how to develop policy and promotional efforts that advance Canadian trade and investment interests abroad and also incorporate values such as corporate social responsibility, governance and the rule of law.

An indirect effect of the Subcommittee’s consultations with stakeholders across Canada could be an encouragement of the wider engagement of Canadian business groups in key emerging markets, including not only exports but two-way investment and research and development partnering.

The Subcommittee could inform itself on the consultations and outreach activities that have taken place by International Trade Canada and its partners on this subject, and may seek advice and share the results of the Subcommittee’s consultations with International Trade Canada.

A point of liaison within the Policy and Partnerships Division, International Business Development Branch, would be named to assist the Subcommittee’s preparation for consultations.