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NOTES FOR AN ADDRESS BY

THE HONOURABLE PIERRE PETTIGREW,

MINISTER FOR INTERNATIONAL TRADE,

TO THE

SOUTH AFRICA-CANADA CHAMBER OF BUSINESS

ON

"THE CANADIAN COMMITMENT TO AFRICA: BUILDING STRONGER TIES"

JOHANNESBURG, South Africa

November 19, 2002

Introduction

Let me begin by saying how delighted I am to be here in Johannesburg today building on the very positive relations between our two countries. On that point, it is very appropriate that I find myself addressing the South Africa-Canada Chamber of Business, an organization that embodies the spirit of the new partnership with Africa that we are working toward.

I would like to thank the Chamber for organizing this event and bringing together those dedicated not only to strengthening our commercial ties but also to the sustainable development of South Africa.

As some of you may know I am here in Johannesburg with over 60 Canadian business participants on the first leg of a trade mission that will also see us stop in Nigeria and Senegal. I am truly excited to lead this mission, because it helps mark the beginning of a new chapter in our partnership with Africa.

Today I'd like to provide some perspective on Canada's plan to foster stronger relations with Africa, including our commitment to the G8 Africa Action Plan, and our support of the New Partnership for Africa's Development or NEPAD, as it is more often called. As the Canadian Minister for International Trade, I would particularly like to offer you my thoughts on the vital role trade plays in creating sustained economic growth, sustainable development and greater prosperity for South Africa and the rest of the continent.

Building on Success

As we strive to strengthen the relationship between Canada and Africa, I would like to offer you a few solid examples of successful partnerships. These projects reflect the potential that cooperation between our two nations affords.

Indeed, in both Canada and South Africa, the film industry is taking off. It seems appropriate then that "Focus on Africa" was one of the themes chosen for this year's Banff Television Festival, Canada's premier television event. This year the Festival welcomed over 80 African delegates. Similarly, last week Canada participated in the Sithengi Film Festival in Cape Town. Exchanges with the South African film industry are anchored by the Canada-South Africa Co-production Treaty, unique for South Africa, which has resulted in 11 co-productions worth $25 million since the agreement was signed in 1997. We should endeavour to use our mutual success in the film industry as a model for our cooperation in other sectors, many of which hold the same potential for growth.

The Niagara College/Eastern Cape Technikon partnership is another successful venture that will help foster a new generation of entrepreneurs who will help South Africa become further engaged in the global economy. While I was Minister of Human Resources Development Canada, my former portfolio, we funded an initiative that developed a program to adapt and transfer best practices from Niagara College's entrepreneurship training curriculum to Eastern Cape Technikon, Butterworth Campus. Funded with a five-year $400,000 grant by the Canadian International Development Agency, and administered by the Association of Canadian Community Colleges, this innovative project takes a holistic approach to encourage entrepreneurship and draws on commitments from a variety of sources. Converting an unused office building donated by the city into an entrepreneurship centre, this initiative provides graduates of the program with mentoring and marketing services. Rotary Clubs are being brought in to sponsor micro-credit activities. And now, I understand that two interns from the Department of Foreign Affairs and International Trade's International Youth Internship Program will expand their activities to the Eastern Cape province. Indeed, it is the level of cooperation demonstrated by projects like this one, that should inspire us as we endeavour to expand the ties between our two nations.

Further on the subject of successful partnerships, I commend the achievements of Industry Canada's Sustainable Cities Initiative and its partnership with eThekwini Municipality (Durban). The Sustainable Cities Initiative is a Canadian partnership initiative aimed at enhancing the sustainability of economic development in cities. It will help the citizens of Durban improve their quality of life in such crucial areas of urban development as clean water, waste management, clean energy, transportation, housing, capacity building, urban planning and telecommunications.

Canada--Committed to Africa's Success

Clearly, these examples indicate that there is great potential for further ties between Canada and Africa. All that is required to build on these successes, is a strong commitment. Let me assure you, the Government of Canada is committed to developing and expanding its relationship with South Africa and Africa as a whole. Canada understands the importance of fostering a strong, healthy, mutually beneficial relationship with Africa, and we are committed to doing so.

In fact, the word "commitment" really does synthesize the overarching goals, not just of this trade mission, but of Canada's support of NEPAD.

G8-Africa Action Plan and NEPAD

As Chair of this year's G8 Summit in Kananaskis, Prime Minister Jean Chrétien made Canada's commitment to Africa's development clear. He worked hard to ensure that Africa was at the centre of the G8 agenda, and it was.

As many of you are aware, at Kananaskis, G8 leaders adopted an Africa Action Plan as a framework for action in support of NEPAD. It is part of a new partnership with Africa for the long term, based on mutual obligation and respect. It makes specific commitments in support of NEPAD, in crucial areas in which the G8 is able to add particular value, namely: peace and security; governance; education; health; economic growth; agriculture; and water. The Action Plan was adopted in the presence of President Thabo Mbeki and several of the other visionary leaders who have done so much to achieve the objectives set out in NEPAD.

The commitment was not simply made on paper. The G8 leaders identified the financial resources needed to give effect to their commitments, including directing an additional US$6 billion in Official Development Assistance toward Africa each year as of 2006, if African countries implement NEPAD.

Canada's Role in the Africa Action Plan and Support of NEPAD

Canada, recognizing the goals of NEPAD, is ready to support Africa's vision for development through the Africa Action Plan. For Canada, the process of implementing this Plan began on the very day it was adopted. We immediately announced an ambitious package of national initiatives, including:

• opening our market to tariff- and quota-free imports from least developed countries, with only the most minor of exceptions, and investing $20 million in trade-related capacity building to help African countries take advantage of new market access;

• establishing an African Investment Fund with $100 million in federal funding;

• investing over $35 million to create an e-policy resource centre for Africa, a centre for connectivity in Africa, and related information and communication technology initiatives;

• supplying $100 million for health, including $50 million in new support toward the eradication of polio and $50 million for innovative AIDS vaccine research for Africa; and

• doubling Canada's investment in basic education in Africa to $100 million per year by 2005 in new and existing resources.

These initiatives draw in part on a $500-million Canada Fund for Africa established by Canada in the December 2001 budget.

These initiatives indicate that Canada's clear commitment to and support for NEPAD is real. We recognize that NEPAD is the only initiative on the horizon that offers the hope of attracting significant international engagement in support of Africa. Together, we in Canada and you in Africa must work to bring about the goals of NEPAD. If we, both Canadians and Africans, allow NEPAD to falter, we risk sacrificing the only initiative that has the prospect of retaining international engagement in support of Africa.

The Role of Trade in Promoting Development

I believe that trade will play an important role in the very deep economic reforms that NEPAD seeks to accomplish. Trade is a key component in promoting economic growth and achieving NEPAD's goal of improving the well-being of future generations of Africans.

As the International Trade Minister for a nation that conducts $1.85 billion in trade each day--yes, each day--with the United States alone, I know first-hand that the social prospects for any country depend greatly on its ability to tap into foreign markets. While continued support in the form of investment, financing and capacity building is also important, a dollar of trade will generate far more development than a dollar of aid.

This is where countries like Canada can help, not only with public sector initiatives, but also by encouraging stronger business ties. Indeed, the Canada-South Africa Chamber of Business, as well as the Canada Alliance for Business in South Africa and the Trade Facilitation Office Canada, all play a crucial role in building links to facilitate trade. The fact that over 100 business delegates will participate in this trade mission illustrates that Canada's interest in fostering greater economic ties with Africa is sincere. And I am indeed proud to be leading this group of business delegates on a trade mission.

Canadian Companies--Good Corporate Citizens

Canadian companies are known throughout the world as good business partners in every sense of the word. They are also good ambassadors for the message of corporate social responsibility.

One of many noteworthy examples of Canadian private sector leadership in corporate social responsibility is by one of your Chamber's members, Placer Dome. At its South Deep Mine, here in South Africa, Placer Dome identified two main challenges for former employees: the need to identify economic alternatives for them; and HIV/AIDS. Placer Dome now has a program that helps former mineworkers find work thanks to skills training and enterprise development support. In addition, in partnership with CARE International, Placer Dome is disseminating information on HIV/AIDS and helping former and present workers and their families deal with the impact of the disease.

Canadian companies like Placer Dome, which won two World Bank awards for their work in 2002, have demonstrated that by operating and investing abroad in a socially responsible manner, they can contribute positively to communities in which they do business.

Conclusion

In conclusion, I want to reiterate my belief that the social prospects for any country depend greatly on its ability to tap into foreign markets. Indeed, the reason that I am here, leading the business participants you see before you, is that I believe Canadian companies can play a key role in propelling Africa's economic development forward.

Of course, trade alone cannot address the many complex social, economic and political pressures facing Africa today. The lives and future well-being of millions of Africans depend on their governments implementing the principles of NEPAD, and on countries like Canada continuing to provide leadership in support of the "new partnership" embodied in the Africa Action Plan. These initiatives, like our trade mission, also make the prospects bright for commercial growth and sustainable development in Africa.

I know these commitments will result in a win-win opportunity for both Canada and Africa.

Thank you.