NEWS RELEASES

December 7, 2004 (11:20 a.m. EST) No. 147

INTRODUCTION OF DEPARTMENT OF INTERNATIONAL TRADE ACT CAPS SUCCESSFUL YEAR FOR ITCAN

International Trade Minister Jim Peterson today marked one year of departmental accomplishments with the introduction of the Department of International Trade Act.

“International Trade Canada (ITCan) is providing the focus, flexibility and leadership necessary to ensure that trade and investment continue to drive Canadian prosperity,” said Mr. Peterson. “Given that much of our wealth and quality of life hinge on international commerce, we must work together to ensure that our businesses and communities have the tools, services and support they need to succeed in an increasingly competitive and globalized world.”

In general, the Department of International Trade Act sets out the powers, duties and functions of the Minister of International Trade. It also establishes that ITCan is under the authority of the Minister of International Trade, who is responsible for the overall direction of the Department both in Canada and abroad.

The Minister noted that, in the past year, ITCan has accomplished a great deal both internationally and internally. He also underscored the fact that Canadian imports and exports from January to September 2004 increased by 5.6 percent over the same period in 2003.

Highlights of the past year include:

International

•         seven new consulates in the U.S. under the Enhanced Representation Initiative

•         the negotiation of a successful July Framework reached on August 1 in the context of the WTO Doha Development Round

•         successful trade missions to Brazil and Central America

•         eight victories on softwood lumber, including three WTO cases and five NAFTA panel decisions

•         the initiation of free trade talks with South Korea

•         agreement on a framework for a new Trade and Investment Enhancement Agreement between Canada and the European Union to further stimulate the bilateral commercial relationship

•         a key WTO victory indicating the Canadian Wheat Board is consistent with Canada’s international trade obligations

•         the development of the International Policy Statement

Internal

•         the introduction of the Department of International Trade Act in Parliament

•         the development of an emerging markets strategy, including three roundtables with key Canadian stakeholders

•         the development of a new framework for consulting and engaging stakeholders, clients and all interested Canadians to ensure that they continue to actively contribute to Canada’s international trade positions and priorities

•         a new, more flexible departmental structure in which rapid response teams from across the Government of Canada are formed to address commercial opportunities and challenges

•         the successful integration of the Investment Partnerships Branch and the regional international trade centres into the new department

- 30 -

A backgrounder on ITCan is 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
Foreign Affairs Canada and International Trade Canada
(613) 995-1874
http://www.international.gc.ca

Backgrounder

INTERNATIONAL TRADE CANADA

The introduction of the Department of International Trade Act marks a milestone in the creation of the new department announced by the Prime Minister on December 12, 2003.

International Trade Canada (ITCan) was created to recognize the central importance of trade and investment to the long-term growth of the economy and the prosperity of Canadians, without which our social choices and quality of life cannot be assured.

ITCan is better equipped to provide businesses and communities with more of the tools and services they need to succeed in an increasingly competitive and globalized world.

Trade is the lifeblood of the Canadian economy, with nearly one in four jobs linked in part to exports. Exports of goods and services are equivalent to almost 38 percent of gross domestic product, with just over $1 billion worth going to the U.S. every day.

International investment is increasingly important to the Canadian economy as well. The stock of foreign direct investment in Canada has now reached $360 billion, and the stock of Canadian investment abroad has climbed to nearly $400 billion. While impressive, Canada’s share of global foreign investment is declining, a trend that the new department will be mandated to counteract with strong programming in concert with the provinces, territories and municipalities.

The Speech from the Throne challenged Canada to elevate its economic performance through a commitment to excellence and a vision directed outward toward the challenges and opportunities the world presents.

ITCan is meeting this challenge by securing and improving access to the North American market; by ensuring that Canadian businesses have access to opportunities in new and emerging markets; and by positioning Canada advantageously in global value chains through innovative approaches to strategically placed mature markets.

The creation of the new department has given ITCan the opportunity to review and realign its policies and objectives, in order to better serve business, communities, investors and other supporting organizations.

To achieve these goals, ITCan’s structure is focused on three main business lines: international business development, investment partnerships, and trade and economic policy. Trade law and trade communications are an integral part of this structure.

A new World Markets Branch will serve as a strategic integration point between headquarters and our frontline services to our clients, provided by our network of 12 regional offices across Canada and the trade commissioners operating at more than 150 posts abroad.

This network will ensure that the Canadian business community continues to experience the seamless, integrated and exceptional level of service they currently enjoy.

A new Strategic Policy and Corporate Planning Branch will also be created. It will support the core business lines by providing coherent strategic policy advice, sound economic research and analysis, in-depth consultations and liaison with stakeholders, and advice on corporate issues.

ITCan will also be rolling out a forward-looking and flexible framework for consultations and engagement that will ensure that stakeholders, clients and interested citizens continue to actively contribute to Canada’s international trade positions and priorities.

Together, these elements of the new ITCan will continue, as they have since December 12, 2003, to deliver high-quality service to Canadian businesses, while also helping the Government of Canada to make strategic investments in the international drivers of our prosperity and growth.