SPEECHES

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NOTES FOR AN ADDRESS BY

THE HONOURABLE SERGIO MARCHI

MINISTER FOR INTERNATIONAL TRADE

TO A LUNCHEON HOSTED BY

THE CANADA-ARAB BUSINESS COUNCIL,

THE ABU DHABI CHAMBER OF COMMERCE AND

THE CANADIAN BUSINESS COUNCIL IN ABU DHABI

ABU DHABI, United Arab Emirates

February 24, 1999

(8:00 a.m. EST)

Thank you to the Canada-Arab Business Council, the Abu Dhabi Chamber of Commerce and Industry, and the Canadian Business Council in Abu Dhabi for hosting this wonderful luncheon.

This is my first visit to Abu Dhabi, and I must say that I am very impressed by what I've seen. To hear reports about the dynamism and achievements of Abu Dhabi is one thing; to actually see them is another.

You can be justifiably proud of what you have accomplished in just one generation.

I am particularly pleased to be here in Abu Dhabi in order to raise Canada's profile in this region and to highlight the opportunities for increased trade and investment between us.

Today, I would like to suggest four areas that we can address to enhance the relationship between Abu Dhabi and Canada:

First, we must continue to build bridges between us and expand the people-to-people contact that is so important for long-term relationships.

Second, we must increase the level of our two-way trade, by targeting specific sectors.

Third, we should work to increase the level of UAE [United Arab Emirates] investment in Canada.

And fourth, we should explore the opportunities that await us in the all-important areas of training and education.

Let me just touch on each of these.

First, building bridges between us:

It is our firm belief that for a strong relationship to develop or continue between countries, you have to be prepared to put in the effort to build personal relationships. Fax to fax will never replace face to face. And I want you to know that Canada is prepared to build the kind of long-term relationship that will stand the test of time, as well as fluctuations in the marketplace.

It is no accident, therefore, that there have been a number of important Canadian visitors to the UAE recently: Governor General Roméo LeBlanc led a business and cultural delegation here in March, accompanied by the Minister of National Revenue, Herb Dhaliwal.

The fact is that Canadians are discovering Abu Dhabi as never before, and we know that this is only the beginning. In the days ahead we want to encourage even more direct, people-to-people contact between our citizens.

Of course, interest has come not only from the Canadian side. We were very pleased that so many people from Abu Dhabi -- including a member of the Abu Dhabi Chamber of Commerce and Industry -- participated in the first session of the Joint Economic Commission last July. This began in Ottawa and then continued across Canada.

We hope you liked what you saw. We are confident that through those activities, as well as through the current trade mission, strong new partnerships will be formed between our two business communities.

On a more formal level, we celebrate the official opening of our embassy here in Abu Dhabi later today. And we are delighted that the UAE will soon be opening an embassy in Ottawa. These embassies provide strong bridges between us, and will facilitate more people-to-people contact in the days ahead.

The second priority area where we can enhance our relationship is trade.

Along with 35 Canadian businesspeople, I have come here today to convey one simple message: Canada wants to do more business with Abu Dhabi. We are looking for business partners to explore new ventures, both here and in Canada.

Canada's trade with the UAE is already strong and is growing rapidly. In fact, the UAE is Canada's fastest-growing market in the Middle East, and two-way trade between us now stands at over $270 million.

Since Canada reopened our representation here, under the leadership of His Highness Sheikh Zayed, Canadian exports have skyrocketed -- tripling between 1993 and 1997.

More than 35 Canadian companies already have offices in Abu Dhabi, in sectors ranging from oil and gas to defence and telecommunications.

In fact, Canadians are all around you! Canadian technology powers UAE patrol boats. Canadian architects designed and engineered both the first bridge, Al Maqta, and the first airport, Al Bateen.

A Canadian firm, Norr Giffels Associates, has been awarded the contract to build the Sheikh Zayed School for Girls.

And Bennett Pollution has provided services for the Abu Dhabi Water and Electricity Authority.

We also know that you have much to offer Canada and the world, and we want to be a good customer as well as a good supplier.

So our commercial relationship stands on a very solid base. And now the time has come to build on that foundation and to take our commercial relationship to the next level.

Third, we need to enhance UAE investment in Canada.

Canada represents about 3 percent of global capitalization. Any diversified portfolio, therefore, should have at least that amount invested in Canada. But at the moment, the UAE is placing a much lower percentage of its oversees investments in our country.

Part of the reason may be attributable to outdated ideas about Canada. You may still think of us primarily as a resource-based economy. But the fact is that we are a knowledge-based economy, fired by information technology and fuelled by the world's third-largest telecommunications industry and the fifth-largest aerospace industry.

Canada ranks first in the G-7 countries in home computer, cable and telephone penetration. It is first again in the G-7 in technology potential. Our country has put every school and library on-line.

And we are ideally located to provide a gateway, not only to the vast North American market, but also to the Pacific Rim and the emerging economies of the Americas.

You should also know that Canada offers a business environment second to none. We provide the most generous research and development tax credits in the world. We have a critical mass in terms of key technologies, and the lowest costs of doing business of any G-7 nation -- as well as the best-educated work force on the globe.

The Canadian economy is strong, with low inflation, low interest rates, strong growth and a balanced budget.

And for four straight years, the United Nations has ranked our quality of life as the very best in the world.

So when you add it all up, Canada offers an ideal location for your investment dirham, and we invite you to visit.

The fourth and final area that we think holds tremendous potential is education and training.

Canadian schools and universities are recognized around the world for their excellence, and are providing the "jet fuel" for our high-tech economy. Not surprisingly, the number of students from the Arabian Gulf region who choose to study in Canada is growing. In fact, the number doubled during the last year alone.

Recognizing the enormous potential, we have an Education Adviser at our Embassy, Margaret Hogan, who is doing a magnificent job of raising awareness of the educational opportunities that await your students in Canada.

We are also pleased that Canada has been able to provide training to the UAE's public sector. The UAE Coast Guard, for example, is being trained at the Canadian Coast Guard's facilities, and the Royal Canadian Mounted Police is offering training courses to the Abu Dhabi police force.

In all of these areas -- building bridges, increasing trade, attracting more UAE investment to Canada and developing the opportunities in education and training -- we see tremendous potential.

And our business delegation is very interested in hearing suggestions from their Abu Dhabi counterparts about projects and investments to benefit both sides.

I believe the future of trade and investment between Abu Dhabi and Canada can be very bright.

We see the dynamism of Abu Dhabi. We see its progress and sense its potential. We know that we have much to learn from you and much to offer to you.

Let us work together as partners and plan together as friends. And may the future that we seek begin today.

Thank you.