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BY

THE HONOURABLE PIERRE S. PETTIGREW

MINISTER FOR INTERNATIONAL TRADE

TO

THE NIAGARA INTERNATIONAL TRADE COUNCIL

BUFFALO, New York

May 10, 2000

Thank you to the Niagara International Trade Council for this opportunity to meet with you this evening.

Let me begin by recognizing the outstanding job that the World Trade Week Dinner Organizing Committee has done in pulling all of this together.

As you know, the chair of that Committee, Carl Turnipseed, has recently been promoted to Executive Vice President of the Federal Reserve Bank of New York. It is always good to have friends in high places and I know that you will take to that august body a strong appreciation for the binational character of this region!

Let me also acknowledge all of the award winners tonight. Each of you has demonstrated a strong commitment to promoting greater trade, not only between Canada and the United States but internationally as well. And, of course, as Minister for International Trade, I can't imagine any more important work!

So I commend you for your achievements tonight.

And to each of the students receiving awards this evening, let me say a special word of congratulations and offer you my very best for continued success.

I think it is also appropriate to mention that it is the 30th anniversary of the Canadian Consulate here in Buffalo. I want to thank Consul General Mark Romoff and his staff for all they have done to promote trade and investment and to enhance Canada's profile here in Buffalo.

I am very pleased to be invited here to participate in the 2000 World Trade Week Dinner. In recognition of your specific interest, I have entitled my address this evening "Canada-U.S. Partnerships: The Key to Success in International Markets."

Importance of the Region

I am reminded tonight of President Kennedy's famous description of the Canada-U.S. relationship. When he addressed the Canadian Parliament in 1961, he said that geography has made us neighbours, history has made us friends, and economics has made us partners.

Nowhere is that proximity, that friendship or that relationship more concretely demonstrated or more sincerely felt than right here in western New York. This is where we look over one another's back fence; where those things that divide us pale in comparison to those that unite us; where we see one another, not as citizens of separate countries, but as close friends in a larger neighbourhood.

While this is true, there are still some things that we don't know about each other. For example, a recent poll conducted by the Department of Foreign Affairs and International Trade found that many Americans believe that Canada's economy is resource-based -- that we are "hewers of wood and drawers of water."

This may have been true years ago, but I am certain that you in this region are quite familiar with Canada's dynamic and diversified economy, and it is not surprising that so many companies -- from both countries -- have looked here for their entrée into the other's market. It is not surprising that so many Canadian artists have cracked the American market by first "playing Buffalo" -- Diana Krall and The Barenaked Ladies are just a few of the Canadian artists who have earned international reputations and who got early breaks and their first American fans in Buffalo.

But it shouldn't stop here, in a region known for its rich cultural heritage that includes the Albright-Knox Art Gallery, the Chatauqua Institution, the genius of Frank Lloyd Wright and Frederick Law Olmsted, and contemporary musicians like Ani DiFranco. Unique border immigration regulations make it quick and easy for Canadian artists to perform in western New York -- and there is no doubt that entrepreneurial opportunities could be created from such regulations that give Buffalo and western New York an advantage over other border regions.

It is not surprising, then, that the New Exporters to Bordering States [NEBS] program, which helps Canadian companies make their first foray into the U.S. market, began right here in Buffalo 16 years ago. And I am delighted that there is a delegation of some 18 Canadian companies looking to build partnerships here in western New York with us tonight.

Over the years, the NEBS program has helped more than 12 000 companies begin exporting to the American market. And over a third of those companies -- most of them first-time exporters -- chose Buffalo as their entry point.

So this is very much the heart and home of Canada-U.S. trade.

The Region's Strengths

The Buffalo-Niagara region is one of the most attractive regions for investment in North America.

There are a great many dynamic businesses, most of which have been fuelled by the highly educated workforce, which in turn has been largely generated by the many high-quality academic institutions in the area.

And let me just say that American students who are looking for a rewarding, cross-cultural educational experience should look no further than Canada. In fact, many thousands of American students head north every year for good-quality and reasonably priced post-secondary educations.

I am very pleased that we have articulation agreements that allow international students to study two years in Canada and two years in the States and emerge with a degree from the American institution. You might say that this offers the best of both worlds!

Cross-border co-operation in academic circles offers so many opportunities to students, faculty and the communities. I urge everyone here tonight to take a moment before leaving to explore the exciting new cross-border portal project developed by the University of Toronto and the University of Buffalo and on display in the lobby.

This region also boasts the third-largest medical cluster in North America, with over 700 companies involved in all aspects of the medical and life sciences field. Opportunities abound for Canadians and Americans to form alliances, transfer technology and conduct clinical trials. I commend the medical associations of Ontario and New York for their annual partnering event, which alternates between Buffalo and Toronto.

In addition, we look forward to the further development of the linkage between Roswell Park, with its world-class cancer treatment programs, and the Province of Ontario, in its efforts to provide leading-edge care to its cancer patients, offering tremendous potential for Canadians and Americans to form alliances, transfer technology and conduct clinical trials.

We have a burgeoning high-tech sector that benefits from cross-border cross-pollination of ideas. It is indeed encouraging to hear phrases like the "Buffalo Byte Belt" evolving as a testament to the skills and capabilities inherent in this region's information technology [IT] sector. Recent investments made by leading Canadian IT firms also speak highly of the talent in the Buffalo area.

We know that this area is blessed with one of the natural wonders of the world -- Niagara Falls -- and without getting into any debate about which side is prettier (Canada's!), the fact remains that the potential for tourism is simply unparalleled.

So we have a tremendous product to sell. And by combining our energies and our efforts, we can not only bring the world here, but take our products and services to the world.

Attracting Investment to the Region

Let me just deal briefly with each side of that equation -- bringing the world here and taking on the world from here.

For the past few years, the Canada-U.S. Border-Net Alliance has worked hard to ensure that investors -- not only from Canada and the United States but from around the world -- will see this region for what it is: a single, diverse and dynamic market.

Indeed, the Toronto-Hamilton-Niagara-Buffalo-Rochester area is now North America's fourth-largest market, and we need to promote it as such. We want companies to set up in Hamilton because Rochester is so close at hand. And we want companies to establish operations in Buffalo, because Toronto is just down the road.

In short, we want to capture the tremendous potential of this area by joining forces, combining efforts and marketing the strength of the entire region. Initiatives spearheaded by the Buffalo-Niagara Enterprise [BNE] Program, the Niagara Economic and Tourism Corporation and Border-Net indicate a commitment to recognizing the essential need to view this region as a whole, and not as two business communities competing against one another.

I look forward to learning more about the BNE's soon-to-be-released Strategic Plan and seeing the role Canada will play in it.

The exciting Tourism Investment Marketing initiative of NETCORP will further spur the already major economic renaissance occurring in the Niagara region. And I will be following with interest the progress of Border-Net in its efforts to promote binational business development.

Challenges

Of course, in order to do that, we need to ensure that our border does not become a barrier. We need to ensure that it works efficiently, that delays are the exception and that the only long lines we see are outside of businesses on both sides of the border.

Harmonizing border polices and management is essential, as is collaborating on common threats from beyond our frontiers.

I know that all of you in this room understand the importance of these imperatives. Indeed, many of you have worked hard over the years to see them realized. And I'm pleased to say there has been much progress.

To be sure, there are still challenges to overcome. The Peace Bridge debate, for example, must be resolved in a timely manner as commercial traffic continues to grow.

Similarly, we need to amend section 110 of the U.S. Illegal Immigration and Immigrant Responsibility Act so that both sides can facilitate trade without compromising either our sovereignty or our security.

We also attach high importance to reaching a resolution to the problem of access to U.S. defence and aerospace goods and technologies under the International Traffic in Arms Regulations [ITAR]. I am optimistic that a mutually satisfactory resolution will be found soon. We need to ensure that we protect the continuity of a strong and integrated North American Defence Industrial Base.

Attention must also focus on what crosses the border. We must be sure to take advantage of opportunities for modernization of border and transportation infrastructure afforded by TEA-21 [U.S. Transport Equity Act for the 21st Century] and the Canada Infrastructure Program announced in the recent federal budget. Developments in ITS [Intelligent Transportation Systems] technologies provide additional opportunities for border facilitation that we must be sure to capitalize on.

But there are also tremendous reasons for optimism.

Successes

Just a few weeks ago, for example, our two counties held the first meetings of the Canada-U.S. Partnership [CUSP] initiative, which was launched by President Clinton and Prime Minister Chrétien. In appropriate fashion, one meeting was held in Niagara-on-the-Lake and the other here in Buffalo.

CUSP is a clear indication of the importance of border issues to the larger Canada-U.S. relationship and makes a strong commitment to ensuring that our border functions as a model of co-operation and efficiency. It builds on the Shared Border Accord and will help to foster a common vision for our common border.

We were also delighted with the recent opening of the Commercial Vehicle Processing Centre in Fort Erie, which is already a tremendous success. As you know, the Centre ensures that all of the paperwork is in order before trucks reach the Peace Bridge, and this is speeding up processing and reducing congestion.

All of these initiatives have a single aim: to minimize delays and make it as easy as possible to move from one part of this vast market to another. And I am confident that through goodwill and hard work, we will succeed in making that goal a reality.

Another important initiative that ties this region to broader international markets is the development of the Atlantic Corridor. I know the city of Buffalo and the Niagara Economic and Tourism Corporation have done yeoman's service to make this project a reality.

By linking up with Ireland, we have the opportunity to demonstrate the benefits of this region to the vast European market; to create new opportunities for strategic alliances and joint ventures and to develop exciting new prospects in education, culture and the arts.

We need more of this kind of initiative, which promotes this region as a whole and which encourages investment from around the world.

Teaming Up to Take on the World

The other half of the equation, taking our goods and services to the world, is really where all of you can play a vital role.

You know, better than most, the richness of the Canada-U.S. trading relationship; that we are each other's largest trading partners; that Canada is the number one trading partner of 40 of the 50 states and the number two trading partner for the other 10.

But are you aware of the overall importance of the U.S. market to Canada -- that 87 percent of everything we export comes here to the United States?

You can probably recite better than I can the success of the Free Trade Agreement and the North American Free Trade Agreement: how trade among us increased by 75 percent in the first five years, contributing to strong economic growth and job creation in all three countries.

But do you know something? For all our success, we are still only scratching the surface of what could be. Especially here in the Niagara-Buffalo region, there is still a quantum leap that needs to be taken -- and take it we must.

Because even though trade between New York and Canada is strong, this binational region should be way out ahead of others in terms of strategic alliances and building bilateral trade. We should be setting the pace for international joint ventures. I commend both the Niagara Economic and Tourism Corporation and Buffalo-Niagara Enterprise for their efforts in this regard. They are both demonstrating strong leadership in attracting investment to their respective communities.

But in the final analysis, it is up to each of you, as business leaders in these communities, to expand your frontiers and your fortunes by extending your hands across the border and your reach across the world.

The opportunities for Canadian and American companies in third-country markets is limited only by our imaginations. I am confident that, united, there is little we cannot do.

Trade Liberalization

Because the potential of the international market is so enormous, we must continue to pursue liberalized trade around the world. We must continue to ensure that when you are ready to take your goods or services abroad, you are met with open doors, fair rules and level playing fields.

That is why our two nations are leading the effort to create a Free Trade Area of the Americas. We want the vast Latin American and Caribbean markets to become more accessible to you.

And it is also why we are working so hard in the World Trade Organization [WTO]. As you know, the WTO members could not agree on the launch of a new round of negotiations when we met last December in Seattle. But make no mistake, while Seattle did not achieve what we had hoped, neither did it shake our confidence in what we believe in -- and that is the need to continue to pursue multilateral, rules-based trade arrangements and to strengthen markets around the globe.

And so, for example, our two countries share as one of our top priorities the goal of ensuring that China joins the WTO, and opens up its borders to Canadian and American goods. Charlene Barshefsky and I have both put a lot of effort into achieving this goal.

Quite simply, our two nations must remain engaged in promoting freer trade around the world in order to provide access to your businesses, markets for your products and rewards for your labours.

Conclusion

As I close, let me again state what a tremendous opportunity awaits us in this region. Our challenge is to realize that potential and to ensure that our border serves to facilitate, not frustrate, our common ambitions.

We must work at opening doors around the world and bringing the world to our doorstep.

We must continue to see each other not only as neighbours and friends, but as partners in a common cause.

The relationship between Canada and the United States has always been a special one. And here, at the heart of our common commerce, we celebrate that past. But tonight I invite you to join with us in forging the future -- a future that will benefit Americans and Canadians alike.

Let us seize the opportunities before us and build that common future together.

I would like to put some clear and direct challenges to you tonight:

We are now trading US$1 billion worth of goods per day. Let us aim to double that figure to $2 billion!

Similarly, cross-border investment is at $170 billion today. Let us strive to reach $250 billion in cross-border investment!

Given this region's strengths in the area of information and environmental technologies, medical products, agri-food, plastics and building products, let's really build the cross-border strategic alliances that will make us the suppliers of choice in North America and then globally!

Let's put our heads together and create a vision for the Canada-U.S. border and an action plan to achieve that vision. I encourage you to write our Consul General outlining your views and offer up constructive suggestions on how we can realize the President's and Prime Minister's goal to make our border a model of co-operation and efficiency.

These challenges are not only desired by all, they are achievable. So I urge you to build on the solid cross-border relationships and friendships and together really walk the talk.

Thank you.