Let me begin by stating that a key component of Canada's export success has been the network of international trade agreements that we have negotiated. These agreements -- NAFTA, for example -- have worked extremely well. And while we face real challenges as we negotiate and define new agreements such as the FTAA [Free Trade Area of the Americas], it is something to which the Canadian government is firmly committed.

Our recent response to this Committee's report on the FTAA, known as The Free Trade Area of the Americas: Towards a Hemispheric Agreement in the Canadian Interest, outlines what we aim to achieve in these negotiations.

The FTAA is a historic opportunity to unite 34 countries of the Americas into a free trade area of impressive proportions. The potential is considerable: it's a market with a combined population of over 800 million and a GDP of $17 trillion.

The FTAA is also a vital part of the Summit of the Americas process, the aim of which is to promote greater economic, social and political development in our hemisphere. Canada's leadership in this process is undeniable: Quebec City will host the hemisphere's leaders at the Summit next April, and we hosted the FTAA Trade Ministers meeting in Toronto last November, the culmination of the crucial start-up phase of the negotiations that Canada chaired.

We place a priority on these negotiations because free trade is good for Canada. Quite simply, trade is first, foremost and always, about people: people finding rewards for their efforts, markets for their products and hope for their future. And we believe, free trade will benefit the people of our hemisphere as well.

For those who, for whatever reasons, oppose free trade and trade agreements, let me ask, why would we exclude others from the kind of prosperity we enjoy, built on trade and engagement with the global economy? Why condemn to isolation the others of this hemisphere who aspire to the same quality of life, range of choice and opportunity that we wish for ourselves? Why deny them the same paths that we ourselves have followed to prosperity?

And who would deny that Canada's success in harnessing the benefits of globalization has produced prosperity for Canadians. Our exports increased by more than 11 percent in 1999 -- reaching $410 billion. To put it into perspective, that's 43 percent of our entire GDP. And this growth has been taking place for some time. Ten years ago, our exports represented 25 percent of our GDP, so we've increased exports from 25 percent to 43 percent in one decade.

The payback of this volume of trade to Canada -- where one out of every three jobs depends on exports -- is clear. The 427 000 jobs that Canadians created last year was the highest number of net new jobs created since 1979 and can be attributed in large measure to our success in global markets. Our unemployment rate is now at around 6.6 percent, the lowest in a quarter of a century. In fact, most of the two million new jobs created since 1993 are related to our growth in trade.

Trade also contributes to the more intangible aspects of our national life: for example, enhancing our confidence as our companies succeed in tough international markets and contributing to a higher quality of life for Canadians and a greater range of choices for consumers.

In the continued pursuit of the benefits of trade, I am very pleased to say that, the Canadian government is able to express its broad agreement with this Committee's 29 recommendations on the positions and priorities Canada should take in the negotiations. Let me cover the most important points.

Market Access Priorities

Regarding market access, we will push for accelerated tariff reductions for products of export interest while taking into account domestic sensitivities. We will also continue to push for liberalization on agricultural products in keeping with our World Trade Organization [WTO] positions.

We also support improved rules for anti-dumping measures and disciplines on subsidies, especially agricultural export subsidies.

Other negotiating priorities include: a comprehensive government procurement agreement; an intellectual property agreement in line with international provisions; improved competition policy rules; and where possible, discussion of provisions addressing non-tariff measures.

Canada's Objectives in the Areas of Investment, Services and Culture

On investment, we will support investment rules based on our past experiences with trade negotiations and the implementation of investment rules with other countries, including those of Latin America and the Caribbean. The countries of the Americas need and want the capital and opportunity that investment brings. They have a stake in ensuring that investment flows predictably throughout the region.

But I can assure you, as far as an investor-state dispute settlement mechanism, we are not advocating and will not seek the inclusion of such a mechanism in the FTAA, at the WTO or elsewhere.

Whatever we do in any future negotiations on investment in the FTAA, we will take into account our past experiences with investment rules.

I'll let you know we are continuing to work with our NAFTA partners to clarify key elements of that agreement's investment section, Chapter 11.

I would like to reaffirm our position on services, of particular importance to Canadians because it affects the health and education service sectors.

As I've stated before, public health and education systems are not on the table in any international trade negotiations. The Canadian government will maintain its right and ability to set and maintain the principles of our public health and education. It is that simple, and those who wish to pick away at this issue, to find threats to our values and our social system in every trade negotiation, are simply wrong.

On the issue of culture, we will discuss how best to pursue an international agreement on cultural diversity, while at the same time respecting international trade rules.

The Benefits of Trade

Beyond Canada's own objectives, an important overarching element of the FTAA negotiating process is helping the hemisphere's smaller economies realize the benefits of liberalized trade. We believe that all will realize important social and economic gains through the FTAA.

Many of the benefits are derived from the social dimensions of trade, something this Committee gave considerable attention to in its report.

I believe that in today's globalized world, social and economic agendas are inextricably interconnected and that government policies and institutions must recognize and respond to this reality.

I believe the FTAA will lead to economic growth and development in the hemisphere. This growth and development will in turn support larger objectives being pursued in the larger Summit of the Americas agenda, such as improving human rights, promoting democratic development and eradicating poverty.

For example, on issues such as the environment and labour rights, it has been shown that as countries achieve greater economic growth and increased standards of living, higher environmental and labour standards are realized.

However, the breadth and scope of what can be achieved on social issues through trade negotiations is limited. The central focus of the FTAA is hemispheric economic integration, achieved through a rules-based trade and investment liberalization system.

This in no way undermines the legitimacy of the concerns of environmental, labour and human rights groups. What it does mean is it that we must tackle these issues through institutions with clear expertise and mandates in these areas.

For instance, the recent Organization of American States meeting in Windsor served as an unmatched regional forum for high-level discussion on fundamental human rights and democratic development issues.

Civil Society Consultations

But Windsor also reminds us that there are many groups who say they speak for the people of the hemisphere, who claim to articulate their concerns and their aspirations better than their own democratically elected governments. To those groups I ask, to whom are you accountable? You have many legitimate views, but opposition for the sake of opposition is, for me, not productive. From Seattle to Washington to Windsor, we see many views that need careful thought. But we also see elements that merely wish to oppose, without careful thought for the costs that will be borne by the very people these groups claim to speak for.

For my part, the Canadian government represents the aspirations of the Canadian people, and we strive to secure a future for them that is prosperous and full of opportunity. Trade is a key part of our strategy. The governments of the hemisphere also want the same for their people. We cannot embark on a true regional integration, economic, social and political, if we cannot accommodate their legitimate desire to share in the wealth-generating benefits of trade.

I am confident, and the Canadian government is confident, that openly debating these issues will generate more hemispheric support for the FTAA. Only by engaging our citizens can we demonstrate the legitimacy of our goals and convince the doubters. But debate is what is needed, not blind opposition.

This FTAA Civil Society Committee allows for concerned individuals and groups to express their views in writing on the implications of trade, including related issues such as labour and environmental standards.

In Toronto last November, we held a successful first meeting between many of the hemisphere's trade ministers and civil society groups, an important development in an ongoing process of civil society consultations at the hemispheric level.

On the domestic front, we have made a concerted and ongoing effort to listen to and consult with Canadians through a number of avenues. These include:

• Sectoral Advisory Groups on International Trade [SAGIT];

• Regular consultations with provincial representatives;

• The Department of Foreign Affairs and International Trade's Web site;

• Ongoing, ad-hoc meetings with senior officials and stakeholders;

• Cross-Canada outreach tours; and

• Parliamentary consultation.

I believe the consultation process is crucial to sustaining the high level of support among Canadians for our international trade initiatives. As the Free Trade Area of the Americas negotiations move forward, this government is dedicated to continuing the consultation process to ensure that the voices of Canadians are heard and that our trade policy priorities and objectives reflect a careful and considered expression of the values, concerns and interests of Canadians.

Thank you.

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Last Updated: 2006-10-30	Top of Page	Important Notices