SPEECHES

2004/11 CHECK AGAINST DELIVERY

NOTES FOR AN ADDRESS BY

THE HONOURABLE GAR KNUTSON,

MINISTER OF STATE (NEW AND EMERGING MARKETS),

AT THE CENTRAL AMERICA CIRCUIT RECEPTION

SAN SALVADOR, El Salvador

March 2, 2004

It is a great pleasure for me to be here this evening during my first visit to Central America with members of the largest Canadian business delegation ever to visit the region. I would like to thank Ambassador Lambert and his staff for organizing this reception and highlighting the growing relationship between Canada and El Salvador. I would also like to acknowledge the presence of our mission partners, whose support is greatly appreciated: Agriculture and Agri-Food Canada, Industry Canada, Export Development Canada, the Canadian Commercial Corporation and the Ministry of Regional Economic Development of Quebec. I encourage you to speak with them this evening to see how they can help you in this market.

I am pleased to hear that today's meetings between the Canadian delegates and their Salvadoran counterparts were very productive. It's through events like this trade mission that we will uncover the deep vein of opportunities that exists for increasing our trade and investment ties.

On December 12, 2003, Prime Minister Paul Martin was sworn in as Canada's new leader. On that day, I was honoured with an appointment to his new cabinet as Minister of State for New and Emerging Markets. Prime Minister Martin has made it clear that our government is committed to raising Canada's profile in expanding and dynamic markets such as El Salvador.

And this is why I am here with Canadian companies--small, medium-sized and large, and from across Canada--that are eager to introduce their goods, services, capital, people and knowledge to El Salvador and other markets in Central America.

Canada is a trading nation. In 2002, Canada enjoyed its 11th consecutive year of economic growth, trading $2.5 billion per day in goods and services with the rest of the world. The export of goods and services represented over 40 percent of Canada's gross domestic product--a proportion that is approximately four times greater than that in the United States and Japan, and one that makes Canada the leading per-capita exporter in the G7.

El Salvador has set the standard in building a dynamic regional economy based on a confident private sector and free trade, while taking major steps in reducing poverty and expanding social services.

The vibrancy of El Salvador's political culture is very evident in the current election campaign. Through our recent chairing of the Summit of the Americas process, Canada has supported democratic development and good governance throughout the Americas. El Salvador is an example for the region of what can be done to develop a democratic culture and improve governance practices.

Many Canadians will remember President Flores' contribution to the Summit of the Americas in Quebec City, where he delivered a powerful seven-minute speech advocating the need to manage globalization to improve the lives of all.

Trade is growing quickly between our two countries and throughout the region, and there is great potential for further growth. Indeed, with trade between our two countries now valued at over $100 million, we are here to further our expanding commercial relationship. Canadian exports of wheat, newsprint, oils, asbestos, dairy products and specialized machinery are matched by Salvadoran exports of coffee, shrimp and other agricultural products; clothing and textiles; electrical machinery; and sports equipment.

This kind of two-way, mutually beneficial relationship is key to the success of growing our relationship.

In addition to being a good partner, Canada is also a responsible partner. Promoting corporate social responsibility is an important element of the Canadian government's approach to promoting international trade and investment. By operating and investing abroad in a socially responsible manner, Canadian companies contribute positively to the communities in which they operate.

Canada also understands the value of free trade. Canada remains committed to successfully concluding the Canada-Central America Free Trade Agreement and the Free Trade Area of the Americas with hemispheric partners such as El Salvador. I am confident El Salvador will embrace the new opportunities that free trade can bring to all. Canada considers El Salvador as a partner.

There has been considerable progress in El Salvador over the last five years in modernizing, stabilizing and liberalizing the economy through deregulation and the extension of free trade agreements. El Salvador is growing under this approach and has considerable economic stability.

This morning, Foreign Affairs Minister Brizuela de Avila and I announced that Canada will assign a resident ambassador to El Salvador within the next six months--another example of our strengthening relationship. And Canada will continue our extensive cooperation with El Salvador in areas such a disaster assistance and improving basic water and health services.

However, it is partnership through trade that has brought us here this evening. Let me re-state how pleased I am to be here with Canadian businesses that share the vision of increased business relations between Canada and El Salvador. Canada understands the importance of fostering this relationship and is committed to doing so. This trade mission is an example of that continued commitment.

I have enjoyed learning more about El Salvador, the region, and trade and investment opportunities during this visit. Most of all, I've enjoyed meeting people such as you who are at the forefront of cooperation between our two countries.

I encourage everyone here this evening, Canadian and Salvadoran, to enjoy themselves and capture the spirit of commitment and entrepreneurship that has brought us together.

Thank you.