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MR. PETTIGREW - ADDRESS TO THE NIAGARA INTERNATIONAL TRADE COUNCIL - BUFFALO, NEW YORK
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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.
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