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MR. MARCHI - ADDRESS AT THEWORLD ECONOMIC FORUM - SAO PAULO, BRAZIL

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NOTES FOR AN ADDRESS BY

THE HONOURABLE SERGIO MARCHI

MINISTER FOR INTERNATIONAL TRADE

AT THE

WORLD ECONOMIC FORUM

SAO PAULO, Brazil

September 10, 1997

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca

Ladies and gentlemen, queridos amigos, boa noite, buenas noches.

For Canada, the theme of this year's forum: "From Miami to Belo Horizonte to Santiago," suggests a journey with a sense of purpose and momentum. Above all, it is a collective journey, one that we have embarked upon together.

In the brief time allotted to me, let me offer four Canadian observations about this special journey.

First, like any journey, the first steps are often the most difficult.

While we should be under no illusions about the challenges before us, we should not allow them to overwhelm us either. We must believe in our final destination and stay the course.

Canada's experience with free trade -- first with the United States and then with Mexico, Chile and Israel -- has taught us that while growing pains are inevitable, the benefits are undeniable.

Freer trade has created thousands of jobs for Canadians, expanded our economy and increased the competitiveness of our industries. It is an undertaking we are pleased to have taken and one we are determined to continue.

Along the way, Canada has changed not only how we trade with the world, but also how we see ourselves in the world.

Our roots are planted deeply in European soil, and we have traditionally identified ourselves as a transatlantic nation. In recent years, however, we have been transformed through the development of strong ties with the world of Asia Pacific and, increasingly, with the Americas.

Canada is unmistakably a nation of the Americas and together we want to build a common destiny. Our investment here has soared. So has our trade. And our business community is increasingly bullish. Canada now exports, for instance, more to Latin America than we do to France and Germany combined.

We are also fortunate to have a dynamic Latin American community in Canada. Not only are they helping to shape and build a better Canada, but they strengthen and deepen our special bond to this region.

And so Canada's commitment to the journey is strong: the Americas represent one of our highest priorities.

We envision a prosperous and hopeful future for this hemisphere -- a future united by trade, strengthened by commerce and energized by freedom.

Second, for the journey to be successful we will need rules that are transparent, clear and fair. We must not slip into the old ways of the old days, when might equalled right and the rules of the game were unknown. As well, broad participation by all segments of our society is absolutely vital. If our people cannot participate in the benefits of freer trade then they will not support the journey.

Toward that goal of a rules-based trading system here in the Americas, we support launching comprehensive negotiations for a Free Trade Area of the Americas [FTAA] next April in Santiago.

For this purpose, I remain hopeful that the U.S. Congress will recognize the benefits of conferring fast-track authority. I expect that the United States will demonstrate its commitment to freer trade in this hemisphere, and elsewhere. For we need their support and we welcome their partnership.

In the same spirit, Canada is also looking to develop a strong and dynamic relationship with Mercosur. We have already begun to explore avenues for such an arrangement and we will pursue these vigorously in the months ahead.

Third, the journey must develop an esprit de corps: we must build a sense of community.

The liberalization of trade in this hemisphere is an undertaking that is both ambitious and historic. The FTAA will create the world's greatest trading region. But the benefits to come will extend far beyond the economic world. For history teaches us that trade leads to more openness. It breaks down the walls that divide us and creates common interests and common ground that unite us all.

Trade must especially benefit and reach out to today's youth, who are seeking and demanding a productive place in our economies. For them, the FTAA must bring a world of opportunities closer to their doorstep.

Finally, the timing of that journey has arrived. The FTAA is an idea whose time has come.

Our commitment cannot waver waiting for the "perfect time." There is no such thing. Instead, we must seize this moment -- this opportunity, this time -- and lay the foundation for the future.

In closing, as I think about our task, I am reminded of a story that is told of that great French Marshall, Louis Hubert Lyautey. The Marshall once asked his gardener to plant a special type of tree. But the gardener objected, saying that the tree was slow-growing and would not reach maturity for many years.

The Marshall was steadfast, and replied, "Then we have no time to lose. Plant it this afternoon."

Friends, amigos, the parallel for us could not be more clear.

Muito obrigado. Muchas gracias.

Thank you.


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