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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. PETTIGREW - ADDRESS TO THE VANCOUVER BOARD OF TRADE - VANCOUVER, B.C.</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE PIERRE S. PETTIGREW, MINISTER FOR INTERNATIONAL TRADE, TO THE VANCOUVER BOARD OF TRADE VANCOUVER, British Columbia April 19, 2000 Importance of Trade I want to thank the Vancouver Board of Trade, which has a long and proud tradition of contributing to the public debate on important issues, for giving me this opportunity to say a few words about the importance of international trade and how the Canadian government can help you succeed on world markets. I became Minister for International Trade only last summer. But I have been involved in this field for nearly all of my professional life. I see my role as Minister for International Trade as a logical extension of my former work as an international business consultant. Whether we work in the private or public sector, we all have a vested interest in our country's commercial success abroad. Canada is a trading nation. When we export goods and services abroad, we help create jobs here at home. Our goods and services enjoy an excellent reputation around the world. And Canadian businesspeople are known as dynamic, competent and fair people. Just as importantly, when we do business overseas, we are also exporting our society's fundamental values. And as we explore new markets, we also measure the originality and strength of our economic and political union. We Canadians know first-hand the importance of tolerance and of respect for diversity. That is how Canada was founded and thrived. That is how we became one of the great political and economic successes of the 20th century. And I strongly believe that these qualities help us tremendously as we do business with people of different cultures, in different environments. Trade is a profoundly human activity. It is, above all, individuals exchanging goods and services with other individuals. It is also different societies getting to know each other better. Easter Tour I am often called upon to travel abroad to promote our products and our expertise. During this Easter break, however, I have started a tour that has seen me visit slightly less exotic destinations, but ones that I feel are just as important. The goal which I set for myself was to visit every region Canada to raise awareness among Canadians of the importance of trade and to describe the services the Canadian government offers exporters. One of my key objectives has been to dispel some of the myths and misconceptions that many people still harbour about international trade and to emphasize its importance to our national prosperity. Of course, I also want to use this tour to encourage more companies -- especially small and medium-sized companies -- to begin exporting or to expand their exporting activities. We often hear, for example, that jobs are lost because of free trade and globalization. Some are. But we don't often hear about the number of jobs that are created through enhanced trade. Since 1993, two million new jobs were created in Canada, taking into account jobs lost. Most of these were created as a result of our success in foreign markets. And this trend has been growing: • seven years ago, approximately 30 percent of our Gross Domestic Product [GDP] was linked to trade -- which was already considerable. Today, that proportion is more than 43 percent; • the U.S., in comparison, exports 11 percent of its GDP -- four times less than we do; and • Japan exports 15 percent of its GDP -- slightly more than a third of what we do. In fact, no other industrialized country is as dependent on foreign trade as we are -- or as successful at it. Last year, Canada's exports grew by 9.7 percent, or nearly double the rate of the economy as a whole. What this suggests is that a new economy -- led largely by trade -- is propelling our prosperity and, just as trade has been the engine of growth in recent years, it will continue to play that role in the years ahead. The impact of this on job creation in Canada has been enormous. One out of every three jobs in Canada is now tied to trade. Think about that -- one in three! Recognizing the importance of trade to our economy, the recent federal budget reduced both personal and corporate taxes and made a number of other changes aimed at helping companies like yours attract and retain skilled workers. Importance of Trade to Vancouver/British Columbia: Local Successes Of course, few Canadian communities understand the importance of trade better than Vancouver -- and few provinces can match British Columbia's export success. B.C. companies ship products to markets all over the world -- nearly $29 billion last year -- including to the U.S., Pacific Rim and Europe. And they are looking more aggressively to Latin America for new markets. It is no coincidence that British Columbia has enjoyed a decade of impressive growth during a period of soaring exports. This, in turn, has led to strong job growth and impressive levels of employment. Nowhere has the growth been more impressive than in high-tech. In the past six years alone, B.C.'s advanced technology sector has increased by 55 percent and now employs more than 42 000 people. This, and the fact that Vancouver has one of the best educated workforces in the country, augurs very well for the continued success and prosperity of this city. And the international success of many of your companies has created an enviable reputation for British Columbia around the world. Take, for example, Mainframe Entertainment -- which I will be visiting after lunch. It has become one of the world leaders in computer-generated imagery animation. Last year, Mainframe entered into an alliance with IMAX Corp. And there are many other B.C. companies expanding their frontiers and their fortunes by looking abroad. Companies, like Digital Dispatch Systems (DDS) of Richmond, supply automated dispatch and vehicle location systems. DDS has won contracts in both the U.K. and Denmark and in January of this year, won a $15 million contract in Sweden. Another Richmond company, Prologic Corporation, has established a dominant position in the area of banking systems, with close to 300 customers in 28 countries. Here in Vancouver, a company called Made by Humans Arts and Crafts has not only one of the most interesting corporate names I've ever come across, but it also has a burgeoning export business selling its highly innovative contemporary giftware south of the border. In fact, in just three years, it has seen its sales to the U.S. soar to 70 percent of its total production. And its workforce has doubled to keep up with demand. Made By Humans is also active in Austria, Germany, Japan, Australia and New Zealand. Here is a small Canadian company, competing in the toughest markets in the world -- and winning! Little wonder that it was the first winner of the New Exporter of the Month award, back in March of 1998. All of these companies -- and many more like them -- are creating new jobs, starting new construction and importing new technology here in Vancouver and in other parts of British Columbia. So while their branches may extend around the world, their roots are planted firmly in British Columbia. Clearly, without trade, without the opportunities it brings, without the demand it generates and the jobs it creates, our economic position would not be as strong as it is. But the past, as they say, is not prologue. And if we are to continue to generate a high standard of living -- if we are to continue to provide good jobs and bright futures for Canadians -- we will need to work hard to promote the benefits of trade and ensure that Canada remains one of the greatest trading nations in the world. Now, this requires input from all of us. For our part, the Government of Canada will continue to negotiate trade agreements, seek access to the most dynamic markets of the globe and ensure that our companies are treated fairly. Services Offered The Department of Foreign Affairs and International Trade puts a high priority on helping to promote Canadian goods and services abroad and on promoting Canada as a place to invest and transfer new technologies. Among these services, our Trade Commissioner Service, with 530 trade commissioners in more than 130 offices in Canada and around the world, has earned consistently high customer satisfaction ratings -- 81 percent in the most recent survey. The service can: • help you assess your potential in your target market; • provide you with a list of key contacts in your target market; • give you current information on local businesses; • offer practical advice to help you organize your trip to your target market; • when you do visit your target market, meet with you personally to discuss the most recent developments in the market; and • offer advice to help you resolve critical business challenges. Businesspeople have asked us to restore some of our trade officer strength abroad by shifting more officers to the front lines in markets where they make the biggest difference to you. I agree. Over the past three years, we have added 21 trade officers to our global network in key emerging markets in Latin America, Asia and in high-tech business centres in Europe and the U.S. And, I am committed to increasing the number of trade officers abroad by at least a further 10 in the coming year. Today, you can benefit from the experience and expertise of Roland Goulet, our senior trade commissioner based in Mexico City. Please feel free to ask him questions. Trade Missions Prime Minister Chrétien also developed the Team Canada concept, which has resulted in hundreds of millions of dollars in new business for Canadian companies around the world. I am delighted to say that British Columbia companies have played a vital role in previous Team Canada trade missions -- and a growing number of smaller companies are participating. Mill and Timber Products of Surrey, for example, established important contacts in Latin America and Japan during the last two missions. And Kryton Technologies of Vancouver, has seen the agreements it signed during an earlier mission to South and Southeast Asia, translate into the opening of a plant in New Delhi. This joint venture is expected to generate sales of $30 million over the next five years. Fully half of Kryton's jobs and revenues now depend on its exports. So I strongly urge you to participate in these missions. They are a unique opportunity to put the influence of the Prime Minister, the provincial premiers and a high-powered business representation at your service. Over the coming year, I will also be leading the following trade missions to foreign markets: • Australia, May 30 to June 2; • Russia June 28 and 29; • Andean countries, tentatively scheduled for this summer; • Central Europe (Czech Republic, Slovakia, Hungary and Slovenia), September 11 to 15; • Maghreb (Algeria, Morocco) and Spain, October 10 to the 20; • Team Canada mission in November, location to be confirmed; and • Middle East, probably by January 2001. I sincerely hope that many small and medium-sized enterprises will choose to participate in these missions. Most of us know that small and medium-sized companies account for the overwhelming number of new jobs created here in Canada -- more than 80 percent in fact. What is less well-known, however, is that 70 percent of Canadian exporters have sales of less than $1 million. However, 4 percent of exporting companies account for 82 percent of our exports. That is why I want to encourage a greater diversification of our exporters. EDC, CCC and IBOC Many government institutions are geared specifically to the development of our exports. These include EDC, which lends money to foreign companies so that they can buy Canadian products and services. We are absorbing part of the risk our companies incur in doing business abroad. And EDC makes money -- $118 million last year. The Canadian Commercial Corporation (CCC) is another effective tool that can help businesses close deals by guaranteeing your contractual performance, on behalf of the Canadian government, to a foreign buyer who may not know you or your capabilities that well. The CCC can be particularly helpful in your dealings with foreign government buyers. We also have the International Business Opportunities Centre (IBOC), which matches business opportunities from abroad with businesses here at home -- more than 1500 such matches have been made since 1995. The Government of Canada offers many more services to exporters, including market studies and information on financing facilities, commercial fairs, export rules and regulations. You can access all of these through our Web site <a href="www.infoexport.gc.ca">www.infoexport.gc.ca</a>. The Government of Canada cannot make business decisions or manage your business in your place. But we can open doors around the world. In the new global economy, effective partnerships are a condition of success. The Canadian government can be one of your most effective partners. We want to be your partner. Because, when you succeed, Canada succeeds. Before I conclude today, I want to be frank with you regarding another type of selling job that we need to engage in together. This one is with the Canadian public and it is a major challenge and thus a key priority of mine. Public opinion polls tell us that most Canadians don't make the connection between our success abroad and our prosperity at home. And while they support freer trade, they don't see its impact on their own lives or that of their community. That needs to change. Because if it doesn't, we won't have the public support necessary to pursue further trade liberalization and strengthening of the international institutions, such as the WTO, which we rely upon to ensure fair trade practices are followed. So, one of my messages to you is that those of us who believe in trade -- and who know first-hand the benefits it can bring -- need to do something beyond just seeking expanded exports. We need to get out there and sell this message to our neighbours, our business associates and our fellow workers. We need to encourage businesses from West Broadway to West Hastings to look abroad -- for markets, for partners, for expansion, for opportunities. Need to Set the Record Straight with the Public The polls also tell us that Canadians don't have a clear understanding of the kinds of things we're exporting. Too many people still view Canadians as "hewers of wood and drawers of water" rather than the dynamic, technologically driven economy we have become. The fact is that as a percentage of our exports, commodities have fallen from about 60 percent in 1980 to just 35 percent in 1997. Commodities now represent only about 12 percent of our GDP! Likewise in B.C., where resources power your exports, technology is emerging as one of the largest employers and a growth industry for the future. Did you realize, for example, that if the rest of the world suddenly lost all of its telecommunications capacity, Canadian companies could supply every single facet of a new telecommunications infrastructure -- from equipment design and manufacture, to advanced networking technology, to the software and services needed to run and maintain it? Now, there is no doubt that Canada will continue to be a leader in resource exports. But even here, our ability to compete globally will be dependent on technology and know-how. I am told, for example, that more mining exploration is done from space than on earth -- so our skills, our technologies and our innovation will be essential even in the traditional resource sector. Today, more than two thirds of our exports are in highly value-added areas such as machinery and equipment. What this means is that Canada is ideally positioned to benefit from two powerful trends: the emergence of the knowledge-based economy and the opening up of markets keen on acquiring what we have to sell. So, I urge those of you who are leaders here in British Columbia to take that message to your community, to your chambers of commerce and to your trade associations. I also urge you to strike out and explore the international trade possibilities for your business. Seek out new opportunities. Expand your frontiers and your fortunes. By doing so, you will strengthen not only your own bottom line, but you will also enrich your community and expand the opportunities for those who will follow. I and the Department of Foreign Affairs and International Trade look forward to working with you as we explore those opportunities together. Thank you </body> </html>

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