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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <meta name="DATE" content="0/0/0"> <meta name="Author" content="James Anderson"> <title>MR. PETTIGREW - ADDRESS TO THE CANADA-CHILE CHAMBER OF COMMERCE - MONTREAL, QUEBEC</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 2001/5 CHECK AGAINST DELIVERY "CANADA IN THE AMERICAS" NOTES FOR AN ADDRESS BY THE HONOURABLE PIERRE S. PETTIGREW, MINISTER FOR INTERNATIONAL TRADE, TO THE CANADA-CHILE CHAMBER OF COMMERCE MONTREAL, Quebec March 5, 2001 (12:30 p.m. EST) I would like to thank the Quebec branch of the Canadian Manufacturers and Exporters and the Canada-Chile Chamber of Commerce, who have graciously offered to host this event. Today, I will talk about the fine relationship Canada and Chile have developed and where we can expect to go from here. The Canada-Chile Free Trade Agreement As most of you are probably well aware, the Canada-Chile Free Trade Agreement (CCFTA) has become the cornerstone of one the most successful bilateral relationships in the Americas. In 1996, when we signed the agreement, most Canadians viewed Chile as an unknown and distant market. After the CCFTA entered into force, and following the successful 1998 Team Canada mission to Chile, Canadian companies took the time and energy to invest in this "hidden gem" of a market and have been extremely successful. The positive relationship that has developed has been beneficial to both sides. It is evidence of the success of Canada's trade policy in pursuing new markets to open, and of the benefits of free trade in general as Canada heads further toward the Free Trade Area of the Americas (FTAA) and other bilateral agreements in the region. A Successful Bilateral Trade Relationship Trade statistics from both Chilean and Canadian sources show that Chile has clearly become a dynamic emerging market for Canada: Total two-way trade in 2000, based on both Canadian and Chilean import statistics, was $1.25 billion, a 28 percent increase over 1999; Canadian exports to Chile are at a new high of $696 million and rose 24 percent last year; Canada is one of the few economies (and the only one in the G-7) to post record exports to Chile, since the lingering recession from 1999 has led to lower Chilean imports in general; Canada has continued to increase its market share in the Chilean market, gaining at the expense of competitors such as the United States, European Union and Japan; Our exports to Chile compare strongly with the rest of the region; exports to Chile are now 1.9 times that of exports to neighbouring Argentina (with over twice the population) and 43 percent of exports to Brazil (with over 10 times the population); Canadian trade to Chile is also highly diversified, covering 403 sectors at the HS 04 level, the largest in South America; Specific sectors are experiencing enormous growth rates due to tariff advantages under the CCFTA; Reverse trade is strong, with Chilean exports to Canada surging 31 percent in 2000; exports to Canada consistently post some of the highest growth rates for Chile's exporters; and Canada has become the second-largest investor in Chile, with over $13 billion in authorized investments. Chile is the largest destination for Canadian direct investment in Latin America, and Canada's fourth-biggest destination overall. We are seeing the results we expected from free trade: the fact that they are strongly positive in both total and relative growth clearly shows that the CCFTA has been good for both sides. What This Means for Canadian Businesses However, there is still much potential for Canadian businesses. We must not let our interest in this market lag, or we will lose out to our competitors. Canada is the only G-7 country that has a free trade agreement with Chile; therefore, our companies are at a huge advantage in this market. In 2001, close to 90 percent of our bilateral trade is duty-free, with phase-outs remaining on a small number of products. This is a fully comprehensive agreement like the NAFTA, covering goods, services, investment and dispute settlement. Canada is also the only industrialized country that has a Double Taxation Agreement with Chile -- cited as a huge advantage by Canadian firms and service providers currently operating in Chile. In fact, we have such a large competitive advantage right now that the United States has chosen Chile as the next Latin American partner it wishes to conclude a free trade agreement with. In this respect, the United States has highlighted the success Canadian companies have had in this market. Therefore, there is a substantial window of opportunity in the next few years for Canadian businesses to establish themselves in one of the easiest Latin American markets in which to do business. However, as is true of every evolving trade relationship, we do have differences with Chile, which we are attempting to address. Notably on the subject of asbestos, an important industry in Quebec, Canada was disappointed to learn of Chile's decision to ban, on health grounds, all use of asbestos products in its construction and transportation sectors. The Government of Canada, through Senator Setlakwe, the Asbestos Institute, our Ambassador in Santiago and Minister Brassard of the Quebec government, has worked with Chilean authorities to minimize the effects of this ban. We will continue our efforts in the coming period on behalf of Quebec exporters. Government of Canada Is Ready and Prepared to Help Exporters I want to assure you that the Government of Canada is committed to helping you to aggressively pursue export markets. To be Canadian, with all that this represents in terms of respect for diversity and working toward common goals, confers an enormous advantage throughout the world. And in this era of globalization, the advantage is all the greater. It is no coincidence that everywhere I go, it seems Canadians have a reputation for being efficient, dynamic, likable and loyal business partners. Trade Commissioner Service To help you, we now have more than 500 trade officers in more than 130 offices around the world. Their role is to find international buyers for Canadian suppliers, and to find Canadian suppliers for international buyers. International buyers can call on our trade commissioners, and they will help find the Canadian suppliers of products, services or technology needed. Canadian exporters can call any of our offices to obtain free assistance in developing their business. The services offered to Canadian companies in all our offices are designed to help firms access their export potential, help them identify key foreign contacts such as buyers and distributors, and provide them with the market intelligence and advice they need to succeed in their foreign markets. When you explore new markets abroad, you will find that you are not alone -- the Government of Canada stands ready to help. Our Team Canada Inc business services network of federal agencies and departments is aimed specifically at giving fast and easy single-point access to small and medium-sized businesses just like yours. Overall Mission: Trade Development As your Minister, I regard my primary "mission" as trade development. Many Canadian exporters share this mission and are out developing their trade as we speak. And most are enjoying considerable success. So, you ask, "what is the role for government in trade development?" Well, I see two critical roles -- trade policy and trade promotion -- and I can tell you that my officials and I have been actively involved on both fronts. Innovation, cutting-edge goods and services, aggressive business strategies supported by government trade development services -- these are all key elements in Canada's success as a leader in international trade, and in our ability to sustain a robust economy at home. But these elements cannot stand on their own, particularly in today's dynamic and extremely competitive international environment. These success factors require back-up support in the form of trade rules that allow Canadian business to seize the opportunities of the modern global economy in an environment of fairness, efficiency and predictability. That is why Canada has consistently focussed over the years on establishing rules to strengthen the world trading system. The NAFTA, for example, was a ground-breaking agreement that to this day sets the standard for free trade agreements worldwide, and is looked to as a model for many countries now engaging in free trade negotiations. At the World Trade Organization, we are seeking expanded multilateral trade negotiations, which would allow us both to strengthen market access in key sectors and to continue the task of building rules that address issues of the new economy. Our relationship with the United States -- now involving over $1.9 billion in cross-border trade each day -- and our commitment to the multilateral trading system are the traditional cornerstones of Canadian trade policy. But in this demanding era of globalization, we cannot rest upon tradition and past accomplishments. That is why we are also looking, more and more, to building our markets of the future -- in essence, starting the work today that will ensure our trade successes tomorrow. FTAA to Be a Focal Point of Quebec Summit As part of this strategy, this April Canada will host the third Summit of the Americas in Quebec City, at which the Free Trade Area of the Americas negotiations will be a focal point. Taken together, the 34 FTAA countries form a region with a population of nearly 800 million and a gross domestic product of US$12 trillion. Canadians deserve access to this kind of market, and this market deserves access to Canadian products and services. That is why we consider the negotiation of a trade agreement for the Americas such a priority. Some of you may know that Canada has also recently launched free trade initiatives with Costa Rica, with the four Central American countries of El Salvador, Guatemala, Honduras and Nicaragua, and now with the Commonwealth Caribbean. I believe that all of these will help to build momentum for the FTAA and, more broadly, create confidence in a rules-based international trading system that will serve all countries, regardless of their economic weight or level of development. So, that is the big picture, the trade policy aspect of my trade development mission. Trade Promotion Trade promotion forms the other part of the equation. Our story on this front is equally compelling. Canadian companies are discovering foreign markets faster than ever before. In the past seven years, the Prime Minister's Team Canada missions have opened doors for more than 1800 companies, helping them to secure deals worth more than $24.4 billion. In the past 10 months, I have led trade missions to Australia, Russia, Central Europe, Spain, Algeria and Morocco. These were very useful to companies and individuals wishing to explore or expand into new markets. There are more to come, I assure you. Three Key Reasons for Investing in Canada As most of you know, Canada is on the leading edge of globalization, where the economy is robust and opportunity beckons. That makes us a great place in which to invest. So, for those of you representing international companies interested in expanding their North American presence, let me give you three powerful reasons to choose a Canadian location: low cost, high quality and access to markets. Low Cost As an example, let's look at the food-processing industry. Canada is the lowest-cost location for food processing in North America, for both start-up and operation expenses. Labour and benefits are, on average, 30 percent less in Canada than in the United States. Operating costs are 6 percent less in Canada. Also, transportation and distribution costs are 13 percent lower in Canada than in the United States and are, in fact, the least expensive among the G-7 countries. Overall, a 110-person food-processing operation in Canada could save you as much as US$1.5 million a year in labour and benefits and US$200 000 a year in transportation costs compared with the United States. The initial costs to buy land and build a plant in Canada are 13 percent less than in the United States, and the annual electricity costs to run it are nearly 25 percent cheaper. High Quality High quality is another important factor. In an annual survey conducted by the United Nations, Canada is consistently found to be the best place in the world to live. In fact, we have enjoyed this enviable position seven years in a row! Canada also has the best-educated workforce in the industrialized world. Almost half of all Canadians aged 25 to 64 have completed post-secondary education, compared with one third of Americans, and 10 000 new graduates hit the job market each year. Canada's labour force has grown 2.5 percent annually since 1996, giving employers 350 000 fresh faces to choose from each year. Meanwhile, the U.S. labour supply has tightened considerably. Access to Markets Third, a first-rate transportation infrastructure, efficient border crossings for both goods and people, and close proximity to major markets in North America make Canada the ideal choice for the location of your production facility. North American executives recently rated Canada's road, rail, port and air transport systems as better suited to the needs of business than those in the United States. With over 150 border points to choose from, more than six million trucks cross the Canada-U.S. border each year. Since the 1995 Open Skies Agreement, the number of scheduled daily flights has increased 72 percent. The result is that serving U.S. distribution channels from Canada is easy, thanks to similar distances between most major cities and to widespread, affordable telecommunications and cyberspace connections. As I close, I want to remind you that trade commissioners are working around the globe to assist you. I encourage you to visit the Government of Canada Web site to get a better understanding of all the products and services that the government has to offer. For those buyers outside Canada looking for a particular product, I invite you to contact the trade officer in your local Canadian consulate or embassy to assist you in finding the supplier in Canada with the products that match your needs. For Canadian exporters, these same trade officers are there to help new and experienced companies identify foreign business opportunities and learn more about foreign markets. I want visitors from abroad to be aware of the high quality and wide variety of products available in Canada. I also want foreign companies looking to expand their North American presence to remember Canada's advantages: low cost, high quality and access to markets. Thank you. </body> </html>

2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 - 1998 - 1997 - 1996

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