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<title>MR. PETTIGREW - ADDRESS AT THE PLENARY SESSION OF THE CANADA TRADE MISSION TO AFRICA - JOHANNESBURG, S. AFRICA</title>
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<p><font size="+1"></font><font size="+1"><strong><u>CHECK AGAINST DELIVERY</u></strong></font></p>
<p align="CENTER"><font size="+1"><strong>NOTES FOR AN ADDRESS BY</strong></font></p>
<p align="CENTER"><font size="+1"><strong>THE HONOURABLE PIERRE PETTIGREW,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>MINISTER FOR INTERNATIONAL TRADE,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>AT THE PLENARY SESSION OF</strong></font></p>
<p align="CENTER"><font size="+1"><strong>THE CANADA TRADE MISSION TO AFRICA</strong></font></p>
<p><font size="+1"><strong>JOHANNESBURG, South Africa</strong></font></p>
<p><font size="+1"><strong>November 18, 2002</strong></font></p>
<p>Let me begin by saying how delighted I am to be here in Johannesburg, the commercial and financial engine of Africa, and
how pleased I am to have with me over 60 business participants from Canada who share the vision of increased business
relations between Canada and South Africa.</p>
<p>Many Canadian businesses are here today because they recognize and understand the mutually beneficial relationship that
already exists between our two nations. Others will learn for the first time the benefits of doing business in South Africa.
Canada understands to importance of fostering this relationship and is committed to doing so. The Canadians you see
before you today are just the start. Indeed, to use a saying that has much resonance back in Canada, I expect this mission to
have a snowball effect. In other words, as our business relationship develops, more and more companies will see the
enormous opportunities that strong ties with Africa present.</p>
<p>Canada understands the importance of fostering a strong relationship with Africa, and is committed to doing so. That is
why I am so excited to be here today. Indeed, Johannesburg is the first leg of the trade mission I am leading to South Africa,
Nigeria and Senegal. This is the first Canadian mission to Africa by a Minister for International Trade in many years. And
South Africa is a fitting place to start. </p>
<p><strong>Canada and South Africa: A Partnership With Great Potential</strong></p>
<p>As we look at the current state of the Canada-South Africa trade relationship, we can point to a number of impressive
benchmarks and successes, but also see a great deal of unrealized potential.</p>
<p>South Africa is Canada's largest trading partner in sub-Saharan Africa, and second-largest trading partner on the continent.
In addition to an established business culture and excellent physical and financial infrastructure, South Africa has a critical
mass of banking and development institutions--all of which firmly entrenches it as the dominant economy on the continent.
As the private and public sectors here continue to modernize, many local companies are looking overseas for markets and
for imported goods and services, joint ventures and investment.</p>
<p>Currently, the United States, the European Union and other areas export goods to South Africa that Canada can supply
competitively but at present does not. With products, services and capabilities matched to South Africa's needs, Canadian
firms are very well positioned to take advantage of local trends and to use their comparative advantages over their
competitors.</p>
<p><strong>Exporting Our Expertise: Canada Has Much to Offer</strong></p>
<p>I'm sure that some of our South African hosts are well aware that Canada offers world-class mining expertise, but we are so
much more than that. Canada has a great deal to offer South Africa.</p>
<p>Canada is highly urbanized, technologically advanced, and culturally diverse. We are a world leader in information and
communications technology. We are the connectivity experts and the world's most wired country. We have the world's
foremost government on-line Web site. We have one of the world's most open immigration policies, the world's most
efficient cross-border trading system, and some of the world's best universities. We are home to cutting-edge research and
innovation.</p>
<p>Canada has the world's eighth-largest economy and is the gateway to the world's richest market, with 400 million
consumers and a combined GDP [gross domestic product] of nearly C$16 trillion. As such, Canada is a very attractive
partner with which to do business.</p>
<p>The more than 60 Canadian business delegates who have come to Johannesburg represent a good cross section of what we
have to offer. Companies specializing in health services, environmental services, infrastructure development, and
information and communications technologies are all represented here and ready to work with South African partners.</p>
<p><strong>Corporate Social Responsibility</strong></p>
<p>Canadian companies are known throughout the world as being good business partners in every sense of the word. They are
also good ambassadors for the message of corporate social responsibility. Promoting corporate social responsibility is an
important element of the Government of Canada's approach to promoting international trade and investment. By operating
and investing abroad in a socially responsible manner, Canadian companies can contribute positively to the communities in
which they operate.</p>
<p>Without question there is great potential for increasing trade between our two nations. The real question is how do we bring
the people together? How do we marry strengths and needs? How do we capitalize on opportunity?</p>
<p><strong>Organizations Bridging Canadian-African Businesses</strong></p>
<p>In addition to the dedicated business development resources at the Canadian High Commission in Pretoria and
Johannesburg, supported by additional resources in Canada, there are a number of organizations that can contribute to the
furthering of our business partnership.</p>
<p>The Canadian Council on Africa, founded last May, represents the Canadian private sector and engages with the Canadian
government on Africa trade, investment and development issues. The CCA has been instrumental in supporting the delivery
of this mission, and we look forward to its continuing involvement in shaping Canadian and African business relations. I
am pleased to have a number of CCA board members present today.</p>
<p>The Canadian Alliance for Business in South Africa is an excellent example. Acting as a facilitator and a catalyst in the
promotion of long-term strategic alliances between Canadian and South African companies, I know it has met with a great
deal of success in promoting its objectives. I understand the Alliance will be giving two presentations during the business
program here in Johannesburg, and I would encourage you to consider making use of its expertise as part of your business
strategy for this market.</p>
<p>In a similar vein, the International Development Research Centre--a Canadian public corporation dedicated to helping
researchers and communities find solutions to their social, economic and environmental problems--was instrumental in
working with the South African Department of Trade and Industry to create a forum for forging collaboration between
researchers and policy makers. That cooperative relationship resulted in commitments to reduce protectionism, deregulate
markets and rationalize subsidies, to the benefit of Canadian and South African businesses alike.</p>
<p>The Trade Facilitation Office Canada embodies the spirit of forging mutually beneficial ties between developing countries
to export to the Canadian market. TFOC's experience in Africa is extensive. Over the course of 20 years, it has provided
practical advice and assistance to a large number of countries, including South Africa. In fact, TFOC has already delivered
two seminars this year in Durban and Cape Town, and it will be delivering a third on November 19 in cooperation with
Minister Erwin's department.</p>
<p>These are examples of organizations that are working to create the necessary environment for business and cooperation to
flourish between Canada and South Africa. Canada is also very aware that in promoting further partnerships with South
Africa, and with Africa as a whole, it is important to emphasize that our relationship must have a healthy two-way flow and
must affect positive social and economic development for those who need it most.</p>
<p><strong>Canada's Commitment to Africa: NEPAD</strong></p>
<p>On that point, I applaud Prime Minister Chrétien's hard work to ensure that Africa's development would be at the very
centre of the agenda at this year's G8 Summit in Kananaskis. In the presence of President Mbeki and several of the other
visionary leaders, G8 leaders adopted an Africa Action Plan as a framework for action in support of the New Partnership
for Africa's Development [NEPAD].</p>
<p>Canada acted immediately to begin the process of fulfilling the very specific commitments contained in the Africa Action
Plan. On June 27, the day that the Africa Action Plan was adopted, Prime Minister Chrétien announced a series of
initiatives in support of peace and security, governance, education, health, economic growth, agriculture, water
management and other key aspects of NEPAD.</p>
<p>A key element to achieving this objective is developing the infrastructure necessary for trade and investment. That is why
Canada announced the establishment of an African Investment Fund with $100 million in government funding. We hope
that this will leverage up to $200 million for productive investment, which will then be used to address the many
infrastructure requirements that Africa needs if it is to develop. In addition, Canada will contribute $20 million to initiatives
to enhance the export promotion activities of African countries and to improve the effectiveness of African countries in
multilateral trade negotiations. </p>
<p><strong>Improving the Lives of Africans Through Sustainable Development</strong></p>
<p>I commend the achievements of Industry Canada's Sustainable Cities Initiative [SCI] and its partnership with the
eThekwini Municipality (Durban). This partnership typifies Canada's efforts to work with Africa in the spirit intended by
NEPAD. The SCI is a Canadian partnership initiative aimed at enhancing the sustainability of economic development in
cities. It will help the citizens of Durban improve their quality of life in such crucial areas of urban development as clean
water, waste management, clean energy, transportation, housing, capacity building, urban planning and
telecommunications.</p>
<p>We will continue to address the issue of sustainability through initiatives such as the SCI, and I believe trade must continue
to be a vital and necessary component in the ongoing effort to further social and economic progress in Africa. </p>
<p><strong>Trade: Key to Africa's Development</strong></p>
<p>While continued support in the form of investment, financing and capacity building is also important, a dollar of trade will
generate far more development than a dollar of aid. Canada's main objective in this area is to explore ways of allowing the
world's poorest countries to develop by increasing their private-sector revenue flows. This is where Canada is working
hard, not only setting an example and granting greater access to its own market but also encouraging other developed
nations to level the trade playing field.</p>
<p>By January 1, 2003, Canada will open its markets to the world's least-developed countries [LDCs]. This initiative will help
to foster economic growth throughout Africa by eliminating tariffs and quotas on almost all products. The benefits of this
initiative are not limited to the 34 African LDCs. The initiative opens the way to increased trade with Canada for all of
Africa, benefiting the continent as a whole, including South Africa. For example, some products will be tariff- and quota-free even when an LDC finishes a product that began its life in a non-LDC.</p>
<p><strong>Doha Development Agenda</strong></p>
<p>As Minister for International Trade, I have spent the last three years working to ensure a fair, rules-based global trading
system. We are now entering a new round of global trade negotiations, stemming from the World Trade Organization
summit in Doha, Qatar, last year. Our success in Doha in creating what is known as the Doha Development Agenda is the
first step in a long process to ensure an international trading system that addresses the needs of poorer countries, while
fostering greater prosperity for developing and developed countries alike. </p>
<p>The new round will benefit all member countries but it holds particular promise for developing nations, which expect
progress on agriculture and market access, as well as further capacity-building assistance.</p>
<p><strong>Conclusion</strong></p>
<p>Of course, trade alone cannot address the many complex social, economic and political pressures facing Africa today.
Sustainable development is impossible in the absence of peace, good governance and human rights. Africa needs our
attention and action. Recognizing this situation, Canada has made it clear that it will respond to this call for action. And that
is exactly what we are doing. </p>
<p>This trade mission to South Africa, Nigeria and Senegal marks the beginning of a new chapter in our partnership with
Africa. I believe that Canadian companies can play a key role in propelling Africa's economic development forward. The
more a country trades and cultivates foreign direct investment, the greater is its economic development. This is certainly
true for Canada, one of the world's biggest traders.</p>
<p>I encourage Canadian business delegates and their South African guests and counterparts to capture the spirit of
commitment and entrepreneurship that has brought us together today. I know that through this trade mission we can further
highlight the benefits of doing business in South Africa, and provide a new perspective on the African continent as it strives
to become an active and thriving member of the international business community.</p>
<p>Thank you.</p>
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