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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. PETTIGREW - ADDRES TOTHE CALGARY CHAMBER OF COMMERCE - CALGARY, ALBERTA</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 CALGARY CHAMBER OF COMMERCE CALGARY, Alberta April 18, 2000 Trade is Local I want to begin by thanking the Chamber of Commerce for this opportunity to meet with you and to discuss the importance of trade in the daily lives of Canadians. During this "outreach" tour -- which began in Montreal last week and will see me visit Sherbrooke and Vancouver after leaving here -- I will be consulting Canadian businesspeople about their priority markets and discussing with them the many challenges and opportunities that come with engaging in trade. I think that, too often, we tend to think about trade as something that happens out there across the globe, rather than right there, across the street. Certainly Canadians are selling their goods and services around the world, but what's important is that the benefits are being felt right here, in our local communities. Indeed, exports account for more than one third of Alberta's total economic activity. And, Calgary is ideally positioned, at the hub of Canamex, to benefit from the trade opportunities which are emerging on this continent. So when we talk about successful Canadian exporters, it is here that jobs are created, here that investments are made, and here that Canadians from all walks of life are building better lives for themselves and their children. I will have more to say about those children -- and the importance of trade to their future -- in a moment, but let me begin by looking at trade from the big-picture perspective. Trade Policy Recent years have seen dramatic and exciting changes in the international trade arena. Around the world, old barriers are coming down and new opportunities are opening up. Markets that had been closed for centuries, are now opening their doors. For a trading nation such as Canada, with a relatively small domestic market, these developments are to be welcomed. They create significant opportunities for Canadians to expand their horizons, increase their markets and grow their businesses. In order to facilitate the entry of our goods and services into key markets, the Government of Canada has worked hard, signing free trade agreements with the United States and Mexico, Israel and Chile. And, we have been on the front lines of opening up trade around the world, both through our involvement in global bodies, such as the World Trade Organization (WTO) and through regional trade initiatives such as the Free Trade Area of the Americas (FTAA). This emphasis on opening up markets is understandable, because as any businessperson knows, you can't sell if you can't get in. So our priorities have been clear: obtain access for Canadian companies that is secure; ensure rules that are fair; and create a playing field that is level. That's the big picture, trade policy side of the equation. Trade Promotion: Role of Trade in Canadian Economy But there is another side, equally important to our long-term prospects and prosperity -- and that is trade promotion. And it is trade promotion that I would like to spend a few minutes discussing with you here today. Now, given that I am the Minister for International Trade, you wouldn't be surprised to hear me say that trade is vital to the Canadian economy. Indeed, you would expect me to say that! But consider: without trade it is unlikely we would have been able to eliminate the deficit or bring unemployment to its lowest level in a quarter of a century or create an economy which will surpass the trillion-dollar mark this year. Without trade, it is doubtful that we would enjoy the standard of living we do or that we could sustain a social system that reflects our values and binds us together as Canadians. The fact is that it is trade that has powered our economic performance in recent years -- a performance that The Economist magazine has called, "The Maple Leaf Miracle." Indeed, over the past decade or so, Canada has emerged as one of the greatest trading nations in the world. We export much more proportionately than the United States or Japan, two of the biggest economies and trading nations in the world. As a result, our economy is now inextricably connected to our ability to sell our goods and services abroad. In fact, 43 percent of our GDP is now generated by trade. Put another way, we export almost half of every good we produce and every service we sell. 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 Calgary/Alberta: Local Successes Of course, few Canadian communities understand the importance of trade better than Calgary. And few provinces can match Alberta's export success. In 1998, more than 2000 Alberta companies were exporting goods and services to more than 150 countries around the world. It is no coincidence that Alberta has enjoyed a decade of impressive growth during a period of soaring exports. Indeed, from 1988 to 1998, exports rose by 136 percent, fueling strong economic growth and providing a level of employment that is among the very best in the country. Fully 500 000 jobs in this province are now linked to the business Albertans conduct abroad. All of this international trade has created an enviable reputation for Alberta companies. Companies like Global Thermoelectric -- which I will be visiting after lunch -- now supply generators and heaters to every continent on earth. And Alternate Fuel Systems of Calgary is making a difference to the quality of air in places like Mexico City, where it is supplying equipment to convert the entire public fleet of buses and taxis from gasoline to compressed natural gas. The company expects that this contract alone will generate between 400 and 500 jobs across Canada. Another Calgary company -- Wi-Lan -- has established itself as one of the premier players in high-speed wireless data communications technology. Its products are sold in more than 50 countries, on six continents, and it was the recipient of Calgary's Export Achievement Award just last month. Nor is it just larger companies that are prospering abroad. Cyntech Corporation, which manufactures and installs pipeline anchors, has been named New Exporter of the Month in the May edition of CanadExport. Although it is a small company of fewer than 20 employees, its ability to improve a pipeline anchor system has allowed it to compete against its much larger American competitor -- another example of Canadian ingenuity leading to success in international markets. Ceramic Protection, another small Alberta company, has established itself in two key areas -- ceramic products to protect industrial equipment, and ceramics that are used in armoured products and protective vests. Ceramic Protection has supplied materials for armoured vehicles used by the Canadian Forces and NATO and has won contracts to provide ceramic vest plates to the Australian Defence forces, as well as the U.S. and British military. More than 80 percent of Ceramic Protection's sales are now generated by exports. All of these companies -- and many more like them -- are creating new jobs, starting new construction and importing new technology here in Calgary and in other parts of Alberta. So, while their branches may extend around the world, their roots are planted firmly in Alberta soil. 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. Announcement As you know, the international development services of the federal and provincial governments, as well as our Team Canada Inc partners, are co-ordinated in the Prairies through regional trade networks, established by Memorandums of Understanding with Alberta, Saskatchewan and Manitoba. These MOUs have been a tremendous success both in providing services and in avoiding duplication. I am, therefore, very pleased to announce today that these MOUs are being renewed for another five years. Trade Missions I also believe that the international trade missions that I announced last week are very worthwhile initiatives for those Canadian exporters who participate. In case you missed the details of the trade mission announcement, I will lead a trade mission to Melbourne and Sydney, Australia, from May 30 to June 2. This one will focus on high-tech sectors including information technology, communications, and biotechnology, as well as other advanced technologies such as aerospace. This mission will provide an excellent opportunity to highlight the trade and investment potential between our two countries and to expand co-operative approaches in strategic areas such as e-commerce. As you may have heard, Canada and Australia recently announced a joint statement on global e-commerce that articulates a shared vision, as well as a program of co-operation for the growth of global electronic commerce. Later in June, on the 28th and 29th, I will be leading a business delegation to Russia. My goal is to forge a working linkage with the new Russian Administration; to address a number of important trade and investment problems; and to chart a course for future co-operation in the commercial and economic arena. While in Moscow, I will co-chair a plenary meeting of the Canada-Russia Intergovernmental Economic Commission, which is an industry-led bilateral forum that aims to foster trade and economic relations, investment and the transfer of technology between Canada and Russia. I will also be leading a mission to Central Europe that will include the Czech Republic, Slovakia, Hungary and Slovenia. A delegation of businesspeople will join me from September 11 to 15, representing industries such as information technologies, communications, construction materials, health products, environmental products and services and financial services. With this mission, I look to position and build on our industries' presence in these countries that are expected to be entering the European Union in the foreseeable future, and to increase Canada's profile regarding its expertise in these sectors. From October 10 to the 20, I will lead a trade mission to Algeria, Morocco and Spain. As many of you know, this region offers major opportunities for Canadian companies in construction and engineering, environmental equipment, as well as agriculture. With new political leadership, the region is making political and economic progress. The Spanish-Canadian commercial relationship is proving to be one of great promise. On the investment side Spain has invested over $5.5 billion in Canada in the last two to three years alone. Canada, too, is becoming a significant investor in Spain. I believe each of these missions will make a significant contribution to expanding export opportunities for Canadian companies. But government action will only take us so far. Importance of Small and Medium-Sized Enterprises (SMEs) We also need to transform this trading nation of ours into a nation of traders. By that I mean we need to get more small and medium-sized companies selling abroad, and not just leave it up to the big companies to put up those impressive trade numbers. In 1997, for example, just 4 percent of exporting companies accounted for 82 percent of all exports. In other words, a handful of companies were doing most of the exporting -- and reaping most of the rewards! But we know that many smaller and mid-sized companies will become the export powerhouses of tomorrow. Indeed, SMEs are the engine of job growth in the Canadian economy -- over 90 percent of new jobs over the past decade have been generated by SMEs. That is why I encourage those of you in small and medium-sized businesses to join your fellow Canadians in international markets and open yourselves to the benefits exporting can bring. You'll have plenty of good company! Seventy percent of exporters have sales of less than $1 million. They have discovered that speed and quality, not size or volume, can determine export success -- so don't limit yourselves by thinking that you need to be big to be successful. Challenge to Business Community I must tell you quite frankly, however, that there is a real selling job to be done. 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. And I urge those of you who are leaders here in Calgary to take that message to your community, to your chambers of commerce and to your trade associations. In raising your voices, you lend credibility -- credibility beyond that which a minister of international trade or any government representative is ever going to have. So your voices need to be heard. 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, over the past 20 years, commodities as a share of total Canadian exports have fallen from about 60 percent to just over one third. Commodities now represent only about 12 percent of our GDP! 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. Youth This is especially exciting for our young people. I don't know about you, but whenever I have a computer question, I find the youngest person in my office to help me out! Young people aren't intimidated by technology -- they grew up with it. And now they are leading us in knowledge-intensive industries. Our task is to make sure that they can reap the benefits of globalization and the new economy. And there is no better way to do that, than by opening ourselves up to the best technologies from around the world, because when we trade with other countries, it strengthens our knowledge base. At the same time, we create greater opportunities for our young people by opening the world to their ideas and inventions. We simply have to understand this relationship between trade and Canada's place in the new economy, because if we fail to make that connection, we will fail our young people and limit our future. Companies -- or nations -- which turn inward, which forego both the challenges and the opportunities of this new environment, are unlikely to flourish or to reach their full potential. So the challenge is clear: to encourage businesses from the Foothills Industrial Park to the Deerfoot Industrial Zone to look abroad -- for markets, for partners, for expansion, for opportunities. Trade Services The Government of Canada stands ready to help and we have created something called Team Canada Inc, aimed specifically at small and medium-sized businesses just like yours. Indeed, such businesses are by far our biggest clients! To make it easier to obtain information, we have developed a Web site, ExportSource, that provides a single access point to all trade-related government departments and agencies on subjects including: market research, trade statistics, export financing, export contacts, export regulations, and trade shows and missions. There is Export Development Corporation (EDC), which specializes in helping companies solve their financing and insurance concerns. Its mandate is to absorb some of the risks that you face in selling abroad to countries or buyers that you may not know too well. EDC has a specific team designed for small exporters. It supported over $6 billion in exports last year and provides very quick decisions. 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). This Centre matches business opportunities from abroad with businesses here at home -- more than 1500 such matches have been made since 1995. By adding your name to WinExport's database, you will increase your chances of being contacted by IBOC when an opportunity arises that might be of particular interest to your company. We have also expanded the Trade Commissioner Service. There are now more than 530 trade commissioners in more than 130 offices in Canada and around the world, ready to plug you into opportunities, provide you with market research and promote your products or services with local businesspeople. Recent client surveys indicated that you, our clients, value this service immensely and would like us to build our capacity in this area. As such, I announced last week that I would be adding 10 new trade commissioners in the coming year. Another important service is the Trade Commissioner Web site, InfoExport, through which you can download -- for free -- more than 500 market studies, covering nearly every major market in the world. Last, but certainly not least, there are the Team Canada trade missions. Since 1994, these missions have opened doors for more than 1800 companies, helping them secure deals worth more than $24.4 billion. Team Canada and Alberta I am delighted to say that Alberta companies have played a vital role in previous Team Canada trade missions -- and a growing number of smaller companies are participating. ZCL Composites of Edmonton, for example, has participated three years in a row and its president calls these missions, "by far the most efficient way of doing business abroad." ZCL manufactures fibreglass storage tanks and during the 1997 trade mission, entered into a $2.6 million partnership agreement in the Philippines -- a market with potential revenues of $100 million over the next few years. Sport Seat International -- which makes those walking sticks that convert to seats -- participated in the 1998 trade mission to Chile and hasn't looked back. During that mission, they signed a deal which led to sales of $40 000 and Sport Seat now plans to use Chile as a launching pad into the broader Latin American market. And Weigl Educational Publishers, a Calgary company specializing in the production of books, teacher guides and multimedia resources, built upon the contacts it made during the 1998 mission. It has recently signed a Memorandum of Understanding with the University of Guadalajara to pilot an English-as-a Second-Language program. These are local companies, just like yours, that have made the decision to join a Team Canada trade mission -- and never looked back. The resources are there. I encourage you to use them. No matter how large or small your business may be, chances are there is a market, beyond Canada, that wants to buy what you have to sell. Canada Export Awards To further encourage Canadian companies to begin or expand their exporting activities, each year we present the Canada Export Awards. These awards have become a valuable marketing tool for the recipients. In past years, we have celebrated the business achievements of such companies as Global Thermoelectric and this October we will again recognize the best-of-the-best at the Canada Export Awards ceremony in Halifax. Conclusion: Seek Out Those Opportunities As I close, let me leave you with something that I read many years ago and which I have always considered to be very sage counsel. The great explorer, Ferdinand Magellan wrote, "the sea is dangerous and its storms terrible. But these obstacles have never been sufficient reason to remain ashore." Today, we must again sail uncertain seas. Exporting will involve challenges and no one knows what storms will be encountered. But these are not reasons for staying ashore, for hunkering down or failing to try. So strike out and explore the possibilities for your business. Seek out new opportunities. Expand your frontiers and your fortunes. And help explain the benefits of trade to the Calgary economy. 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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