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<title>MR. MARCHI - ADDRESS ON THE OCCASION OFTHE NORTHSTAR TRADE FINANCE LUNCHEON - TORONTO, ONTARIO</title>
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<p><font size="+1"></font><font face="Univers" size="+1"></font><font face="Univers" size="+1">97/29 <u>CHECK AGAINST DELIVERY</u></font></p>
<p align="CENTER"><font face="Univers" size="+1">NOTES FOR AN ADDRESS BY</font></p>
<p align="CENTER"><font face="Univers" size="+1">THE HONOURABLE SERGIO MARCHI</font></p>
<p align="CENTER"><font face="Univers" size="+1">MINISTER FOR INTERNATIONAL TRADE</font></p>
<p align="CENTER"><font face="Univers" size="+1">ON THE OCCASION OF</font></p>
<p align="CENTER"><font face="Univers" size="+1">THE NORTHSTAR TRADE FINANCE LUNCHEON</font></p>
<p><font face="Univers" size="+1">TORONTO, Ontario</font></p>
<p><font face="Univers" size="+1">August 28, 1997</font></p>
<p><font face="Univers">This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca</font><font face="Univers" size="+1"></font></p>
<p><font face="Courier">Good morning ladies and gentlemen:</font></p>
<p><font face="Courier">I am very pleased to be here today to help celebrate the Royal Bank's announcement
of support for Northstar Trade Finance. I applaud the Royal Bank and the Bank of
Montreal for their commitment to help small and medium-sized exporters succeed
internationally.</font></p>
<p><font face="Courier">Today's celebration is all about co-operation. Co-operation between two of
Canada's largest financial institutions. And co-operation between government and
Canadian business.</font></p>
<p><font face="Courier">In short, it is the essence of Team Canada.</font></p>
<p><font face="Courier">I congratulate Northstar's President, Scott Shepherd, for his outstanding efforts
to bring together a winning partnership between government and banks. It is in
good part through his tenacity and entrepreneurial vision that Northstar is such a
success.</font></p>
<p><font face="Courier">Helping smaller businesses is one of my priorities as Trade Minister.</font></p>
<p><font face="Courier">One in three jobs in Canada and more than 40 per cent of our gross domestic
product are directly dependant on exports.</font></p>
<p><font face="Courier">And yet, Canada's top 50 exporters account for almost half of our total exports.
Fewer than 10 per cent of small and medium-sized businesses in Canada are taking
advantage of opportunities in international markets.</font></p>
<p><font face="Courier">When you consider that most new jobs in Canada are created by smaller businesses,
it is clear that we need to get more of them exploring new markets.</font></p>
<p><font face="Courier">We need to transform our trading culture to harness the potential of the full
spectrum of Canadian enterprises.</font></p>
<p><font face="Courier">In this regard, it was encouraging to see that more than half of the participants
on last January's Team Canada mission were from small and medium-sized companies --
up from about one third on previous missions. In fact, of the 73 business deals
reached in Korea alone, more than two thirds were signed by small and medium-sized
businesses.</font></p>
<p><font face="Courier">That is why it is critical that we provide small and medium-sized companies with
the tools that they need to succeed -- the tools that will help them expand their
business into new markets without jeopardizing their bottom line.</font></p>
<p><font face="Courier">And one of these tools is readily available export financing and insurance.</font></p>
<p><font face="Courier">Last year, Canadian companies did more than $22 billion worth of business in world
markets with Canada's Export Development Corporation [EDC] as their partner. More
than 85 per cent of EDC's customers are small and medium-sized companies.</font></p>
<p><font face="Courier">While these results are encouraging, we have long recognized the need to do more.
Three years ago, the government and financial institutions sat down to examine how
best to increase export financing support for smaller exporters.</font></p>
<p><font face="Courier">The most promising outcome of these discussions has been the dynamic new
partnerships that have been established between the banks and EDC. Built on risk
sharing, these partnerships fill gaps in the financing market.</font></p>
<p><font face="Courier">Some transactions are just too small for larger institutions to service
efficiently. Northstar is clearly filling an important market niche.</font></p>
<p><font face="Courier">But don't just take my word for it; Scott Shepherd has a compendium of
testimonials to prove it!</font></p>
<p><font face="Courier">I am particularly pleased to see that Northstar's financing has spurred exports
largely to the high-growth emerging markets that are so important for Canadian
companies for the future. For instance, while some 15 per cent of Northstar's
financing has supported exports to the United States, Mexico also accounts for 15
per cent, and Asia Pacific about 30 per cent.</font></p>
<p><font face="Courier">I know as I begin to travel across the country, that I will be able to talk about
Northstar as a shining example of how risk-sharing partnerships can be successful.</font></p>
<p><font face="Courier">It is this partnership that will help Canadian companies to take on the world and
win.</font></p>
<p><font face="Courier">We must continue to work together -- to help reach our goal of doubling the number
of active exporters by the year 2000 -- It is clear that we can do more and do it
better, and this is something I am committed to achieving.</font></p>
<p><font face="Courier">Northstar's laudable co-operative effort is a testimony to the entrepreneurial
spirit alive in this great country. After all, Canada truly is, within the galaxy
of countries, a northern star, and I encourage more banks to join in and make that
star glow even brighter.</font></p>
<p><font face="Courier">Thank you.</font></p>
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