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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. MARCHI - ADDRESS ON THE OCCASION OF THE CANADIAN TRADE MISSIONTO RAMALLAH - RAMALLAH, WEST BANK</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 99/14 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE SERGIO MARCHI, MINISTER FOR INTERNATIONAL TRADE, ON THE OCCASION OF THE CANADIAN TRADE MISSION TO RAMALLAH RAMALLAH, West Bank February 27, 1999 (8:00 a.m. EST) On behalf of the Canadian delegation of business leaders, let me say how pleased we are to be here in Ramallah. On Friday, I had the privilege of meeting with Chairman Arafat in Gaza. We had a lengthy discussion about the political situation in the region and also about the Joint Framework that we will sign in a moment. As you know, we have just come from Saudi Arabia and the United Arab Emirates, and we will next travel to Israel before returning home to Canada. It has been a very productive mission so far, with many new business opportunities explored and many new friendships formed. It has been a time to dispel old notions about one another and to develop new partnerships with one another. Above all, it has been an opportunity for Canada to say, in no uncertain terms, that we want to do more business here in the Middle East. I have very much been looking forward to this portion of our trip because I know of the important contribution that the Palestinian community in Canada has made to the growth and development of our country. Palestinians have distinguished themselves in all aspects of Canadian society and have greatly enriched their adopted land. So, although Canada and the Middle East are separated by many miles, we are united by many individual bonds of family and friends. Our relationship also is rooted in common values and a shared belief -- a belief in the dignity and worth of every individual. For all of these reasons, Canada has always had a tremendous interest in this region -- in its people and in its future. It is not surprising, then, that we are strong supporters of the current peace process, launched in Madrid in 1991. I know that there has been some disappointment that the peace process has not produced the fruits we would have wished to see in the West Bank and Gaza in terms of development or prosperity. And we also know that political uncertainty continues over the eventual outcome of negotiations with Israel. It remains our firm belief, however, that continuing political negotiations and the implementation of all agreements, by both parties, remain the best hope for peace and prosperity. As you know, Canada is Chair of the Refugee Working Group, which seeks to improve living conditions for people displaced by the Arab-Israeli conflict and to support dialogue between the parties to find a just, comprehensive and durable solution to the refugee problem. Canada has also provided support to Palestinians through our development assistance programs, which have been directed to meeting basic human needs in areas such as electrification, water purification and training. Last November, Canada committed itself to investing $92 million over the next four years for further development assistance. On a people-to-people level, the Department of Foreign Affairs and International Trade Youth International Internship Program has sponsored some 20 Canadian young people, who have spent the past six months working with Palestinian firms and agencies, both to share their expertise and to gain valuable experience. And so I come today, standing on the firm foundation of a friendship developed over many years. But I also come at the beginning of an important new stage in our relations. A stage, we hope, that will be characterized by much more trade and investment between us. I am pleased to say that we are taking important steps along that road today. In a few moments, Minister Maher al-Masri and I will sign a Canadian-Palestinian Framework for Economic Co-operation and Trade. The Framework formalizes a bilateral free trade arrangement between us and opens the way for significantly more commercial activity. By eliminating almost all tariffs on manufactured goods and facilitating access to each other's markets, the Framework will create opportunities for businesses on both sides. And it demonstrates that our two governments want to let the private sector do what it does best: create jobs for our people. I know that in the past, constraints have prevented Palestinian trade from being as free and open as we would like. I also know that some constraints remain. But I am confident that our respective public sectors can break down the barriers to trade so that we can, indeed, realize the full potential of our commercial relations. And I look forward to working with Minister Masri as we pursue that goal together. The Framework also contemplates future meetings to discuss trade, to support technological training and to promote economic development in the West Bank and Gaza. More importantly, it also sends a very clear signal to Canadian firms that this is a market we believe in and they should pursue. The Framework does something else as well. It serves as a complement to our Free Trade Agreement with Israel and demonstrates our commitment to a fair and balanced presence in this region. I know that there has been some discussion about the relationship of goods produced by Israeli settlements in the West Bank and Gaza to this trade Framework. So let me be very clear about Canada's position on this question. We believe that the continued expansion of these settlements is unhelpful to the peace process. We therefore consider any economic activity conducted within those settlements to lack legitimacy. This agreement is about Canadian-Palestinian commercial relations. While the Framework is a significant step, it is not the only one we are taking today. In just a few hours, we will officially open the Canadian Representative Office here in Ramallah. This will be the "front door" for Palestinians wanting to do business with Canada. And I invite you to call on the office, call on it soon and call on it often. At the moment, trade between Canada and the West Bank and Gaza is very small -- less than $1 million a year. But we also know that the potential is great -- that we have just begun to explore the possibilities that await us. As the West Bank and Gaza continue to grow and develop -- investing in infrastructure, training, manufacturing and export development -- Canada stands ready to assist. Canadian expertise in construction, information and environmental technologies, as well as in education and training, is well represented in the delegation here today, and I would encourage you to consider the advantages our firms have to offer. But I think it is also beyond doubt that trade and commerce can open hearts as well as markets -- that strong and competitive markets can be a strong and effective instrument for peace. Indeed, the relationship between peace and freer trade is clear. At its best, free trade acts as a system of rules for peaceful economic relations. And commercial ties create a greater incentive to work for peace, because when nations begin trading together and establishing a mutually beneficial connection with one another, there is a greater tendency to see one another, not as adversaries to be confronted, but as allies to be consulted. And in very practical terms, capital projects in areas such as transportation, energy and communications are less likely to be considered when conflict is imminent. To build peace, we must also build prosperity -- a prosperity in which all peoples of the region have a stake. And so our commitment to freer trade with this region goes hand in hand with our commitment to peace. In the days ahead, we will work hard to expand trade and investment between us. We will work hard to build the kinds of long-term relationships that breed confidence and trust. And we will work hard to help you develop a robust and sustainable economy. Today we celebrate the birth of a new era in Canadian-Palestinian relations. The first important steps have been taken, but we still have a long road ahead of us. Let us resolve to walk that road together and, in so doing, provide opportunities -- not only for today, but also for generations to come. Thank you. </body> </html>

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