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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MINISTER PETTIGREW - ADDRESS TO THE SOCIÉTÉ DES RELATIONS INTERNATIONALES DE QUÉBEC ON CANADA'S CONTRIBUTION TO THE WTO NEGOTIATIONS - QUEBEC CITY, QUEBEC</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 OF INTERNATIONAL TRADE DURING A CONFERENCE LUNCHEON BY THE SOCIÉTÉ DES RELATIONS INTERNATIONALES DE QUÉBEC ON CANADA'S CONTRIBUTION TO THE WTO NEGOTIATIONS QUEBEC CITY, Quebec November 10, 1999 Mr. Trudel Ladies and Gentlemen, To say I am pleased to be able to share my thoughts with you today would be an understatement: it is indeed a pleasure, but also an honour, for your forum is certainly not lacking in prestige! Laurent Fabius, Federico Mayor and Thierry de Montbrial are just a few of the luminaries who have addressed your group, highlighting the reputation of La Société des relations internationales de Québec  as a forum for exchanging ideas and pondering the issues of the day. What's more, Quebec City is where I was born, and so it has a special place in my heart. This is something we all can understand, since we all have roots and come from a place which has its own special flavour. In an age of globalization, the importance of this should not be minimized: rightly or wrongly, some feel that local distinctiveness is being threatened by a disastrous tendency of globalization to make everything uniform. We'll get back to that. I would just like to extend my sincere thanks to all of you, and to you in particular, Mr. President, for the opportunity to share my thoughts with you about Canada's contribution to the WTO [World Trade Organization] negotiations. My perspective in addressing you I am the Minister for International Trade, of course, but I have seen the issues from other perspectives as well. I've also worked in the private sector, serving as an international trade consultant during the 1980s and the first half of the '90s. I was the Minister responsible for CIDA [Canadian International Development Agency]. I was also in charge of the HRDC [Human Resources Development Canada] portfolio. All in all, I have a diverse body of experience which I am proud to share with my fellow citizens in addressing their concerns at a time when it is not always clear whether, on balance, the benefits of globalization outweigh the disadvantages. The benefits of globalization There are a wide range of benefits. For now, I'd like to concentrate on two categories: those that are strictly economic, and those that are associated with technological development. Strictly economic benefits By liberalizing its trade, a country such as ours makes major gains: each time our exports go up by a billion dollars, some 6000 new jobs are created. In fact, a third of Canada's employment depends on international trade -- no big surprise when one considers that 40 percent of our agricultural or manufacturing output is exported. The vast majority of the 1.7 million jobs created since 1993 can be credited to the inroads Canada has made on international markets. Barely five years ago, international trade accounted for some 30 percent of our GDP. This figure is now 43 percent, more than in any other G-8 country. We have witnessed a similar upswing in foreign direct investment, which has risen by 54 percent since 1993. Canada has benefited greatly from the open - albeit rules-based - system that has governed international trade for 50 years. We have an average-sized economy whose current and future prosperity depends on open markets, a stable trade climate and a method of settling disputes through lawful means rather than economic might. And globalization offers several other economic benefits. Benefits associated with technological progress The transformations affecting communications have generated a positive impact on intellectual and scientific exchanges and have made it possible to accelerate the pace of these exchanges. The benefits of the new information technologies lie in the exponential increase in data processing capacity and the many doors that such power unlocks. Transportation development and the freer flow of goods and services have had and will continue to have an extremely positive impact on people's lives the world over. And those are just some of the advantages tied in with technological progress… But these transformations are taking on such enormous proportions that the gulf between "cutting-edge countries" and "catch-up countries" could very well become impassable if we're not careful. The dangers, real or perceived, of globalization If some see in the WTO and the upcoming negotiations the promise of greater and better-shared prosperity, others see threats to cherished social programs, the environment, human rights, cultural diversity or parliamentary sovereignty. Some feel that globalization poses a very wide range of dangers, be they real or perceived. For now, I would like to focus on two types of dangers: the dangers facing our political structures and the dangers of "economic tunnel vision". Two dangers facing our political structures From the emergence of the nation-state and of the modern era nearly 400 years ago to the radical, revolutionary transformation effected by today's globalization, politics has changed a great deal, particularly in terms of its relationship to economic affairs. Economics and politics influence one another and form an extremely strategic relationship. Political power, as traditionally exercised by the State over its territory, gave rise to economic development and freedom -- two key cultural instruments -- like never before in the history of mankind. And it is this form of political power that made possible the creation of national markets in an area, larger than cities and smaller than empires, where capitalism was born. Today, capitalism constitutes the only model of economic development that humanity is taking with it into the 21st century. It is this very balance that globalization, the revolutionary force of our era, is challenging. And this challenge gives no quarter: the linkages between politics and economics are such that any variation in one has an impact on the other, and vice versa. The rules which have made possible the progress observed in liberal democracies are severely tested from the moment that trade and other activities are no longer conducted at the national but at the international level. Our task, therefore, is to find a way of introducing at the global level, as was done in a previous era at the national level, a series of sound rules and the means to enforce them. In this regard, there is no denying that globalization poses a danger, or at the very least a challenge, to the political world in that the latter is responsible for making and enforcing laws. The dangers of economic tunnel vision As everyone knows, nothing is free. Transfers of industrial activity from one country to another do not take place for no reason. One company is looking for the cheapest or best-qualified workforce, another for the best possible tax conditions... everyone understands this. Nevertheless, the uncertainty generated by this phenomenon is fully justified. Societies such as Canada's have succeeded in instituting social programs that no one wants to see destroyed. One must be realistic, however, and take into account the new paradigm imposed by the passage of power from nation States to the global arena. On the one hand, with globalization comes unbridled free competition and the attendant downward pressure this invariably exerts on social programs. At the same time, however, we need the economic progress and growth that globalization brings in order to finance these social programs, which play such an important role in our society. How many companies have chosen Canada because of a health system that is far less expensive than that of the United States or because of a better qualified or more stable workforce? Canada's contribution to the WTO negotiations Let's be clear. Lowering taxes, becoming more competitive and increasing our share of world trade are all legitimate, worthy objectives. But they are not the only ones. In reality, they are important only insofar as they are necessary for the achievement of other, more important objectives. And it is precisely in this area that Canada has a very special role to play in the WTO and, in a broader sense, all world forums. For now, I would like to look at two categories of objectives that Canada is pursuing in the WTO negotiations: technical objectives of a strictly commercial nature, and humanist objectives which frame trade and related activities. Technical objectives of a strictly commercial nature During the next round of WTO talks, Canada will work towards the launch of far-reaching negotiations aimed at further opening up world markets, broadening the scope of trade rules, strengthening the WTO's institutional machinery and allaying public fears concerning the social dimensions of trade. We aim to conclude these negotiations in three to four years. While this period of time is not sufficient to deal with and resolve all the various problems, there is every reason to believe we can produce some solid results within this reasonable time frame. Our specific objectives are as follows: <ul> <ul> <li>reduce industrial customs duties and non-tariff barriers preventing Canadian firms from reaching their full market potential;</li> </ul> </ul> <ul> <li>broaden the scope of the rules governing trade in services;</li> </ul> <ul> <li>apply fairer rules in a broader manner to agricultural trade;</li> </ul> <ul> <li>develop new discipline rules, where applicable, in response to new trade practices, new technologies, etc.; and</li> </ul> <ul> <li>strengthen the institutional machinery of the WTO.</li> </ul> Humanist objectives which frame trade activities Basically, this boils down to promoting Canadian values. <ul> <li>Economic gains do not -- or, at least, should not -- constitute an end unto themselves. Economic growth is an instrument to help achieve loftier goals, such as respect for rights, better education, improved health services, a more just society... in a nutshell, a better quality of life here and around the world.</li> </ul> <ul> <li>The international community has a deep respect for Canadians. The economic value of our activities is a big part of this, to be sure: firms like Bombardier, Biochem Pharma and Nortel have earned us an enviable reputation in a number of fields. But without discounting Canada's economic contribution to global living, we need to recognize that Canadian values have an absolutely determinant and likely an even more decisive role to play in humanizing globalization.</li> </ul> <ul> <li>Canadians do not accept the idea that the rich can live alongside the poor while remaining indifferent to their plight. </li> </ul> <ul> <li>We reject the notion that might makes right.</li> </ul> <ul> <li>We insist that power be accompanied by checks and balances. </li> </ul> <ul> <li>We object to the depersonalizing effects of cultural uniformization.</li> </ul> <ul> <li>We believe in respect for differences.</li> </ul> <ul> <li>We are in favour of responsible freedom.</li> </ul> <ul> <li>We are peace-loving.</li> </ul> <ul> <li>We have a sense of the common good, of our belonging to a global, planetary community.</li> </ul> <ul> <li>We do not shy away from contributing our fair share.</li> </ul> <ul> <li>Promoting such values goes hand in hand with achieving objectives that I would term institutional, for lack of a better word. This is the approach we need to take to resolve the major issues which interest the public. To do so, we must</li> </ul> <ul> <li>make the WTO, and the process as a whole, more transparent. Canadians want their government and their international institutions to be open and accountable. Discussions and decisions in small committees do not gain the understanding and trust we need.</li> </ul> <ul> <li>engage in more dialogue with the public: we need to show we are more receptive. The concerns shared by many Canadians regarding globalization are serious, and we must not ignore them. We should listen to these concerns and take them into account in our policies. We should have the appropriate international institutions study them and encourage these institutions to co-operate effectively with each other. Then we will be better positioned to explain how a world trade system, with the prosperity which results from transparent rules, can help put these fears to rest.</li> </ul> <ul> <li>better co-ordinate the workings of our international institutions and take into account the social dimensions of trade (with regard to the environment and culture, for example): we therefore need to be inclusive. The global economy has an indirect but very real impact on people's lives. If we want to remain on track in our efforts to build a more open, rules-based system of trade, we need to do a better job explaining our trade program, and public opinion has to be solidly on side. We also must be more inclusive at the global level. The trade system must serve the needs of those living in developing countries and the least advanced countries by fostering economic growth in these parts of the world. Our aim for the 21st century is to build a world where citizens living here and elsewhere can enjoy not only prosperity, but also good health, a clean environment, good working conditions, justice and human rights.</li> </ul> Concrete action: what the future has in store I know what you're thinking: these are all wonderful sentiments, but they must give way to concrete action informed by a vision of the future that is at once inspired and realistic. And you're absolutely right. That is why I would like to point out to you some of the concrete steps I have taken and situate them within a vision that inspires me. I will talk in broad terms, of course, but I would be pleased to answer any questions you may have if you would like more details. Concrete action The Free Trade Area of the Americas (FTAA): I recently hosted a ministerial conference of the 34 democratic countries of the Americas. Apart from the ministers' discussions - which were promising, by the way - this FTAA gathering was the scene of an historic meeting, the first of its kind, in fact, between representatives of "civil society" and political leaders: such initiatives represent win-win situations for all concerned. I took the opportunity to promote the notion of coherency, aimed at ensuring that the objectives associated with creating wider and wider trade areas support -- rather than undermine - the other key objectives that should be pursued with regard to the environment, human rights, culture and so forth. The Americas Business Forum, which met in Canada a few weeks ago, was actively encouraged to fulfil its responsibilities not only with regard to business affairs as such, but also with regard to key values that should be protected and promoted. I was very encouraged by the reception given the recommendations I made in this area. I have been fairly active in Europe these days. I would like to touch on two activities in particular, though. In Lausanne, Switzerland, a meeting was held to prepare for the "Millennium Round", scheduled for Seattle. Needless to say, Canada expressed its views, in particular on the sensitive question of the agenda: I for one remain decidedly optimistic, being of the opinion that we must strive to lend a direction to the negotiations rather than try to negotiate everything at the same time. And in Germany, I had the pleasure of meeting my counterpart, Dr. Axel Gerlach, with whom I discussed such topics as Canada's ties with the European Union's leading power. Let me assure you that Germany - like all of Europe, for that matter - greatly appreciates Canada's views and partnership. The Seattle meeting: in four weeks, over 130 countries will converge on Seattle to hammer out an agenda for the new round of WTO negotiations. We will build on the gains from the last round and broach new issues that have arisen since. Without a doubt, these negotiations represent a major opportunity to strengthen the trade system and develop markets. Canada's official stance will be made public in the days to come. The objectives I stated a few moments ago already give you an idea of the direction the government will take in its official position statement. A vision of the future As I view things, the next 20 years will see better-integrated economies, fewer impediments to trade and, hence, a climate that everyone the world over should be able to benefit from. My thinking can be summed up in a single phrase: trade leads to development. For trade cannot be reduced to mere exchanges of tangible products: trade is also a series of cultural, technical, scientific, moral and philosophical exchanges. Trade is inevitably a form of all-encompassing osmosis. The advantage of creating vast blocs such as the one proposed by the WTO lies, when all is said and done, in the civilizing scope of such an enterprise. If we focus solely on the business and financial aspects, we lose sight of the essence. It's all well and nice to promote prosperity through economic integration, eliminate impediments to trade and investment, fight against tariff barriers, concern ourselves about antidumping duties and so forth. But if we stop there, we run a grave risk: that of concentrating exclusively on economic concerns, even if this leads to aberrations in the distribution of wealth. In conclusion: Canada's role As for Canada, everyone looks to us for inspiration in establishing standards that are realistic, truly implementable, and conducive to advancing civilized values. Under the nation-State formula, prosperity gave rise to tremendous progress because the rules of the game were, for the most part, sound and governed in responsible States by laws that applied to all-individuals and companies alike. Under the global formula, prosperity will generate just as much progress if reasonable ground rules are established and if the global community adopts the means of enforcing them. Globalization is making strides on a number of fronts. In addition to the World Trade Organization, hundreds of political, economic, cultural, humanitarian and other organizations are getting down to the task of building an even better world. Canada's role in the WTO consists primarily in promoting the values in which it believes. Because, above all, Canada has values to export. The other globalization is one of values, one which places human priorities above all others. These are the values around which humanity has established a consensus, values of which Canada is one of the world's most respected and influential proponents. Thank you for your attention. </body> </html>

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