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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. PETTIGREW - ADDRESS TO THE URUGUAY NATIONAL CHAMBER OF COMMERCEAND SERVICES ON CANADA: FOCUS ON THEAMERICAS - MOTEVIDEO, ARGENTINA</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE PIERRE PETTIGREW, MINISTER FOR INTERNATIONAL TRADE TO THE URUGUAY NATIONAL CHAMBER OF COMMERCE AND SERVICES ON CANADA: FOCUS ON THE AMERICAS MONTEVIDEO, Uruguay July 14, 2000 It is a great pleasure for me to be here in Montevideo for the second time since the inauguration of your new government in March. The close proximity of my visits reflects Canada's strong commitment to the hemisphere of the Americas, and the importance which the Canadian government assigns to the development of our political and economic relations. I wish to thank the president of the Uruguay National Chamber of Commerce and Services, Dr. Jorge Peirano Bosso, and the interim president of the Uruguay-Canada Chamber of Commerce, Dr. Felipe Brussoni, for their roles in organizing this event. The presence this morning of representatives from so many Uruguayan businesses indicates to me that you also have a high level of optimism and confidence in the prospects for increased business linkages between the Canadian and Uruguayan private sectors. Although Canada and Uruguay are at opposite ends of the summer and winter cycle, our citizens have many experiences and values in common. The Uruguay Investment and Exports Promotion Agency publication entitled Why Uruguay? states that "The Uruguayan society was founded and built up by immigrants from every descent" and that, as a result "a cosmopolitan culture developed, based on freedom and respect, where nobody feels as a foreigner." The same publication notes that: Uruguayans place a high priority on the equitable distribution of wealth, health care, education, personal safety and culture; and, Uruguay was one of the Latin American economies that "led the trend towards an open international trade." These statements also reflect experiences and values that are shared by Canada and Canadians. A Committed Newcomer to the Hemisphere's Political Institutions Although Canadians have enjoyed longstanding and friendly relations with the nations of Latin America throughout many decades, the bonds between us were not always as frequent or as intense as they might have been. This is no longer the case. Canada's perspectives on its relationship with the nations of the Americas changed dramatically, and permanently, in January 1990, when Canada became a full member of the Organization of American States [OAS]. This decision was a signal to the world that Canada had reached an irreversible turning point in our commitment to this hemisphere. Therefore, unlike only ten years ago, Canada is no longer at a crossroads in its relationship with the Americas. Today, our bonds with the nations of the Americas are at the forefront of Canada's international priorities. To a much greater extent than ever before, Canadians now realize that the economic future of our country is linked directly to the health of the economies of our hemispheric partners. We are committed to working toward arrangements that give more citizens of the Americas the opportunity to share in the benefits of regional and global wealth creation. An Economy Dependent on International Trade and Investment I believe that the fundamental purpose of economic activity is to improve the lives of our citizens. Over the past half century, those nations that couple openness to trade with good governance, sound social and environmental policies and a market-based economy have consistently recorded greater progress in poverty reduction and human development than those that have remained insular and closed to their neighbours. Canada has long advocated the benefits of freer trade among the nations of the world and has always stressed the importance of a transparent, rules-based international trading system. Such a system is very important for Canadians. Proportionately, Canada is one of the largest trading nations in the world. More than 43 percent of our gross domestic product (GDP) and nearly one third of all jobs in Canada depend on trade. By comparison, the United States exports only 11 percent of its GDP and Japan exports only 15 percent. Smaller and mid-sized economies, like Uruguay and Canada, benefit from a rules-based system that provides a more predictable trading environment for their businesses and gives them the ability to compete on a level playing field against their competitors in economies that are larger and more powerful. A strong rules-based system makes it possible to seek a resolution to disagreements on the basis of "agreed right" rather than on the basis of "economic might." A Society that Values its Diverse Cultural Heritage An important challenge for all nations is to build stronger economies and create jobs through trade while still allowing their individual national aspirations and cultures to continue to evolve along their distinct paths. Everyone benefits from the ability to experience different cultures. Living next door to one of the largest and most powerful cultures on earth has given Canadians a great deal of experience in this area. We cannot and do not want to insulate our society and our culture from the rest of the world. But we do believe that governments have a role to play in promoting people's freedom to choose what they want to read, hear and view. And, we do believe that culture is important enough that it should not be treated just like any other good or service. Cultural goods and services play a larger role in our societies than their simple economic value. That is why we have been advocating a new international instrument to set out clear ground rules that enable countries to maintain policies which promote their culture, while at the same time respecting the rules of the international trading system and ensuring markets for cultural exports. Such an instrument would also recognize the contribution of cultural diversity to social and economic development. A Committed Proponent of a Free Trade Area of the Americas Canada is a member country of the trilateral North American Free Trade Agreement (NAFTA). We have concluded bilateral free trade agreements with Chile and Israel and are advanced in negotiations with the European Free Trade Association. In addition, negotiations are about to begin with Costa Rica and we are presently seeking comments from Canadians on the possibility of launching negotiations with Singapore. Although we are proceeding with these bilateral mechanisms, our clear priority continues to be the multilateral World Trade Organization (WTO) and Free Trade Area of the Americas (FTAA) negotiations. The FTAA discussions offer a historic opportunity to unite the 34 democratic nations of the Americas in a comprehensive agreement for greater economic integration, development and growth. The combined GDP of the Americas exceeds that of the European Union. Freer trade in the Americas would be good for the economic and social development of our hemisphere and it would be a stepping stone toward the achievement of the same objectives in the global arena. In Search of Closer Relations with Mercosur Consistent with our membership in NAFTA and our support of the FTAA negotiations, Canada welcomes the progressive evolution of the Southern Cone Common Market (Mercosur) as a significant step toward hemispheric integration. While we shall continue to value our ongoing bilateral relationships with each of the four Mercosur nations, we also look forward to the expansion of our relations with Mercosur as a group. A Vibrant and Expanding Partnership Canada and Uruguay are developing a dynamic trade and investment relationship. According to Canadian statistics, Canada-Uruguay two-way trade expanded by almost 50 percent last year to reach $127 million. Given the sustained success of Uruguayan exports in the Canadian market, it is likely that a new record will be reached this year. During 1999, our bilateral trade was comprised of $38 million of Canadian exports to Uruguay and $89 million of Uruguayan exports to Canada. Following this speech, I will be meeting President Batlle and Foreign Minister Opertti to discuss opportunities for Canada to do better! There is certainly no lack of potential for increased business alliances between Canada and Uruguay. I am very pleased that a number of Canadian companies have found business opportunities in Uruguay. For example: Crystallex of British Columbia has invested in the only operating gold mine in Uruguay; West Fraser Timber of British Columbia has invested in a 29 000-hectare eucalyptus and pine plantation; Lanir from Alberta has invested in an 18 000-hectare cattle ranch; CGI from Quebec has established its regional office in Montevideo and is co-operating with ANTEL in the modernization of Uruguay's communications infrastructure; and, SNC/Lavalin from Quebec is planning to co-operate with the OSE (Obras Sanitarias del Estado). In addition to these examples, I am also very hopeful that an international consortium that includes the Vancouver Airport Authority will soon be awarded a contract for the modernization and management of the Carasco airport. The Vancouver Airport Authority is a very capable and experienced organization, as exemplified by its successful management and operation of several airports across Canada as well as international airports in Chile, the Dominican Republic, New Zealand, the Turks and Caicos and Bermuda. Conversely, Canadian companies would be natural partners for Uruguayans seeking access to the NAFTA region. The United States, which is next door to Canada, offers the world's biggest, richest and most competitive market. Canadians have a 20 percent import market share in the United States -- a share that is the envy of countries around the globe. Conclusion I wish to conclude my remarks this morning by noting that Canadians believe the openness of our country is one of the main reasons we enjoy one of the strongest economies in the world in spite of our modest population. The pronounced desire of Canadians to participate actively in the global community of nations is evidenced by our vigorous commitment to the development of closer relations with the countries of the Americas. Uruguay and Canada share many political, economic and social objectives and we are co-operating closely in a broad spectrum of international forums. On behalf of the Government of Canada, I wish to encourage the members of the Uruguay business community generally, and the Uruguay-Canada Chamber of Commerce in particular, to continue your efforts to ensure that the Uruguay-Canada business linkage will continue to be one of the primary pillars of Canada's relationship in the hemisphere. Thank you. </body> </html>

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