MR. PETTIGREW - ADDRESS AT THE QUEBEC EXPORT CAFÉ LUNCHEON - QUEBEC CITY, QUEBEC
CHECK AGAINST DELIVERY
NOTES FOR AN ADDRESS BY
THE HONOURABLE PIERRE PETTIGREW,
MINISTER FOR INTERNATIONAL TRADE,
AT THE QUEBEC EXPORT CAFÉ LUNCHEON
QUEBEC CITY, Quebec
March 4, 2003
Introduction
I want to begin by thanking the SPEQM [Société de promotion économique du Québec métropolitain] and its
partners for organizing today's events and this luncheon, and for giving me this opportunity to say a few words
to you about international business, both trade and investment.
Three years ago, I promised to use the days when the House of Commons was not sitting to travel to the
various regions of the country to promote the benefits of international trade and to talk about my mission as
minister. Since that time, I have gone to cities from coast to coast to encourage companies to export and to
explain the advantages of trade, not only for business, but for all Canadians.
So, what is my mission? As International Trade Minister, I regard my mission as international business
development. Obviously, Canadian business people like you understand and share this mission and are
already out there selling Canadian-made goods and services around the world. Some of you may be seeking
foreign investment, including venture capital. And most of you are enjoying considerable success.
Importance of Trade to Canada
Exports now account for over 43 percent of our GDP, up from just 25 percent in 1990. This means that, as a
percentage of GDP, we export about four times as much as the United States and three times as much as
Japan. In fact, we are by far the most export-oriented country in the G7.
Canada used to be mainly an exporter of raw materials, of natural resources. Now, however, more than two
thirds of our merchandise exports are in non-resource categories such as machinery and equipment and other
high value-added products. Furthermore, innovation is fully part of the Canadian export agenda. We are
increasingly exporting technologies and services and attracting investment that is bringing jobs and technology.
Canada excels in providing sophisticated services, such as telecommunications, engineering, and financial and
engineering services, for modern business. Canadian firms are now global leaders in telecommunications,
aerospace, computer software, biotechnology, environmental technology and many other sectors of the new
economy.
In Quebec, exports account for 40 percent of the GDP. Increasingly, Quebec exports goods and services in
what are called the high value-added industries of our time: aerospace, engineering, telecommunications,
software and the biopharmaceutical sector. Most of Quebec's exports go to the United States; in fact 85
percent of Quebec's export sales are made to our partners to the south.
In Quebec City, we have many export successes. I visited one this morning called Advitech. I was impressed to
see how successful this company is in developing and commercializing neutraceutical food items made from
dairy products. They have used the Trade Commissioner Service and our Team Canada Inc partners
extensively to penetrate new markets, and have been so successful in doing so that they predict that their
revenue from exports will jump to 60 percent of their total revenue, from just 10 percent last year.
Most of you are familiar with the Louis Garneau Group. Whether for cyclists in New Zealand or cross-country
skiers in Norway, the Louis Garneau Group is meeting the worldwide demand for Canadian-made sports
apparel. With more than 30 percent of its revenues generated by exports, the Louis Garneau Group is among
the top manufacturers of high-quality bicycle helmets in the world. Its gear is worn by Canadian and U.S.
Olympic teams and by the likes of world champions Myriam Bédard and Curt Harnett. The Group employs more
than 450 people and has distributors around the world.
The National Optics Institute, or INO, which is Canada's largest optics and photonics expertise centre and
among North America's most important, provides companies with products and services that boost their
competitiveness around the globe. Its researchers are making progress in several key sectors, including
aerospace, biomedicine, environment and telecommunications. A three-time Team Canada trade mission
participant, the National Optics Institute exports more than 50 percent of its production to Germany, Japan,
France and the United States.
All of these firms, and many others like them, are building their businesses and creating jobs both in Quebec
City and in other regions of Quebec.
The way I see it, there are two very important and constructive ways in which government can play a role in
helping you capitalize confidently on the stabilization of markets. The first is through trade policy--in other
words, working with other countries to build and preserve a rules-based system of international market access.
The second is through trade promotion.
Trade Policy
Policy and promotion go hand in hand. Indeed, with our economic success so tied to trade, Canada's continued
prosperity depends on an open world economy.
That is why we are using a multi-track approach to trade liberalization through the WTO [World Trade
Organization], the FTAA [Free Trade Area of the Americas] and our bilateral initiatives. Our objectives for each
set of negotiations are the same: we seek better access to foreign markets, especially for value-added goods
and services; we want rules that keep pace with the needs of our modern economy; and we look for support for
our broader political goals, such as improved labour and environmental standards.
The WTO is the cornerstone of global trade, and we are currently at the midpoint of the new round of
negotiations in what is known as the Doha Development Agenda. The agenda includes several
issues--agricultural reform, market access for goods and services, and strengthened, clarified rules--that
coincide with Canada's chief export interests. It has become clear that many countries are waiting to see the
scope of the agriculture negotiations prior to making decisions on how far they will go in other areas.
Regional agreements such as the FTAA complement the global trading objectives that we are pursuing through
the WTO. They can stimulate the economy, explore innovative ideas in new areas and strengthen economic
reforms. We have a lot of negotiating ahead of us.
The potential for Canadian exporters is enormous. With barriers coming down and ensured access, Canadian
firms can increase exports and forge partnerships in many new markets. This will mean more jobs and
opportunities for Canadians at home. This is why we need to hear more from you, the business community,
about the problems that you are facing and the markets that are of interest to you.
Trade promotion is about the day-to-day promotion of Canadian goods and services. Trade promotion can take
many forms. It can be conducted in a high-profile way through Team Canada missions or missions led by the
trade minister, or it can be done in a lower-profile but every bit as important manner by the hundreds of trade
commissioners we have posted around the world, working with thousands of mainly small and medium-sized
firms every day.
Team Canada Europe
In terms of profile, Team Canada missions are, without question, the most visible collaborative initiative we can
take together to demonstrate a common federal-provincial front to foreign clients and potential investors. Since
1994, Team Canada has visited 21 cities around the world and generated more than $30.6 billion in business
revenue for Canada.
Partnerships are as important abroad as they are in Canada. It is absolutely fundamental to our international
success that both levels of government be seen by foreign prospects as being cooperative, mutually reinforcing
partners pulling in the same direction on behalf of you, our business community.
The next Team Canada mission, led by the Prime Minister, will visit Amsterdam, London and Milan from March
25 to April 4, 2003. This mission presents us with a golden opportunity to promote all elements of our
international business development program: export trade, investment promotion, and science and technology
cooperation to bolster Canada's innovation agenda, helping make us a northern tiger. Of course, there is still
time to sign up for the mission. You can contact the Department of Foreign Affairs and International Trade if
you are interested. It is a great opportunity to expand business horizons.
Assistance from the Government of Canada
Our efforts to ensure a level playing field in the world trade arena or to lead Team Canada missions, while key
to Canada's prosperity, might sound a little far from your everyday preoccupations as business leaders.
It's not enough to say there are export opportunities available to Canadian companies. We must help you claim
those opportunities. We want you to succeed, and to get there by taking full advantage of a key support
network that is available to you. That support network is the Canadian Trade Commissioner Service.
When I say your success is our success, I mean it. The Trade Commissioner Service is prepared to help you
succeed. It represents your tax dollars at work. Join the Canadian advantage. Right now, we have more than
500 trade professionals working for you in 140 cities worldwide. These are people working on the ground, in
your sectors, in your target markets. These are professionals with expertise and a proven track record. The
Trade Commissioner Service has helped thousands of Canadian companies to succeed abroad--and we can
help you, too!
Five trade officers from some of Canada's largest trading partners are here today. They have come from
Boston, New York, Brussels, Berlin and Buenos Aires to talk to you. You heard them this morning during the
seminar, and you also heard about the six core services that they deliver, free of charge.
I had an opportunity to meet with the 140 trade program managers at a leadership conference in Vaudreuil,
Quebec, a few months ago. This is an exceptional and dedicated group of professionals who pull out all the
stops to help Canadian business succeed abroad, often in very difficult situations. They can offer you market
intelligence, key contact networks, business leads and advice. This service enjoys a high degree of satisfaction
amongst its clients. The third annual client survey--which some of you may have participated in--has
confirmed a satisfaction level of nearly 80 percent--outstanding for any service organization. Yes! A
government service with satisfied clients! Why? Because, said our clients, the Trade Commissioner Service
saved them time and money and helped them make better business decisions, giving them more of a
competitive edge.
But the Trade Commissioner Service is not resting on its laurels. It has been undergoing significant renewal
over the past few years in order to tailor its services to meet the needs that exporters have told us are priorities:
solid trade leads, focused market intelligence, and personal advice and counselling on international business
conditions. Essentially, trade commissioners are knowledge brokers and relationship builders.
As a complement to this service, a few months ago I launched one of the most innovative tools we have
developed: the Virtual Trade Commissioner (VTC). The Virtual Trade Commissioner is a personalized Web
page that includes the names of, and direct links to, the trade commissioners responsible for particular sectors
and specific markets abroad. The Virtual Trade Commissioner then pulls all relevant information to the client's
page--market reports, trade events and business leads--essentially all pertinent information that matches the
client's international business interests.
Once the client has reviewed the information provided by the Virtual Trade Commissioner and feels ready to
export, he or she can contact any of our international offices through the VTC portal to request any of the six
core services on-line. We are demonstrating the VTC here today, and you are invited to apply for your
personalized Web page.
The Government of Canada offers many more services to exporters, including market intelligence, information
on financing facilities, trade fairs and exhibitions, and export rules and regulations. Some of you are familiar
with Team Canada Inc, a virtual network relying on the cooperation of 23 federal departments and agencies,
working to help Canadian businesses succeed in world markets. This single window for Canadian business
vastly simplifies access to everything from training and financing programs for new exporters, to on-the-ground
support in foreign markets for more experienced Canadian businesses. Team Canada Inc is your first stop
en route to the information, counselling, market intelligence, financial assistance and on-the-ground support
you need to make your export venture a successful one. Why not visit the Web-based search engine on the
Government of Canada Web site? Just search for Export Source!
To demonstrate how committed we are to defending and promoting Canada's interests with our largest trading
partner, the most recent budget committed increased funding to bolster Canada's ability to actively engage at
local and regional levels across the United States through the establishment of additional regional offices and
an increased consular presence in strategic locations, such as the U.S. southwest. This includes the creation of
new satellite offices that will focus on specific sectors or issues, and stronger, targeted trade and economic
advocacy initiatives. The Department of Foreign Affairs and International Trade together with Agriculture and
Agri-Food Canada and Industry Canada are working in partnership on this initiative and providing additional
resources.
Investment
I also want to take a minute to talk about investment. Investment is part of the trade continuum and is indeed an
important element of our phenomenal success in international trade. International firms produce not just for the
domestic market but also for their international affiliates, which often means they are ahead of Canadian firms
in the export race. This is especially significant as many business sectors shift from production aimed at the
domestic market to production for the export market. Investment and trade linkages go hand in hand.
Foreign direct investment (FDI) means jobs for Canadians. More than one out of 10 jobs, 50 percent of our total
exports and 75 percent of manufacturing exports are due to foreign direct investment. It can stimulate
competition, innovation and economic growth. It benefits local labour with higher wages, and consumers with
cheaper prices and better-quality products.
Foreign investment is also an important source of technology. Considering the high costs of research and
development, international investment, often through international alliances, is a critical way for Canadian firms
to access leading-edge technologies.
The economic contribution of foreign firms to Canada's communities is substantial. Foreign direct investment is
already creating major benefits for the Quebec City economy. The metropolitan region of Quebec boasts over
6,000 researchers and associates employed in an elaborate network of 100 research centres that supply
technological support for developing companies.
Discovering a niche on the back of a renowned university or research centre is not new to Quebec and has
helped it develop enviable aerospace, telecom, multimedia and biopharmaceutical industries.
Attracted by this cluster of excellence, in April 2002, Stéris Canada announced that the company was making
an investment of $13.85 million over three years, and beginning construction of a new plant in Quebec City.
Stéris Canada exports over 92 percent of its production to international markets, making a significant
contribution to the economic development of Quebec. The new plant will employ 135 highly skilled workers.
The people of Quebec City stand to gain much more from the anticipated increased volumes of FDI as word
continues to get out that the city is an outstanding draw for investors. Quebec City was named the second best
investment city in the world according to an in-depth analysis of business costs in the G7 countries, plus Austria
and the Netherlands, by accounting firm KPMG, released in January 2002. The results came from 10 months of
research and analysis. Quebec City ranked first among the 16 cities in the northeastern United States and
Canada, placing before Montreal and Kitchener-Waterloo-Cambridge in Ontario.
Trade commissioners also keep their eyes open for organizations abroad that are planning a major expansion.
They pitch the Canadian advantage to them, emphasizing that Canada's top cities remain the most competitive
places for business in the world, with their combination of high-quality infrastructure and workforce, and low
operating costs.
Conclusion
To conclude, I want to reiterate that progressive and forward-looking trade development programs and policies
are the key to maintaining and enhancing Canada's current prosperity. We all benefit from having clear and
enforceable international trade rules, which help us facilitate more global business for you. This is good for
Canada, for Quebec and for Quebec City.
I will continue to do my utmost to ensure that when you seek out international markets, you will find doors that
are open, policies that are fair and playing fields that are level. And I will continue to resist those voices that
would limit our horizons by limiting freer trade.
I will also continue to spread the word that Canada is the most welcoming place for investors.
Keeping Canada competitive in an ever-changing international marketplace is a responsibility for all of us.
When we succeed, we reap numerous benefits: more better- paying jobs, financial stability, greater productivity,
economic strength, a diversified economy and technological progress. All of this will be a legacy for our
children.
Thank you.