MR. PETTIGREW - ADDRESS AT SIAL MONTREAL - MONTREAL, QUEBEC
CHECK AGAINST DELIVERY
NOTES FOR AN ADDRESS BY
THE HONOURABLE PIERRE PETTIGREW,
MINISTER FOR INTERNATIONAL TRADE,
AT SIAL MONTREAL
MONTREAL, Quebec
April 4, 2003
Introduction
On this last day of SIAL [Salon international de l'alimentation] MontreaI, I would like to extend my
congratulations to the organizers for their hard work and the results achieved here over the course of the week.
Two years ago, I attended the first SIAL Montreal. Following that success, the organizers predicted that this
year's show would be bigger and better than the first, with as many as 800 exhibitors from 50 countries, and
more than 15,000 visitors from 80 countries expected to visit the show. I don't think they are disappointed
today.
There are always so many events and activities that go on at shows of this magnitude, like the one you are
attending today. Thank you for giving me the opportunity to say a few words to you before you move on to the
next item on the agenda at this conference.
Importance of Trade to Canada
Canadian 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.
Our food industry is a key contributor to this strong export performance and our strong economy. One in seven
Canadians is engaged, directly or indirectly, in producing, processing, distributing or selling agricultural
products. We have almost a quarter of a million farms in Canada, and agriculture accounted for approximately
eight percent of our GDP in 2001. Food processing is the largest manufacturing sector in seven provinces and
accounts for 10 percent of the share of total manufacturing shipments in Canada.
Canada's Current Global Position
As a major agricultural and seafood producer with a relatively small population, we export almost half of our
farm products and more than three quarters of our seafood products to more than 177 countries worldwide. In
fact, we are the third largest exporter of agri-food products in the world behind the U.S. and the E.U.,
accounting for 4.2 percent of world agri-food exports; and we are the fifth largest seafood exporter in the world.
In the past 10 years, we have almost doubled our total agri-food exports, from $13 billion a decade ago to
$25.7 billion in 2002 with an additional $4.7 billion in seafood exports. These numbers result in a trade surplus
of approximately $5 billion in this sector.
The way I see it, there are two very important and constructive ways in which government can play a role in
maintaining this growth and 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 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.
Trade Promotion
Trade promotion is about the day-to-day promotion of Canadian goods and services, and it can take many
forms. It can be conducted in a high-profile way through Team Canada missions led by the Prime Minister or
trade missions led by me. Or it can be done in a lower profile manner that is every bit as important, by the
hundreds of trade commissioners we have posted around the world, who work on a daily basis with thousands
of firms, mostly small and medium-sized enterprises.
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. Last year I led missions to India, Mexico and Africa. I was pleased to accompany a large
number of Canadian companies to open new markets.
Partnerships are as important abroad as they are in Canada. It is absolutely fundamental to our international
success that all levels of government be seen by foreign prospects as cooperative, mutually reinforcing
partners pulling in the same direction for the benefit of our business community.
Assistance from the Government of Canada
While our efforts to ensure a level playing field in the world trade arena or to lead Team Canada missions might
sound a little far from your everyday preoccupations as business people, they are the key to Canada's
prosperity.
It's not enough to say that there are export opportunities available to Canadian companies. We must help you
claim those opportunities. We want you to succeed, and to do so by taking full advantage of the excellent
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. 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!
Over 50 of our trade officers from some of Canada's largest trading partners are attending SIAL Montreal this
year. They have come from all four corners of the world to meet Canadian companies and share with them the
export opportunities that exist in their markets.
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 among its clients. In
fact, our clients have told us that the Trade Commissioner Service has saved them time and money, and
helped them make better business decisions, giving them more of a competitive edge.
I understand that some of you in the audience are not necessarily from Canada but represent the interests of
countries abroad. Our Trade Commissioner Service is uniquely positioned to guide international buyers to the
best that Canada has to offer. In addition to sourcing Canadian products and services, trade staff assist
international companies to develop business with Canada. Services include introductions to potential business
partners, investment information, identification of appropriate contacts and advice.
Trade officers, working in Canada's embassies and consulates around the globe, maintain a strong network
with virtually all sectors of Canadian industry. International buyers and importers are encouraged to contact
these officers for help in finding the Canadian products and services they need.
So really, you don't have to leave home to do business with Canada. Simply contact your nearest Canadian
embassy or consulate, or visit the Canadian Trade Commissioner Service Web site.
Virtual Trade Commissioner
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 the 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
explore a market, 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 at SIAL. If you have not yet seen it in action,
you are invited to browse through it at the Canadian Pavilion and 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 that relies on the cooperation of 23 federal departments and agencies,
and is 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 success. Why not visit the Web-based search engine on the
Government of Canada Web site? Just search for Export Source!
To promote 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.
I also am pleased that Export Development Canada (EDC) and the Canadian Commercial Corporation (CCC)
are there to help exporters. EDC provides financing and insurance while the CCC can provide government
guarantees to exporters.
Investment
I also want to take a minute to talk about investment, without spoiling the messages that Angela Rey from
KPMG is about to deliver on Canada's competitive advantages.
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 1 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 continue to access leading-edge technologies.
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 in the world for business, 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. 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.
Thank you.