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<title>MR. PETTIGREW - ADDRESS AT THE MONCTON LUNCHEON - MONCTON, NEW BRUNSWICK</title>
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<p><font size="+1"><strong><u>CHECK AGAINST DELIVERY</u></strong></font></p>
<p align="CENTER"><font size="+1"><strong>NOTES FOR AN ADDRESS BY</strong></font></p>
<p align="CENTER"><font size="+1"><strong>THE HONOURABLE PIERRE PETTIGREW,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>MINISTER FOR INTERNATIONAL TRADE,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>AT THE MONCTON LUNCHEON</strong></font></p>
<p><font size="+1"><strong>MONCTON, New Brunswick</strong></font></p>
<p><font size="+1"><strong>April 16, 2003</strong></font></p>
<p>I want to begin by thanking the Greater Moncton Chamber of Commerce and Industry Canada through its International
Trade Centre 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.</p>
<p>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 and opportunities 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.</p>
<p>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.</p>
<p><strong>Importance of Trade to Canada</strong></p>
<p>Exports now account for over 40 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 Japan. In fact, we are by far the most export-oriented
country in the G7.</p>
<p>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.
As we become a knowledge-based economy, we are increasingly exporting technologies and services and attracting jobs
and technology-rich foreign investment.</p>
<p>Canada excels in providing sophisticated services such as telecommunications, engineering and financial 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.</p>
<p>New Brunswick exports over $8 billion worth of goods and services abroad. That's over 40 percent of your GDP. I have
just visited a company called Whitehill Technologies. Since its establishment in 1993, Whitehill has experienced
remarkable growth and now employs more than 100 people. Some 450 companies in 33 countries currently use Whitehill
software as part of their e-commerce strategy to eliminate the time, printing and postage costs associated with producing
copies of documents and internal records. The company recently created a user group in the United Kingdom, the first of
what Whitehill anticipates will be a growing number of user groups across the globe.</p>
<p>Optical Software Inc. develops computer products that cater specifically to the needs of the eye-care industry. Its flagship
product is OMICS, an integrated software system designed to help the optical industry make better eyewear at a lower cost.
Almost all of Optical's sales are made to the United States--where it has an office in North Carolina--but it also has
systems installed in Canada, Mexico and the United Kingdom. Among the company's clients is one of the biggest players
in the market, Wal-Mart.</p>
<p>Malley Industries Inc. manufactures and exports a wide range of specialty vehicles, particularly ambulances, emergency
response units and related components. The company delivered mobile laboratories to the Mexican government to help that
country respond to its NAFTA environmental management commitments. Malley Industries is active in Germany,
Bermuda, Central America, the Caribbean, Ireland and the United Kingdom and is currently working with the Moncton
International Trade Centre to respond to new opportunities in South America, Africa and the Middle East.</p>
<p>These firms, and many others like them, are building their businesses and creating jobs both in Moncton and in other
regions of New Brunswick.</p>
<p>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 that facilitates international market access. The second is through trade
promotion.</p>
<p><strong>Trade Policy</strong></p>
<p>Trade policy and trade promotion go hand in hand. Indeed, with our economic success so tied to trade, Canada's continued
prosperity depends on an open world economy.</p>
<p>That is why we are using a multi-track approach to trade liberalization through the World Trade Organization [WTO], the
Free Trade Area of the Americas [FTAA] 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.</p>
<p>The WTO is the cornerstone of global trade, and we are currently at the mid-point 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 level of ambition in the agriculture negotiations prior to making decisions
on how far they will go in other areas.</p>
<p>Regional agreements such as the FTAA complement our global trading objectives through the WTO. They can stimulate
the economy, explore innovative ideas in new areas and strengthen economic reforms. Another example is the proposed
Canada-EU Trade and Investment Enhancement Agreement, for which we have just launched consultations throughout
Canada. While this will not be a traditional free trade agreement based on the elimination of tariffs, it does offer an
excellent opportunity, in parallel with the ongoing WTO negotiations, to improve trade and investment ties with the
countries of the European Union.</p>
<p>A notice was published in the <em>Canada Gazette</em> last week formally asking Canadians for their input on enhancing our
bilateral trade and investment relations with the European Union. Shortly, I will write to several hundred Canadian
companies, associations, not-for-profit organizations and my provincial counterparts seeking their views. My EU
counterpart, Pascal Lamy, and I are to present proposals for the design of this agreement at the Canada-EU summit in
December.</p>
<p>While 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. But if we are to help open markets and create opportunities, 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.</p>
<p><strong>Trade Promotion</strong></p>
<p>Now to the day-to-day promotion of Canadian goods and services: trade promotion. Trade promotion can take many forms.
It can be conducted in a high-profile fashion through Team Canada missions or through 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.</p>
<p><strong>Team Canada</strong></p>
<p>In terms of profile, Team Canada missions are, without question, the most visible collaborative initiative we can take
together to demonstrate this common federal-provincial front to potential foreign clients and potential foreign investors.
Since 1994, Team Canada has visited 21 cities around the world and helped generate more than $30.6 billion in business
revenue for Canada.</p>
<p>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.</p>
<p><strong>The Government of Canada Comes in to Assist</strong></p>
<p>Ensuring a level playing field in the world trade arena and leading Team Canada missions are key to Canada's prosperity.
But despite this, they are no doubt far from your everyday preoccupations as business leaders.</p>
<p>Your everyday goal is to build your business, and I assume that, since you are here, you recognize that one sure way to do
this is to increase your exports. You are looking for opportunities. The government can help you both identify and pursue
those opportunities. I encourage you to take advantage of a key support network that is available to you. That support
network is the Canadian Trade Commissioner Service.</p>
<p>The Trade Commissioner Service is prepared to help you succeed. 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!</p>
<p>Seven trade officers from some of Canada's largest trading partners are here today from Atlanta, Bogotá, Boston, New
York, Port of Spain, Rio de Janeiro and Washington. You heard them this morning during the seminar, and you also heard
about the six core services that they deliver, free of charge.</p>
<p>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. Essentially, trade commissioners are knowledge brokers and relationship builders.
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 Trade Commissioner Service's clients report that the service saves them time and
money and helps them make better business decisions, giving them more of a competitive edge.</p>
<p>As a complement to this service, I launched a few months ago one of the most innovative tools we have developed. We call
it the Virtual Trade Commissioner. The Virtual Trade Commissioner is a personalized Web page that includes names and
direct links to the trade commissioners responsible for particular sectors and for specific markets abroad. The Virtual Trade
Commissioner pulls all relevant information to the client's page--market reports, trade events, business leads--essentially
all the pertinent information that matches the client's international business interests.</p>
<p>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 Virtual Trade Commissioner portal to request any of the six
core services on-line. You are invited to apply for your personalized Web page.</p>
<p>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.</p>
<p>To demonstrate how committed we are to defending and promoting Canada's interests with our largest trading partner, the
most recent budget committed $11 million in new funding over the next two years to bolster Canada's ability to actively
engage at local and regional levels across the United States. We will do this through the establishment of additional
regional offices and an increased consular presence in strategic locations such as the U.S. southwest. This will include 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 is working on this initiative in partnership
with Agriculture and Agri-Food Canada and Industry Canada, and is providing additional resources.</p>
<p><strong>Investment</strong></p>
<p>I also want to take a minute to talk about investment, a key part of the trade continuum and 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.</p>
<p>Foreign direct investment means jobs for Canadians. More than 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.</p>
<p>Foreign investment is also an important source of technology. Considering the high costs of research and development,
international investment, often as international alliances, is a critical way that Canadian firms can access the leading-edge
technologies.</p>
<p>The economic contribution of foreign firms to Canada's communities is substantial. Foreign direct investment is already
creating major benefits for the Moncton economy.</p>
<p>Trade commissioners also keep their eyes open for organizations abroad that are planning major expansions. They pitch the
"Canadian advantage" to them, emphasizing that Canada's top cities remain the most competitive places for business in the
world, with the combination of a high-quality infrastructure and workforce, and low operating costs.</p>
<p><strong>Conclusion</strong></p>
<p>To conclude, I just want to reiterate that progressive and forward-looking trade development programs and policies are 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 New Brunswick and for
Moncton.</p>
<p>I will continue to work hard 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.</p>
<p>I will also continue to spread the word that Canada is the most welcoming place in the world for investors.</p>
<p>Keeping Canada competitive in an ever-changing international marketplace is a responsibility for all of us. When we
succeed, we reap great benefits: more and better-paying jobs, financial stability, greater productivity, economic strength, a
diversified economy and technological progress. A legacy for our children.</p>
<p>Canada's growth has come from exports. I encourage you to look at exporting if you aren't already doing so, or at
diversifying your markets if you are. When you look at a new market, call on our Team Canada Inc network to help you
plan your market entry strategy, and talk to our trade commissioners. Have a look at the Trade Commissioner Service Web
site (<a href="www.infoexport.gc.ca,">http://www.infoexport.gc.ca</a>) and register for the Virtual Trade Commissioner. I wish you the best as you go forward,
and I hope to see you among the list of Canada Export Award winners someday soon.</p>
<p>Thank you.</p>
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