
Français		Home		Contact Us		Help		Search		canada.gc.ca		Canada International

Home > Media Room

Foreign Affairs and International Trade Canada

Canadian Offices Abroad

Services for Canadian Travellers

Services for Business

Canada in the World

About the Department

SPEECHES

2007 - 2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 - 1998 - 1997 - 1996

Print friendly version - Printing Tips

<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. PETTIGREW - ADDRESS AT THE PLENARY SESSION OF THE CANADIAN TRADE CLUSTER</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, AT THE PLENARY SESSION OF THE CANADIAN TRADE CLUSTER "THE MAPLE LEAF MIRACLE" SEOUL, South Korea October 20, 2003 Introduction It is my pleasure to be here in Seoul today building on a very positive commercial relationship that already exists between our two countries. I would like to thank the Canadian embassy for the splendid arrangements. In cooperation with their partners, the Federation of Korean Industries, the Canadian Chamber of Commerce in Korea, and the Korean Chamber of Commerce and Industry, they have organized this event and brought together people like you, dedicated to strengthening our commercial ties. This afternoon I want to tell you about Canada's transformation into an even more attractive investment destination than ever and to explain to you how Canada is the place to be for Korean business. Later this evening, I will have the pleasure of presenting the Canada-Korea Trade Awards. These awards acknowledge the ongoing role played by a few key Korean companies that have made significant contributions to the development and maintenance of strong commercial ties that continue to flourish between Canada and Korea. Canada: The Most Open Economy on the Planet Canada's economic performance has been stellar. Canada has now enjoyed 11 consecutive years of economic growth. In fact, more than twice as many net new jobs were created in Canada in 2002 than in the previous year. Our employment growth rate exceeded that of all other G7 countries. We have been enjoying both a merchandise and a current account surplus, making Canada, along with Korea, one of the few countries these days in the entire global economy with such a record. As we approach 2004, we are seeing renewed economic confidence and trade momentum as Canada's economy continues on an upward trend. Canada as a Major Trading Nation There is no question about it: Canada is a country of trade. We are the major trading nation on the planet. Today, Canada's exports represent 41 percent of its GDP. That is up from 25 percent 12 years ago. You may think that, because of globalization, everyone has made these gains over the same period. Not at all. The United States is exporting only about 10 percent of its GDP. Japan, a global economy of the 1980s, is exporting just 11 percent of its GDP. That means that proportionately speaking, Canada exports four times more than the United States and Japan. In addition, every Canadian citizen buys twice as many imports as an American citizen. That means that of all the developed economies in the world, Canada has the most open economy--in exports and imports. That is why we need a strong rules-based WTO institution. Like Korea, we do not have the clout of the European Union or the United States. It is therefore important that we develop rules that apply to the entire membership. Canada's trade relationship with Korea remains one of our most important in the world. Well over a decade ago, Korea established itself firmly in the ranks of Canada's top 10 trading partners. Given Korea's dynamic economy, I am confident it will remain a key trading partner for a long time to come. Though we have accomplished much in the past, we have to look to the future. We must work together to strengthen this relationship and cooperate, not only on multilateral issues, but also bilaterally. Both Canada and Korea have identified strategic economic sectors where our individual strengths are often complementary, whether in the areas of biotechnology, information and communications, science and technology cooperation, space and aerospace, corporate education, or film co-production. I am pleased that Canadian and Korean companies are here today to identify the opportunities that will make our commercial relationship even stronger. Investing in Canada I would particularly like to take this opportunity to give you a taste of what Canada has to offer and explain why Canada is the place to be for investors. First let me set the scene for you. Under NAFTA, Canada has direct access to the North American market--over 400 million people with a combined GDP of over US$11.4 trillion. When you think of Canada today, you should be thinking innovation, leadership and technology. You should be thinking of a knowledge-based economy: one with a terrific business climate, and an educated work force to match; a country hungry for new investment, new business and new partners. The fact is that over the past 15 years, Canada has undergone a fundamental rethinking of its public policy, which is clearly visible in three key areas: • First, the Canada of today is fiscally responsible. The days of governments spending more than they had in the coffers, or promising more than they could deliver, are over. Canadian federal government spending, as a percentage of GDP, just hit a 50-year low. • Second, the Canada of today is a free-trader. In fact, Canada is the number one trading partner of the United States. The U.S. trades more with Canada than with all of the European Union countries combined. The U.S. trades as much with Canada as it does with China, Japan and South Korea combined. • Third, the Canada of today understands that in the knowledge economy, where people, goods and money flow freely, the role of government is to give people the tools they'll need to compete, and the freedom to go as far as their talent will take them. That's why we've invested so significantly in our research capacity, in universities and in new frontiers of knowledge, such as genomics. So how did Canada go from being what the Wall Street Journal once called, "an honorary member of the Third World" to pulling off what Business Week magazine called "the maple leaf miracle"? Let me tell you, it wasn't easy, but we did it. Transforming our Economy The economic transformation began in the mid 1990s, when Canada became the first G7 nation to pull itself out of deficit and into surplus. By the time the fiscal year 2001-2002 rolled around, the Canadian federal surplus was $8.9 billion. We are the only G7 nation that is expected to balance its budget this year. In fact, the Organization for Economic Cooperation and Development [OECD] expects Canada to be the only G7 country in surplus in 2002-2003. Little wonder then that the Institute for Management Development has declared Canada to be the best fiscally managed country in the G7. Moreover, we are one of the few countries to begin paying down our debt--more than $45 billion in just the last few years. As a result, our debt-to-GDP ratio has fallen faster than that of any other major industrialized nation, and is now below 50 percent--and dropping. In addition, our market debt has fallen to below 40 percent of GDP. All of this progress in restoring order to our books has not gone unnoticed. Both Moody's Investors Service and Standard & Poor's have restored Canada's triple-A credit rating--the highest rating possible. Moreover, our efforts have laid the foundation for strong, sustainable economic growth. Both the International Monetary Fund and the OECD have predicted that Canada will lead all G7 countries in growth in 2002 and 2003. Well, you may say, that's an impressive turnaround and good for you. But what does it mean to me? Why should a Korean company or venture capital firm look at Canada for investment opportunities? First, because our economic fundamentals are solid. Second, because our R&D infrastructure is impressive. And third, because we've got the low-cost business environment and skilled workers to turn innovative ideas into products and services that sell. The dramatic turnaround in our economic fundamentals has enabled Canada to cut taxes--and cut them significantly. In fact, Canada has marked the new millennium by introducing a $100-billion tax-cut package--the largest in Canadian history. For businesses, this has created tremendous opportunities. By 2005, firms in Canada will have almost a four and a half percentage point tax advantage over U.S. firms. And our capital gains taxes have been slashed. In fact, Canada's top rate on capital gains is now lower than the typical top rate in the United States. When you add to these the most generous tax credits for research and development in the G7, you have a tax system that is not only competitive with, but in many ways lower than, that in the United States. The Innovation Agenda We have also made significant new investments in support of our government's overriding economic objective: to make Canada one of the most innovative nations in the world--a magnet for the best minds and ideas, and for new investment and ventures. The government has committed to doubling its investment in R&D, aiming to be among the top five countries in R&D performance by 2010. Canada has also unveiled a new innovation and skills strategy, backed by a commitment of more than $1 billion in the last budget. Over the past few years, we have invested more than $3.15 billion in the Canada Foundation for Innovation, to make sure that our universities, hospitals and other research institutes have the infrastructure they need to pursue leading-edge research and to train the best graduates. I would like to note the presence here of David Strangway, President and CEO of the Canada Foundation for Innovation, and a lifelong champion of science and innovation. Dr. Strangway will be actively participating in the various science, technology and innovation activities organized over the next few days. I encourage you to attend these sessions and learn more about this exciting initiative. In addition to the Foundation for Innovation, we have created Genome Canada, providing it with funding of $300 million over five years. And we are investing $99.5 million over the next three years in nine Networks of Centres of Excellence. In short, Canada recognizes the importance of science and technology. We also recognize the rapidly growing role Korea is playing in this field. I am pleased to inform you that the forum on Canada-Korea science and technology cooperation will take place later this afternoon as part of this very event, and that tomorrow will see the first Canada-Korea bilateral science and technology meeting, during which officials from both sides hope to identify areas where we can benefit from greater collaboration. Because there is no doubt that in the knowledge economy the real engine of growth is the human mind, we have allocated $900 million over five years to create 2,000 Canada Research Chairs in our universities, to attract and retain the finest teachers and researchers. Now, you might think that all of these benefits come at a high price. In fact, the cost of doing business is lower in Canada than in all other G7 countries. This is not government propaganda or wishful thinking; these are the findings of the most comprehensive study undertaken on business costs in the G7 countries and including Austria and the Netherlands. Canada: Ranking on Top As you may already know, every two years the international consulting firm KPMG analyzes global business costs, and their most recent report--for 2002--ranks Canada number one. This marks the third consecutive time that we have come out on top as the most cost-effective place to do business. KPMG examined 86 cities in North America and Europe and looked at the cost of doing business in each, factoring in the price of land and labour, transportation and utilities, among others. Eight of the top 10 cities are Canadian. When compared with U.S. cities, costs in Canada are between 10 and 20 percent lower. Even if the Canadian dollar were to rise by 20 percent against the U.S. dollar tomorrow, Canada would still enjoy a significant cost advantage over U.S. locations. Furthermore, according to the latest business environment forecast conducted by the British-based Economist Intelligence Unit, Canada will be the best country in the world in which to conduct business over the next five years. Canada's superior business environment, high living standards and strong growth performance provide lucrative opportunities for foreign investors. Canada's inward foreign direct investment as a percentage of GDP is one of the highest among developed countries and there is considerable potential for large-scale inflows in the medium term. Our government has introduced measures to attract investment, such as low-cost financing, increased skills training for workers and reductions in business taxes. From the looks of these two objective studies, these efforts have paid off. This brings me to my final point: Canada's wealth of skilled workers and focus on academic excellence. As you well know, educated workers are the key ingredient of business success. That is why we have been investing massively in research and education, setting excellence as our standard and leadership as our goal. On a per capita basis, more Canadians have a university or college degree than the citizens of any other country in the world. In fact, this emphasis on academic excellence led the Global Competitiveness Report to rank Canada first in the world at developing knowledge workers in 2000. Conclusion Now you know what others have already figured out: Canada means business. Doing business in Canada means you can take advantage of the kind of entrepreneurial spirit and innovation that brought RIM's revolutionary Blackberry technology to the world and the Canadarm to space. At the various seminars this afternoon, and over the next few days, you will have the opportunity to learn more about what Canada has to offer and how, working together, we can build on the strong business relationship that already exists between our two countries. I have covered a lot of ground, but I think that when you put it all together--a dynamic and competitive economy, strong economic fundamentals, a competitive tax system, low costs of doing business, a highly skilled work force, and access to the entire North American market--you have an unbeatable recipe for success in the new economy. So I invite you to take another look at Canada. Look with fresh eyes at our new, knowledge-based economy. Examine with a critical eye the advantages of setting up shop in a lower-cost environment. And evaluate with a clear eye what all of this can mean to your own bottom line. When you do, I'm confident that you will discover that your next big growth opportunity is in Canada. Thank you. </body> </html>

2007 - 2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 - 1998 - 1997 - 1996

Print friendly version - Printing Tips



Last Updated: 2006-10-30	Top of Page	Important Notices