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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. MARCHI - ADDRESS TO THE CHINA-CANADA BUSINESS COUNCIL - BEIJING, CHINA</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 98/25 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE SERGIO MARCHI MINISTER FOR INTERNATIONAL TRADE TO THE CHINA-CANADA BUSINESS COUNCIL BEIJING, China March 31, 1998 This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca It is a real privilege to be here in Beijing and to be with the China-Canada Business Council [CCBC]. It is certainly appropriate that this should be among the first stops on our visit because this organization has sought to connect our two countries and to make us aware of the opportunities in trade and investment which we have to offer each another. This year marks the 20th anniversary of the CCBC -- an age that we traditionally associate with approaching adulthood. I hope as you move through maturity toward middle age, that you won't lose any of your youthful enthusiasm! I want to thank the Ministry of Foreign Trade and Economic Co-operation for issuing the invitation for this mission. I am very much looking forward to working with China's new Trade Minister Shi as we promote trade and investment between our two countries. It is also a great pleasure to be accompanied on this mission by Judy Foote, 84 business representatives, three Members of Parliament, one Senator and Newfoundland's Minister of Trade. The size and strength of this delegation is strong evidence of the importance Canada attaches to our future commercial relations with China. We meet today at an exciting time in China's history: Sweeping reforms are being proposed, dramatic changes are taking place and a more outward-looking posture is being adopted. These reforms are welcome, and encourage us to hope for still further liberalization in the days ahead. Canada continues to believe that the best way to influence Chinese policy is to engage, not isolate China. We were very pleased, therefore, to co-host with China a multilateral symposium on legal questions related to human rights earlier this month in Vancouver, and we look forward to a continued dialogue on these issues. Certainly our visit could not be more timely in terms of establishing a new working relationship with the government of China. This is a new government with a strong emphasis on economic issues and we want to be part of this exciting new chapter in China's history. In fact, my visit is just the first of many planned by our government. In the coming weeks, the Ministers of Agriculture and Agri-Food, International Co-operation, Industry, and the Secretary of State for Asia-Pacific will all visit China. This is also a significant time in the history of China-Canada relations. Having just completed the Year of Asia-Pacific, during which we hosted President Jiang Zemin and other APEC [Asia-Pacific Economic Co-operation forum] leaders, the profile of China has never been higher in our country. There is an increasing awareness of the opportunities for commercial relations between our two countries. So, today, I would like to focus on Canada's larger economic agenda and how we see trade, especially trade with China, fitting into that agenda. As you well know, Canada is a trading nation. Trade now accounts for one out of every three jobs in our country and constitutes over 40% of our GDP [gross domestic product]. In fact, Canada is more dependent upon trade to produce jobs and economic growth than any other developed country in the world. That dependence is not something to be feared, but it is something which must be understood. We have to understand that a country so dependent upon trade is ideally suited to benefit from the liberalization of trade around the world. That's why Canada sees the globalization of markets as something to be encouraged, and we are taking a leading role in that effort. Whether it is working bilaterally with free trade agreements such as those we have signed with Israel and Chile, multilaterally, through the World Trade Organization [WTO], or regionally, through forums such as the NAFTA [North American Free Trade Agreement] or the APEC, Canada has placed trade development and trade liberalization at the heart of our economic agenda. Not surprisingly, Canada considers China to be a key part of that trade agenda. Its population, its progress, its importance in the world -- all of these argue persuasively for patience and persistence in the face of sometimes daunting obstacles. Our approach to trade development here, as elsewhere, is based on close collaboration with the Canadian private sector, as well as with provincial and municipal governments. This "Team Canada" approach was inaugurated in China by Prime Minister Chrétien in 1994, and, since then, its success has been replicated in other parts of Asia, and in Latin America. The Team Canada approach led to the China-Hong Kong Trade Action Plan, which I released last year. As you know, that Plan identifies priority sectors which we believe hold the most promise for Canadian businesses. And, it is constantly evolving to meet the needs of the business community. As we embark on what many are calling the "Pacific Century," Canadians realize that increasingly, their future is tied to this region. The recent economic difficulties in Asia do not change that perspective. We view China as an island of stability in turbulent waters, and one which retains our confidence. We also remain committed to fostering greater economic co-operation with our Asian partners. That was the basis for our dedicating a year to Asia-Pacific, and that was the theme of the APEC Summit in November. And, that is why APEC trade liberalization and China's accession to the WTO are key pillars of Canada's international trade development policy. These then, are some of the broad brush strokes of Canadian trade policy. But we also know that they will remain "castles in the air" unless we achieve real progress on the ground. The real key to expanding trade between our two countries is greater participation by small and medium-sized enterprises (SMEs). I am very pleased that one third of the delegation on this mission are SMEs. But today, I would like to challenge those of you in the business community to tell the Embassy, and to tell me, how we can work together to help the smaller players do better here. What are the impediments? What are the particular challenges? What needs to change? I would also like to challenge the larger Canadian business community to become more aggressive in pursuing opportunities in China. Sure, it's a tough market, but if you don't make the effort here, your competitors will. Finally, I would ask those of you who are here, on the ground, to be our eyes and ears in China. Give us your counsel on how and where we can be most effective in encouraging the Chinese to make real reforms that will increase the transparency of doing business here. I promise you that we will carry your agenda to the bilateral negotiating table, we will carry it to the APEC and, we will, if necessary, carry it to the negotiations on China's accession to the WTO. Because if our trade agenda is not relevant to you, as business people, it is simply not relevant at all. You know what is at stake and through hard work and persistence, you are doing what is needed. And if the challenges before us are great, so too are the opportunities. As I close, I was reminded of one of the ancient traditions that took place within the walls of the Forbidden City. Every year, on the ninth day of the ninth lunar month, the Emperor and Empress would climb the mountain, which afforded them a spectacular view of the surrounding landscape. Tradition tells us that the annual pilgrimage was made to remind the Emperor of the beauty of the land he led, and to provide a perspective he would not otherwise have had. For many years, many of you in this room have worked hard to create a foundation, a hill, from which we can see what lies ahead of us. And, if we can see a tremendous future for more trade and investment between our two countries, it is because we stand on what you have built. Let us continue to keep our eyes on distant hills. Let us remind ourselves to look beyond the difficulties of today to the vast possibilities of tomorrow. And, let us not pause until we have realized the vast potential that lies before us. Thank you. </body> </html>

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