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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. MARCHI - ADDRESS TO THE22ND ANNUAL MIAMI CONFERENCE ON THE CARIBBEAN AND LATIN AMERICA 'BUSINESS IN THE HEMISPHERE -- FROM TALK TO ACTION' - MIAMI, FLORIDA</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 98/82 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE SERGIO MARCHI MINISTER FOR INTERNATIONAL TRADE TO THE 22ND ANNUAL MIAMI CONFERENCE ON THE CARIBBEAN AND LATIN AMERICA "BUSINESS IN THE HEMISPHERE -- FROM TALK TO ACTION" MIAMI, Florida December 9, 1998 (10:00 a.m. EST) This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca I am delighted to be with you today. As a Canadian who is always being kidded about my country's weather by my American friends, it is good to be here to enjoy the warmth of both the weather and your welcome. It is certainly appropriate that we should meet in Miami -- a city known as a gateway to the Americas. Over the years, it has become a meeting place for diverse cultures and languages: a city with its eyes clearly on the vast and vibrant markets of Central and South America, as well as on the Caribbean. Canada, though separated by distance from many of you, sees itself as a nation of the Americas. And this will be made very clear during the next two years when we will become, quite literally, host to the hemisphere. Starting next summer, we will welcome athletes from throughout the hemisphere to the Pan American games in Winnipeg. In September, the Conference of Spouses of Leaders of the FTAA [Free Trade Area of the Americas] will be held in Ottawa and then -- in my hometown, Toronto -- the meeting of FTAA Ministers and the Americas Business Forum. In the year 2000, Canada will host the OAS [Organization of American States] General Assembly, and later, Canada will receive the leaders of the hemisphere for the Third Summit of the Americas. Our commitment to the Americas has also been displayed in other ways. When Hurricane Mitch devastated Honduras and Nicaragua, Canada, together with many other nations, moved swiftly to assist. In addition to the immediate deployment of a 180-person military relief mission to Honduras, Canada was proud to pledge $110 million in disaster relief and reconstruction assistance. Above all, our hearts and our prayers go out to all of you who were tragically affected by this terrible disaster. As you can see, we take our hemisphere seriously. We also take our commercial relations seriously. In the past five years, two-way trade between Canada and the Americas has doubled -- and our investment in the region has tripled! This morning, I would like to concentrate on an initiative that holds tremendous potential for the future -- the Free Trade Area of the Americas. As you know, Canada is chairing the FTAA negotiations until October of next year, and this will culminate with a meeting of Trade Ministers in Toronto on November 1 and 2, immediately following the Americas Business Forum on October 30 and 31. And I am pleased to announce that Kent Jespersen has been appointed Chair of that Forum. Until recently, Mr. Jespersen was President of NOVA Gas International and is currently Chairman of La Jolla Resources International, based in Calgary. He will be working closely with the Canadian Council of the Americas and other Canadian business groups to ensure the success of the Forum. Today, I would like to share with you the progress that has been made so far, and the key challenges that lie ahead of us. Thus far, the FTAA process is on track. We had a good launch in Santiago, with all 34 leaders present. The Administrative Secretariat is now up and running here in Miami, and I am delighted that Michael Eastman has been selected to act as its Director. In June, Canada chaired the first meeting of the Trade Negotiations Committee in Buenos Aires. That Committee established work programs for the nine negotiating groups. These nine groups met this past September and October in Miami to begin their work. At that same meeting in June, the Committee established work programs for the three bodies that will deal with some of the larger issues that face all: namely, electronic commerce; the special interests of smaller economies; and the participation of civil society. These groups also held their inaugural meetings in October. Just last week in Suriname, the Trade Negotiations Committee held its second meeting. It focussed on the issue of business facilitation. Real progress was achieved as our chief negotiators agreed to initial efforts in the area of customs procedures. They will reconvene in a few months to examine options in greater detail. So the negotiations are now under way. But to recount the progress is not to discount the challenges. And they are significant. But then, no undertaking of this magnitude could be otherwise. Canada sees five key challenges which must be addressed and overcome: U.S. fast- track authority, business facilitation, the involvement of civil society, the unequal size of the various players and the global financial crisis. Let me just touch on each of these: First, U.S. fast-track authority. The continuing absence of this authority is unfortunate and, frankly, disappointing. While it is not fatal at the moment, the lack of fast track has clearly had an impact on the level of engagement by the United States. This, in turn, will affect the engagement of others, for no country will agree to negotiate twice. More generally, the lack of fast-track authority sends an unhelpful signal about American commitment to liberalized trade. It would be unfortunate indeed if the United States, which has been both an architect and beneficiary of trade liberalization over the past 25 years, were to now slacken its vigour or abdicate its leadership. I was encouraged that President Clinton, in speeches to the World Bank and IMF in recent weeks, rallied the troops for a fast-track mandate in January of next year. I wish him every success because the world needs the United States to remain committed to trade liberalization; to engage outwardly, rather than turning inward. The FTAA is a prime test of that commitment and fast track would provide an important reassurance. Second, we need to make progress in the area of business facilitation. The ultimate goal is straightforward: it should be as easy for a firm in Miami to do business in Santiago as it does in Toronto. And business leaders will measure our progress on this front, not by the statements we make, but by the action on the ground; by the time saved as they move their goods and services expeditiously across borders to reach their markets on time and on budget. As I mentioned, the Trade Negotiations Committee has just finished a successful first discussion of proposals for reducing red tape and other costs of doing business in the hemisphere. Their focus is on simplified and harmonized customs procedures and that's certainly a step in the right direction. Business facilitation will be a major theme at the FTAA Ministerial meeting next year. This is an area where we can produce practical results, prior to the completion of the FTAA and, at the same time, provide momentum to our talks. Third, the matter of involving civil society is pivotal. It will come as no surprise to anyone in this room when I say that there is a great divergence of opinion, across the hemisphere, as to how -- or even whether -- to engage civil society in the FTAA process. The challenge we face is to bridge the gap between those that welcome that active engagement and others who harbour suspicions about the civil society agenda. This will not be an easy task. But we cannot expect to establish a historic, 34-country trade agreement without involving our people. Canada would find it impossible to sell such an idea at home or to promote it abroad. Nor would we want to. Because, in today's world, the process leading to a trade deal matters as much as the contents of the deal itself. At our meeting in Costa Rica, the Trade Ministers of the Americas, among others, endorsed the principle of increased participation in the FTAA by representatives of civil society. These commitments were not simply words to fill our speeches. They were principles to guide our actions. So, today, countries cannot conveniently pick and choose. The FTAA package that leaders endorsed is a framework of interconnected elements. If you chip away at one or the other, then the entire FTAA process becomes fragile. Trade, after all, is about more than just enhancing the bottom line of a nation. Trade is about enriching the lives of its people. We do not seek freer trade for its own sake: we seek it because it will provide our people with rewards for their labour, markets for their products and hope for their futures. Our fourth challenge is to address concerns raised by the disparity in size -- and economic development -- among the various FTAA participants. The smaller economies of the hemisphere are worried that their interests will not be protected. This is understandable. The simple reality is that there are corporations here in the United States that employ more people than the population of some of the participating countries in the FTAA. And their revenues dwarf the GDP of these countries. Canada understands these concerns. After all, we entered into a free trade agreement with the United States -- a partner 10 times our size. But our experience has been positive. We actually enjoy a surplus, in part because we have seen the benefits of bringing our trade under rules where might does not equal right and where the outcome of a trade dispute is decided on the strength of the argument and not on the size of the participants. And we will certainly be sharing this experience with the smaller economies of the FTAA. But we all must be sensitive to this legitimate concern. Furthermore, we should appreciate that the FTAA poses a major governance challenge to some of our smaller nations, particularly the Caribbean and Central American countries. Entering a complex set of trade negotiations among 34 countries is a big deal, especially for smaller bureaucracies. And so, we also will need to help in building the necessary institutional capacity of these countries, so that they may effectively prepare for, negotiate and follow up on the FTAA negotiations. The bottom line is that a successful FTAA means leaving no members behind. The fifth and final challenge -- which is also the most difficult to predict -- is the impact of the global financial crisis on the FTAA process. While Canada's view is that recent events only make the case for trade liberalization more compelling, we also know that some nations may be tempted to apply the brakes to the process, call for import restrictions or impose some other protectionist measures. Our challenge is to resist these demands and demonstrate the benefits to be gained by continuing down the path of freer trade. When crises arise -- and they will -- we must act, as we did in the case of Brazil, with firmness and resolve. But we must not allow the current economic difficulties to obscure the longer view. Be assured that we are not only fairweather friends. Canada recognizes that the potential for growth and expansion is still there. Our business community continues to be very bullish on Latin America, despite some of the challenging economic currents. This is really a time for long-term thinking and commitment. In closing, let me say that Canada is under no illusion about the challenges before us. But we are also aware of the opportunities that await us. And so we will work hard to maintain the momentum and to keep the negotiations firmly on track. Many years ago, that great explorer, Ferdinand Magellan, wrote something that I think bears repeating today. He said, "The sea is dangerous and its storms terrible, but these obstacles have never been sufficient reason to remain ashore." In creating a Free Trade Area of the Americas, we too will face many storms. But that is no reason to remain ashore. Indeed, it is a greater reason for pushing off and setting sail -- knowing that what lies ahead is far greater than that that lies in quiet coves or peaceful ports. Let us embrace the spirit of adventure. Let us sail the uncertain seas. And let us resolve to complete that voyage and do so, together. Thank you. </body> </html>

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