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<html> <head> <meta name="generator" content="Corel WordPerfect 10"> <meta http-equiv="content-Type" content="text/html; charset=utf-8"> <style> p { margin-top: 0px; margin-bottom: 1px } body { font-family: "Times New Roman", serif; font-size: 12pt; font-weight: normal; font-style: normal } </style> </head> <body> January 15, 2007 HONG KONG, China 2007/2 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE DAVID EMERSON, MINISTER OF INTERNATIONAL TRADE AND MINISTER FOR THE PACIFIC GATEWAY AND THE VANCOUVER-WHISTLER OLYMPICS, TO THE CANADIAN CHAMBER OF COMMERCE IN HONG KONG Let me begin by saluting the fine work you’re doing here. You, and your organizations are making Hong Kong a critical part of Canada’s commercial critical mass in Asia. And you’re making a huge contribution to Hong Kong’s world renowned energy and dynamism. Over 160 Canadian companies have offices here, including some big Canadian names—Mitel, Nortel, Methanex, RIM, Manulife, Sunlife, CIBC and RBC, to name only a few. In many ways, Canada’s relationship with Hong Kong is more established than our links with the mainland. We share a common British heritage. And, of course, Canadian soldiers fought and died here in WWII. And many others were imprisoned. Trade between Hong Kong and Canada is solid. I wouldn’t call it spectacular. Two-way trade between Canada and Hong Kong was just under $2 billion in 2005. But to me, a key indicator of the health of a bilateral relationship is direct investment. The most recent numbers have $3.8 billion in Canadian investment in Hong Kong and a healthy $6.3 billion of Hong Kong direct investment in Canada. As is so often the case, the human factor has been a key driver of commercial relations. Over 250,000 people in this city are Canadian citizens. That’s 3.6 percent of the population, and it does not include another 100,000 who were educated in Canada. And over the years almost a million people have immigrated from Hong Kong to Canada. They, along with thousands of immigrants from other Asian nations are making a profound contribution to building and shaping Canada. So Canada and Hong Kong have close ties—people, history and commerce. But I want to talk about the future of trade and investment, and that brings me to something else we have in common—the proverbial “elephant in the room.” Your future is inextricably linked to China. Canada's is inextricably linked to the United States. Hong Kong is now part of China, although different economic and governance systems prevail. Canada's primary linkage to the U.S. is economic, through NAFTA. Over the last 10 years, Hong Kong has successfully transitioned its economy to take advantage of its relationship with China. And Hong Kong's success has become intertwined with China's success. From a low-cost manufacturing city, Hong Kong has now moved to the very top of the global value chain. This great city has essentially become the “New York” of Asia—and in fact surpassed New York in initial public offering (IPO) activity last year! Hong Kong is a world leading financial centre. Hong Kong has a well developed legal system. Hong Kong has the talent, the infrastructure and all the critical ingredients to support high-end business and corporate activity. And Hong Kong's closer economic partnership agreement (CEPA) with China opens tremendous potential to further develop your gateway to China.    Fifteen years ago Canada, the U.S. and Mexico formed NAFTA. Today 84 per cent of our exports go to the U.S. Unlike Hong Kong, Canada is blessed with land and natural resources, particularly energy. And that has been a powerful basis for Canadian prosperity in recent years.   But we know that our natural resources cannot drive Canadian prosperity forever, so we too are successfully moving up the global value chain. While Canada and Hong Kong are evolving on somewhat parallel paths, there are powerful complementarities and opportunities for convergence. From a Canadian perspective we want a deeper and closer partnership with Hong Kong. We are taking steps that will, among other things, move us into closer alignment with Hong Kong. First, our Government is committed to strengthening Canada's trade and competitive performance.   The Minister of Finances's fall economic statement presented a roadmap of policy directions called “Advantage Canada.” Tax policies, fiscal priorities and regulation will all be aligned to strengthen Canada's long-term economic performance. For example:   •         Personal and business tax reductions; •         S&T investments; •         Reduced regulatory burden; and, •         Focus on economic infrastructure. Second, a key component of Advantage Canada is a Global Commerce Strategy focused directly on trade and investment. In the area of trade policy, Canada has long been an active proponent of rules-based, multilateral trade agreements. That priority is now more important than ever. In the near term, that means working to complete an ambitious conclusion to the Doha Round of WTO negotiations.    Later this month Agriculture Minister Chuck Strahl and I will be heading to Davos for a WTO ministerial meeting. We're hopeful that this meeting will be the catalyst needed to rescue the Doha round.    Longer term, it means improving trade rules, processes and the detailed architecture of the international trading system. We have to build a framework that works for countries large and small, developed and developing. But while the WTO framework is clearly our preferred approach, Canada cannot, and will not, stand by as a disadvantaged spectator in a world of competitive bilateralism and regionalism. We will therefore step up negotiation of bilateral trade agreements. This will include not just “big ticket” free trade agreements, but more focused agreements covering air services and investment. Canada has recently concluded a number of air services agreements, including one with China, that will substantially improve air services and stimulate trade, investment and tourism. We are also giving priority to concluding a Foreign Investment Promotion and Protection Agreement (a FIPA) with China. In today's global marketplace, investment drives trade, and investment is the essential catalyst for technology transfer and the development of supply chain linkages. Negotiations are underway and we are hopeful that we can conclude an agreement in the months ahead. Framework policies are essential, but we also need a stronger effort on the ground. Our third priority will be to tell a new story about Canada in markets like China. And we need to provide the necessary support for companies—convert the story into practical value-creating initiatives. We need to demonstrate that Canada is far more than a traditional supplier of natural resources. Our new story adds a focus on innovation, on science and on technology. And fourth, we are driving our own gateway strategy. We will create an efficient and cost-competitive transportation gateway between the vast North American and Asian marketplaces. I have the privilege of being joined by a top-notch delegation of Canadian S&T interests, as well as transportation and logistics service providers. Canadian companies are world leaders in aerospace, information and communications technologies (ICT), wireless technology, and health sciences—including biotech, e-medicine and biomedical equipment. Technology-rich companies like RIM, Nortel and Ballard have established themselves in a big way here in Asia. We also want Canada to gain traction as a place to locate the North American component of science and technology driven value chains. Later this week, I'll be joining China's Minister of Science and Technology, Xu Guanhua, in Beijing, where we'll sign a Canada-China Science and Technology Agreement.   The Agreement will spark new high-tech partnerships involving companies and researchers in both countries. It will help us build networks of Canadian and Chinese expertise. Networks to link the research and development being done in universities, research institutes and high-tech firms, with the people that specialize in commercialization. “Green” technology is one key focus. I know that Hong Kong is concerned about pollution, much of it drifting down from the North. Our expertise in clean, green technology is a natural fit with Chinese development plans. China can leapfrog established industrial economies. It can move early to put in place the infrastructure and supporting frameworks for broad-based application of new green technologies. Innovative Canadian companies like Westport, Ballard and Dynamotive have world-leading expertise in clean and renewable energy sources. Biomass, clean coal, and hydrogen fuel cells are increasingly viable if a market critical mass can be achieved. China holds that key. Just as Hong Kong is a gateway to China, Canada is a gateway to North America. The natural proximity of our West Coast to Asia has long made us attractive to shippers looking for the best way into and out of the North American marketplace. And it's an advantage made stronger by NAFTA. 13.5 million trucks—and over 200 million people—cross the Canada-U.S border each year. And $1.9 billion in trade crosses it every day. While NAFTA and favourable geography are big pluses, we want to ensure the economics works in practice. To do that, we need superior transportation and logistical connections. With me are key executives involved in delivering those connections. They are the ones who drive Canada's integrated system of ports, airports, road and rail connections that reach deep into the North American heartland. The Prime Minister of Canada, the Government of Canada, have made a commitment to this Initiative. Government and the private sector are investing billions in infrastructure. Beyond infrastructure, we're investing hundreds of millions to smooth the borders. Our Minister of Public Safety, Stockwell Day, just announced almost $400 million for border security technology.   And we're shaping our regulatory framework to achieve continual improvement in the “origin-to-destination” economics of our trans-Pacific commerce. We want Asian importers and exporters to see that shipping goods through Canada is easy and efficient. We want them to know that our West Coast ports—Vancouver and Prince Rupert—are two to three days closer to key Asian ports than those of our American competitors. And we want them to know that we’re committed to growing and expanding our gateway for the future—and we will support the right investments to get us there. We want Chinese and Asian investors as strategic partners. It’s not just about money. We know you have the skills, technology and know-how to help us succeed. And we know you want to be sure you have the capacity in North America to match your own growth. Let me conclude. The Canadian economy has become integrated in a powerful and dynamic way into the North American economy. Hong Kong has become integrated in a deep and powerful way into the Chinese economy. Canada is committed to adding stronger linkages across the Pacific. Not as a substitute for our North American commercial linkages, but as a complement to them. We believe Hong Kong and Canada can strategically co-operate by linking our gateways for mutual benefit. We believe Hong Kong and Canada have similar approaches to rule of law, transparency and corporate social responsibility. I urge you to work with Canada, work with Canadians and work with Canadian companies to create globally successful value chains. Our success will reinforce environmental imperatives and contribute to close, harmonious friendships and partnerships. Canada is committed. We’re moving forward. We’re not looking back. I hope you will get on board so we can do it together. </body> </html>

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