February 13, 2007
GATINEAU, Quebec
2007/6
CHECK AGAINST DELIVERY
NOTES FOR AN ADDRESS BY
THE HONOURABLE DAVID L. EMERSON,
MINISTER OF INTERNATIONAL TRADE AND
MINISTER FOR THE PACIFIC GATEWAY AND
THE VANCOUVER-WHISTLER OLYMPICS,
TO THE CANADA-ARAB BUSINESS COUNCIL’S
CONFERENCE ON CANADA AND THE ARAB WORLD
Let me get into my remarks for tonight and begin by thanking Dwayne [Lingenfelter], the
Chair of the Board for CABC [Canada-Arab Business Council], for the opportunity to be
here and speak with you tonight. It’s something that is long overdue and we’ve got a lot
of work to do together and hopefully after tonight we can kick start a number of
activities.
I note that there are a number of members of Parliament; I won’t attempt to name them.
We’ve got senators here, we’ve got Arab ambassadors here, we have other
ambassadors here and we’ve got some real veterans in terms of Canada’s skilled
people who have been on Arab files for much of their careers. The Dean of Arab
ambassadors in Canada, His Excellency Hassam Mohammed Al Sowaidi, is here. I’d
like to acknowledge that. David Hutton, a former Canadian ambassador to the United
Arab Emirates who recently became a co-director general [of the CABC] with Richard
Mann, so acknowledge those two gentlemen.
As Dwayne has indicated, over the last two and a half decades it’s become very
clear—and the Canada Arab Business Council has proven—that Canada and the Arab
world have much to offer each other. Many of you, as I’ve noted, have dedicated your
careers to building the bridges and linkages that tie our nations together, not just
economically but also as societies.
Canada is home to something in the order of 300,000 Canadians of Arab
descent—men, women and families who are putting their energy and their expertise to
work throughout Canada. This is a cultural asset that’s been invaluable in the building
of this country and it’s been invaluable in building business linkages with the Middle
East.
And as you know, the Middle East and North Africa has become one of the world’s
most exciting, dynamic regions. It’s a region that is also opening its doors to trade and
investment like never before. With $1.6 trillion in total GDP, a population of over
300 million people and a rising middle class, the region is fast becoming a major global
economic power.
While the majority of Arab nations are now full-fledged members of the World Trade
Organization, they’re also negotiating separate trade agreements with partners around
the world, including the European community and the United States. And like other
world powers, they’re expanding their trade and investment links with China, with India
and with other major emerging economies.
Canada’s own trade with the Middle East and North Africa—or the so called MENA
region—has also increased significantly, and I’m sure Stephen Poloz gave you chapter
and verse on those numbers. But in 2006, total merchandise trade reached $3.8 billion,
a 16 percent increase over 2005. And even the export component, which is where
Canada often lags a bit, has grown substantially, growing at 14 percent to reach $3.7
billion in 2006.
I think you all know that we are on the right track. But I think you also know that there’s
an awful lot of room for improvement; and just the few conversations I had coming in
and meeting people, I heard just enormous enthusiasm coming from people of just the
highest calibre realizing that there is a window of opportunity here to deal with the
Middle East in a way that would bring tremendous benefits to Canada and the region
over the next couple of years.
But we’re not doing enough and when you look at two-way investment, it’s really not
strong enough. In 2004, Canada invested $15 million—that’s “million” with an M—in the
GCC [Gulf Cooperation Council] countries. In 2005, Canada also had $514 million
invested in the Maghreb countries. And coming the other way, the members of the Gulf
Cooperation Council invested some $92 million in Canada in 2005.
So as you can see, these numbers are pretty weak. And you have to remember that in
today’s global marketplace, it’s investment that drives trade. And it’s investment that’s
the essential catalyst that brings about technology transfer and the development of
supply chain linkages. And the MENA region does offer excellent opportunities for
Canadian investment.
Many Arab economies, particularly the GCC members, are rapidly easing restrictions on
foreign investment and ownership. And despite a slump in 2006, we’re seeing very solid
performance in 2007 in Arab stock markets. The markets are signalling, and many
analysts are now agreeing: this is a good time to invest in Gulf markets.
But investment has to flow both ways. Canada needs to attract Arab investors. Through
Advantage Canada, our government is shaping tax policies, fiscal policies and
regulations to improve and secure Canada’s competitiveness and prosperity. Our
government’s goal is to take a larger share of global direct investment.
Well, Canada is a good place to invest—we’re going to ensure that it gets even better.
And we do want Arab investment in Canada. In 2006, Dubai Ports World acquired the
Centre Marine Terminal in Vancouver. It was part of its acquisition of BNO Ports
worldwide network of marine shipping facilities. A world-class sports operator if I may
say so, Dubai Ports World said it would invest up to $200 million to upgrade and
expand the Centre Term facility. I can tell you, as I told them at the time, we welcome
companies of this calibre investing in Canada.
You may recall the negative media and the political reaction in the United States to a
similar acquisition. I remember watching [CNN commentator] Lou Dobbs at the time
and almost pulling my hair out at the way the reaction to Dubai Ports World was being
carried out through a campaign in the media, a political campaign, and the company
was put in a terrible position and it was required to sell off the American asset they
acquired in good faith from P&O. Let’s be clear: Canada wants more foreign investors
from the Middle East and from other countries.
This is the message Minister Flaherty and I delivered when we were in China last
month. And it’s a message I will continue to deliver here and elsewhere in the world.
But we need to do a better job of communicating what distinguishes Canada in a highly
competitive global marketplace. What do we offer Arab countries as they strengthen
and diversify their economies? We’ve long been a major exporter of agricultural and
agri-food products, as well as technical expertise to the Middle East region.
And Canadian energy companies have made enormous inroads into Arab markets. But
today Canada excels at much more. Think of aerospace, infrastructure,
telecommunications, financial services, educational services and health services. In
aerospace, CAE—it’s a Montréal-based manufacturer of flight simulators. They’ve
invested in a large flight training centre in Dubai. They’ve partnered with a Dubai-based
Emirates group to train pilots. Pilots from Emirates and pilots from other airlines in the
Middle Eastern and South Asian countries.
Infrastructure can be transformative in any economy. And we’re there, too: Canadian
companies like SNC Lavalin, Bombardier, Gartner Lee and Canso are becoming well
established in the region.
As an example, Canso has provided engineering and project management expertise on
a range of projects. The Abu Dhabi Trade Centre, bridges for the Dubai Sheraton and
Gulf Gate, the Abu Dhabi Mall, the major Al Khor and Al Waab project developments, to
name only a few.
The Arab world will continue building, and they’ll be building strong, modern and diverse
economies. As they do, their need for transportation systems, for power generation, for
environmental protection and for urban planning will continue to grow. And Canada is
well-placed to contribute to this massive transformation.
We’re also a leader in educational services—from the College of the North Atlantic in
Qatar to our involvement in the United Arab Emirates education system, to our training
of Saudi doctors, Canada is there transforming the human resources capacity of the
region. And health care—from facility design, development and management to health
insurance; from medical devices to laboratory services, to pharmaceuticals and cutting-edge biotechnology. Canada has unique expertise and it puts us at the forefront of the
global health care market. That’s why my department recently led a successful mission
of Canadian health care companies to the United Arab Emirates and Saudi Arabia.
High tech is another Canadian strength to build on. Both Telesat and Nortel, for
example, are active in the Arab market. And our networks of science and technology
expertise with researchers from the public sector, from the private sector and from
academe are joining forces to develop commercial innovative products on a global
scale.
Identifying the potential for growth is one thing. It’s fairly easy; you’re all doing it.
Capturing it is quite another. And as a government we are committed to turning
potential into reality. That’s why we’re committed to strengthening Canada’s
competitiveness as a trading nation. And that is a central focus of Advantage Canada,
with substantial improvements in the tax, regulatory and fiscal environment here at
home in Canada.
But another critical part of Advantage Canada looks outward. It focuses directly on
strengthening our trading performance. It’s our global commerce strategy. Our most
immediate focus will be a final push to achieve an ambitious result in the Doha round.
Canada has long been an active proponent of rules-based multilateral trade
agreements. It’s what levels the playing field among countries both large and small.
It’s what provides the stable, transparent and predictable environment the world needs
to support trade, to eliminate poverty and to spread prosperity. But worldwide we are
now seeing a proliferation of bilateral and regional trade agreements, many involving
Canada’s closest trading partners and putting Canada and Canadian exporters at a
disadvantage. Canada cannot—and we will not—be a disadvantaged spectator. So
while working successfully through WTO negotiations remains our first priority, bilateral
trade agreements in key markets—markets like the Middle East and North Africa—will
become a major priority for us in the near term.
And I have to say and I spoke to others on the way in, it’s not all big-ticket free trade
agreements. The air agreement, for example, we signed with Algeria last July is a good
example. It sounds modest, but without good air services, trade and investment will be
forever constrained. Similarly, we’re pursuing foreign investment protection and
promotion agreements. We’ll be looking at negotiations coming up with Jordan and
Kuwait and we’re prepared to engage with other countries in the region. Again, we’re
paving the way for the intensification of both trade and investment.
We’ve also identified the Gulf Cooperation Council members and some Maghreb
countries as future free trade agreement partners. Within the next year, we hope to
commence discussions that will lead to a broad-based elimination of remaining barriers
to trade.
Beyond establishing better state-to-state trade frameworks, we also need to ensure that
government supports your business in the right ways. Our trade commissioners in the
field are doing a great job, and they are there to work not for me, but for you. They want
to work closely with your companies to provide the targeted, sector-specific business
intelligence you need.
We plan to increase our presence in key markets. We will identify opportunities for
Canadian business. We will open doors. We will help you find strategic partners, and
through Export Development Canada and the Canadian Commercial Corporation we
will provide the financial instruments you need to succeed in the global marketplace. At
the same time, we’re modernizing and re-energizing our Canadian brand.
Yes, we are an agricultural and natural resources powerhouse. But as you know, we’re
also much more than that. We have an enormous scientific and innovative capacity in
Canada. We have a broad range of capabilities to transform countries from land-based,
staple-driven wealth creation to modern, diversified economies. And Canadians have
what it takes to be good partners: honesty, integrity and reliability.
We can succeed in Arab markets. We can succeed with Arab partners. But as
Canadians, we also can—and we do—see beyond short-term commercial
considerations. We see that prosperity in the Middle East, as is true elsewhere in the
world, is intrinsically tied to peace and security.
We’re committed to the promotion of a stable and safe environment throughout the
Middle East and North Africa. And we expect Arab governments to do their utmost to
establish peace and security through democratic governments, through the rule of law,
and through the promotion and protection of human rights.
Canada actively supports these efforts through development and other programming
initiatives in the region. Canada also fully supports efforts to build momentum towards a
comprehensive peace process between Israel and the Palestinians. We support a two-stage solution to the Palestinian-Israeli conflict.
As Minister MacKay demonstrated during his recent visit, Canada is making a
contribution to these efforts and is prepared to assist further. Moderate leaders in the
region are showing a determination to move the peace process forward. They must be
encouraged to continue on this path. But do not discount your own role. Leaders in the
region need encouragement from you and your business partners to persevere, to
remain focused on the goal of peace in the Middle East. This will remain a key priority
as our nations draw closer. We need to move now, we need to position ourselves for
growing collaborative success for many years to come.
We all know that the Middle East and North Africa can be a challenging place to do
business. But as your firms have already shown us, the rewards are there. And as we
expand and deepen our global linkages, it’s very clear Arab nations have much to offer
Canada and Canada has much to offer the Arab world.
Let’s ensure that Canada contributes to this regions long term economic ascent. Let’s
contribute to broad-based peace and prosperity. The Government of Canada is with
you. Let’s do it together.
Thank you.