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<p><font size="+1"></font><font size="+1"><strong>2004/12 <u>CHECK AGAINST DELIVERY</u></strong></font></p>
<p align="CENTER"><font size="+1"><strong>NOTES FOR AN ADDRESS BY</strong></font></p>
<p align="CENTER"><font size="+1"><strong>THE HONOURABLE GAR KNUTSON,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>MINISTER OF STATE (NEW AND EMERGING MARKETS),</strong></font></p>
<p align="CENTER"><font size="+1"><strong>AT THE COSTA RICA-CANADA</strong></font></p>
<p align="CENTER"><font size="+1"><strong>CHAMBER OF COMMERCE LUNCHEON</strong></font></p>
<p><font size="+1"><strong></strong></font><font size="+1"><strong></strong></font><font size="+1"><strong>SAN JOSÉ, Costa Rica</strong></font></p>
<p><font size="+1"><strong>March 3, 2004</strong></font><strong></strong></p>
<p>It is a great pleasure for me to be here today in San José with our Canadian business
delegation during my first visit to Costa Rica and the region. I would like to thank the
Costa Rica-Canada Chamber of Commerce for organizing this event and highlighting
the growing relationship between Canada and its partners in Costa Rica, Honduras and
Nicaragua. The Chamber has done a great job in promoting trade and investment
between Costa Rica and Canada, and it will continue to be an important and valued
partner in the future. </p>
<p>Prime Minister Paul Martin is committed to forging partnerships with other regions of the
world. He has asked me, as part of my mandate as Minister of State for New and
Emerging Markets, to raise Canada's profile in expanding and dynamic markets such
as Central America.</p>
<p>And this is why I am here today with more than 20 Canadian business delegates from
small, medium-sized and large companies, all of which are eager to introduce their
goods, services, capital, people and knowledge to markets in Costa Rica and
throughout Central America. These companies are active in a range of sectors:
agriculture and food, environmental technologies, engineering services, transportation
services, educational services and construction materials. </p>
<p>I would also like to acknowledge the presence of our mission partners, whose support is
greatly appreciated: Agriculture and Agri-Food Canada, Industry Canada, Export
Development Canada, the Canadian Commercial Corporation and the Ministry of
Regional Economic Development of Quebec. I encourage you to speak with them to
see how they can help you.</p>
<p>We are here today in the interest of developing trade partnerships. Canada is a trading
nation. Trade in goods and services represents 80 percent of the economic output of
Canada; this is a greater percentage than in any other G7 country.</p>
<p>Canada is a leading-edge, technology-driven economy that has much to offer Central
America: the capacity to create and commercialize knowledge, a highly skilled
workforce, an environment that promotes innovation and communities that are ready to
support innovation. </p>
<p>Over the years, Canada has developed a very good relationship with Central America.
Two-way merchandise trade between Canada and Central America reached about
$970 million in 2003, of which trade with Costa Rica accounted for more than a third. </p>
<p>Canada and Costa Rica have also made significant achievements in opening the doors
of foreign markets to our domestic producers and exporters. Canada remains
committed to the Free Trade Area of the Americas negotiations. On that point, I want to
mention the very constructive role being played by Foreign Trade Minister Trejos and
the Costa Rican team in these negotiations as we all work toward an agreement with
balanced opportunities. </p>
<p>As a trading nation, Canada understands the value of free trade. I am particularly proud
to say that Canada was the first G7 country to initiate free trade negotiations with a
Central American country, with the launch of negotiations with Costa Rica in June 2000.
On November 1, 2002, the Canada-Costa Rica Free Trade Agreement and two parallel
accords on environmental and labour cooperation came into effect. Costa Rica has
benefited greatly from the agreement. Since its entry into force just over a year ago,
Costa Rican exports to Canada have increased by over 20 percent.</p>
<p>On November 21, 2001, Canada announced the launch of free trade negotiations with
four other Central American countries (El Salvador, Guatemala, Honduras and
Nicaragua). These countries are small but dynamic economies that offer important
benefits for Canadian exporters. We are continuing to negotiate with these countries
and hope to conclude talks very soon. </p>
<p>But trade is only one aspect of our relationship. Canadians are demonstrating that they
understand the benefits of investing in Costa Rica and throughout the region. The
recent inauguration of direct flights on Air Canada between Toronto and San José is
another sign of the growing interest Canadians have in Costa Rica and the
opportunities that exist here. </p>
<p>It's this climate of opportunity that has encouraged the Canadian company Entreprises
Berthier Inc. to develop its environmentally friendly waste management project in San
José. It's the business advantages that have attracted flagship Canadian companies
such as the Four Seasons deluxe hotel chain to invest here. And it's the great market
potential that has drawn the products of Canadian food companies--such as Dare and
Viau-McCormick cookies; ADM Milling's Five Roses flour; and Cavendish, Maple Leaf
and McCain frozen products--to the shelves of supermarkets in Costa Rica, Honduras
and Nicaragua.</p>
<p>SNC-Lavalin is building roads in Costa Rica. Gildan Activewear is manufacturing t-shirts
and sportswear in Honduras. Pharmaceutical giant Apotex and shoe manufacturer Bata
have established highly successful operations in Nicaragua. Canadian mining
companies such as Glencairn Gold Corporation are developing mineral resources in
Costa Rica, Honduras and Nicaragua. All these Canadian companies are working with
local partners.</p>
<p>Canadian companies are not just good partners, they are responsible partners.
Promoting corporate social responsibility is an important element of the Canadian
government's approach to promoting international trade and investment. By operating in
a socially responsible manner, Canadian companies contribute positively to the
communities in which they operate.</p>
<p>Canadian investments in Costa Rica, Honduras and Nicaragua alone total over
$1 billion. With bilateral agreements such as the Foreign Investment Protection
Agreement we have with Costa Rica and the Memorandum of Understanding on Trade
and Investment we have with Honduras and Nicaragua, there is great potential for
increase in the future.</p>
<p>The Canadian government is also working to support business and social development
in the region through programs such as the Sustainable Cities Initiative, which is
helping to sustain economic development in San José, and through the Canadian
International Development Agency, which is supporting environmental and natural
resource management development in Costa Rica and Honduras and water and energy
infrastructure development in Nicaragua.</p>
<p>I am also very pleased to draw attention to the excellent political cooperation Canada
enjoys with Costa Rica, Honduras and Nicaragua. Such collaboration results directly
from the shared values and views that Canada and Central America hold on
fundamental questions of democracy, human rights, security and economic
cooperation.</p>
<p>This cooperation is apparent on issues ranging from money laundering to children's
rights and often takes place in forums of mutual interest, such as the Organization of
American States or the United Nations. Just as growing trade and investment will bring
our respective countries closer together, so too will a deepened political engagement on
important international issues.</p>
<p>Partnership through trade is what has brought us here today. Let me underline how
pleased I am to have with me Canadian businesses that share the vision of increased
business relations between Canada and its Central American partners.</p>
<p>Canada understands the importance of fostering this relationship, and it is committed to
doing so. Central America Circuit 2004 is an example of that continued commitment. I
look forward to working with you to strengthen our long-term trade and investment ties.</p>
<p>Thank you.</p>
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