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<p><font size="+1"></font><font size="+1"><strong>2004/4 <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>TO A CANADIAN FOREST AND BUILDING PRODUCTS SEMINAR</strong></font></p>
<p><font size="+1"><strong>DELHI, India</strong></font></p>
<p><font size="+1"><strong>January 29, 2004</strong></font></p>
<p><font face="Arial">I want to thank everyone for the warm welcome I have received during my visit to India.
I have been very impressed by the people I have met and the places I have visited.
Moments ago, I had the pleasure of meeting Mr. Sanghi, the new president of
ASSOCHAM [Associated Chambers of Commerce and Industry of India] and to express
my gratitude for ASSOCHAM's help with today's event.</font></p>
<p><font face="Arial">India is a priority market for Canada. In fact, when he appointed me Minister of State
(New and Emerging Markets), Canadian Prime Minister Paul Martin asked me to focus
on a small group of priority markets, which includes India. This is why I decided to make
India the destination of my first international visit.</font></p>
<p><font face="Arial">This also happens to be the first time I travel to India. I am pleasantly surprised to meet
so many Indian companies interested in doing business with Canada, including all of
you gathered here today. This reflects not only the growing ties between our business
communities, but also, I hope, a high level of interest and awareness of Canada's forest
and building products industries.</font></p>
<p><font face="Arial">Trade between our countries has now reached close to $2.5 billion. However, I believe
that the volume of trade is still low, probably a fraction of what it should be.</font></p>
<p><font face="Arial">The forest and building products industries are perfect examples of the untapped trade
potential between our countries. On the one hand, Canada's building products industry
is among the largest and strongest in the world.</font></p>
<p><font face="Arial">Canada's 5,000 manufacturers and exporters of building products have developed a
worldwide reputation for quality and competitiveness, particularly in the area of wood-based products. Canada also has renowned expertise in products made from steel,
concrete and plastics, not to mention proven low-cost housing technologies.</font></p>
<p><font face="Arial">The forestry sector is also a vital component of the Canadian economy. In 2002, the
value of our forest industry's exports was $42.9 billion, making Canada the largest
forest products exporter in the world.</font></p>
<p><font face="Arial">The forestry industry sells some 250 products to over 175 countries. Canada is the
world's number one exporter of lumber and currently ranks second in the world in
exports of softwood lumber, at 17.2 percent of the world's exports. In recent years,
Canada ranked first in the world in newsprint production and second in the world in
wood pulp production.</font></p>
<p><font face="Arial">I am glad to say that, in 2003, Indian purchases of Canadian paper products more than
doubled, making India the third largest market for our paper products. In my view, this
proves that there is a large market in India for many forest products. So now we need to
find ways to introduce other Canadian forest products to India, and this is why we are
all here today.</font></p>
<p><font face="Arial">There are a number of Canadian experts and industry representatives with us in this
room, and I encourage all of you to meet with them individually during the networking
lunch to discuss your business and needs. I think you will be glad you did.</font></p>
<p><font face="Arial">Thank you very much.</font></p>
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