
Français		Home		Contact Us		Help		Search		canada.gc.ca		Canada International

Home > Media Room

Foreign Affairs and International Trade Canada

Canadian Offices Abroad

Services for Canadian Travellers

Services for Business

Canada in the World

About the Department

SPEECHES

2007 - 2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 - 1998 - 1997 - 1996

Print friendly version - Printing Tips

<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. EGGLETON - ADDRESS ON THE OCCASION OF THE SECOND READING OF THE BILL TO AMEND THE CANADA-ISRAEL FREE TRADE AGREEMENT - OTTAWA, ONTARIO</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 96/42 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE ART EGGLETON, MINISTER FOR INTERNATIONAL TRADE, ON THE OCCASION OF THE SECOND READING OF THE BILL TO AMEND THE CANADA-ISRAEL FREE TRADE AGREEMENT OTTAWA, Ontario October 9, 1996 Mr. Speaker, It is an honour for me to speak to this Bill, which will bring into force the Canada-Israel Free Trade Agreement. This historic agreement is both significant and symbolic: significant because it marks the first free trade agreement that Canada has signed with a partner outside this hemisphere, and symbolic because it stands as further evidence of Canada's commitment to freer trade around the globe. It sends a very clear message: Canada is ready, willing and able to trade with the world. And with this Agreement, we will stand on the same footing as the European Union and the United States, both of which have already signed free trade agreements with Israel. For the first time, we will have direct access to the Israeli market, without having to funnel our trade through the United States or any other country. Mr. Speaker, the globalization of markets is one of the great waves of history. It is one that Canada cannot afford, and does not intend, to watch from the shores. In today's ever-changing world, no nation, however rich or powerful, can long remain isolated from the great economic currents of the day. Markets are opening up, barriers are falling down and the free movement of goods, services and ideas, is becoming unstoppable. Today, Canadian companies quite rightly see the world as their marketplace and the opportunities are boundless. We are vigorously and successfully winning new markets and opening new doors. As a result, our balance of trade with the nations of the world has tipped dramatically in Canada's favour, to a record surplus of over $28 billion in 1995. Part of the success we have realized to date is due to the co-operative approach that this government has taken since coming to office. New partnerships have been created in every province to provide better export services to Canadian businesses, with particular emphasis on the dynamic small and medium-sized enterprises. We have also benefitted from the "Team Canada" trade missions abroad, which joined federal and provincial governments with the private sector to present a united and common front in searching out new opportunities for Canadian companies. To date, these Team Canada trade missions have produced $20 billion in contracts for Canadian companies -- companies that will be hiring more people in Canada to fill those contracts as well as to help develop new ones. All of these activities, Mr. Speaker, I believe reflect a fundamental change in how Canadians view freer trade. We have come to realize that there is far more to be gained from globalization than to fear from it. We have come to realize that freer trade is the key to expanding Canada's -- and the world's -- economy. More to the point, it creates and sustains jobs -- lots of jobs. In fact, one job in three in this country now depends upon trade. One in three! And trade accounts for about 37 per cent of our entire GDP [gross domestic product]. Quite simply, trade with the world has become the economic engine of Canada. So the choice before us is clear: we can expand and diversify our trade, or we can stagnate and condemn ourselves and our children to leading lesser lives in a lesser land. Mr. Speaker, this government is not prepared to let that happen. We are not prepared to sit back and watch the jobs and the growth and the opportunities pass to other nations. We are determined to put Canada in a position where it can realize its potential and not only sustain but enhance our standard of living. To do that, we must constantly seek out new partners and new markets. With a relatively small domestic market, we must look beyond our own borders. And we must give our businesses the access they need to the most dynamic and robust economies in the world. That is why, Mr. Speaker, we signed the North American Free Trade Agreement [NAFTA] and are working to have Chile join that pact. That is why we are working diligently to help create a Free Trade Area of the Americas [FTAA]. That is why we are such strong supporters of the World Trade Organization [WTO] and its efforts to liberalize trade. That is why we are involved in the Asia-Pacific Economic Co-operation [APEC] forum. And that is why we have signed a free trade agreement with Israel. This Agreement is a perfect complement to our efforts at trade expansion in other important markets. Since November of 1993, Mr. Speaker, Canadians have created 600 000 new jobs. And Canada is projected to have the highest employment growth of all G-7 nations in 1996 and again in 1997. The lesson is clear: given access to world markets, Canadians will create jobs and produce wealth. Now, Mr. Speaker, international trade is a subject involving large numbers -- billions of dollars in trade and millions of jobs created. And sometimes, amid all those strings of zeros, we lose sight of the fact that behind the big numbers are individual Canadians -- men and women granted the dignity of holding a job. Men and women who are beginning to plan for the future, who are building a better life for themselves and for their children. Men and women who pay taxes and contribute to the economic health of their communities and of our country. Recognizing this, our government has set the goal of doubling the number of Canadian companies exporting by the year 2000. We believe that this is the best way to encourage economic growth and to create jobs. Mr. Speaker, the Free Trade Agreement with Israel represents another step toward our goal of freer trade worldwide. It is clear proof that Canada is prepared to match our rhetoric on free trade with concrete action. Why Israel? Israel and Canada have long enjoyed close relations. Our relationship is rooted in common values and shared democratic beliefs -- the belief in freedom and the dignity of the individual. And our relationship has been grounded in common hopes -- hopes for peace and prosperity. With this free trade agreement, we move toward cementing those ties and realizing the economic potential of our relationship. It was in November of 1994 that Prime Minister Yitzhak Rabin and Prime Minister Chrétien, began the process that led to this historic agreement. And it was in Toronto, just a few months ago, that I had the privilege of signing a final agreement with Nathan Sharansky, the Israeli Minister for Industry and Trade. If I might be permitted a personal word, Mr. Speaker, it was a great honour to meet Mr. Sharansky. Since I followed his courageous crusade for human rights in the former Soviet Union for so many years, it was wonderful to finally meet him and to discuss a wide range of issues. One of his most remarkable qualities is the ability to persevere and to transcend. For many years, he was deprived of his liberty, but he never abandoned his principles. Throughout the darkest days of Soviet oppression, he remained freedom's torchbearer. So, with the signing of the Agreement in July, both countries undertook to introduce enabling legislation into their respective legislatures. That is why we have introduced this Bill into Parliament. If the implementation process is completed on both sides by the end of this year, the Agreement will come into effect on January 1, 1997. Before turning to some of the main features of the Agreement, let me state clearly that while the Agreement is between Canada and the government of Israel, we intend to extend the same benefits to the Palestinians and will be meeting with Palestinian officials to examine the best way to go about this. Mr. Speaker, Canada has always been firmly committed to the Middle East Peace Process. And the relationship between peace and freer trade is clear. At its best, free trade acts as a system of rules for peaceful economic relations. Former Israeli Prime Minister Yitzhak Rabin once said that "peace requires a world of new concepts," and Mr. Speaker, one of the most important new concepts shaping our world today is freer trade between nations. While recent developments in the Middle East have been a source of concern for all of us, they should not blind us to the progress to date, nor discourage us from our long-term goals. We are encouraged by the pledges made by both Chairman Arafat and Prime Minister Netanyahu to renounce violence and continue negotiations. Those commitments are a clear indication that both sides have an appreciation for the stakes involved, as well as an understanding of the simple truth that far more can be achieved by dialogue than by violence. And we must recognize that the peace process has already brought concrete benefits to Israel. A large number of capital projects, in the areas of transportation, energy and communications, are being considered by Israel and her neighbours -- a development that would have been unthinkable just a few years ago. Canada supports these constructive alliances and wants to be a full and active player in the future economic development of this region. This Agreement is also important to Canada because of the nature of the Israeli economy. With a thriving private sector, an educated work force, modern banking systems, an important stock exchange and an excellent communications system, Israel has one of the fastest-growing economies in the region. The new Israeli government's far-reaching economic program is aimed at lowering taxes, reducing government spending, cutting red tape and reforming restrictive labour practices. As a result, residential construction is booming and foreign investment is growing. In fact, Israel has become something of a magnet for foreign investment, which is supplying the capital that Israel needs to grow and to prosper. Israel has also been busy expanding its trade ties. It has signed free trade agreements with Turkey, the Czech Republic, Slovakia, as well as with the European Union and the United States. And complementing Israel's economic reforms are its growing political relations. At the end of 1995, Israel had re-established relations with more than 40 countries that had broken ties in the 1960s and early '70s. This is a welcome development and stands as further evidence of a new Middle East -- a Middle East that is dynamic and outward looking; embracing change and expanding opportunities. It is a Middle East that will not allow its past to limit its future. And it is in this Middle East that Israel is poised to become an economic power. It is, therefore, an opportune time for Canada to strengthen its presence in this growing market through the Canada-Israel Free Trade Agreement. Trade between our two countries is modest, but growing. Two-way trade last year was up 37 per cent, to stand at $450 million. Our exports stood at $216 million in 1995, up 49 per cent from the previous year. I am confident, Mr. Speaker, that with the implementation of this Agreement, those figures will grow -- and grow dramatically. In fact, even before this Agreement was signed, companies in both countries began to retool and adjust their business plans. And Air Canada's service to Israel is helping to speed the passage of business, goods and people between our nations. In 1995, more than 68 000 Israelis visited Canada. If this trend continues, Canada will welcome more than 100 000 tourists from Israel this year. Now, with the signing of this Agreement, the pent-up demand, the close ties and the vast potential, can all begin to be realized. Canadian and Israeli companies will have duty-free access to each other's markets for industrial goods. And they will benefit from the reduction or elimination of tariffs on agricultural products. Many Canadian companies -- some well known, such as Bombardier and Newbridge and some not so well known, like Claridge Israel, Global Upholstery, Reikh International, Signatel and Telespace -- are on the ground, exploring new partnerships and bidding on new infrastructure projects. These firms are spearheading an increase in exports and imports between our nations. They are boosting investment and encouraging innovation through R&D and joint ventures. All of their efforts and those of others, will be made much easier by the Agreement we are considering today. While Israel as a whole represents a healthy and expanding market for Canadian goods and services, there are some sectors that offer particularly strong potential for Canadian companies. These include advanced electronics and communications systems; power and energy projects; oil and gas exploration; as well as agri-food products and environmental technology. All of these are areas in which Canada enjoys world-class expertise, and all of these are areas of opportunity in Israel. Mr. Speaker, this Agreement provides access to the Israeli market. But we realize that access is only half the battle; that companies must be made aware of the opportunities that await them. And Canadian companies wanting to expand into Israel will have a wealth of support. The Canadian embassy in Tel Aviv is working hard to line up potential partners and match up Canadian goods and services with Israeli buyers. Another important vehicle that our companies can use is the Canada-Israel Industrial Research and Development Foundation. Established in 1993 to promote industrial co-operation, it has played a key role in matching Canadian firms with ones in Israel. To date, the Foundation has approved 11 projects, worth over $9 million, in collaborative R&D. The Foundation also provides repayable grants for promising joint ventures. I am pleased to note that the Government of Alberta and the Atlantic Canada Opportunities Agency [ACOA] have signed agreements to co-operate with the Foundation. A similar agreement is in the works with the Federal Office of Regional Development in Quebec [Ford-Q]. The involvement of these governments and agencies is very encouraging because it means a much broader market will be able to tap into the benefits of the Foundation. This, in turn, will lead to more partnerships and more opportunities. In addition, EDC [Export Development Corporation] offers four lines of credit for buyer credit financing in Israel. And Canadian companies looking for financial or risk management services will find a ready source in EDC. So the support is there, and now that governments have played their part in establishing the infrastructure for free trade, it will be up to the private sectors in both countries to step forward and realize the potential of this new relationship. Let me turn now to the substance of the Agreement, Mr. Speaker. I won't go into a great deal of detail, but let me just outline its main elements. <ul> <li> Under this Agreement, all tariffs will be removed from industrial products, beginning January 1, 1997. The only exceptions are that women's swimwear (at Canada's request) and certain cotton fabric (at Israel's request) will continue to be subject to tariffs. Even here, however, the tariffs are scheduled to be phased out over two and a half years. <li> Duty-free access or low duties will be applied to a variety of agricultural and fisheries products exported by either country. For Canada, such exports include grains, grain products, beef, salmon, maple syrup, alcoholic beverages and various processed foods. <li> The Agreement also provides clear and straightforward rules of origin -- a key component of any successful trading relationship. And I would point out that these rules of origin are generally less restrictive than those under the NAFTA, reflecting the structure and openness of our respective economies. <li> To resolve any disputes that might arise under the Agreement, both sides have agreed to be governed by a binding dispute settlement mechanism. It is worth emphasizing, Mr. Speaker the areas not covered by this Agreement. Supply-managed dairy, poultry and egg producers are excluded. Cultural industries are also exempt. So too is the Auto Pact. And other areas of trade, such as trade in services and government procurement, will continue to be governed by the World Trade Organization [WTO] rights and obligations. These, then, Mr. Speaker are some of the benefits that this Agreement brings to Canadians. I am proud of the work our negotiators have done, and I am excited by the prospects this Agreement creates. As trade barriers collapse around the world, the possibilities for Canada are virtually limitless. A world of opportunities is opening up before us and we are determined to place Canadians in a position to benefit from them. This Agreement is an important step toward that goal. It gives us access to a dynamic and important market. Strong bonds of friendship will be complemented by stronger economic ties, and we will be partners -- not only for peace, but for progress, not only for security but for prosperity, and not only for survival but for enrichment. This Agreement is not a leap of faith so much as it is a declaration of confidence -- confidence in the ability of Canadians to compete and compete successfully, anywhere in the world. To those who say that the old trade barriers are simply being replaced by new trading blocs, this Agreement offers eloquent proof to the contrary. To those who say that we must diversify our trade around the world, this Agreement offers reason for optimism. With freer trade as our guide and our goal, let us continue to open up a world of opportunities to Canadians, confident that we can compete in that world -- and win. Thank you.</li> </ul> </body> </html>

2007 - 2006 - 2005 - 2004 - 2003 - 2002 - 2001 - 2000 - 1999 - 1998 - 1997 - 1996

Print friendly version - Printing Tips



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