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<title>MR. PETTIGREW - ADDRESS AT THE OPENING BREAKFAST OF THE CANADIAN FILM AND TELEVISION PRODUCTION ASSOCIATION 2002 PRIME TIME IN OTTAWA CONFERENCE - OTTAWA, ONTARIO</title>
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<p><font size="+1"></font><font size="+1"><strong><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 PIERRE PETTIGREW,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>MINISTER FOR INTERNATIONAL TRADE,</strong></font></p>
<p align="CENTER"><font size="+1"><strong>AT THE OPENING BREAKFAST OF THE</strong></font></p>
<p align="CENTER"><font size="+1"><strong>CANADIAN FILM AND TELEVISION PRODUCTION ASSOCIATION</strong></font></p>
<p align="CENTER"><font size="+1"><strong>2002 PRIME TIME IN OTTAWA CONFERENCE</strong></font></p>
<p><font size="+1"><strong>OTTAWA, Ontario</strong></font></p>
<p><font size="+1"><strong>February 7, 2002</strong></font></p>
<p>Before I begin with my prepared remarks, I'd like to add my voice to those paying tribute to a great friend of Canada's
cultural sector, Senator Laurier Lapierre.</p>
<p>I would also like to say how pleased I am to join you for this year's Prime Time in Ottawa Conference. </p>
<p>The Canadian Film and Television Production Association (CFTPA) deserves a lot of praise for putting together this
excellent annual event. </p>
<p>Given the important relationship between government and the cultural sector, this conference always provides a wonderful
opportunity for decision-makers in both areas to exchange views on the important issues of the day. </p>
<p>As you can imagine, as Minister for International Trade I am often invited to address various industry groups. While I
greatly enjoy meeting with representatives of different industries and professions, I must say that it is always a special
pleasure for me to speak to those working in the cultural industries.</p>
<p><strong>Symbolic and economic importance of culture</strong></p>
<p>While what you do is certainly a "business," I think it is fair to say that you work in a singular field of human activity. As
the creators and communicators of culture, you help shape national identities.</p>
<p>At the same time, your work is increasingly important to the economies of nations. Your industries are a vital component of
the knowledge economy, and the performance of your industries will have an important impact on the ongoing prosperity
of our societies.</p>
<p><strong>Impact of globalization and new technology</strong></p>
<p>Of course, in this new century cultural industries around the world are confronted with two important new realities:
globalization and new technologies.</p>
<p>Acting in tandem, these two forces are breaching the walls and bridging the distances that once separated different nations,
different societies, different cultures.</p>
<p>As a result, globalization and the technological revolution are creating tremendous new opportunities for performers,
writers, producers, technicians and many others working in the cultural sector. </p>
<p>At the same time, however, they are also presenting new challenges for communities who wish to ensure that their own
distinctive stories and their own storytellers have a strong presence, both within their own societies, and in the broader,
global information society. </p>
<p>And all of us within the international community must be ready to meet those challenges, in order to retain cultural
diversity as part of the global heritage.</p>
<p>In such a context, how can smaller countries, like Canada, help such critical industries as film and television production
address the many challenges they face in the global marketplace? </p>
<p>Given their unequalled capacity to define our national identity, what steps can and should governments take to ensure the
long-term strength of these vital industries?</p>
<p><strong>Trade policy: Key to protecting our culture</strong></p>
<p>Of course, there are a number of mechanisms a government might adopt in pursuit of these objectives. However, from a
trade perspective, I believe the answer has three interconnected elements.</p>
<p>First of all, the countries working to improve the rules-based international trading system must find new ways to ensure that
societies have the ability to preserve and promote cultural diversity. At the same time they must have the ability to take
advantage of all that the trading system offers.</p>
<p><strong>New international instrument on cultural diversity</strong></p>
<p>I am pleased to say that the Government of Canada has been very active in this area, working tirelessly to establish a new
international instrument on cultural diversity. </p>
<p>This new international instrument would set out clear ground rules to enable Canada and other countries to maintain
domestic policies that promote a diversity of cultural expression, while respecting the rules governing the international
trading system and ensuring markets for cultural exports. </p>
<p>We expect that the establishment of a new international instrument will require a sustained effort over the long term. We
are building support for this strategy in a variety of forums, including the International Network on Cultural Policy,
UNESCO, and La Francophonie, and in our bilateral relations.</p>
<p><strong>A firm commitment to cultural diversity</strong></p>
<p>In the meantime, while we seek to build support for this new approach, I can state unequivocally that Canada will not make
any commitment that restricts our ability to achieve our cultural policy objectives, pending development of the new
International Instrument. </p>
<p>This commitment applies to all of our trade negotiations, including the General Agreement on Trade in Services, the Free
Trade Agreement of the Americas, and bilateral Free Trade Agreements.</p>
<p>For example, we recently reiterated that commitment in the WTO Services negotiations, where we also signalled Canada's
interest in the development of a new instrument.</p>
<p><strong>U.S. CVD case: Vigorous defence of Canadian interests </strong></p>
<p>Of course, establishing the new international instrument on cultural diversity is only one part of the solution. To ensure the
long-term vitality of our cultural industries, there are also more immediate needs that must be addressed. </p>
<p>For example, our government recognizes the importance of taking a strong stand to defend legitimate Canadian policies
that may be challenged by foreign interests.</p>
<p>It was that spirit that motivated the Department of Foreign Affairs and International Trade to combine efforts with the
department of Canadian Heritage and my colleague and friend Sheila Copps. Together, we worked vigorously against a
petition presented by the Screen Actors Guild and several other groups, calling for a countervailing duty on film and
television productions imported from Canada.</p>
<p>Of course, many of you here today also played key roles in helping our officials, and for that I thank you on behalf of the
government. </p>
<p>As you know, our concern in this matter had to do with the implications of such a duty for the numerous Canadian creators,
performers and technicians in your industry. </p>
<p>A Canadian government delegation travelled to Washington, and on December 19 met with U.S. authorities to make
Canada's opposition very clear. </p>
<p>Needless to say, we were very pleased when the petitioners withdrew their petition, but we are monitoring developments
very carefully.</p>
<p>Rest assured that our government is firmly committed to defending Canada's policies in this sector, and we will once again
be in the front lines if such a challenge emerges in the future.</p>
<p>Our federal "Film or Video Production Services Tax Credit" is a legitimate mechanism and will stay in place.</p>
<p>In that sense, I was very encouraged by statements made by Prime Minister Chrétien during a Team Canada West trade
mission to Los Angeles in early December.</p>
<p>The Prime Minister's comments on the issue were very straightforward and unequivocal. He said that Canada has a lot to
offer filmmakers and that we are therefore strong competitors.</p>
<p>That fact was reinforced last week, when a new KPMG study identified Canada as the best place in the industrialized world
to do business. </p>
<p><strong>Trade promotion: Opening doors for the cultural sector</strong></p>
<p>Finally, I come to the last element of how the Department of Foreign Affairs and International Trade is working to
strengthen Canada's cultural sector, and that is through active and ongoing trade promotion.</p>
<p>Our trade promotion efforts come in many forms; they include everything from high-profile Team Canada missions led by
the Prime Minister or other trade missions led by me, to the invaluable work of our hundreds of trade commissioners
around the world.</p>
<p>The Department also has a dedicated team of trade specialists who work with a network of trade commissioners and public
affairs officers to promote Canada and Canadian culture and generate exports for cultural industries abroad.</p>
<p>This network operates through our Canadian cultural centres in London, Paris, Berlin, Tokyo, New York and Washington.
In many other places, such as Los Angeles, Sydney, Rome and Taipei, we achieve similar visibility in collaboration with
local partners. </p>
<p>The Trade Commissioner Service, or TCS -- with 530 staff in more than 130 embassies and consulates worldwide,
including in the near future, five officers dedicated to the cultural sector-- is there to help Canadians take advantage of the
business opportunities available in foreign markets. </p>
<p>The Commissioners are very helpful and I encourage you to seek them out. </p>
<p>In addition to services, the TCS also offers valuable programs to the industry. </p>
<p>For example, the Program for Export Market Development -- that's "PEMD" for short -- is helping companies and
associations like the Canadian Film and Television Production Association to do business in new international markets. </p>
<p>It also provides foreign market studies, contacts and events where potential foreign partners can be found.</p>
<p>I am pleased to announce that new funding under the PEMD-Trade Association was approved in January 2002. </p>
<p>In this way, the CFTPA can continue to represent its members in international markets and at festivals, and foster new
partnerships with other national associations. </p>
<p><strong>Conclusion</strong></p>
<p>As you can see, we are working diligently to help our cultural industries increase their exports in a highly competitive and
rapidly changing global marketplace.</p>
<p>I encourage all of you to seek out new opportunities in foreign markets, because when you benefit, we all do. </p>
<p>Strong Canadian producers have the resources to create more high quality Canadian films and programs. Foreign success
can help finance domestic content, adding to, and strengthening, our cultural heritage.</p>
<p>As a result, thanks to the opportunities that are emerging through globalization, international cultural diversity can help
reinforce our national culture. </p>
<p>That's how we can make globalization work for us, leveraging those opportunities, for the good of all Canadians. </p>
<p>Thank you.</p>
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