April 24, 1998 No. 99

MINISTER MARCHI TO ATTEND PARIS MEETINGS

International Trade Minister Sergio Marchi will participate from April 27 to 30 in meetings in Paris of the Organization for Economic Co-operation and Development (OECD), the Quadrilateral Trade Ministers (Quad), the North American Free Trade Agreement (NAFTA) Commission, and the Canada-France Joint Economic Commission. Secretary of State (International Financial Institutions) Jim Peterson will take part in the OECD meeting to provide his expertise on the effects of the Asian crisis and the role of the OECD in responding to the crisis.

"These meetings highlight the diversity of Canada's trade and investment interests and the leading role we play in the global trading system," Mr. Marchi said. "A key Canadian objective is to continue to seek opening foreign markets for Canadian exporters and investors while safeguarding our vital interests in culture, the environment, labour standards, and social policy."

At the OECD meeting from April 27 to 28, ministers from the 29 member countries will consider an OECD report on the benefits of trade liberalization. As well, they will consider next steps for the negotiations on a Multilateral Agreement on Investment (MAI), now expected to continue beyond the current April deadline.

"As I have said before, we will only sign an MAI that fully supports our values and secures our interests," said Mr. Marchi. "We will retain our freedom to act in the areas of culture, the environment, labour, health care, education, social programs, programs for Aboriginal Peoples and programs for minority groups. We will not be rushed into a deal."

Other themes of the OECD meeting include: responding to the global implications of the Asian financial crisis; challenges and priorities for the OECD; achieving sustainable growth through the promotion of integrated economic, social and trade policy and sustainable development; and strengthening the multilateral trade and investment system.

"I welcome the opportunity that the OECD provides for an informed dialogue leading to a thorough understanding and true assessment of the problems such as the effect of the Asian crisis," said

Mr. Peterson.

The Canada-France Joint Economic Commission and bilateral meeting with Mr. Marchi's French counterpart, Jacques Dondoux, will take place in Paris following the OECD conference on April 28. The NAFTA Commission meeting of Canadian, American and Mexican trade ministers is scheduled for April 29. The NAFTA Commission is the highest political body tasked with overseeing implementation of the NAFTA. The Quad meeting of Canadian, U.S., European Union, and Japanese trade ministers will be held in Versailles, near Paris, from April 29 to 30.

Among the themes and objectives for these meetings are:

The Quad: The ministers will discuss the World Trade Organization (WTO) ministers' meeting and the 50th anniversary of the General Agreement on Tariffs and Trade (GATT) in Geneva in May; the trade agenda for further negotiations in areas ranging from services to pharmaceuticals; the accession of new members to the WTO; the global electronic commerce; the Asian financial crisis; and the integration of least-developed countries into the global trading system;

The NAFTA Commission: The Canadian, American, and Mexican ministers will review and provide direction to the extensive NAFTA work program to enhance trade liberalization benefits and discuss co-operation in broader multilateral and regional trade efforts; and

The Canada-France Joint Economic Commission and bilateral meeting: The Canadian and French ministers will discuss development of bilateral trade and co-operation in areas such as agriculture, multi-media and aeronautics, as well as a review of multilateral trade matters including the next WTO ministerial meeting, the Asia Pacific Economic Cooperation (APEC) forum, and the Free Trade Area of the Americas (FTAA).

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Backgrounders are attached.

For further information, media representatives may contact:

Leslie Swartman

Office of the Minister for International Trade

(613) 992-7332

Doug Secord

Office of the Secretary of State (International Financial Institutions)

(613) 992-6670

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department of Foreign Affairs and International Trade Internet site: http://www.dfait-maeci.gc.ca

Backgrounder

CANADA AND THE OECD

Founded in 1961, the Organization for Economic Co-operation and Development (OECD) replaced the Organization for European Economic Co-operation set up in 1948 in connection with the Marshall Plan. Based in Paris, the OECD provides a forum for government representatives of the industrialized democracies to discuss and co-ordinate economic, trade and social policies.

There are 29 member countries: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. Canada was a founding member. The European Commission is an observer.

These member countries account for about 70 percent of the world's economic output. One country is in the accession

process -- Slovakia. The OECD has an annual budget of $US 200 million and employs a staff of 1,500 at its Secretariat. Canada contributes 2.85 percent of the budget, the United States contributes 25 percent and Japan about 24 percent.

For the first time in the history of the Organization, a non-European and Canadian, Donald Johnston, assumed the duties of Secretary-General on June 1, 1996.

The OECD is the lead international institution for providing analysis and policy advice on key issues of importance to Canada and its major partners, including growth and employment, social reform, and strengthening the multilateral economic system.

As is the case for other multilateral organizations, such as the World Bank and the United Nations organizations, the OECD must implement reforms to respond to budgetary cuts and to make the OECD more focussed, efficient and effective.

Canada supports the role of the OECD in promoting further trade liberalization and the integration of developing countries into the multilateral system, as well as the reform efforts of transitional economies in Eastern Europe.

In 1995, Canada, together with the other OECD member countries, agreed to negotiate a Multilateral Agreement on Investment (MAI), a deal whose central purpose is to negotiate a multilateral framework of rules for investment similar to the one that already exists for international trade.

April 1998

Backgrounder

CANADA-FRANCE: BILATERAL ECONOMIC RELATIONS

France ranks third among Canada's economic partners in Europe, and stands seventh among its global after the United States, Japan, the United Kingdom, Germany, China and Mexico. Our trade relations with France involve a growing proportion of value-added goods. There is a marked increase in tourism and expanding scientific and technological exchanges.

France is one of Canada's 10 priority markets. In 1997, our bilateral trade exceeded $6 billion for the first time, reaching $6.6 billion. Our exports totalled $1.5 billion and Canadian imports amounted to $5.1 billion. Investments from France account for $5.7 billion. There are more than 380 French companies across Canada, representing some 40 000 jobs.

France-Canada trade cannot be defined solely in terms of trade in goods. Trade in services is growing just as vigorously and totals more than $1.6 billion, or 30 percent of the value of trade in goods. Tourism alone is responsible for almost a million visitors a year, representing about $1 billion in revenues divided almost equally between the two countries. The 470 000 French tourists who visited Canada in 1996 spent about $520 million and supported 14 000 jobs, mainly in small and medium-sized businesses.

There is a tradition of strategic partnerships and technological exchanges between France and Canada, especially in the high technology field. Our two countries also enjoy productive relations in the area of science and technology. The next Canada-France Joint Scientific Commission is to be held in Canada in September 1998.

The Canada-France Joint Economic Commission, held every two years, is an important means of further developing our trade and economic relations and of reviewing our bilateral and multi-lateral trade agendas. This year, the Commission will focus particularly on agriculture, multimedia and aeronautics.

April 1998

Backgrounder

THE NORTH AMERICAN FREE TRADE AGREEMENT,

THE NAFTA COMMISSION, AND CANADIAN TRADE

The North American Free Trade Agreement (NAFTA) and side agreements on labour and the environment entered into force on January 1, 1994.

The NAFTA Commission

The NAFTA Commission is the most senior political body overseeing implementation and further elaboration of the NAFTA. It includes cabinet-level representatives -- in practice, the trade ministers -- from the three NAFTA partners, Canada, Mexico, and the United States.

The meeting in Paris on April 29, 1998, is the fifth NAFTA Commission gathering since the NAFTA entered into force. Mexico is chairing the Paris meeting.

Trade and Jobs under the NAFTA

Canada's merchandise exports to the United States rose to $244 billion in 1997, a 63 percent increase from the outset of NAFTA in 1994. Exports to Mexico climbed 54 percent to $1.3 billion in the same period. Statistics Canada reports that during that time, there was a net increase of more than 1 million jobs in Canada.

The NAFTA has helped make Canada even more attractive to investors because of improved access to the Mexican and U.S. markets and clear rules on trade and investment. U.S. direct investment in Canada grew 21 percent between 1994 and 1996 while Mexican investment in Canada rose 35 percent in the same period. Investment in Canada contributes to job creation and economic growth.

A survey of North American businesses, carried out by the Bank of Montreal and its U.S. and Mexican affiliates, and released in March 1998, found that 67 percent of those surveyed will pursue "significantly more" business opportunities throughout the continent in the next two years. As well, the survey findings support the view that the NAFTA has contributed to sales and job growth in Canada with the vast majority reporting either more hirings (47 percent) or no job change (41 percent).

April 1998

Backgrounder

THE QUAD

The Quadrilateral Trade Ministers' Meeting (Quad) is an informal group of trade ministers from Canada, Japan, the European Union, and the United States, which meets approximately twice a year.

Created in 1982 to examine major global trade and investment issues, the Quad is an important consultative body allowing international trade ministers to exchange views on key trade and investment matters.

The Quad was instrumental in achieving significant progress leading to the successful conclusion of the Uruguay Round of multilateral trade negotiations in 1996.

The Quad provides a forum for discussing the shape and scope of the multilateral trade agenda, and also offers Canada's trade minister the opportunity to discuss bilateral issues on a one-to-one basis with each of the other three ministers.

Ministers attending this Quad meeting will consider issues such as the current multilateral trade agenda under the World Trade Organization (WTO), including the Ministerial conference from

May 18 to 20, regional trade initiatives, the Asian financial crisis, and the integration of the least-developed countries into the global trading system.

April 1998