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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>MR. PETTIGREW - ADDRESS TO THE HEMISPHERIC TRADE AND SUSTAINABILITY FORUM - QUEBEC CITY, QUEBEC</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> 2001/19 CHECK AGAINST DELIVERY NOTES FOR AN ADDRESS BY THE HONOURABLE PIERRE PETTIGREW, MINISTER FOR INTERNATIONAL TRADE, TO THE HEMISPHERIC TRADE AND SUSTAINABILITY FORUM QUEBEC CITY, Quebec April 17, 2001 (10:15 a.m. EDT) Introduction It is a pleasure to join you this morning at the opening of this important symposium. I would like to commend those responsible for this impressive gathering. As we prepare for the opening of the Summit of the Americas, which is now just days away, I can think of few issues more deserving of our attention than the relationship between trade and sustainable development. The two issues are, of course, closely linked. By its very nature, trade has an impact on the economy, the environment and social equity -- the three essential elements of sustainable development. As a result, depending on how trade is managed, it can either promote or weaken the principles of sustainable development. In my remarks today, I would like to discuss some of the steps we can take to ensure that trade bolsters sustainable development for the greater good of the people of the Americas, and indeed of the entire world. I want to assure you that, for me, this is far more than just required political rhetoric -- it is a personal and long-held conviction. I engage in debate quite often with those who blame human rights abuses and poverty on trade and capitalism. While I feel that governments absolutely must continue to pursue greater social equity and respect for human rights, I simply do not agree with those who contend that trade and capitalism are the causes of these problems. In fact, I take the view that greater openness to trade not only leads to increased wealth but also encourages an exchange of values that promote democracy and enhanced respect for human rights. It is harder to argue, however, that environmentalists do not have a case to make about the effect of capitalism on the environment. I have held this view for many years. In fact, in my 1999 book, The New Politics of Confidence, I expressed my conviction that today's environmental movement is the only vital force challenging capitalism, denouncing its "negative effects" and proposing forceful united action to counter these effects. While I believe this to be true, I still submit that trade is a very valuable tool for social advancement, though I believe that we have an obligation to consider the interaction between commerce and the environment. Importance of Trade First of all, though, let us consider the importance of trade in general. In Canada, at least, it is not possible to overstate its importance. Exports now account for an astonishing 45.6 percent of our GDP [gross domestic product] -- up dramatically from just 25.7 percent in 1990. Every day, Canada does over $2.5 billion worth of business in two-way trade with the rest of the world. Within this hemisphere, things are equally impressive. Since NAFTA [North American Free Trade Agreement] was implemented seven years ago, trade between Canada, Mexico and the United States has grown to over $715 billion a year. Outside of NAFTA, Canada exports nearly $6 billion in goods and commercial services annually to the rest of the Americas, and has invested over $44 billion in the form of direct investment. Obviously, Canada stands to gain a great deal from a future Free Trade Area of the Americas [FTAA]. The FTAA will be the largest free trade zone in the world. With a population of 800 million and a combined GDP of $17 trillion a year, its potential defies the imagination. So do the opportunities it promises. Of course, if we were to content ourselves solely with the commercial and financial rewards, we would be turning our backs on one of the truly great benefits of increased trade: the general improvement of society for the good of all citizens. Let's be clear. I believe that increasing the amount of goods and services we trade is a legitimate and a desirable objective. But it mustn't be our sole objective. In reality, increased trade is important because it allows us to achieve other, more important objectives, such as widespread respect for human rights, a clean environment, better education and improved health services. In short, a better quality of life both for people in our own country and for those living elsewhere. For that reason, I strongly believe that one of Canada's key roles during the FTAA negotiations is to promote the values we hold dear. After all, perhaps the most important things that Canada can share with and export to the rest of the world are its values. Ever since Lester B. Pearson proposed the concept of UN peacekeeping, Canadian values have been recognized and admired around the world. My former colleague Lloyd Axworthy's impressive work on behalf of Canada in pursuit of an international treaty on landmines was another, more recent, example of what I regard as Canadian values influencing global governance. There are also examples of this in some of the nations of our hemisphere. Canada has been recognized for the role we played in helping to strengthen democracy, for providing disaster relief and for our peacekeeping efforts. Inspired by this proud heritage, Canada must ensure that these noble values serve as building blocks for the creation of the FTAA. And there are few values that Canadians cherish more than a regard for our natural environment and a commitment to social equity, two fundamental components of sustainable development. That is not surprising. We Canadians are fortunate to live in a country that has been blessed with great natural beauty -- a country characterized by towering mountain peaks, rugged coastlines, limitless plains, vast forests, an abundance of lakes and rivers, and fresh air. But we must not take this heritage for granted. In addition, we have established a social security system that is the envy of the world, where governments, community organizations, citizens and other stakeholders work together to provide affordable, high-quality education, health care, housing, income support and other services. By protecting the environment and fostering social equity while at the same time building a strong and competitive economy, Canada is proof positive that sustainable development can be more than a dream. Indeed, for us sustainable development is the key to a better future. That is why our government is committed to taking sustainable development into account when planning programs and other activities -- and particularly as we prepare for the Summit of the Americas. I am sure my colleague Environment Minister David Anderson (who will speak later) will be able to tell us about the successful meeting he and his counterparts from the Americas recently had in Montreal. For my part, I would like to comment on some of the key initiatives being undertaken by the Department of Foreign Affairs and International Trade [DFAIT] to strengthen the bond between trade and sustainable development. Agenda 2003: DFAIT's Sustainable Development Strategy The cornerstone of our Department's commitment to sustainable development is, without a doubt, Agenda 2003. Under this sustainable development strategy, we have established six goals, one of which is to "strengthen the linkages between trade promotion and policy and the protection of the environment." Already, this commitment has led to the development of an innovative public policy tool, the Environmental Assessment Framework for Trade Negotiations. The Framework, which was unveiled in February, is a comprehensive blueprint that will enable us to identify and assess the environmental impact of our trade negotiations. Thanks to the Environmental Assessment Framework, the environmental impacts of potential economic effects of trade negotiations will be identified from the very beginning of the negotiating process. The results of the assessment will then guide and assist our negotiators. This new Environmental Assessment Framework will be applied initially to the WTO [World Trade Organization] agriculture and services negotiations, to the FTAA negotiations, and later to those related to any future bilateral or regional trade agreements. Finally, I am especially proud to note that under this new Framework, individual Canadians will have the opportunity to make their views known at various points throughout the environmental assessment process. Promoting Corporate Social Responsibility -- Another Key Part of the Plan Another element of our Department's commitment to enhancing sustainable development is our efforts to promote corporate social responsibility, or CSR. As you know, the term "corporate social responsibility" denotes the positive role that corporations can play in a number of areas, including the safeguarding of the health and safety and core labour rights of their workers, protection of the environment, elimination of bribery and corruption, consumer protection, disclosure practices, and respect for human rights. Though many Canadian firms make a positive contribution to sustainable development in the countries in which they operate, we continue to work domestically to encourage and facilitate private sector dialogue on CSR issues, including the development and implementation of voluntary initiatives such as codes of conduct. Our efforts are based on a three-pronged strategy: Promote the concept of CSR through dialogue, partnerships and information sharing with civil society groups and business, and within government. Support the development of voluntary standards and norms, such as the OECD [Organization for Economic Co-operation and Development] Guidelines for Multinational Enterprises, both domestically and internationally, and work with stakeholders to translate these principles into practice. Work with like-minded countries to build greater support for the principles of CSR internationally. Last June, I endorsed the OECD Guidelines for Multinational Enterprises, along with my OECD Ministerial colleagues. The guidelines are a framework of voluntary standards and principles for responsible business conduct that were developed in consultation with a wide range of civil society organizations. Canada is also supportive of the UN Secretary-General's initiative on the Global Compact, which calls on business leaders to adopt a set of nine broadly accepted international principles. We've also been working to increase Southern nations' focus on CSR by formally introducing the concept at the Organization of American States [OAS] last year and successfully securing a commitment to study it through the adoption of a resolution at the OAS General Assembly held last June in Windsor, Ontario. At the Quebec Summit, we are hopeful that leaders will agree to deepen a hemispheric dialogue on corporate social responsibility. Our efforts to promote CSR are reflected as well in our work with Export Development Corporation [EDC]. The issue of CSR was addressed in the recommendations of the House of Commons Standing Committee on Foreign Affairs and International Trade. In response, we are establishing a mechanism to exchange information and guidance from DFAIT to EDC on human rights developments in relevant countries. I should add that I have asked EDC to provide more targeted support to the environmental sector, to help Canadian companies supply their leading-edge environmental goods, services and expertise to other countries. Canada Working on Many Other Fronts to Promote Sustainable Development Canada is working on many different levels to promote sustainable development. For instance: We are active at the WTO with proposals on improving transparency, as well as on trade and the environment. Our government is working through UNEP [United Nations Environment Programme] in support of strengthening international environmental institutions and co-ordination. We are providing financial support to UNEP and the WTO for capacity-building conferences, and seminars on trade and environment for Latin America and the Caribbean. We established a Trade and Environment Roundtable under the Canada-Chile Environmental Co-operation Agreement. This group meets every six months for a discussion with civil society on specific topics, such as environmental assessments of trade negotiations. We support the activities of the North American Commission for Environmental Co-operation, including its work on understanding trade and environment linkages. Buenos Aires -- Achievements on Transparency and Sustainable Development Another one of my personal priorities throughout the FTAA negotiations has been to make the process more open and accessible to ordinary Canadians. That is why I am very glad that -- after a bit of persuasion -- my counterparts from the rest of the Americas agreed to Canada's proposal to make the draft texts of the FTAA agreement public. I want to congratulate them for taking a leap of faith and embracing openness and transparency. I sincerely believe that accessible information will result in a stronger, more credible agreement. These negotiations will evolve over the next three and a half years, and having the text available this early in the process is not just a historic achievement but, I am sure, a harbinger of good things to come. Governments throughout the Americas are much more attuned and responsive now to the needs and concerns of the public. I predict this trend will manifest itself in more ways as we proceed, and I believe the environment is one area where there is particular reason for optimism. The decision to release the draft FTAA texts was not the only encouraging development to come out of the trade ministers' meeting in Buenos Aires two weeks ago. If you'll permit me, I'd like to quote directly from the official communiqué, so that you get a sense of the strong commitment that was made to policies that will support sustainable development. The communiqué reads: We reiterate that the negotiation of the FTAA will continue to take into account the broad social and economic agenda contained in the Miami and Santiago Declarations and Plans of Action, with a view to contributing to raising living standards, improving the working conditions of all people in the Americas and better protecting the environment. We reiterate that one of our general objectives is to strive to make our trade liberalization and environmental policies mutually supportive, taking into account work undertaken by the World Trade Organization and other international organizations, and to further secure, in accordance with our respective laws and regulations, the observance and promotion of worker rights, renewing our commitment to the observance of internationally recognized core labour standards, and acknowledging that the International Labour Organization is the competent body to set and deal [with] those core labour standards. Take a moment to reflect on the meaning of that communiqué. When we talk about supporting environmental policies and promoting workers' rights, I think it is fair to say that we have come a long way from the trade discussions of the past! FTAA Process Involves Extensive Engagement with Civil Society I am also pleased to mention that, in the context of trade negotiations, the FTAA process is setting a precedent regarding consultations with civil society. Here in Canada, of course, our government has been in constant contact with civil society groups throughout the negotiations. I am pleased to add, though, that at our meeting in Buenos Aires less than two weeks ago, yet another achievement worthy of note was that trade ministers from the Americas re-affirmed their commitment to the principle of transparency, and instructed officials to foster a process of increasing and sustained communication with civil society, to ensure that civil society has a clear perception of the development of the FTAA negotiating process. Given our commitment to linking sustainable development and trade, I am certain that no one will be surprised to hear that we see the Summit of the Americas as an excellent opportunity to promote the concept of policy coherence, with trade, environmental and social policies all reinforcing one another. We believe such a balanced outlook will be instrumental in achieving all three of the Summit's objectives: creating prosperity, strengthening democracy and realizing human potential. In a sense, all of our government's efforts to promote sustainable development are perhaps the best evidence available of the benefits of trade. Canada has a strong economy, a stable political system and a solid policy-making infrastructure. In other words, we have the "capacity" to take a progressive approach to this issue. This is no accident of fortune; the strength of our society and our institutions has been built over many years, and has benefited greatly from the rewards of trade. Increased trade contributes to a nation's economic growth, giving countries added resources to address their social and environmental problems. What the opponents of trade liberalization fail to grasp is that prosperity is a strong foundation for social equity and environmental integrity. And the fastest, surest way to prosperity is trade. In closing, I would like to leave you with these thoughts. You are the experts in your fields. You have come here, just days before a landmark summit, and are in an ideal position to help shape the agenda of the Americas on the crucial question of how trade can advance sustainable development. On behalf of the government leaders preparing to take part in the Summit of the Americas, let me assure you that we would benefit greatly if this symposium produces concrete and practical recommendations that will lead to the win-win-win solutions that we all seek in this area. I would also ask that you reflect on what civil society and the private sector can do to ensure the contribution of trade to sustainable development. In this regard, I encourage you to think about how to build on existing sustainable mining initiatives throughout the hemisphere, and how forest certification can fulfil its potential as a voluntary, market-based tool to encourage and support sustainable forest management. To put it bluntly: your work here in the next two days can make a difference. You can help make the Americas a better place. As I wrote in my book, today's decisions involve not only relationships among states, societies and individuals, but also the relationship of human beings with the rest of the world and with future generations. I wish you all an interesting and rewarding symposium. I look forward with great interest to seeing the results of your efforts. Thank you. </body> </html>

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