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NOTES FOR AN ADDRESS BY THE

HONOURABLE SERGIO MARCHI

MINISTER FOR INTERNATIONAL TRADE

TO THE

BUSINESS NETWORKING LUNCHEON

WITH THE

CANADA-POLAND BUSINESS CLUB

AND THE CANADIAN BUSINESS DELEGATION

WARSAW, Poland

January 26, 1999

(8:00 a.m. EST)

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca

It is a real pleasure to be with you today, here in Warsaw. I am also delighted that so many of my Parliamentary colleagues have joined us. I know that, like me, they are looking forward to exploring the Old Town and its historic marketplace.

Let me just say how much we have enjoyed the wonderful hospitality of our Polish hosts. The warmth of your greeting has reinforced the strong bonds between our two countries and reminded us that, when we are in Poland, we are indeed among friends.

Nowhere is that relationship understood -- or exemplified -- better than here at the Canada-Poland Business Club. In just a few short years, this club has established itself as a driving force for increased trade and investment between us, and so it is with great admiration and appreciation that I join you this morning.

Just over two years ago, my predecessor as Minister for International Trade, Art Eggleton, addressed the Canada-Poland Business Club and delivered a very simple message: Canada wants to do business with Poland.

On that visit, Minister Eggleton led a delegation of some 25 Canadian companies and organizations. Today, I am joined by more than 70 Canadian companies -- a strong indication of the growing interest in Poland and of our commitment to developing even stronger commercial ties.

Today, my message is not only that we want to do business with Poland, but also that we are here not for the quick deal but for the long term. We are not fair-weather friends. Indeed, we want to become partners in your future -- a future filled with promise and bursting with potential.

And when we look at the strides Poland has made in just the past few years, when we see the obstacles you have overcome and the reforms you have introduced, we know that your resolve is clear, your determination firm and your purpose plain.

You have embraced a free market economy and, in doing so, have established your country as the key player in Central Europe.

Canada has long recognized Poland's potential, and, not surprisingly, you are already our most important trading partner in Central Europe. Two-way trade between us now stands at over $311 million -- more than double what it was just six years ago.

And that remarkable growth is continuing. From January to September 1998, our two-way trade increased by about 22 percent over the same period the previous year.

And as Poland and Canada have increased their trade, the number of success stories has multiplied. Just yesterday, I had the honour of witnessing the signing of important agreements in the areas of construction, environment, energy, professional and financial services, and education.

Three recent examples demonstrate the increasing complexity and scale of Canadian investment in Poland:

Royal Europa -- the European arm of Royal Technologies Group from Ontario -- has invested US$34 million to build a facility that will manufacture building products for the vast European and East European markets. A further US$30 million investment is expected in subsequent stages of the project.

McCain Foods has also decided to make a significant investment in Poland. The company will be building a factory in Strzelin, with plans to start production later this year. At US$54 million, this is one of the largest Canadian investments ever made in Poland and is a clear demonstration of Canadian confidence in this market.

Canadians are also involved in one of the most exciting building projects currently under way in Poland: the construction of the grain handling facility and terminal at the port of Gdansk. Straight Crossing Group, the Saskatchewan Wheat Pool and Dessaport International are the Canadian partners in the U.S.-Canadian consortium that is behind this project, the first phase of which is worth nearly US$77 million.

Canada's interest in developing trade with Poland is also reflected in the growing activity of Canada's export credit agency, which has had relations with Poland since the 1970s. Canada's Export Development Corporation (EDC) works closely with your own export credit agency, KUKE, to promote Canadian and Polish exports to third markets. In the area of project finance, EDC recently joined the Europort financial syndication.

So we are moving from strength to strength, and we are now at the point where we can really boost our commercial relationship into high gear.

And one of the most important aspects of our trade in goods is its breadth: no single sector accounts for more than 15 percent of our total trade in any given year. Spreading over many sectors, the foundation we have built is ready to support a much larger and richer volume of trade.

As we set about developing that trade, I believe one of the greatest obstacles we must overcome is our mutual lack of awareness -- of one another and of the opportunities that await us. I hope that visits such as this one will remove the blinkers and let both sides see the tremendous future that can be ours.

I know that the work done by a number of organizations in both Canada and Poland is beginning to alert businesspeople to the tremendous opportunities that await us. And I want to thank all of them -- many of which are represented here today -- for their efforts.

As we strive to expand our commercial partnership, we also need to recognize and champion the fact that we begin with four distinct advantages.

First, there is the long-standing friendship between our two countries -- a friendship reinforced by the nearly 800 000 Canadians of Polish descent. Today, the sons and daughters of those immigrants are among the leaders of Canadian business, and they provide a natural bridge between us.

We have also seen the growing bonds between the business communities in both countries. This is especially true between our respective small and medium-sized businesses -- a fact that augurs well for our future together.

Second, we are countries that also share a history of co-operation on the international scene -- from fighting side by side on the Western Front during World War II, to joint peacekeeping through the United Nations, to our current preparations to become allies in NATO.

Third, there is our ready access to larger markets: just as Poland can act as a gateway to the vast European markets, Canada can provide entrée to its trading partners in North America, Latin America and Asia-Pacific.

So not only can we be partners with one another, but we can also be bridges for one another into large and lucrative markets.

Fourth, I believe our efforts to increase trade and investment will prosper because there is a nearly perfect match between Poland's requirements and Canada's expertise.

For example, among Poland's most pressing priorities is the need to upgrade its telecommunications and information technology capacity, so that it can benefit from the new wave of technology sweeping the globe. Canada is a world leader in this area. And some of that expertise is represented in the business delegation on this trade mission.

There are many sectors in which Canada offers outstanding products and services that will be vital to Poland's future prosperity.

Of course, there are challenges to be overcome. For instance, Canada faces a handicap in exporting to Poland because of the higher duties imposed on our goods as opposed to those of the EU [European Union].

In addition, complicated and expensive certification and safety requirements are impediments to the free flow of Canadian goods into Poland, and are very real deterrents to some Canadian companies doing business here.

We are encouraged, therefore, by Poland's Council of Ministers' recent endorsement of the proposed law on testing and certification, which should greatly reduce the number of Canadian products to be tested.

In the days ahead, we will be focusing on these and other issues, so that the playing field is levelled and the key impediments to expanding commerce between us are eliminated.

Many years ago, a great explorer wrote, "The sea is dangerous and its storms terrible, but these obstacles have never been sufficient reason to remain ashore."

In the days ahead, we too will face challenges. No relationship that has such ambitious plans as ours could expect otherwise. But I am confident that together we can weather those storms.

After all, Poland has shown itself capable of rebuilding from the ruins of previous tempests. And after all, Warsaw's motto is "It defies the storms."

So let us continue our common journey with determination. And let us resolve not to be blown off course or diverted from our destiny, but to proceed as partners and continue as friends.

If we do so, I am convinced that the future of the Canadian-Polish trade relationship will be very bright indeed.

Thank you.