97/17 CHECK AGAINST DELIVERY

NOTES FOR AN ADDRESS BY

THE HONOURABLE ART EGGLETON

MINISTER FOR INTERNATIONAL TRADE

ON THE OCCASION OF

THE TABLING OF THE REPORT ON

INTERNATIONAL BUSINESS DEVELOPMENT

OTTAWA, Ontario

March 19, 1997

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

Mr. Speaker,

I am pleased today to table this Report on International Business Development. This document, entitled Achievements of the International Business Development Program, responds to recommendations put forward in the November 1996 Auditor General's Report on Canada's Export Promotion Activities.

The Auditor General recommended that the Department of Foreign Affairs and International Trade and Industry Canada establish mechanisms to measure the effectiveness of our international business development activities.

As recommended, we are establishing a performance measurement framework to determine the effectiveness of existing government programs and services, and to help plan for the future.

The International Business Development Report I am tabling today will serve as an annual report card, updating Parliamentarians on the results of our international business development activities.

We must ensure that the services we provide achieve their intended objectives at the least possible cost.

Next year's report will be more detailed and will discuss the preliminary results of our performance measurement system, including:

feedback from clients on the Trade Commissioner Service;

a review of the impact of the Department of Foreign Affairs and International Trade's export, investment and technology development activities;

baseline indicators that have been established to measure Canada's year-over-year success in international markets.

The Government's international business development activities work hand-in-hand with a rigorous bilateral and multilateral trade policy agenda and clearly established market access priorities to ensure that Canadian business has competitive access to world markets.

Mr. Speaker, we are improving the delivery of services because International Trade is an important part of this Government's Job Strategy. The more companies we introduce to trade -- the more jobs for Canada. To that end, we have set a tangible goal of doubling the number of active exporters by the year 2000.

With exports accounting for nearly 40 per cent of our GDP [gross domestic product], international trade has become the engine that drives the Canadian economy. For every $1 billion in increased trade, we sustain 11 000 jobs in Canada -- jobs in every community in Canada.

Promoting Canada's products and services is only one part of our job. We also must sell Canada itself -- as an outstanding place to do business.

Foreign direct investment [FDI] in Canada has a dramatic impact on our job creation. Today, three Canadian jobs out of ten (both direct and indirect), more than 50 per cent of total exports, and 75 per cent of manufacturing exports are directly attributable to Foreign Direct Investment in Canada. Studies suggest that attracting $1 billion of Foreign Direct Investment into Canada results in up to 45 000 jobs over a five-year period.

Mr. Speaker, Canada is meeting the challenge of globalization. Look at our track record.

I cannot talk about international business development without referring to the success of Team Canada trade missions, which have helped bring home 550 business deals worth more than $22.1 billion for Canadian companies.

Lending further credence to the fact that Canadians are succeeding internationally are the 1996 trade statistics. Canada's trade surplus reached the record level of $34 billion, a 20 per cent increase over 1995.

This success has been built on the strength of the Team Canada partnership. We have forged solid alliances with our provincial, municipal and private sector colleagues. By working together in Team Canada, we have been able to deliver the programs and services that Canadian companies need to compete internationally.

Canada's International Business Strategy [CIBS] is the focal point of the federal government's commitment to increasing exports. It has been developed through National Sector Teams and presents winning strategies in 27 key industry sectors.

Mr. Speaker, it is a pleasure for me to announce that the 1997-98 CIBS is now available to the Canadian business community.

International business development programs and initiatives help Canadian businesses become export-ready by providing access to key financial services, market information and export programs.

The federal government and its Team Canada partners continue to forge ahead in their International Business Development endeavours.

Mr. Speaker, working together, we are confident that Canada will continue to prosper as we expand and diversify our markets abroad and as we attract foreign investment and technology flows into Canada.

Thank you.