99/21 CHECK AGAINST DELIVERY

NOTES FOR AN ADDRESS BY

THE HONOURABLE SERGIO MARCHI

MINISTER FOR INTERNATIONAL TRADE

TO THE CALGARY AND CANADIAN CHAMBERS OF COMMERCE

CALGARY, Alberta

March 15, 1999

(10:40 a.m. EST)

Thank you, to the Calgary and Canadian Chambers of Commerce, for your generous invitation. Calgarians are famous for their hospitality, and you have certainly continued that tradition here today.

As you can see, a number of officials are with me this afternoon. Deputy Minister Donald Campbell and Assistant Deputy Ministers George Haynal, Lucie Edwards and Kathryn McCallion are all here to answer the questions that I can't.

We are also fortunate to have with us today some 20 ambassadors and high commissioners from our embassies in Latin America and the Caribbean. All of them are doing an outstanding job of representing Canadian interests in that dynamic region.

Canada's future is certainly tied to that of our hemispheric neighbours, and we are turning our attention south of the Rio Grande as never before. So thank you again for your contributions on our behalf.

Today I would like to speak very briefly about the upcoming rounds of international trade negotiations and the need to make the process more transparent and more accessible to Canadians from coast to coast.

As you know, this is an important year on the trade front since WTO [World Trade Organization] ministers will be meeting in Seattle, in December, to embark on a new round of negotiations. In addition, Canada is chairing the Free Trade Area of the Americas [FTAA] negotiations until October of next year.

Canada intends to be at these tables, because we want to help shape the direction of those talks. We also know that we have benefited from participating in a rules-based trading system, where right, not might, is the basis for resolving disputes. And we intend to remain at the forefront of trade liberalization around the globe.

There can be no doubt that we live in exciting times. Around the world, trade barriers are falling down, opportunities are opening up, and the possibilities for Canadians to create better lives for themselves and for their children are greater than at any time in our history.

Technology is collapsing distances, and there is an ever smaller distinction between international and domestic markets. We are able both to buy from and sell into markets that had previously been closed to us.

For a trading nation such as ours, these developments are to be welcomed. Last year, Canada posted a record $323 billion in exports. That success in international markets is important because more than 40 percent of Canada's GDP [gross domestic product] is generated by trade, and one in three jobs in this country is tied to our ability to sell our goods and services abroad.

One of the areas that holds the most promise is Latin America and the Caribbean. And as chair of the FTAA negotiations, Canada is positioned as a leading player in one of the world's most dynamic regions.

When the FTAA negotiations are concluded in 2005, the FTAA will be the world's largest free trade region, with a population of 800 million and a combined GDP of $9 trillion. Canadians are already realizing the opportunities that this region provides: in the past five years, two-way trade between Canada and the Americas has doubled -- and our investment in the region has tripled!

Canada intends to strengthen its ties with this vibrant market, and I am very much looking forward to hosting the next meeting of the hemispheric trade ministers in Toronto, November 3 and 4, immediately following the Americas Business Forum on November 1 and 2. And I am pleased that Kent Jespersen, Chairman of La Jolla Resources International, based in Calgary, has been appointed chair of that forum.

Certainly, no one understands the possibilities and the opportunities afforded by international trade better than Albertans. Almost a third of this province's GDP is generated by exports. And last year, the value of those exports stood at more than $30 billion.

To be sure, the course of trade liberalization does not always run smoothly, and when American farmers blockaded the border, we were pleased to defend the interests of Alberta's farmers by working at the highest levels to resolve the impasse. And I can assure you that we will remain vigilant on their behalf.

The fact is that the federal government and the Alberta government see eye to eye on trade, and I value the support that Premier Ralph Klein has given to our efforts to open markets and expand opportunities for Canadians.

As you know, the Premier was part of the Team Canada Trade Mission to Latin America, and while there pursued new opportunities for partnerships with Mexico in the energy sector. This relationship was furthered by the Premier's mission to Mexico in January, and I understand that he will be hosting "Energy Mexico 99," right here in Calgary, next month.

There were also a number of Calgary companies on my recent trade mission to the Middle East, including the Southern Alberta Institute of Technology, Petro Staff International and EFA Software Services Ltd. The Department of Foreign Affairs and International Trade [DFAIT] has also enjoyed working with Alberta Economic Development on a new Web site devoted to oil and gas services and equipment.

So the opportunities presented by international trade are clearly at the forefront of this province's thinking. On a national level, polls tell us that about two-thirds of Canadians support freer trade.

But the point is that our country has discovered that we have far more to gain from trade liberalization than to fear from it. And we have clearly established ourselves as a trading powerhouse in the world.

At the same time, globalization presents new challenges for policy makers and business people alike. One of the challenges we face is the changing nature of trade negotiations themselves. Let me explain what I mean by that.

It used to be that trade negotiations dealt primarily with things like tariffs and other so-called border issues that prevented the products of one country from entering another. But today, with many of the tariff issues resolved, the focus has shifted to other issues that could impede trade -- such as standards, licensing and approval procedures; product and professional certifications; and, more broadly, the regulatory framework.

All of these areas have traditionally been the purview of individual states. So too have environmental policy, social and cultural policies, and competition and investment policies.

Now, these are increasingly linked as trade issues, and discussed in such forums as the WTO.

The fact is that our participation in the world economy -- through our trade agenda -- has now become an integral part of our domestic political agenda of jobs, growth, security and social programs. And just as all politics is local, so too is trade.

As trade negotiations expand and touch more directly on the daily lives of Canadians, it is more important than ever that we consult the people who are affected. Secrecy serves no one, and the days of negotiating behind closed doors are over.

Indeed, in order to build public support and understanding for international trade, I believe we need to do three things, both internationally and at home:

• First, we need to make the whole process more transparent. Canadians want their governments, and international institutions, to be more open and accountable. As we construct the framework for the global economy, we must ensure that there are no back rooms.

• Second, we need to be more responsive. When Canadians express their concerns -- whether over labour standards or human rights, or a perceived loss of sovereignty -- we cannot dismiss them as overreactions of the uninformed. We need to address these concerns head on, and present Canadians with the facts.

• Third, and related to the other points, we need to be more inclusive. We cannot continue to carry on discussions about trade and globalization over the heads of the people. The changes we introduce are felt by individuals -- and if history teaches us anything, it is the importance of building a strong consensus on issues that affect our people so directly.

  That is why I am so excited by the consultations that we have recently begun with Canadians on our overall trade agenda. Just a few weeks ago, we posted a notice in the Canada Gazette inviting all Canadians to express their views on this challenging new trade agenda. Soon, the Standing Committee on Foreign Affairs and International Trade, as well as the Sub-Committee on International Trade, will fan out across the country, providing Canadians with an opportunity for input on both the WTO and FTAA trade agendas.

  Similar hearings are already going on with respect to agricultural issues, and they have been very successful in identifying concerns and anticipating problems.

  In order to make it as easy as possible to communicate with the government, we will be using the DFAIT Web site to post information on the issues being negotiated, including the papers that Canada is tabling at the WTO and in the FTAA negotiations, as well as to receive Canadians' input on the progress we are making.

  These efforts are being made with a single goal in mind: to provide an opportunity for input from all elements of our society. Quite frankly, we have a good idea of what's being said in the nation's boardrooms -- we need to hear what's being said in the nation's living rooms.

  So I hope that your Chambers will participate in that process.

  You know, I believe that part of the reason for some of the concerns with trade liberalization is the singular failure of those of us in government -- and those of you in the private sector -- to explain the benefits of freer trade and to encourage participation in it.

  To those with genuine concerns about the impact of freer trade, we need to offer not vague reassurances, but specific examples. We need to show that international trade isn't something that happens "out there" to other people -- it is something that takes place in communities just like Calgary, and it is bringing real benefits to the businesses you represent.

  This morning I met with a number of CEOs from Western Canada to discuss their role in the FTAA process, and I am here today to ask for your help -- to demonstrate the benefits of trade liberalization and to bring to all parts of the country the kind of prosperity that you enjoy here in Calgary.

  Let's make that case. Let's engage Canadians as never before. Let's open up the process and listen carefully to what they have to say. If we do, I am confident that we can both allay their concerns and enlist their support for a trade agenda that reflects their real priorities.

  I know many of you continue to be bullish on Latin America, despite some of the challenging economic currents. This is really a time for long-term thinking and commitment.

  It is my firm belief that freer trade has the potential to enrich this country beyond our imagination. By pursuing trade liberalization, we can provide Canadians with rewards for their labour, markets for their products and hope for their futures.

  But while freer trade may be an idea whose time has come, it is not an idea whose success is assured. There is nothing predestined about its success, and we need to continue to work hard to ensure that its benefits are fully realized and widely shared.

  I hope that in these efforts all of you will continue to add your voice and play your part.

  Thank you.