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<title>MR. PETTIGREW - ADDRESS AT THE PLENARY SESSION, MEXICO CITY, MEXICO</title>
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<p><font face="Arial"></font><font face="Arial" size="+1"><strong><u>CHECK AGAINST DELIVERY</u></strong></font></p>
<p align="CENTER"><font face="Arial" size="+1"><strong>NOTES FOR AN ADDRESS BY THE HONOURABLE PIERRE PETTIGREW, MINISTER FOR
INTERNATIONAL TRADE, AT THE PLENARY SESSION</strong></font></p>
<p><font face="Arial" size="+1"><strong>MEXICO CITY, Mexico</strong></font></p>
<p><font face="Arial" size="+1"><strong>June 3, 2002</strong></font></p>
<p><font face="Arial"></font><font face="Arial">As I said earlier this morning to members of the Canadian Chamber of Commerce, it is a pleasure to be
in Mexico, heading this Canadian business mission.</font></p>
<p><font face="Arial">It is also a great honour to have Licenciado Angel Villalobos here with us this morning. Licenciado
Villalobos is Mexico's Under-Secretary for International Trade Negotiations, and I understand that he
has only just taken up his new responsibilities. After experiencing first-hand some of the events that
Mexico is hosting this year, such as the APEC [Asia-Pacific Economic Cooperation forum] and NAFTA
Ministerial meetings I attended last week, and seeing the upcoming multilateral agenda, I can tell you,
Mr. Villalobos, that you will not be resting too much in the coming months! We in Canada look forward
to working closely with you and Economy Secretary Derbez as you carry out your new responsibilities.</font></p>
<p><font face="Arial">Before giving Licenciado Villalobos the floor, I would like to say a few words about Mexico's economic
and trade liberalization achievements and what they have meant for Canada. Quite simply, Mexico has
succeeded in turning the possibilities of trade liberalization into practical realities, transforming Mexico
into a vibrant marketplace of enormous potential for Canadian companies. My confidence comes largely
from witnessing the remarkable transition that the Mexican economy has made since the early 1990s.
As Mr. Villalobos will no doubt tell you, in the last 10 years Mexico has positioned itself as a leading
player in the world of international trade. Building on the success of NAFTA, Mexico has established a
wide network of free trade agreements, both in Latin America and in Europe, that have transformed
Mexico into one of the world's top exporters.</font></p>
<p><font face="Arial">Nor should we underestimate the magnitude of the effects that NAFTA has had on the political and
economic transformation of Mexico. The number of structural and economic reforms that have been
carried out since the implementation of NAFTA is commendable. And President Fox has set in motion
ambitious plans to meet the challenges of the 21st century.</font></p>
<p><font face="Arial">A clear example of how Mexico's economic and trade transformation has affected Canada is the fact
that while the recent slowdown in the U.S. economy affected all of us, Canadian exports to Mexico still
grew by 12 percent in 2001, and Canada's market share in Mexico continues to grow. If we were able to
increase our exports to Mexico during an economic downturn, I am confident that this performance will
only improve in the coming years, as the economy rebounds. As this occurs, we will no doubt see
Mexico increasingly integrating itself into the North American economy.</font></p>
<p><font face="Arial">With economic growth comes an evolution toward a knowledge-based economy that is gradually
transforming Mexico's import requirements. And, as Mexico moves toward higher value added
manufacturing, Canadian companies are well equipped to provide Mexican firms with the products and
services they need. Simply put, our world-class technology and expertise provide the perfect fit.</font></p>
<p><font face="Arial">We already have some concrete examples of Canadian companies taking advantage of the excellent
business climate prevailing in Mexico. For example, TransAlta won two contracts in the last two years
for the construction and operation of two power plants, one in Campeche, the other in Chihuahua.
SR Telecom recently signed a US$60 million contract with the Mexican telephone company Axtel for the
installation of wireless voice transmission systems across Mexico.</font></p>
<p><font face="Arial">Yet another example is the signing in December last year of a large contract by International
Datacasting Corporation to provide its broadband data and video distance learning system to the
Mexican government. The system will be used to provide training and skills upgrades to personnel at
100-plus remote sites across Mexico.</font></p>
<p><font face="Arial">With our knowledge-based advantage, Canadian firms are well positioned to pursue new opportunities
in a variety of sectors, including agri-food products and technologies, security equipment and services,
distance education, environmental technologies, electrical power equipment and services, information
technology and telecommunications. These sectors and others will be covered in workshops involving
the participation of Mexican experts later today.</font></p>
<p><font face="Arial">With such a busy schedule ahead, I will not take up any more of your time. It is one thing for Canadian
business people to hear what a Canadian minister has to say about the Mexican government's trade and
economic policy and the business climate in Mexico. It is quite another to hear it directly from the
Mexican government.</font></p>
<p><font face="Arial">On that note, I would like to thank Licenciado Villalobos on behalf of all of the Canadian contingent for
agreeing to spend some time with us this morning. I speak for all of us when I say that we are eager to
learn more about Mexico's economic and trade agenda. And so I would like to pass the podium over to
you and wish you a warm Canadian welcome on behalf of the Canadian business community.</font></p>
<p><font face="Arial">Thank you.</font></p>
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