Thank you for having organized this forum and
providing us all with an opportunity
to share views on one of the most
dramatic challenges we face as in
this new century: globalization.
More than any large country
on earth, Canada’s economy and prosperity
depends on
trade.
Forty-five percent of our GNP
is now export-related.
To maintain our jobs, to maintain
social programs, Canadians must excel,
in the global marketplace.
Because we are not an economic
superpower, we need to ensure that
markets abroad operate under clear
and binding
rules.
This is a key objective of
Canadian foreign policy.
The development of
trading relationships–including
NAFTA and the planned Free Trade Area
of the Americas (FTAA) - is the central
element of trade policy.
NAFTA has been a major success
story of the last decade. In the past
five years, Canadian exports to the
US and Mexico grew by 122%.
Mexican exports have increased
by 170%. Mexico is now the US’s second
largest trading partner.
And just as we have seen the
growing interdependence of the Canada
and US economies, we see the emergence
of an increasingly integrated North
American market.
Democracy and
Summits
We believe the FTAA will build
on NAFTA and can contribute to the
spread of prosperity and the reinforcement
of democracy in the hemisphere.
We think the countries of the
Western Hemisphere can and must work
together more effectively on every
front - social, political and economic
- to promote democracy, development
and sustainable growth. Creation of
the FTAA will be a huge vote of confidence
in the region’s future - a recognition
that democratic, social and economic
reforms have taken hold throughout
the region permanently. The democracy
clause to be agreed by all 34 countries
in a few weeks in San Jose at the
OAS General Assembly makes necessary
for all member countries to be democratic
before they can participate in future
summits. International financial institutions
will also, it appears,
be lending money on condition
that countries adhere to the democratic
clause.
Building on
Canada’s existing free trade
ties with the United States, Mexico,
Chile, Costa Rica and its expanding
links elsewhere in the hemisphere,
will allow our people
to take full advantage of emerging
hemispheric markets.
The excellent rate of growth
of trade in goods and services and
in foreign direct investment among
Canada and its FTAA partners in the
past decade shows the commercial potential
of the people of the hemisphere. Increased
trade in the region will lead to economic
growth;
economic growth makes
greater markets for our products
and stronger trading partners.
WTO
Canada is negotiating the FTAA within the
context of WTO as well.
We can use our FTAA negotiations
to pursue issues of critical concern
to Canadians, including export subsidies
and high levels of trade-distorting
domestic support, which place our
industries on an uneven playing field.
Of course, in keeping with our WTO negotiating position,
we
also intend
to preserve our orderly marketing
systems which have created stability
and prosperity in a number of our
farm products sectors.
If adopted, the FTAA will complement existing trade and investment arrangements
in the region. Recognizing this, Canada
continues to pursue bilateral agreements
with countries within the hemisphere,
the so-called Central American Four
of El Salvador, Guatemala, Honduras
and Nicaragua and CARICOM members
in the Caribbean. These will serve
as the
building blocks for enhancing
Canada’s presence in Latin America,
consistent with our long term goal
of regional free trade.
Fulfilled lives
Trade is only one of many ways to demonstrate our commitment to the regional
neighbourhood.
The promotion and sharing of
Canadian values-democracy, the rule
of law, sustainable development, protection
of the environment, respect for human
rights and poverty reduction–is probably
even more important.
The greatest good to be gained
from the prosperity that freer trade
can bring lies in the achievement of more fulfilled lives for as
many as possible of the 800 million
residents of this hemisphere.
During the negotiations, Canada has given particular attention to the concerns
and interests of smaller economies
and reflecting the concerns of civil
society.
We have made considerable progress
in reaching an agreement that focuses
an unprecedented level of attention
on the concerns and interests of smaller
economies.
We have also succeeded in renewing
the mandate for the civil society
consultative body, and in reaching
agreement on the release of the negotiating
text–a decision essential to the transparency
of the negotiating process.
Conclusion
Globalization offers challenges and opportunities. The
great diversity within the region
is one of the challenges. Democratic
practices and transparency need to
become more permanent.
Opportunities lie in new markets,
new partnerships and in working together
to help strengthen the hemisphere.
We are just starting an
exciting new phase in the
development of the hemisphere.
We in Canada look forward to
working with our neighbours to meet
those challenges and realize those
opportunities for the good of all.
