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An Overview of Recent Visits to Africa, Latin America and the Caribbean

Hon. David Kilgour, P.C., M.P. and Secretary of State (Latin America and Africa)
Newsmaker Breakfast, National Press Club, May 26, 1998

Bom Dia, Bonjour, Buenos Dias and Good morning.

Many thanks the organizers of the "Newsmakers' Breakfast" for this opportunity to discuss my recent visits to Africa, Latin America and the Caribbean.

These trips, the first in April to Africa, the second three weeks ago to Latin America, and the third, last week, to Barbados, Grenada and Guyana were opportunities to demonstrate the importance Canada attaches to these regions, to explore ways to diversify our relationship, and promote expanded economic partnerships.

Visits of this kind are part of the efforts to make Canada a more visible presence and business partner, not only among some economies of the Americas, but also on the African continent where economic modernization and political reforms are taking hold.

There is also a great value in face-to-face contact with African and American leaders and citizens who are working to support democracy, the rule of law and respect for human rights. It is one of the best ways there is to let them know they have a good friend and ally in Canada.

Africa:
Background on Visit

I was accompanied by Member of Parliament Jean Augustine and about 20 representatives from a number of Canadian firms in transportation, telecommunications, energy, mining and the services sector on a business development mission.

Over a 16-day period, we visited seven countries, primarily in western and southern Africa: Guinea, Côte d'Ivoire, Togo, Ghana, Mali, South Africa, and Mozambique.

Business people had an opportunity to promote their products, technologies and know how and to meet with some African officials who provided advice on doing business in their countries.

A New African Economy

Constant media images of poverty and Canadian aid provide a compelling but incomplete impression of what is happening across Africa today. Some African countries are moving away from donor-recipient relations toward mutually-beneficial economic partnerships.

There are good reasons for being an Africa optimist today. The establishment of market-based, private sector-led economies are now the rule rather than the exception. Annual GDP growth in Sub-Saharan Africa during 1997 averaged almost 5%, with some nations doing much better. The purchasing power of African consumers is growing.

Africa -- and I'm talking here only of sub-Saharan Africa -- is already a $70 billion market for the world's exporters.

Canada is well-positioned during this transition period. We have a long trade and investment relationship with Africa, which has been growing significantly in recent years. Our trade in services is strong -- particularly in engineering consultancy and information technology.

Canadians are now doing serious business there and future prospects are promising. Canadian exports to sub-Saharan Africa totalled $750 million in 1997 -- up from $100 million the previous year.

Now is the time to expand this business relationship and bring more Canadian companies into these markets. In particular, we found that the opportunities exist for Canadian exporters in sectors that generate foreign currency, like oil and gas, telecommunications and mining.

Highlights of the visit
General

Messages about the African market had already hit home with Canadian companies on the mission. (For example, Calgary's Ranger Oil recently signed an exploration and production contract with the Côte d'Ivoire government involving a deep-sea off-shore oil deposit. Ottawa's SR Telecom Inc. has just completed construction of a US $4.2-million rural telecommunications network in northern Ghana).

In Mali, we signed two memorandums of understanding. The first, worth $5.5 million, supports the regulation of savings and credit unions, which will give small investors in West Africa access to high-security financial services. The second, worth $4.8 million, supports grain marketing.

In Côte d'Ivoire, a major regional and economic player, Canada signed a CIDA agreement to contribute $4 million in technical assistance to the Central Bank of the West African States to set up and operate the regional stock exchange in Côte d'Ivoire and West Africa. EFA Software Services Limited of Alberta, which participated in the mission, will provide software services for stock transactions.
In South Africa, by far our largest commercial partner in sub-Saharan Africa and a major, developing democracy. Dozens of Canadian companies have already made substantial investments and Canadian expertise is highly valued. Canada can expect to play an even greater role in providing good governance expertise to South Africa in the future.

Beyond trade promotion, the visit to Togo was a key opportunity to pursue a political dialogue on regional issues and the development of democracy in the area.

Throughout the trip, I had the opportunity to raise human rights matters with the leaders of all countries visited, as well as Canada's bid for a seat on the United Nations Security Council, which deals with so many issues that are crucial to Africa. It was also a chance to outline Canada's continuing strong position on Nigeria and the situation in Sierra Leone.

Sierra Leone

There are, of course, still serious problems in Africa. On the mission, I travelled to Sierra Leone, one of the countries facing the greatest difficulties in Africa today.
In Sierra Leone, I participated in a special visit organized by the Commonwealth Ministerial Action Group (CMAG), along with four other member countries (Ghana, Great Britain, Malaysia and Zimbabwe).

We went to Freetown to demonstrate support for the country's democratically elected President (Ahmed Tejan Kabbah), who returned to office on March 10, after ten months in exile following a military coup.

A seven year long, brutal civil war nearly destroyed the way of life in Sierra Leone. It also created a devastated population of some 6,000 child soldiers, boys and girls forcibly recruited by rebel and government forces. These children were the victims as well as the perpetrators of atrocities, including sexual slavery.
The problem is so numbing, that special international programs are clearly needed to address the severe trauma and social re-integration needs of these children and their families. I was heartened to meet with grass roots organizations, NGOs, church groups, women's organizations and UNICEF workers, who are taking a key role in dealing with this terrible situation.

In March, CIDA gave a grant of $600,000 to the International Red Cross for humanitarian assistance in Sierra Leone.

Landmines

The last stop was Mozambique, where some of us watched the painstaking process of de-mining in a community where mines were located right next to the local water supply. It really drove home the tragedy of landmines and the human impact of Canada's efforts.

During the visit, we received the wonderful news that the Government of Mali had ratified the Convention on Antipersonnel Mines. Of course, South Africa has always been Canada's greatest ally in the campaign against landmines.

Latin America:

I visited Latin America to mark the 50th anniversary of the Organization of American States (OAS) and as a follow up to the recent FTAA Summit in Santiago.

The 50th anniversary commemoration in Bogota, Colombia was an important step in linking the activities of the OAS with the goals of the Summit of Americas.
My visit to Ecuador, Venezuela, Panama and Costa Rica, on the other hand, served to promote mutual understanding between each country and Canada on bilateral, regional and multilateral issues and to build on solid relationships by enhancing Canada's bilateral, political and economic relations.

Colombia (April 29-30, 1998)

Canada continues to view the OAS as the principal venue where governments can come together to debate the issues confronting the region with the help of representatives from civil society, international organizations, and sectoral experts from all levels of government.

As the primary forum for political, developmental and social dialogue in the hemisphere, the OAS is assuming increasing responsibility for the implementation of commitments made by leaders at the Summit of the Americas. This includes encouraging the progress of peace, justice, human rights, equal opportunities, sustainable development, free trade and the environment.

Canada remains concerned about human rights abuses in Colombia and raised the issue with Colombian Minister of Foreign Affairs, Camilo Reyes, and Minister of the Interior, Alfonso Lopez Caballeros. I also met with representatives of a number of NGOs which are concerned about human rights in Colombia.

Ecuador

The purpose of this visit was to strengthen bilateral ties with Ecuador. This included strengthening our relationship on the political, economic, commercial and development assistance levels.

I specifically encouraged negotiations of a Double Taxation Agreement (DTA), and discussed good governance, regional security and integration, promotion of the Free Trade Area of the Americas (FTAA), and issues regarding Indigenous Peoples.

Two-way trade between Canada and Ecuador reached $ 226.8 million in 1997.

Venezuela

Canada supports the economic reform process in this country and touched on issues of co-operation in the areas of judicial reform, human rights, Indigenous Peoples, governance, Santiago Summit follow-up, and Haiti.
Bilateral Trade with Venezuela increased to almost $ 2 billion in 1997.

Panama

While Canada and Panama have different views on Central American economic integration, we remain strong allies and solid business partners. In recent months, Canadian companies have successfully won several major contracts. Others have expressed their faith in Panama's future by investing in Panama's casinos and tourism sector.

The Canadian Government continues to show support for Panama by participating in all of its major trade shows and by providing technical assistance to state authorities and several indigenous groups.

Canadian companies now hold close to 70% of all mining concessions in Panama.

Costa Rica

In Costa Rica, I represented the Canadian Government at the inaugural ceremony of the newly elected president, Miguel Angel Rodriguez. I was able to meet and discuss a number of issues of Canadian interests with other Latin American and world leaders and representatives who were present at the inauguration.
The purpose of my visit was to reaffirm Canada's presence in the region.
Two-way trade between Canada and Costa Rica reached $ 249.5 million in 1997.

Caribbean:

Last week I visited Barbados, Grenada and Guyana. It was my first trip to the Caribbean since I was sent to Grenada in 1983 following the U.S. intervention in Grenada, and I found it extremely interesting.

I met the Prime Ministers and Foreign Ministers of both Barbados and Grenada. We discussed a number of issues, including the very serious problem of drug smuggling and money laundering facing the Caribbean.

Up to 40 per cent of the cocaine entering North America is trans-shipped through the Caribbean. Narcotics smuggling and money laundering pose a particular threat to the small-island states of the Eastern Caribbean.

Canada is already active in anti-drug activities in the Caribbean. In addition to the funding we provide for multilateral and bilateral programs, Canada's Deputy Solicitor General Jean Fournier was recently named chair of the Working Group of CICAD (the Inter-American Drug Abuse Control Commission) on the Multilateral Evaluation Mechanism. This group will evaluate performance and progress by nations of the hemisphere in the fight against illicit drugs.

Furthermore, as you are no doubt aware, leaders at the recent Summit of the Americas endorsed Canada's initiative to create a Foreign Ministers' Dialogue Group to look at long-term solutions to the region's drug problem.

In each country I visited, Cuba and the concerns of small economies in the FTAA process were discussed. CARICOM is generally supportive of Canada's Cuba policy. CARICOM states are also working in their own ways to re-integrate Cuba into the Caribbean community. Cuba still has a distance to go in the area of human rights and democratic development, however, before it can be fully integrated into hemispheric affairs. There are a number of steps that will first have to be taken by Cuba in this regard.

In Guyana, the dominant issue on everyone's mind is the country's political future. You may recall that the outcome of the elections last December in Guyana were disputed. In January, CARICOM managed to broker an agreement between the two main political parties that called for, among other things, an audit of the election results. The results of that audit are due this week.

I was pleased to hear both President Janet Jagan and Opposition Leader Desmond Hoyte express their commitment to respect the results of the audit and to work together to rebuild the country. The political uncertainty of the past few months, coupled with the effects of a severe drought caused by El Niño, have depressed Guyana economically, and the country badly needs its leaders to work co-operatively to re-establish stability.

It was particularly gratifying to see President Jagan and Mr. Hoyte shake hands at a reception hosted in my honour by the Canadian High Commission in Georgetown. I had tried to convey to them the need for direct dialogue and co-operation, and it appears they were listening.

Throughout my trip I was impressed by the work of non-governmental organizations. I found a visit to an artisanal fish plant funded by CIDA fascinating and was also impressed by the work being done in the region by the Canadian Executive Service Overseas (CESO).

While history, language, culture and Commonwealth ties remain important elements of the Canada-Caribbean relationship, we are moving away from the traditional donor/recipient relationship of the past. We are focusing instead on developing a more mature relationship based on frequent consultations on common interests of trade, good governance and economic sustainability.

Conclusion:

Finally, it is difficult to draw comparisons between Africa, Latin America and the Caribbean. I would say that trade is the key to development and economic growth in all three. Of course, the real test for countries in these regions will be to grow their economies in ways that meets the needs of their people. So I look forward to future trade development missions and to forums like this one, that can help to spread the good news about progress in these regions.

Thank you

 
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