Doing Business With Canada

Speaking notes for the Hon. David Kilgour, Secretary of State (Latin America and Africa), January 19, 2000 Kingston, Jamaica

Ladies and gentleman, honoured guests welcome to this, the Government of Canada’s initial event of the new millennium here in Jamaica. I am delighted to address such a diverse and distinguished gathering.

I have been looking forward to a visit to Jamaica for some time and with great expectation for building on the Canada-Jamaica relationship.

High Commissioner Robinson and I have just arrived from the Bahamas and I’m excited by the growth and dynamism that I saw in that small island nation. They have obviously identified and developed a niche for their economy and it appears to be flourishing, to the benefit of many Bahamians.

With continued hard work and perseverance, Jamaica too will find a way to revitalize its economy and attract the necessary foreign investment that will spur domestic production and growth. Are not jobs ultimately a function of investment?

Many of you will, by now, have had the occasion to visit or pass by the new chancery of the Canadian High Commission here in Kingston. You will surely agree that it is an impressive building. It demonstrates the importance that Canada attaches to our longstanding relationship with Jamaica. We have been, and will continue to be, partners of Jamaica in the new economic reality that is on the horizon. It is true that the transition to an outward looking and participatory global economy is often painful. It is important to keep in mind, however that the opportunities that result for ordinary citizens are more than worth the effort.

Canada has long been an advocate of the benefits of trade liberalization. We have demonstrated our commitment with our participation in the GATT (WTO) and the conclusion of various free trade agreements, such as the NAFTA, and the Canada-Chile Free Trade Agreement, and now our participation in the Free Trade Area of the Americas process -- or FTAA.

One of Canada’s key objectives in the Americas in trade policy is the successful conclusion of an FTAA. This will help consolidate economic reform throughout the region and benefit participating countries in a number of ways.

First, I believe an FTAA will help solidify the important economic gains made over the past 20 years. It will also help to shield the business community in the Americas from future global financial instability and uncertainty. Secondly, and perhaps most importantly, it will open the doors to larger markets, and help increase productive efficiency and faster overall economic growth and development in the region.

Underlining our commitment to the FTAA process, Canada was selected and accepted to Chair the first 18 months of the negotiations. Our Chairmanship ended this past November, culminating with a meeting of the Hemispheric Trade Ministers in Toronto. The Ministerial was preceded immediately by the Fifth Americas Business Forum.

The consecutive nature of these two events proved invaluable in including the views of the Americas business community, particularly in the area of business facilitation, into the FTAA process.

A successful Americas civil society forum was also held on the margins of the Ministerial meeting. We were particularly pleased that so many of the Ministers and heads of delegation attended the forum and entered into a genuine dialogue with representatives of civil society from across the hemisphere.

Canadians strongly believe that we must listen to our own citizens’ concerns, and address them with transparency through education, consultation and inclusion. Trade liberalization cannot be the enemy of our fundamental values.

In Toronto, an unprecedented level of attention was paid by Ministers to the particular concerns expressed by the smaller economies in the FTAA. Canada also considers that the concerns of developing countries must be addressed in both the FTAA and the WTO so that they can become integrated into the world trading system, and fully reap the benefits it has to offer... and on a level playing field.

It appears that we have dodged the much touted Y2K bullet, There is, I believe, no similar hope of avoiding the changes that are coming to the hemispheric economy as a result of the FTAA and the WTO. They are both real and tangible.

The question is presumably not whether they will affect the Jamaican economy, but rather how well prepared Jamaicans will be to take advantage of these changes and compete with their hemispheric compatriots in the newly defined marketplace.

The Caribbean basin, and Jamaica in particular, is an important destination for Canadian investment. In Jamaica, Canadian investment is estimated at over C$1.4 billion. It is evidenced, for example, by our involvement in the resource and energy sectors with ALCAN. In financial services with both the Bank of Nova Scotia and the Canadian Imperial Bank of Commerce. In the tourism industry with Canadian ownership of the Hilton Hotel and in services such as Air Canada.

In 1998 Canadian exports to Jamaica were valued at $98 million and included salted cod, newsprint and telecommunications equipment.

Imports to Canada from here totalled $256 million and, while dominated by alumina (85%), also included rum and fruits and vegetables. The balance of trade is thus firmly in your favour.

Additionally, the Commonwealth Caribbean countries, including Jamaica, are the sole beneficiaries of Canada’s 1986 CARIBCAN preferential trade program. Over 95% of Commonwealth Caribbean exports enter Canada free of duty.

When Jamaicans look for international partners in trade and investment, there are obviously a number of options. Why should you seriously consider Canada?

Beside the vibrant social and cultural linkages that have been fostered for many years between our two peoples, Canadian companies are world leaders in a number of fields. Our products and services are world class and cost-competitive, due in no small part to a qualified work force. Other countries have come to expect the highest level of quality and service from Canadian companies- and we deliver!

Canada is the world’s largest exporter of minerals, metals and forest products; we are also the largest producer of hydroelectric power. Canadian companies are now pioneering the latest information and communication technology developments. Canada has a world-renowned space and aerospace industry and proven expertise in the energy sector.

Canada’s health and educational programs and services are well known. Our building technology industry has, I believe, direct application for the design and construction of homes in Jamaica, keeping both comfort and efficiency in mind.

Consider also that over the past few years, Canada has undergone an economic transformation. We have balanced our budget - the first G-7 nation to do so, interest rates are low, the Economist magazine this week says the prime rate is 6.5%. Inflation is practically non-existent and unemployment is falling steadily.

We are a high tech economy, positioned to meet the emerging challenges of the information age -- an area I know to be of great interest here, particularly to Minster Paulwell.

Another high tech area of joint interest is the environment. There are in excess of 4000 environmental technology companies in Canada. I see substantial prospect for Canadian and Caribbean companies to work together to address common problems.

Canada offers a very competitive business environment. For the second time in two years, Canada has placed first in an international comparison of business costs in a study done by KPMG. On most measures, Canada came out as the lowest cost alternative among the industrialized nations. Not only is this an excellent reason to consider working with Canadian partners but it has made many of our goods and services low cost options in comparison with the U.S., Far East and European alternatives.

As is now well known, Canada is judged by the UN human development index to be the best place in the world in which to live.

Canada is, ladies and gentlemen, a trading nation and Canadian firms have consistently demonstrated creativity and versatility in their approaches to worldwide challenges. They have the willingness to adapt- to satisfy the needs of their customers and partners, share experiences, and form successful strategic alliances.

Canadians have, in the main, embraced the concept of liberalized global trade and investment and, while it wasn’t always an easy transition, it has been a successful strategy for Canada. We are, we believe, poised to reap the benefits of a more open, transparent and structured global economic era.

The road ahead will not be easy – any road worth taking rarely is – but by making difficult decisions now and taking your place at the global economic table, you will be laying the foundation for generations of Jamaicans to come – the foundation of a strong and vibrant Jamaican economy that is an integral partner in the hemispheric family of the Americas.

Today’s Doing Business with Canada seminar is designed to give you, the interested Jamaican business person, the hands on, nuts and bolts type of information that you need to better capitalize on the already strong business relationship that exists between our two countries.

Later today, you will hear from officials from Canada’s Export Association, the Alliance of Manufacturers and Exporters Canada, as well the organization mandated to assist foreign imports into Canada, the Trade Facilitation Office of Canada. There will be a presentation on the principal support mechanisms available to you:

You will learn that the Export Development Corporation offers a range of risk management services, including insurance and financing;

That the Canadian Commercial Corporation facilitates trade by providing performance and contract guarantees and;

That providing industrial development funding for specific projects, CIDA Inc. works to create long-term business relations between Canadian firms and their partners.

As if that isn’t enough to keep you busy, there is also a segment on the all important financial element of the trading relationship.

I would encourage each of you to use this forum to your best advantage. Please gather as much information as possible on the elements that relate to your specific situation. Please discuss the various options with the commercial section of our High Commission.

Finally, I do know that everyone is busy, particularly as we try to catch up after the holiday season, thank you for taking the initiative to gather here today, and for making time for what I believe is an important step on the road to doing even better business with Canada.

Thank you.