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Canada Hosts the Americas

 
Remarks by the Hon. David Kilgour, MP for Edmonton Southeast
and Secretary of State for Africa and Latin America
To the Canadian Council for the Americas,
Calgary, Alberta March 7, 2001


I welcome the opportunity to share with you some thoughts on Canada's place in this world of breathtaking change. In the information age, Canadians are embracing a new world of unparalleled opportunity. We no longer face constraints we once did -ones imposed by borders or by the boundaries of distance. Advances in technology have helped forge closer ties between nations worldwide; nowhere is this in greater evidence than in our relationship with our hemispheric neighbours.

Canada is uniquely positioned to succeed in this emerging hemispheric community, which the Prime Minister calls "una gran familia" - one big extended family.

Canadians are highly regarded throughout the world for our unwavering commitment to democracy, fairness, the rule of law and respect for human rights. We've long reached out to nations in need, working to advance their social and economic aspirations, and doing our part to help build better democratic institutions.

2001 Summit of the Americas

Some say that the 2001 Summit of the Americas next month in Quebec City will be the most important meeting ever to occur on Canadian soil. Certainly, it will be the highest level forum we have had for discussion, decision making and action on critical issues affecting the hemisphere. It's a gathering of the 34 democratically elected leaders of governments from North, Central and South America and the Caribbean. Their purpose in coming together is to exchange ideas, with particular emphasis on strengthening hemispheric co-operation in the areas of democracy, prosperity and the realization of human potential.

It is a special time for Canada and for the Americas. The flourishing of democracy and the growth of free markets have played a vital role in transforming many people's lives. Canada has already assumed a strong leadership role in helping to foster this change; we continue to strengthen our relations with our hemispheric partners. Our futures are directly linked geographically, economically and politically. Together we face the challenge of building a more prosperous, secure and free future for all residents of the Americas.

As we lead up to the April meeting in Quebec, Canada's role in the Americas rests on a decade long foundation of engagement and successes:

We first joined the Organization of American States in 1990.

We will soon celebrate the seventh anniversary of the signing of the North American Free Trade Agreement [NAFTA].

The Canada/Chile Free Trade Agreement was signed in 1997.

In 1998, the Prime Minister led two Team Canada trade missions to Latin America, the largest such undertaking ever mounted by the Government of Canada.

Canada hosted the Pan-American Games in the summer of 1999.

We completed our term as chair of the initial phase of the Free Trade Area of the Americas [FTAA] by hosting the Trade Ministerial of the Americas in the fall of 1999.

Canada most recently played host to the Organization of American States in June 2000 in Windsor.

Prosperity Lifts Many Boats

Why is the 2001 Summit of the Americas so important? And why invest so much time and energy to forge this hemispheric partnership? As the second largest economy in the hemisphere, we have a vested interest in expanding our trade and investment opportunities throughout the Americas. Fully one third of Canadian jobs are tied to international trade. The economies of 34 nations from North, Central and South America and the Caribbean represent 800 million people and more than one third of all the goods and services produced on the planet. The leaders' meeting at the Summit will be working toward an agreement that will create the world's largest free trade zone, with a combined gross domestic product of US$12 trillion. Almost one half of everything we produce in Canada is destined for export. Fully 92 percent of that is exported to our partners represented around the Summit table in Quebec City in April. In essence, the countries of the Americas aren't just neighbours to the south. They are our most important customers. Our relationship with them has a direct impact on our economic security and the standard of living of every man, woman and child in Canada.

Our commitment to an FTAA is fuelled by our collective ability to create prosperity throughout the hemisphere and focus on ways to pursue a more equitable distribution of wealth in the Americas. But no such agreement can be based purely on trade statistics and economic forecasts. The FTAA is aimed at creating a framework of straightforward and fair trade rules and regulations that everyone will follow.

Trade is first and always about people - people being rewarded for their efforts, finding markets for their products, and being presented with a real opportunity to build a better future for themselves and their families. Simply put, liberalized trade leads to important social as well as economic gains. It speaks to our resolve to throw open social and economic doors kept closed to too many for too long. Its effect is to reduce poverty and enhance the quality of people's lives. The bottom line is inclusiveness the development of a hemispheric community in which all residents have the opportunity and means to prosper. Fair and free trade opens the door and helps us along the way toward protecting the rights of employees, protecting the environment, enhancing corporate social responsibility, and raising economic, social and democratic standards throughout the Americas.

Only a few weeks ago, we had Tony Blair, the Labour Prime Minister of the United Kingdom, telling Canadian parliamentarians that we should embrace free trade vigorously because it is good for both so- called "developing" countries and industrialized ones. You might be interested to know that at the unanimous request of their governments, Canada is currently negotiating free trade agreements with most Central American and Caribbean countries (some in groups and some separately).

We have a choice. We can either position ourselves at the forefront of this tidal wave of change or allow ourselves to be swept along, powerless in its wake. This doesn't mean these issues will be resolved all at once; nor does it mean progress comes without bumps on the road. We needn't fear globalization, but nor should we be blinded by its allure. Much work has preceded the Summit and even more will remain to be done when the meeting is over. But it does mean that for three days in Quebec City in April, the Summit of the Americas will command the full, undivided attention of our leaders.

Strengthening Democracy

We believe that openness and transparency are vital to building public acceptance and legitimacy for the government's undertakings. Canadians expect no less. The Government of Canada has made public its proposal for an FTAA. What's more, the final results of FTAA negotiations will be subject to parliamentary scrutiny and public debate. The process of negotiating is by definition complex and necessitates a measure of freedom to explore a range of options. Without compromising the process, we've elected to share with Canadians our negotiating position, and we're encouraging other governments to do the same.

In preparing for the Summit, we've engaged civil society organizations, both nationally and throughout the hemisphere, and promoted consultations with groups committed to joining us in building for the future. Over the years, we've consistently argued for a larger role for civil society members in the Organization of American States [OAS]. Canada's leadership in developing guidelines to enable civil society participation eventually resulted in the creation of an OAS committee aimed at soliciting greater civil society participation. We aim to continue to foster dialogue of this sort throughout the Americas.

Democracy isn't an abstract concept; nor is it a final destination. It's a journey that we've embarked on together - one that unites us in our commitment to continually improve the lives of our people. A commitment to democracy, human rights and the rule of law is central to what Canada hopes to achieve at this Summit. Canadians have a good record in this regard. We're well positioned to help others forge effective institutional frameworks and human rights institutions of their own. These efforts can go a long way toward enhancing the accessibility, transparency and accountability of democracies throughout the region.

Realizing Human Potential

Progress in the Americas relies on its most valuable resource - its people. When we speak of "realizing human potential," we're talking about the need to provide men, women and children with the necessary tools to achieve social, economic and political expression. Ultimately, priorities like health, education and skills development are vital investments. But this begs the question: Who's in charge? Is it the role of government to actively lead business toward responsible community-minded citizenship? Or is it the responsibility of business? We believe businesses and government must join forces in a co-operative effort to ensure that a strong culture of corporate social responsibility takes root throughout the Americas - one that acknowledges the fact that playing an active, responsible part in community life is as vital to the bottom line for business in 2001 as is customer satisfaction, operating efficiency and product quality control. In other words, corporate social responsibility is about business taking an active interest in the communities in which they operate, grow and prosper, not out of altruism, but because it makes good business sense to do so.

Connectivity Equals Opportunity

In a world marked by technological innovation and globalized trade, relationships between nations that share common interests are becoming increasingly important. This is particularly true of the Americas. Canada's economic and trade relations within the hemisphere have grown faster over the last 10 years than in any other region. Our trade in South America alone has soared more than 200 percent (in 1990 two-way trade was $7.3 billion, and in 2000 it was $20.6 billion) during this period, compared to 60 percent in Europe, and 66 percent in Asia. Mexico is Canada's second largest export market in the Americas, after the United States, and Brazil is third. Brazil is also Canada's largest trading partner in South America. In terms of Canadian foreign direct investment, South American countries have become increasingly important destinations, with Chile, Brazil and Argentina being significant recipients.

Canadian business from all industrial sectors is capitalizing on opportunities throughout Latin America, and businesses from western Canada continue to play a pivotal role in expanding this relationship. Alberta's key exports to the region include wheat, bovine animals and meat, sulphur, rapeseed, electrical apparatus, coal, and aircraft parts. In 2000, Alberta ranked third among provinces in exports of goods and services to Latin America and the Caribbean, with exports of just over $1 billion in goods and services. This represented a 39 percent increase from 1999, when exports were $726 million. Two-way trade between Alberta and the region was $1.5 billion in 2000.

The province's exports are not restricted to the sectors mentioned above. Increasingly, Alberta companies are finding significant opportunities in oil and gas exploration and services, livestock and genetics, fertilizers, herbicides and pesticides, telecommunications equipment and services, urban transit systems and environmental equipment and services. A number of Alberta companies have successfully undertaken business in Latin America. For example, Canadian Hunter Exploration Ltd. is very active in oil exploration in the Neuquen Basin in Argentina.

Other Alberta companies active in Latin America include Alberta Energy Company, which is active in exploration and production in Peru, Ecuador, Colombia and Brazil. Nexen has concessions in Colombia, and Precision Drilling and Propak Systems are active throughout the region.

It should be noted that with significantly improved market access provided by the 1997 Canada/Chile Free Trade Agreement, Canada's two-way trade with Chile has grown significantly, from $357 million in 1992 to over a billion dollars in 2000. Canadian exports to Chile of wheat, pulp and paper, machinery, mining, telecommunications equipment, automotive parts, iron and steel products increased several hundred percent. There continue to be major areas of opportunity in information technologies, telecommunications, construction and building products, mining equipment, environmental equipment and services, transportation infrastructure and plastics.

The world in which we live is being radically transformed by information and communications technology, and its expansion into every corner of the globe is having a profound impact on all of our lives. Our goal is to help create conditions that lead to better access to new technologies that will in turn establish new connections throughout the hemisphere. Connectivity is really about bringing us closer together, or eliminating geography. We're witnessing a networking revolution - a transition from an industrial to a knowledge-based economy. By reducing barriers and distances, connectivity is creating new opportunities. In the end, being better connected to one another means being empowered to make choices that ultimately contribute to our quality of life.

Conclusion

Some years ago, Dr. Pat McGeer, a former British Columbia MLA, said, "All through time, there have been those who have erected bastions to secure and protect what they have gained. Europe is studded with these curiosities of the past. But history has never been made by those who erected bastions and sheltered behind them. Rather it has been made by adventurers who scorned protection in order to explore and open up new territories. Canada was founded and developed by such adventurers.'' He was right.

What's required here is to embrace a concept; one that goes beyond Canada's borders. It speaks to an emerging world wherein no one among us can afford to be isolated. It's a notion that requires commitment to move forward together, paving the way toward a new era of social and economic co-operation and prosperity.

I invite each of you to make your voice heard as the 2001 Summit of the Americas approaches. The decisions made by today's leaders will have a real and lasting impact not only on our future, but also on our children's future. I'm encouraged by what I see: Canadians in every region poised to take full advantage of the opportunities that this new connected hemisphere brings.

Thank you.

 
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