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Summit of the Americas and the Proposed Free Trade Area of the Americas (FTAA)

Notes For A Panel Presentation By Hon. David Kilgour,
M.P. For Edmonton Southeast and
Secretary Of State For Latin America and Africa
At a public meeting sponsored by the
Working Group on Social Values and Trade of
The First Unitarian Congregation Of Ottawa
30 Cleary Avenue, Ottawa, April 9, 2001

Hearty thanks to the sponsors of tonight’s meeting to discuss the Summit of the Americas - an event that many on both sides of the globalization debate, have characterized as the most important conference ever to take place on Canadian soil.

A number of years ago, my family attended an event at this church. My children spotted a poster which read, “Your children are not your children ; they belong to the Universe.” There was considerable truth in that poster. In many ways, the world is becoming one. Human destiny is interlinked as never before. Wherever I go in the Caribbean and Central/ South America, I encounter Canadians of all ages working for NGOs, businesses, churches, and the like. Two of my own children have worked a summer in Central America; one daughter is currently a volunteer teacher near Mount Kilimanjaro in Tanzania. Globalization is a part of our everyday life.

There is an insightful message which is currently making the rounds in cyberspace:

“...ta voiture est japonaise,...
...ta democratie est Grecque,
Ton café est bresilien,
Ta montre est suisse,...
Et tu reproches a ton voisin d’etre un etranger?”

In many respects, this underscores the common goal that is set for the Summit of the Americas in Quebec City. As Prime Minister Chrétien noted recently, we must develop tools that enable all 800 million members of “la gran familia” to reap their full potential as human beings. It goes without saying, of course, that our prime minister does not want Canada, as a great trading nation for over 200 years, to isolate itself in the process of reaching out in new ways to hemispheric neighbours.

Canada is a Trading Nation

First and foremost, Canada is a trading nation and our history is one of expansion based on respect, and the desire for an improved quality of life for all its citizens.

  • one out of every three jobs across our country is export related,
  • we are the largest importers per capita in the world –– and also the biggest exporters on the planet on a per capita basis, and
  • Ninety-two percent of our exports go to countries that will be represented in Quebec City

Building trading relationships is more than a matter of goods and services. Most Canadians believe that opening markets leads to the exchange of ideas on such issues as respect for human rights and democratic development. Some even assert that the reason Mexico is now a genuine multi-party democracy has something to do with the formation of the North American Free Trade Agreement (NAFTA) in 1994. Our Mexican amigos say that about two million jobs and 80,000 new businesses were created in Mexico as a direct result of NAFTA.

One further thought on Canadians as traders. It is said that, as the Swiss are to international banking, so Canada now is to long-distance learning, technology transfers, and workplace training. On a Team Canada visit to Argentina a few years ago, I attended a breakfast for French-language teachers in Buenos Aires. It was their summer vacation, yet about 200 teachers showed up on a Saturday morning to find out what kind of long-distance courses we have to offer. No-one here needs to be told that “education for all” is needed across the Americas.

The Globalization Debate

Globalization is a relatively new word, but the process that it describes is as old as human-kind itself. Human beings always have sought to expand the horizons of the world they know, to meet and exchange with their neighbours. Man has traded in goods and in services since prehistoric times. Both partners in these exchanges have felt themselves enriched and their lives enhanced.

The challenge has always been, and remains, to ensure that exchange between peoples takes place in a fair and equitable manner. Different models have been developed to maximize the benefits of trade and limit its risks. The fear of globalization is not new. The need for management and rules is not new. The negotiation that will continue this month in Quebec City, is part of an on-going process.

Many Canadians have not been satisfied that governments have the will, or the ability, to ensure that a fair, environmentally and socially sound trading system is put in place. They fear that governments will represent only the interests of a global elite.

I know the government has been listening and has taken the steps to open the Summit process to consultation and public discussion. All kinds of public meetings have been held across the country. The Indigenous Peoples Summit of the Americas was held here in Ottawa last month. The Hemispheric Youth Summit was held in Quebec City. The Prime Minister has invited Chief Matthew Coon Come to the Summit and he has accepted. The People’s Summit will precede the official event in Quebec City. I have been throughout Canada in the last three months and listened to the concerns and interests of people just like you: Canadian and ex-patriots from virtually every country in the hemisphere. From them I heard conflicting expectations about the proposed agenda for the Summit.

Building Transparency

Last Monday, for example, there was a demonstration at the Pearson Building. Some of you may have participated. Deeply held views were peacefully expressed. No one was hurt. That is democracy in action.

The issue last Monday was the secrecy surrounding the negotiating text for the FTAA. Our government understood why Canadians wanted to see that text. Canadians expect transparency. But then the text was not ours to share. It belonged to all of the parties to the negotiations.

Nonetheless, my colleague Pierre Pettigrew went to last week’s preparatory meeting in Buenos Aires hoping to persuade our partners to release that text. He was successful. The text will be made public as soon as it is translated into the four official languages. It will be in the public domain for at least four years before it is expected to be finalized. As Pettigrew said, “trade negotiations will never be the same”. We have established a precedent in transparency. Moreover, the portion of the Summit focussing on strengthening democracy will be broadcast live throughout the hemisphere. That too is new and that is transparency.

Strengthening Democracy

Democracy continues to advance in the Americas. Mexico has become an effective multi-party democracy. Sunday’s presidential elections in Peru, a country seriously troubled only a year ago, were considered by international and national observers to have been fair and orderly. Canada was a key player in bringing Peruvian civil society and political parties together and was instrumental in bringing forward new elections.

Amartya Sen, who won the Nobel Prize in Economics in 1998 notes in his Development As Freedom that other policies which helped the East Asians include “openness to competition, the use of international markets...successful land reforms and public provision of incentives for investment, exporting and industrialization.” This is a lesson for the Americas.

Sen is convinced that democracy is very important in its own right. He quotes Fidel Ramos, the former president of the Philippines:

Under dictatorial rule, people need not think–need not choose–need not make up their minds or give their consent. All they need to do is to follow...By contrast, a democracy cannot survive without civic virtue...The political challenge for people around the world is not just to replace authoritarianism regimes by democratic ones. Beyond this, it is to make democracy work for ordinary people.

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 peoples. A commitment to democracy, human rights and the rule of law is central to what Canada hopes to achieve at the Summit.

Realizing Human Potential

A lot of public attention has been focused on the Summit as a discussion about trade without acknowledging the significance given to social development issues. Progress in the Americas relies on its most valuable resource- people. When we speak of “realizing human potential”, we’re talking of 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.

Let me remind you, in her report, “Creativity and Inequity”, Senator Landon Pearson (Prime Minister Chrétien's advisor on children's rights) concluded:

  • children in the hemisphere will become even more vulnerable to intra-state conflicts,
  • widespread societal and domestic violence often associated with civil conflict is preventing the Americas from reaping the full benefits of the peace, which now prevails throughout most of the hemisphere, and
  • 90 million of the residents of the Americas do not have access to clean water.

Incidentally, I visited a school in a very poor part of Tegucigalpa, Honduras, where Canada paid for a much-needed water well. In a grade five class, I asked the children what each wanted to be later on. The answers–“a doctor”,“ a journalist”, “a lawyer”–were virtually identical to those I’ve heard from their counterparts in southeast Edmonton. The experience drove home for me just how common are the goals and aspirations of the next generation in our hemisphere.

Creating Prosperity

Creating prosperity is the third theme of the Summit and the FTAA is just part of it. To be certain, the Americas and the Caribbean have uneven records here:

  • most of the 34 countries have reduced inflation,
  • many have boosted and diversified their exports (Mexico/Ecuador/Venezuela–over 30% of their GDP; Chile–30%; Colombia–20%; Peru–15%; Brazil/Argentina-10%)
  • economic communities have been re-vitalized (Mercusur, Andean Community, Central America, and Caricom)
  • some have attracted considerable direct foreign investment (since 1994 the NAFTA partners have invested $367 billion in each other’s economies; total foreign investment in these three countries has reached $1.8 trillion) which translates into jobs and capital for social investment.

(On this, I should point out that Prof. Dani Rodick of Harvard has concluded that the most successful globalizers are those that have “market-friendly but pro-active governments, adequate social insurance and have integrated into the world economy on their own terms”.)

on the vitally important jobs issue, as you know, our record in our hemisphere is mixed. There are many who are under-employed and unemployed. People who lack access to adequate education and training, which is the key to better jobs everywhere.

The Summit will address issues which Canadians consider critical to the well-being of society and every individual community member. This means exploring ways to combat the scourge of illicit drugs and crime, ways of providing access to quality education for all in the hemisphere, bridging the digital divide, ensuring quality health care and a commitment to democracy and the protection of human rights. I believe these are the core values of Canadians. These are the same values that are on the agenda for the Summit of the Americas in Quebec City.

Let me confirm that the meeting in Quebec City is about more than just trade. It is about how to ensure that the people of this hemisphere have the opportunity to live fulfilled lives. Yes, we are committed to an FTAA, and we are pursuing this in a context that recognizes the connection between freer trade, prosperity and social progress. As our Prime Minister has said , “It cannot be about trade alone. It is not just a contract among corporations and governments. First and foremost, it is an agreement among and about people.”

Caribbean and Central America

Let me add a word about small states. At the request of their governments, we are now negotiating free trade agreements with most Central American and Caribbean countries. As with our existing agreement with Chile, these could, if successful, become regional bridges to the full FTAA, which, if achieved, will now probably not begin to be phased in until 2006.

In response to Caribbean concerns about the position of smaller economies in the FTAA process, Canada has committed more that $16 million to the provision of trade-related technical assistance to the most vulnerable countries of the region. We are willing to consider the inclusion of specific, time-limited measures in the agreement to ease the transition of smaller economies and have supported the creation of a Consultative Group on Smaller Economies within the negotiating process.

 
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