Mr. Peterson's Trade Policy Day Speech
19 April 2005
Mr. Peterson's Trade Policy Day Speech
The following is an excerpt from a speech given by the Honourable Jim Peterson, PC, MP, Minister of International Trade, on Trade Policy Day. The speech in its entirety is available on the ITC web site, at:
http://webapps.dfait-maeci.gc.ca/MinPub/Publication.asp?Language=E&publi...
Both our exports and imports reached record levels last year. All seven of our major commodity export groupings posted increases, as volumes were up and the terms of trade were favourable. All this in spite of our high dollar, which was up 7.9 percent in 2004, more than a third higher than its recent low of 61.99 U.S. cents in January 2002….
In terms of trade, our resources are limited compared to many of our competitors. This means tough choices. We must work smarter than the competition to ensure that our trade and investment activities have the maximum impact. We must focus on the priorities in our commercial relationships.
Our number one priority remains the United States, but much has changed since 9/11. Security is now an ever-present priority. While the border must be open to trade, it must be closed to terrorists. Within three months of the terrorist attacks, we entered into the Smart Border Accord with its 30-point action plan, and we have continuously updated its provisions.
This March, the Prime Minister, President Bush and President Fox signed the Security and Prosperity Partnership of North America. Among other things, it aims at enhancing our collective competitiveness and productivity through increased regulatory compatibility, including mutual recognition of professional qualifications, convergence of product standards and improved cooperation in agri-food sectors.
While over 96 percent of our trade with the United States is dispute-free, we will continue to seek more effective means of dispute resolution. Issues such as BSE [bovine spongiform encephalopathy] and the swine and softwood lumber disputes hurt both partners.
With respect to softwood lumber, we will continue with our three-track approach of negotiation, litigation and pursuing retaliation. Paul Tellier and Gordon Ritchie have joined our team as Special Advisers. I am pleased to have their experience and wisdom on our side. I am also pleased that discussions toward a long-term resolution, based on the framework we proposed, are ongoing.
The most egregious of our outstanding issues with the United States is the so-called Byrd Amendment. It has rightly been declared illegal by the WTO, but continues to be in force, subjecting our producers to double jeopardy and encouraging U.S. producers to launch trade actions. Canada, in coordination with the European Union and others, has unfortunately had to take retaliatory measures. Retaliation is not our preferred option, but it is a necessary action. International trade rules must be respected.
It is important that Canada have a strong presence in the United States. We have opened seven new consulates, upgraded two and appointed 20 new consuls. We are now serving Canadians in the United States from 23 different bases. We’ve also opened a Secretariat in Washington to coordinate the efforts of Canada’s provinces, territories and parliamentarians….
While the United States is an important market, Canada can’t afford to miss the opportunities in emerging economic powers. As this year’s State of Trade report shows, these markets have incredible potential for growth, and Canadians are under-represented in them. Although Canada accounts for almost 4 percent of world trade, we represent only 1.4 percent of Brazil’s trade, 1.3 percent of China’s and less than 1 percent of India’s. Clearly we have some work to do….
We are pursuing a free trade agreement with South Korea, and we have reactivated discussions with:
• the European Free Trade Association;
• the CA4 [Central America Four];
• CARICOM [Caribbean Community]; and
• Mercosur, within the context of the Free Trade Area of the Americas.
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