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Address by Prime
Minister Jean Chrétien
To a Team Canada Atlantic Business Luncheon
May 14, 2001
Atlanta, Georgia
Ladies and gentlemen, nothing gives me greater pleasure as Prime Minister than
having a chance to show Canada off to the world. Our people. Our know-how. And
our potential. That is why I am delighted and excited to be a part of the first
visit to Atlanta by Team Canada Atlantic.
Canada and the United States are close
members of what I like to call La Gran Familia of the Americas. A family whose
shared values of democracy, open trade and cooperation were vastly strengthened
just a few weeks ago in Quebec City during the Summit of the Americas 2001.
As you all know, the Summit was the
international debut of President George Bush. And I want to say how impressed
all the Summit leaders were by his knowledge, his engagement and his skilful
advocacy for the people of the United States. We would not have accomplished
what we did without his singular contribution and commitment.
The friendship between Canada and the
United States is as old as our nations. One that finds expression in a million
different ways. In the more than one billion dollars in business that we do
together every single day.
And, in recent years, our trade with
the states of the American Southeast has become an increasingly important part
of that business. In 2000 our exports to the region amounted to about $26.4
billion (Cdn). An increase of over 18 percent over the previous year. And
two-way trade reached almost $34 billion (Cdn).
Nortel Networks and Alcan and many
other companies have established a strong presence in this region. While we have
benefited from the powerful presence in Canada of many of the more than 50
Fortune 500 companies that call the Southeast home.
At the same time, Canada and the
southern states do sometimes seem like long-lost cousins. Separated not only by
distance but by a shared lack of awareness. And I believe that this has
prevented us from tapping into our full potential as commercial partners.
Atlanta and Georgia very much embody
the tremendous vitality and sophistication of the ‘New South.’ A south
blessed with a proud sense of history and tradition. A place of legendary
hospitality. A quality that Governor Barnes has served up with trademark
generosity during my stay. But a South which has also found new strength and
prosperity by embracing new ideas and the new economy.
Team Canada Atlantic is about
introducing you to the New Canada. A Canada with a sound and revitalized
economy. A Canada on the move and in transition, rapidly building on traditional
economic advantages and developing new ones. A Canada that is rising to the
challenge of the global, knowledge economy.
And I have the pleasure of making this
introduction by way of one of our most dynamic and growing regions. Our Atlantic
provinces: Nova Scotia, Prince Edward Island, New Brunswick, and Newfoundland
and Labrador.
And Team Canada Atlantic is here in
force. The premiers: Bernard Lord, John Hamm, Roger Grimes, and Pat Binns, who
will arrive tomorrow. And, of course, their very best sales people: the many
Atlantic firms that have come here to do business.
We bring a message of an Atlantic
Canada that is truly catching the wave of the information economy. Its people
are embracing the power of the Internet. Atlantic researchers are pioneering new
technologies and processes. Atlantic entrepreneurs are creatively showcasing new
products and services. And, as you can see today, Atlantic exporters, as never
before, are looking to new markets for business.
We want to give the Southeast a
privileged opportunity to catch the rising Atlantic wave. To think of Atlantic
Canada as a Canadian business gateway. As the place to look for cutting-edge
ideas and infrastructure. As a primary source of strategic alliances. And as a
choice place to invest.
One key reason that the Atlantic wave
is rising is because of the hard work that we have done -- the Government of
Canada, the provinces and all Canadians -- to restore the economic vitality of
our nation.
Our governments – federal, provincial
and territorial – have taken the steps needed to build strong economic
fundamentals. With balanced budgets, lower public debt, falling taxes, low
interest rates and low inflation. Our productivity continues to grow. We lead
the G-7 in job growth and our unemployment rate remains near a 25-year low.
We are on the longest run of economic
growth since the 1960s. And although we are naturally being affected by the
cooling of the American economy, Canada will remain among the G-7 leaders in
growth this year. In 2000, the prestigious International Institute for
Management Development ranked Canada as the best fiscally managed country in the
G-7.
At the federal level a new era of
surpluses has given us the freedom to take the steps and make the investments
needed to re-energize the business climate in Canada. Indeed, just a few weeks
ago the Economist Intelligence Unit ranked Canada as number 3 in the world for
our business climate.
We have enacted the largest personal
tax cut in Canadian history. And not to brag too much, but ours is already
signed, sealed and delivered.
We have legislated corporate tax cuts
that will see our rate fall five points below the United States by 2004. Our
capital gains tax rate is now lower than the United States. And our tax
treatment of stock options is now more generous and flexible.
Our payroll taxes are significantly
lower than in the United States. And we offer the most attractive tax regime in
the world for research and development -- the lifeblood of prosperity in the new
economy. In Atlantic Canada, for example, one dollar spent on R&D really
only costs you between 45 and 60 cents once you factor in tax incentives.
We have also made bold investments to
promote innovation in all parts of Canada. Last June, for instance, we announced
a major new $700 million investment partnership with the Atlantic region to
promote the transition to the new economy; in which export promotion is a key
component
Through our world-leading Connecting
Canadians strategy, we have become number two in the world for our use of the
Internet. We are the first major country in the world to have connected all our
schools and libraries to the Internet. And we have set bold and ambitious
targets that will make Canada a trademark for excellence in E-commerce.
These emerging Canadian advantages
build on our traditional strengths. We have a highly skilled and productive work
force. The vast potential of our energy sector, including oil, gas and
electricity in Atlantic Canada, is of increasing interest to the United States
as a source of reliable and secure supply. And our health care system gives
Canadian businesses greater flexibility. Health care expenses as a share of
corporate payroll are less than half of what they are in the US.
Ladies and gentlemen, Canada is one of
the great economic success stories of the last decade. And Atlantic Canada has
been leading the way, building on traditional strengths in agriculture agr-food
and the fishery; developing its value added capabilities in these sectors, as
well as new and diverse niches and strengths.
Tourism is booming. Offshore oil and
gas is becoming a pillar of the regional economy. Newfoundland and Labrador is
home to more than 200 advanced technology firms that export specialized products
and services around the world. Nova Scotia is becoming a centre for multimedia,
biotechnology, E-business and telecommunications. The aerospace industry in
Prince Edward Island is looking at doubling in size within the next few years.
New Brunswick has one of the highest concentrations of information technology
firms in Canada and is becoming a premier North American location for high tech.
A key underpinning in all of these
positive Atlantic trends is the extraordinary work that the region has done to
make itself a great place to invest. Indeed, a recent study done by KPMG rated
St. John’s, Halifax, Charlottetown and Moncton as having the lowest costs of
manufacturing in North America. This applies to such leading-edge new economy
sectors as electronics, medical devices, pharmaceuticals, plastics, software and
telecommunications equipment. Making Atlantic Canada a prime choice as a place
to locate a new business, relocate an existing one or expand a growing one.
Just look around you. Our business
delegation offers a pleasing taste of the creative energy that is flowing from
St. John's to Moncton. Energy that is ready to be harnessed to the advantage of
the Southeast.
That is why we are here in such force.
To show you how Atlantic Canada is catching the wave. To invite you to catch the
wave with us. And that is why we will be back!
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