Press Room

MINISTER DION HIGHLIGHTS THE MUTUAL ATTRACTION
OF THE ARAB AND CANADIAN ECONOMIES

MONTREAL, QUEBEC, June 25, 2003 – Speaking at the International Arab Banking Summit, the Honourable Stéphane Dion, President of the Privy Council and Minister of Intergovernmental Affairs, highlighted the importance of trade between the Canadian and Arab economies.

"The mutual attraction of our economies is reflected in the figures: in 2002, the value of bilateral trade in goods and services between Canada and the countries of the Middle East and Northern Africa exceeded $8 billion," said Mr. Dion.

The Minister then highlighted the importance of the market represented by Arab economies for Canadian companies. As many Canadian firms are garnering major contracts in their fields of expertise, others are forging partnerships with the Arab world with a view to exploring and developing the region’s natural resources.

Mr. Dion noted that the countries in question have developed effective instruments for strengthening their economic ties. "New agreements will create conditions more conducive to forging solid business ties. With economic cooperation framework agreements, tax treaties, air transport agreements, institutions such as the Canada-Saudi Arabia Joint Economic Commission, private-sector associations such as the Canada-Arab Business Council, we have a wide range of tools to expand our trade relations," the Minister specified.

The President of the Privy Council also noted the vitality of Canadian engineers, economists, managers, business leaders and academics of Arab origin and their contribution to the development of Canadian-Arab relations, and to Canada’s prosperity. He also maintained that, while Arab economies offer promising opportunities for Canadian companies, the opposite is also true: the Canadian economy offers great potential for their investment.

"Canada is now the only G-7 country whose public finances are balanced, rather than in deficit. Moreover, Canada, of all the G-7 countries, is the one that has most reduced its debt level in recent years, from 64% of GDP in 1993 to 41% in 2002. In addition, Canada is the G-7 country that over the past ten years has most reduced the weight of its taxes and spending in the economy. Ten years ago, government spending was equivalent to 49% of Canada’s GDP; it now represents only 37%. The average corporate tax rate also will soon be lower in Canada than in the United States," the Minister asserted.

Again emphasizing the volume of trade between Canada and Arab countries, the importance of those relations led Minister Dion to the following conclusion: " ‘Banking in a Different World’ is the theme of your International Summit this year. It is certain that the economic and financial world is changing quickly, but I know you are not afraid of change. One of the elements that should motivate your optimism is that you will be able to count on a solid partner, Canada, with all the strength of its economy and its financial market."

-30-