"Globalization issues make Canada more
relevant than ever"

Notes for an address by the
President of the Privy Council and

Minister of Intergovernmental Affairs
the Honourable Stéphane Dion

Canadian Student Leadership Conference

Ottawa, Ontario

January 25, 2001

Check against delivery


          You have invited me to tell you how I view Canada's future in this era of globalization and interdependence. I appreciate the opportunity, for this is an important subject from the standpoint of my own responsibilities in government.

          Three days ago, for example, Mr. Bernard Landry argued that the times we are living in tend to favour the formation of new states and that, as a result, Quebec's independence would be consistent with current trends. [TRANSLATION:] "Sixty new countries have joined the United Nations since the Parti Québécois was founded, including some 30 in the last decade alone," he pointed out.

          Quebec separatist leaders regularly point to the growing number of countries in the world, linking the phenomenon to globalization. For example, Jacques Parizeau stated on April 29, 1999: [TRANSLATION] "One must not be surprised by the multiplication of countries, the number of nation-states. (...) In that sense, the debate on globalization (...) touches directly on the concept of sovereignty."

          I believe, quite the contrary, that the recent appearance of numerous new countries in no way bolsters the case for Quebec separating from Canada. In fact, the issues surrounding globalization are an argument in favour of Canadian unity.

1. The circumstances surrounding these new countries differ from our own

          The world comprised 69 nation-states in 1945. It now has 191, that is 122 more. No fewer than 93 of them are former colonies. Needless to say, Quebec is not a colony. Consequently, these many cases cannot be used as an argument to advocate the break-up of Canada.

          Outside the decolonization process, only six nation-states were created between 1945 and 1989: Israel, North and South Korea, Senegal (after the disintegration of the Federation of Mali), Singapore (expelled from the Federation of Malaysia), and Bangladesh (which seceded from Pakistan). You'd be hard pressed to link any of those different cases to the Canadian situation.

          Since 1990, 23 new countries have appeared, all of them, without exception, born out of the chain of events that accompanied and followed the disintegration of the Communist empires: the three Baltic republics, Russia, eleven other former Soviet republics, five nation-states born out of the former Yugoslavia, the Czech Republic, Slovakia and Eritrea (which separated from Ethiopia following a civil war). Communism has been described as a type of historical deep-freeze, and in that sense, these countries' accession to independence stems from the death of a 19th century ideology. Here again, their birth cannot be attributed to a recent phenomenon of modernization to which Quebec would be a party.

          The fall of colonial and totalitarian empires in no way threatens the unity of countries which, like Canada, are already democratic and liberal. Thus, there is no historical basis to the claim that the birth of numerous new countries argues in favour of Quebec's separation from Canada.

          It can be said, however, that the recent trends surrounding such realities as market globalization make Canadian unity an even more valuable asset for all the citizens of our country.

2. The advantages of Canadian unity in the era of globalization

          Globalization is a trend toward economic, social and political integration among the different populations of the world. In economic terms, it comprises all of the forces that tend to bring the world toward a single market-space. It is characterized, among other things, by the increasing proportion of external trade in countries' economies, by the enhanced role of international organizations, and by the scope of international agreements.

          There are few countries better positioned than ours to succeed in this global village. Canada is a country that is respected, that has an excellent reputation, a country that has successfully combined cohesion as a whole with great diversity: the strength of provinces and territories that complement one another, two official languages that are international languages and two legal systems, civil law and common law, which allow us to speak the legal language of the vast majority of countries, a geographic position that puts us at the gateway to the Americas, Europe and Asia, and a multicultural population that gives us a foothold on every continent. There is no doubt that we have made our diversity into a strength that we will need more than ever before.

          Canada is a decentralized federation which provides each of its provinces with maximum flexibility to optimize its assets, but it provides us at the same time with a cohesion, an exceptional capacity to pursue common objectives, both at home and abroad, strengthened by the diversity of our experiences.

          Speaking of experience, Canada has it in spades, when it comes to globalization. It did not wait for globalization to become fashionable before it started taking an interest in it. Since the end of the Second World War, it has played a key international role in the creation of institutions that provide an effective framework for globalization. Such examples include the International Monetary Fund and the GATT, which became the World Trade Organization in 1995. One could also mention other examples such as the World Health Organization, whose first director general was a Canadian. When we speak of globalization, we, Canadians, are like fish in water.

          Actually, the most tangible expression of market globalization for us involves a greater opening up to the American market. The United States is increasingly our largest trading partner. In 1988, 74% of Canada's foreign trade in goods was with our neighbour to the south. By 1999, the figure had risen to 86%. In 1999, our exports of goods to the United States came in at around $309 billion. You might say that, more and more, the U.S. is Canada's best friend... whether we like it or not.

          This intensified interdependence with the great giant to the south in the context of globalization presents us with two challenges: challenges that are not new, but that will be even more important for your generation. The first is the challenge of maintaining our beneficial access to the large U.S. market in the face of inevitable protectionist pressures. The second is the challenge of remaining true to ourselves - our cultural expressions, our "gentler" way of life, our more generous social policies - all the threads of the pluralistic social fabric we have woven together.

          Our Canadian unity is more essential than ever as we work to meet these two objectives. Today like yesterday, and perhaps even more than yesterday, the Canadian federation is a tremendous asset for further opening the American market, for resisting US protectionism and for maintaining our sense of Canadian identity.

          Regarding the first challenge, access to the U.S. market, I could mention the tremendous means Canada deploys to make its voice heard in the United States: our embassy (which is the third largest in Washington) and our 14 consulates and trade offices. We really need the professionalism of these diplomats, trade and investment officers, lawyers specialized in commercial law and science and technology advisors, because they are the ones who in large part advance our interests in the host of centres of influence in the Unites States: civil society, the business community, the White House, the House of Representatives and the Senate, not to mention the states.

          But what is most important is that these impressive resources are being deployed by a country that the United States knows and respects. While the American market is vital to us, the Canadian market is also very important to the US. Canada is its largest trading partner, far ahead of Japan and almost equal with all the European Union countries combined. We may be only slightly more than 30 million Canadians, but those 30 million traded around $1.25 billion in goods and services with 272 million Americans every day in 1998. It is a trading relationship that is unique in the world, and that allows us to exert a strong influence on our big southern neighbour when necessary.

          But there's more. Canada is an ally to be reckoned with in terms both of trade policy and of foreign policy in general. The US authorities know full well that few countries are as influential in so many international forums as Canada.

          We have, and will continue to have, our difficulties with certain forms of US protectionism. But our main asset for breaking into the US market is our unity. Trying to do so in disorder and division would weaken us dangerously.

          Regarding the second objective, maintaining our own identity in the face of the powerful U.S. influence, our sense of unity will also be of immense help. In all our efforts to reduce trade barriers, whether with the U.S., Latin America or around the world, our objectives are always to maintain the ability of all levels of Canadian government to take measures in key public policy areas such as health, education, social services and culture.

          In fact, Canada is a leader in pushing for what is called a "cultural exemption" in trade negotiations, to ensure the maximum flexibility for Canada to pursue its domestic cultural policy objectives. We are not alone in this effort, but we are certainly a world leader and have been recognized as such by other countries that have similar interests when faced with the American behemoth.

Conclusion

          I have placed special emphasis on the ties between Canada and the United States in this era of globalization. But when I look beyond the United States to our relations with other parts of the world, I am just as optimistic about the future of our country.

          In the face of our powerful neighbour to the south, which is increasingly our largest trading partner, we need to rely on a united Canada. At a time when international agreements are affecting our lives more and more, we need to be able to count on our country's prestige and influence. To take on the challenges of the new economy, solidarity among all Canadians is more essential than ever.

          This is what Canada is all about: a synergy of cultures which yields excellent results. And that's why Canada works so well. And, I might add, that is why Canada plays such a useful role in the world, both for established countries and for those which have emerged more recently out of circumstances that have nothing to do with our own. It is this optimism in and enthusiasm for the future of our country that I wanted to convey to you as you contemplate leadership in an interdependent world.

          And I commend you for what you are all doing together here in Ottawa over the next few days - young Canadians from across the country coming together to learn, to share ideas and experiences and to prepare for the future. It is a bright future, one that offers you great potential, and one that you will continue to share with your fellow Canadians.

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