Prime Minister Announces New Initiatives With China and Major Progress in WTO Negotiations

"Canadians and Chinese have many interests and concerns in common with respect to environmental and social challenges," said the Prime Minister. "The agreements and initiatives that we are announcing today will enable us to deepen our cooperation in key areas by sharing our mutual experiences, knowledge and technology."

The Prime Minister also welcomed major progress made this week in bilateral World Trade Organization (WTO) market access negotiations. "We were able to agree in principle on trade in goods, including agriculture, and we are nearly there on services. China is now part way through the WTO door, and I am now confident that China will be a member of the WTO this year," said the Prime Minister. "We want to keep the momentum going and we are ready to meet again as soon as possible to conclude negotiations with China."

The following documents were signed at the Ottawa ceremony:

The Canada-China Environment Action Plan for 1999-2000 reaffirms the two countries' commitment to work together on sustainable development and environmental issues such as energy efficiency, water resource management, environmental technology, agriculture, forestry and transportation. The Plan was signed by Environment Canada Minister Christine Stewart and China's Minister of the State Environmental Protection Administration, Xie Zhenhua, on behalf of Canada and China respectively. It builds on several bilateral agreements, including last fall's Framework Statement for Cooperation on Environment into the 21st Century.

A Memorandum of Understanding on Cooperation in Combatting Crime was signed by Canada's Ambassador to China, Howard Balloch, and his Chinese counterpart in Canada, Ambassador Mei Ping. The Memorandum provides for cooperation on a variety of criminal issues between the Royal Canadian Mounted Police and the Chinese Ministry of Public Security, with a focus on the drug trade, financial crimes and smuggling.

A Protocol on Agriculture provides a framework for the quarantine and health requirements for the export of bovine embryos to China and will thereby facilitate their export. In addition, the protocol will promote the export of related services and equipment, including technical training and co-operative research in such areas as embryo collection, storage, testing and transfer. The Protocol was signed by the two Ambassadors, Howard Balloch and Mei Ping.

The Prime Minister also highlighted the following initiatives:

The Extension of the Export Development Corporation (EDC) Concessional Line of Credit will allow Canadian exporters to China to compete with similar financing offered by our competitors. This line of credit, which has been extended by a year, has enabled Canadian exporters to finance projects in a variety of sectors, including environment, telecommunications and water treatment.

A Canadian Council of Churches Delegation will visit China this summer.

The Second Plurilateral Symposium on Human Rights, an important element of Canada's human rights initiatives with China, will be held in China in July. The first event took place in British Columbia in March 1998.

The Canada-China Business Council (CCBC) Youth Internship Project 1999-2000, will receive funding from the Department of Foreign Affairs and International Trade Youth International Internship Program (YIIP). The Project will provide 10 Canadian youth the opportunity to work in China with Canadian and Chinese business members of the CCBC. YIIP is a component of the federal government's Youth Employment Strategy.

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The Canada-China Environment Action Plan for 1999-2000 reflects a shared interest in enhancing cooperation on environmental and sustainable development issues, including climate change mitigation, monitoring and adaptation. It builds on several bilateral agreements, notably last fall's Framework Statement for Cooperation on Environment into the 21st Century.

The Action Plan provides an opportunity for Canada and China to work jointly in such areas as:

To date, Canada and China are implementing, or have agreed to implement, a number of initiatives to meet the environmental challenges that lie ahead, including the

Team Canada partners involved in these initiatives include Environment Canada, the Canadian International Development Agency, Natural Resources Canada, Agriculture and Agri-Food Canada and the Department of Foreign Affairs and International Trade.

Under the Action Plan, Canada and China will establish a Joint Committee on Environment Cooperation to coordinate activities relating to last fall's Framework Statement. The inaugural meeting will take place in China in the fall of 1999 and a second meeting will be held in Vancouver in March 2000.

Another aspect of Canada-China co-operation on environmental and climate change matters is a bilateral project, arranged under the auspices of Natural Resources Canada, to address China's growing energy needs while reducing CO2 emissions.

This Climate Change Action Fund — Technology Early Action Measures (TEAM) initiative will, among other measures, support the retrofitting of turbine control units at five small hydro plants in China. It is expected that CO2 emissions will be reduced by 30,000 tonnes per year as a result of the five installations. This project is part of the November 1998 Framework Statement for Cooperation on Environment into the 21st Century and will help to position Canada as a leader in the development of climate change solution technologies.

With the globalization of criminal activity, the international community has been developing better mechanisms for cooperating in international law enforcement. Canada and China already have in place a mutual Legal Assistance treaty between the Ministries of Justice that provides for prosecuting cases involving the two countries. This MOU supports the treaty by enhancing co-operation between the Royal Canadian Mounted Police and China's Ministry of Public Security in three broad areas: the drug trade; financial crimes and smuggling.

The MOU covers Information-sharing on the illicit cultivation and manufacture of, and trafficking in, narcotics and psychotropic substances by trans-national organized crime.

Given the increase in financial links between Canada and China, the MOU also enhances cooperation in investigating financial and other economic crimes, including money laundering and illegal acquisition of the proceeds of crime, forgery and counterfeiting of documents, money and securities, trafficking in counterfeit money and trade, as well as combatting crimes related to bribery.

The Memorandum provides for cooperation in crimes related to border controls, including illegal immigration and the smuggling of, and trafficking in, human beings. Items covered under illegal trafficking include weapons, ammunition, explosives as well as toxic and environmentally destructive and radioactive materials. The illegal acquisition, and import or export, of cultural and historical treasures is also addressed.

The forms of co-operation include the exchange of information on offenses being planned, offenses in progress or offenses committed, and assistance in locating and identifying criminals and criminal suspects sought by the police. The MOU also covers assistance in the location, identification and examination of objects and sites involved in an incident and the exchange of records and documents as well as the exchange of legislative or regulatory documents.

China offers immense potential for Canadian exporters of bovine embryos, both for dairy and beef animals. Canadian bovine genetic material is of very high quality and enjoys an excellent reputation world-wide.

The agreement reached between the Canadian Food Inspection Agency (CFIA) and the State Administration for Entry-Exit Inspection and Quarantine (SAIQ) of China stipulates quarantine and health requirements for bovine embryos to be exported from Canada to China. It sets out the CFIA's responsibilities with respect to quarantine and inspection procedures for donor cows and embryos, including the provision of health certificates for the embryos. SAIQ's responsibilities include the issuance of import permits to the Chinese importer, dispatching Chinese veterinarians to Canada to conduct health certification procedures and to pre-approve embryo transfer centres. The protocol also sets out specific health criteria for donor cows and semen, and the procedures to be followed in collecting and processing bovine embryos for export to China.

In addition to the sale of bovine embryos to China, the protocol will facilitate the export of related services and equipment, including technical training and co-operative research in such areas as embryo collection, storage, testing and transfer.

Canada is a strong supporter of China's accession to the WTO as well as of the Organization itself. China announced its intention to resume its status with the General Agreement on Tariffs and Trade, the precursor to the WTO, in 1986. It was unable, however, to negotiate membership in time to be included prior to the launch of the WTO in 1995. Accession negotiations have continued since then.

As part of these negotiations, China has been engaged in bilateral market access talks, on both goods and services, with a number of WTO partners, including Canada. In the lead-up to Premier Zhu's visit, Canadian and Chinese officials engaged in a new round of these negotiations. During these negotiations, the two sides reached agreement on market access issues for agricultural and industrial goods, including a number of chemicals, minerals and agricultural products. The two countries also agreed that China's management of animal and plant health regulations will ensure that Canadian beef, pork and poultry producers are given fair and competitive access to the Chinese market.

This week's negotiations brought Canada and China substantially closer to full agreement. This is a significant step forward in China's accession to the WTO, as well as a strengthening of Canada-China trade relations.

The concessional financing facility provided by the EDC enables Canadian exporters to compete with similar financing offered by competitors. The facility also stimulates the Canadian economy through employment creation and export expansion. The extension by one year of the line of credit, which was due to expire on April 1, 1999, will allow the utilization of undisbursed funds.

The government of Canada has disbursed approximately $600 million since the first Chinese concessional financing facility was created in 1986. Projects from a variety of sectors, including environment, telecommunications and water treatment have been financed under this line of credit.

At the invitation of the Canadian government, the Canadian Council of Churches has agreed to send a delegation to China in June 1999. The delegation will explore, with Protestant and Catholic church partners and relevant Chinese officials, the ongoing challenges faced by Chinese partners in their expression of religious practice. The six- member delegation will be headed by Senator Lois Wilson and comprised of church officials and academics.

The Plurilateral Human Rights Symposium series is an important element of Canada's initiatives with China. The first conference took place in March 1998 in British Columbia and marked the first time that China co-hosted a human rights event involving several countries.

The Symposium series provides an opportunity for participating countries, primarily from Asia-Pacific region, to discuss a range of human rights issues. China has agreed to host the next Symposium in July 1999, in Beijing.

This project of the Government of Canada's Youth Employment Strategy (YES) provides young Canadians the opportunity to develop the skills needed to enter the international work place by acquiring practical experience in internationally-oriented internships.

The Department of Foreign Affairs and International Trade's (DFAIT ) Youth International Internship Program (YIIP) will provide some 400 internships in 1999-2000. Internships range from six months to a year and provide Canadian youth with their first paid internationally-focused work experience. Candidates must be under 30 years of age and are recruited by implementing organizations. Approximately 40 Canadian organizations will implement projects, one of which is the Canada-China Business Council (CCBC).

Under the DFAIT YIIP, 10 Canadian youth will gain international business experience by working in China with Canadian or Chinese member companies of the CCBC. CCBC, with DFAIT's assistance, has placed 28 such interns over the past two years with companies such as Power Pacific Corporation, KPMG Peat Marwick Huazhen, and Canadian Airlines.

Of the interns who have completed the DFAIT International Youth Internship Program, approximately 85 per cent are working; and the remaining 15 per cent have job prospects or are returning to school.

• Environmental cooperation action plan between the Government of Canada and the Government of the People's Republic of China