Jean Chrétien Addresses the Argentina-Canada Chamber of Commerce

Ladies and gentlemen:

I am pleased to be with you here in Buenos Aires. As a golfer, I feel especially pleased, but also a little bit guilty, to see so many important Argentines here despite this being the vacation season.

This is the largest and most senior trade mission that Canada has ever fielded in South America. As we say in hockey, or you might say in soccer, it is an all-star team.

Our delegation is evidence that Canadians are beginning to see the world of opportunities that surround us. For most of our history, our vision was fixed on Europe and the United States. Now we have lifted our gaze to the broader horizon, to the fast-growing economies in Asia and here in South America. We will still have strong relationships with Europe and the United States. But we will not be limited by those relationships. We are committed to building strong and lasting relationships with our partners in the Americas.

Canadians are excited by the measures being implemented by Argentina and throughout the continent to improve economic stability and prosperity. Clearly, these measures are working. Your economic growth is impressive, and every day sees new opportunities for commercial cooperation.

Our negotiation of the North American Free Trade Agreement is evidence of our commitment to trade liberalization in this hemisphere. It is the first agreement of its kind to include members from both the developing and the developed world. Canada insisted that the agreement include an accession clause, so that others may join in the future. Naturally, we had Latin America in mind. As you know negotiations for Chile's accession have already started.

The recent Summit of the Americas in Miami was a major step for Canada on the road to improved relations with Latin America. The summit's declaration of principles and action plan point the way towards strengthening democracy, liberalizing trade, and promoting sustainable development.

I am proud that Canada played its part in designing this ambitious, concrete plan for the hemisphere. I am here today to tell you that Canada is going beyond the summit to build direct links in the countries with whom we feel an especially close bond.

A key theme of my visit is trade. Canadians recognize that trade abroad means jobs and growth at home.

Argentina has a special role to play through MERCOSUR. Canada applauds your decision to join with other countries to break down trade barriers. It is a bold and imaginative step for this region.

We believe NAFTA and MERCOSUR are the two pillars from which hemispheric free trade will emerge. We foresee the day when the two groupings will merge, and we are eager to begin discussions now at a senior level to prepare the way through a better understanding of each other's needs.

Two days ago, Canadian Trade Minister Roy MacLaren and I were in Montevideo to start this dialogue.

Today, I will propose to President Menem that senior officials from NAFTA and MERCOSUR countries work closely together, and with the OAS Secretariat, to analyze how to integrate the two agreements. Officials would be directed to report back to our trade ministers, who will meet in June to review the progress made, as agreed to at the Miami Summit.

Why this focus on free trade? It is because of the growing realization that enhanced trade and investment flows are the engines of economic growth and greater prosperity. Without this prosperity, democracy will remain fragile.

Canada developed quickly because it opened its doors to foreign technologies. By adapting these technologies to the Canadian environment, we achieved one of the highest standards of living in the world. We also established a base for developing our own leading-edge technologies.

Canada's doors remain open to new investment and innovative technologies. We invite your companies to invest and do business with us.

In the same way, by liberalizing its economy and through its massive privatization program, Argentina is attracting the best technologies from around the world.

I want to congratulate President Menem and his team on the remarkable economic progress that has been achieved in Argentina. I realize this has not been without some pain. Canada has also had to make some difficult adjustments. But for both of us, the rewards are there if we stay the course.

When President Menem visited Canada last June, he was accompanied by some of the leading entrepreneurs of Argentina. That visit underlined to me and to Canadian business the impressive economic story of Argentina, and the tremendous opportunities for cooperation.

Although our bilateral trade is modest and there is clearly room for improvement, Canadian exports to Argentina tripled in the last three years. After this luncheon, contracts and agreements totalling $ will be signed. This is a clear indication that we are working together. The success of this mission will mean thousands of new jobs in both Argentina and Canada.

But this is only a beginning. We have an extraordinary opportunity to benefit from our respective strengths and capabilities. Canadian technologies in natural resources and communications are the best in the world. They are well-suited to Argentina's requirements.

Exports are one part of the picture. Investment is another. Five years ago, Canadian direct investment in Argentina was insignificant. Today, it stands at more than $1 billion Canadian, and it continues to grow rapidly.

The private sector must take the lead, but governments can help. Canada's Export Development Corporation already has three lines of credit in place for medium and long term financing. Today, we will be announcing an additional three lines of credit.

During President Menem's visit to Canada, we signed an agreement to help Argentine exporters enter the Canadian marketplace.

We have had a foreign investment protection agreement since 1993. A few weeks ago, we ratified a double taxation agreement.

I want to encourage Argentine business to look at Canada as a gateway to NAFTA, offering secure access to the largest free trade area in the world. You should look at joining with Canadian companies to combine your products and technologies for the whole North American market.

I will encourage Canadian companies to look at Argentina and MERCOSUR in the same way. Two Canadian companies, McCains and Canada Malting, have already done so with great success.

My friends, these are exciting times for all of us. Just as Argentina has had a new era of hope and promise, I believe a new era is dawning for the community of nations in the Americas. A new era of close relations. Of new prosperity. Of decent jobs for our people and decent futures for our children. A new era that brings our nations and our people closer together.

We opened this new era at the Miami Summit in December. Our visit here is another step toward that new world.

I invite all of you to work even harder to advance the cooperation between our two countries. It is a great pleasure for me to celebrate with you today the friendship between Argentina and Canada -- a friendship that is strong and growing stronger all the time.