APEC CEO Summit Opening Ceremony

I would like to thank the Business Council on National Issues and the Pacific Basin Economic Council Canada for organizing this, the first APEC CEO Summit. As you know, our theme this year is "APEC Means Business". Nothing captures this spirit better than your presence.

I'm sure you have been warmly received and I hope you will have an opportunity to experience the sights and sounds and the optimism of Vancouver. Here, the city is alive with Asian influences -- in the arts, in politics and especially in business.

Indeed, Vancouver and British Columbia are examples of the dynamism and diversity of Canada. A diversity and dynamism that equips us so well for the world of today -- a global nation for a global community. This dynamism is embodied by our Secretary of State for Asia Pacific, Raymond Chan -- who, as well as being an excellent Minister, is the first person of Chinese descent ever to serve in the Cabinet of a Western nation.

This example, and thousands of other success stories, are why Vancouver is now often referred to as the newest capital of Asia.

Canada and Vancouver are proud to host this year's APEC Leaders' Meeting. And it is a great privilege for me -- as Prime Minister of Canada -- to Chair APEC `97. We decided to make the University of British Columbia the focal point of our meetings this week. Knowledge and innovation are the keys to prosperity for all peoples in the new global economy. And nothing shows the value which our government places on these vital areas better than showing off this truly world class Canadian university.

As you all know, we have designated 1997 as Canada's Year of Asia Pacific. We did this to celebrate the Asia-Pacific dimension of Canadian life. The Leaders' Meeting and the CEO Summit mark the highlight of our year-long celebration.

This opportunity for dialogue will certainly contribute to a deeper understanding of the opportunities and challenges that exist in the Asia Pacific region. APEC leaders will be listening closely to what you have to say.

Ladies and gentlemen, Canada has always been an open, trading nation.

We have always understood that enhanced trade and investment flows are the engines of economic growth and prosperity. Indeed, we are living proof. For us moving goods, services and people more freely is not an end in itself, but the means to a greater end. It is the best way to generate the wealth necessary to make investments in the well-being of people. It is for this reason that we have championed liberalized trade regionally and globally.

And this deep, deep belief has motivated our approach to the evolution of APEC and our vision of an integrated Asia-Pacific community.

We understand that providing effective leadership -- in business or in politics -- presents many challenges. In my experience, a very important quality of leadership is the ability to deal with short- term issues in a manner that promotes fundamental long-term objectives. And it is in this context that I would like to share my views with you on recent events in Asia, as well as on our work in APEC.

The last few months have seen the kind of activity in some economies and on world financial markets that has caused real concern for governments and investors worldwide. These developments have provided a compelling illustration of the reality of globalization.

They have also raised profound concerns not only about how best to respond to these problems but, as well, about the longer-term economic prospects for some countries in the region.

Let me address both of these points.

Earlier this week, in Manila, our senior officials met to agree on a series of measures to respond to the current problems some APEC members are facing. They arrived at a series of agreements on economic and financial cooperation which I and the other Leaders will focus on here.

The agreements in Manila were intended to do two things. First, to launch a regional consensus on how best to respond to the current problems in the region. Second, to set in place arrangements which, we hope, will help us to avoid these kinds of problems in the future.

As far as the longer-term prospects for the Asia Pacific are concerned, let me be categorical: they are very good -- beyond question.

The problems of today are no doubt serious, but they are by no means unique to this region. Others -- including some APEC members -- have faced the same difficulties in the past and have more than successfully resolved them. I have no doubt at all that the same will be true for the current situation.

As APEC Chair, I want to ensure that our discussions deal with the fundamentals of where we are and where we are going from here. Key to that will be focusing on building an integrated region -- one where open trade will lead to greater prosperity and opportunity for all of our citizens.

Globalization is a fact of life. It is a real and powerful force. We cannot move against this current, even if we wanted to. I know that there is always the temptation to try and turn the clock back -- to revert to protectionism and isolationism as solutions. This simply will not work. It is a recipe for stagnation, economic recession, fewer jobs and a lower standard of living for all. Liberalized trade and finance, open borders and open markets are the key to prosperity for all members of APEC -- whatever continent they are on.

Obviously, each of us must pursue economic policies that are consistent with our own unique circumstances and history. But while there are no "one-size fits all" solutions in the global economy, there are fundamental principles that do apply across the board. Two aspects of economic management deserve special emphasis: maintenance of a stable macroeconomic environment, and a transparent and robust investment environment.

These are the policies I will urge all APEC members to follow in order to resolve the current problems in Asian economies and to provide for strong growth in the future.

Our government has worked hard to live by these principles. And as Prime Minister of Canada -- before a group of some of the most important investors in the world -- I want to take a few minutes to report on where we stand and where we are going.

Over the last four years, Canada has created almost one million new jobs. Our interest rates have fallen far below those of the United States. Our rate of inflation is lower than 2 per cent. Our growth is running at close to 4 per cent. And we have the highest rate of job creation in the G-7.

Today, all the international forecasters are predicting that Canada will enter the next century with the best economic performance of the G-7 countries.

We have removed the burden on the future that the deficit represented. We have already begun reducing the debt as a proportion of the size of the economy. We have already begun paying down our marketable debt. And we have begun investing in the needs of our people.

Once again, Canada is a great place in which to invest and do business. It is a preferred point of access to a North American market of 386 million people. Our entrepreneurs are bold. Our workers are highly skilled. Our transportation and communication systems have no peer. We are at the forefront of the use of information technology. We have good schools and safe neighbourhoods. Our quality of life has been rated the best in the world by the United Nations for the last four years in a row. We are blessed with an unmatched respect for diversity. A diversity wonderfully on display here in Vancouver. And which makes us open to the Asia Pacific as no other nation.

Earlier this month, I received "A Call to Action" the report of the APEC Business Advisory Council (ABAC). I congratulate the Council for a job well done. They have made important recommendations, some of which I would like to comment upon.

The Council recognized the importance to developing economies of building a modern infrastructure. They estimate that as much as $1.5 trillion will be needed for infrastructure projects between now and the year 2004. And they urged the creation of an Infrastructure Investment Initiative to increase private sector investment.

Private sector capital is clearly essential. So, later this week, I hope my fellow leaders and I will renew our commitment to a framework for new partnerships with the private sector for greater infrastructure investment. I would also like to see a new emphasis put on environmental infrastructure -- what we call green technologies. In these lie the key for all of us to dealing with the crucial issues of global warming and climate change.

In recent years, small- and medium-sized businesses have been creating most of the new jobs in Canada. But they remain under-represented among the region's exporters. Given the reliance of the Canadian economy on trade -- 40 per cent of our GDP -- our SMEs must gain better access to Asian opportunities. So, I support the recommendation that SMEs be helped in this regard by way of the Internet.

One aspect of your "Call to Action" was especially gratifying. The section outlining how government and business can work together on community investments -- even when they may not show immediate profit -- shows that when APEC means business it really means people.

Ladies and gentlemen, APEC's vision is a bold and wise one; bold in daring to create a single -- yet diverse -- Asia Pacific economic community; wise in the pay off that our strength of purpose will have on the quality of life of our peoples.

Ours is a relationship based on an economic partnership -- freely joined -- and founded on the genuine belief that cooperation provides the best path for common prosperity. Our common objectives must be: a strong economy, strong social programs, a healthy environment and respect for human rights.

This year's meeting is about putting this APEC vision into action. At the end of this Leaders' meeting, all 18 economies will agree to speed up the move to freer trade. We will be announcing -- two years ahead of schedule -- sectors where we will reduce tariff and non-tariff barriers. Some of these will go beyond our commitments within the World Trade Organization.

That is what I call results. That is what I call momentum. That is what I call irreversible movement toward a free trade area in the Asia Pacific.

I know that the next few days will be stimulating and rewarding for you. And I invite you to get to know the Canadian CEOs who are present. Their eagerness to explore new opportunities expresses Canada's deep interest in the Asia Pacific far better than my words.

Theirs is a spirit that is on the rise from coast to coast to coast in Canada. And it is a spirit that will carry us into the 21st century -- the Asia Pacific century.