Address by Prime Minister Jean Chrétien
To a Team Canada Atlantic Business Luncheon

May 14, 2001
Atlanta, Georgia

Ladies and gentlemen, nothing gives me greater pleasure as Prime Minister than having a chance to show Canada off to the world. Our people. Our know-how. And our potential. That is why I am delighted and excited to be a part of the first visit to Atlanta by Team Canada Atlantic.

Canada and the United States are close members of what I like to call La Gran Familia of the Americas. A family whose shared values of democracy, open trade and cooperation were vastly strengthened just a few weeks ago in Quebec City during the Summit of the Americas 2001.

As you all know, the Summit was the international debut of President George Bush. And I want to say how impressed all the Summit leaders were by his knowledge, his engagement and his skilful advocacy for the people of the United States. We would not have accomplished what we did without his singular contribution and commitment.

The friendship between Canada and the United States is as old as our nations. One that finds expression in a million different ways. In the more than one billion dollars in business that we do together every single day.

And, in recent years, our trade with the states of the American Southeast has become an increasingly important part of that business. In 2000 our exports to the region amounted to about $26.4 billion (Cdn). An increase of over 18 percent over the previous year. And two-way trade reached almost $34 billion (Cdn).

Nortel Networks and Alcan and many other companies have established a strong presence in this region. While we have benefited from the powerful presence in Canada of many of the more than 50 Fortune 500 companies that call the Southeast home.

At the same time, Canada and the southern states do sometimes seem like long-lost cousins. Separated not only by distance but by a shared lack of awareness. And I believe that this has prevented us from tapping into our full potential as commercial partners.

Atlanta and Georgia very much embody the tremendous vitality and sophistication of the ‘New South.’ A south blessed with a proud sense of history and tradition. A place of legendary hospitality. A quality that Governor Barnes has served up with trademark generosity during my stay. But a South which has also found new strength and prosperity by embracing new ideas and the new economy.

Team Canada Atlantic is about introducing you to the New Canada. A Canada with a sound and revitalized economy. A Canada on the move and in transition, rapidly building on traditional economic advantages and developing new ones. A Canada that is rising to the challenge of the global, knowledge economy.

And I have the pleasure of making this introduction by way of one of our most dynamic and growing regions. Our Atlantic provinces: Nova Scotia, Prince Edward Island, New Brunswick, and Newfoundland and Labrador.

And Team Canada Atlantic is here in force. The premiers: Bernard Lord, John Hamm, Roger Grimes, and Pat Binns, who will arrive tomorrow. And, of course, their very best sales people: the many Atlantic firms that have come here to do business.

We bring a message of an Atlantic Canada that is truly catching the wave of the information economy. Its people are embracing the power of the Internet. Atlantic researchers are pioneering new technologies and processes. Atlantic entrepreneurs are creatively showcasing new products and services. And, as you can see today, Atlantic exporters, as never before, are looking to new markets for business.

We want to give the Southeast a privileged opportunity to catch the rising Atlantic wave. To think of Atlantic Canada as a Canadian business gateway. As the place to look for cutting-edge ideas and infrastructure. As a primary source of strategic alliances. And as a choice place to invest.

One key reason that the Atlantic wave is rising is because of the hard work that we have done -- the Government of Canada, the provinces and all Canadians -- to restore the economic vitality of our nation.

Our governments – federal, provincial and territorial – have taken the steps needed to build strong economic fundamentals. With balanced budgets, lower public debt, falling taxes, low interest rates and low inflation. Our productivity continues to grow. We lead the G-7 in job growth and our unemployment rate remains near a 25-year low.

We are on the longest run of economic growth since the 1960s. And although we are naturally being affected by the cooling of the American economy, Canada will remain among the G-7 leaders in growth this year. In 2000, the prestigious International Institute for Management Development ranked Canada as the best fiscally managed country in the G-7.

At the federal level a new era of surpluses has given us the freedom to take the steps and make the investments needed to re-energize the business climate in Canada. Indeed, just a few weeks ago the Economist Intelligence Unit ranked Canada as number 3 in the world for our business climate.

We have enacted the largest personal tax cut in Canadian history. And not to brag too much, but ours is already signed, sealed and delivered.

We have legislated corporate tax cuts that will see our rate fall five points below the United States by 2004. Our capital gains tax rate is now lower than the United States. And our tax treatment of stock options is now more generous and flexible.

Our payroll taxes are significantly lower than in the United States. And we offer the most attractive tax regime in the world for research and development -- the lifeblood of prosperity in the new economy. In Atlantic Canada, for example, one dollar spent on R&D really only costs you between 45 and 60 cents once you factor in tax incentives.

We have also made bold investments to promote innovation in all parts of Canada. Last June, for instance, we announced a major new $700 million investment partnership with the Atlantic region to promote the transition to the new economy; in which export promotion is a key component

Through our world-leading Connecting Canadians strategy, we have become number two in the world for our use of the Internet. We are the first major country in the world to have connected all our schools and libraries to the Internet. And we have set bold and ambitious targets that will make Canada a trademark for excellence in E-commerce.

These emerging Canadian advantages build on our traditional strengths. We have a highly skilled and productive work force. The vast potential of our energy sector, including oil, gas and electricity in Atlantic Canada, is of increasing interest to the United States as a source of reliable and secure supply. And our health care system gives Canadian businesses greater flexibility. Health care expenses as a share of corporate payroll are less than half of what they are in the US.

Ladies and gentlemen, Canada is one of the great economic success stories of the last decade. And Atlantic Canada has been leading the way, building on traditional strengths in agriculture agr-food and the fishery; developing its value added capabilities in these sectors, as well as new and diverse niches and strengths.

Tourism is booming. Offshore oil and gas is becoming a pillar of the regional economy. Newfoundland and Labrador is home to more than 200 advanced technology firms that export specialized products and services around the world. Nova Scotia is becoming a centre for multimedia, biotechnology, E-business and telecommunications. The aerospace industry in Prince Edward Island is looking at doubling in size within the next few years. New Brunswick has one of the highest concentrations of information technology firms in Canada and is becoming a premier North American location for high tech.

A key underpinning in all of these positive Atlantic trends is the extraordinary work that the region has done to make itself a great place to invest. Indeed, a recent study done by KPMG rated St. John’s, Halifax, Charlottetown and Moncton as having the lowest costs of manufacturing in North America. This applies to such leading-edge new economy sectors as electronics, medical devices, pharmaceuticals, plastics, software and telecommunications equipment. Making Atlantic Canada a prime choice as a place to locate a new business, relocate an existing one or expand a growing one.

Just look around you. Our business delegation offers a pleasing taste of the creative energy that is flowing from St. John's to Moncton. Energy that is ready to be harnessed to the advantage of the Southeast.

That is why we are here in such force. To show you how Atlantic Canada is catching the wave. To invite you to catch the wave with us. And that is why we will be back!

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