Jean Chrétien Addresses the Canada-Brazil Chamber of Commerce

Rio de Janeiro, Brasil
Ladies and gentlemen:

During the Canadian federal election of 1993, my party put forward a Red Book of commitments to Canadians. We have spent the past 14 months in office turning those commitments into reality.

One of our key Red Book commitments was to seek new opportunities for trade in the Americas. We also said our government would work to strengthen western hemisphere institutions, such as the Organization of American States, so that countries like Canada and Brazil can play a full role in determining the future of the hemisphere.

I am here to follow up on these commitments.

For Canada to realize its potential as a nation of the Americas, we need to construct a strong political and economic bridge between Canada and Brazil -- the giant of Latin America.

Almost a century ago, Canadian business helped build Rio's first tram system. Since then our business links have grown and matured to the benefit of both countries.

I would like to make special note of the Honourable Mitchell Sharp, who, as Canada's foreign minister in the late 1960s, devoted much time and energy to strengthening our bilateral relationship. He inspired many people, including me.

Now it is time to make good on the exciting new opportunities for increased trade and investment.

President Cardoso has dedicated himself to unleash the dynamic potential of the Brazilian people through increased participation in the regional and global economy. An active Brazil can be at the forefront of the push towards hemispheric free trade.

We are certainly moving in the right direction.

· A year ago Canada, the United States and Mexico implemented the North American Free Trade Agreement, building on the earlier Canada-U.S. Agreement. We hope that Chile will soon become the fourth amigo to join this free trade agreement.

· Mexico has entered into a free trade agreement with Venezuela and Colombia, under the umbrella of the G-3.

· A revived Andean Pact will promote freer trade among Peru, Bolivia, Colombia, Ecuador and Venezuela.

· Brazil, Argentina, Paraguay, and Uruguay have made the MERCOSUL into a full common market.

These agreements demonstrate our common desire to grow, to become more efficient and competitive. Fortunately, the tide is continuing to carry us towards still broader trade and economic integration, as proven at the Miami Summit of the Americas in December.

Allow me to quote a few key principles that we agreed upon at the summit.

· "Democracy and development reinforce one another."

· "A key to prosperity is trade without barriers, without subsidies, without unfair practices, and with an increasing stream of productive investments."

· "Free trade and increasing economic integration are key factors for raising standards of living, improving the working conditions of people in the Americas, and better protecting the environment."

This last point is a reminder that more open economies must benefit all members of society. The alleviation of poverty is the key to greater security and stability throughout the hemisphere.

Let me also remind you of the key resolutions made by leaders at the Miami Summit.

We agreed to begin immediately to construct the 'Free Trade Area of the Americas' in which barriers to trade and investment will be progressively eliminated throughout the hemisphere.

We agreed to conclude these negotiations no later than the year 2005, and that concrete progress will be made by the end of this century.

And we said that this new openness would be built on existing regional and bilateral agreements.

Canada and Brazil can help show the way. NAFTA and MERCOSUL will form the two pillars from which hemispheric free trade will emerge. Canada believes that these two groupings must immediately begin a dialogue at senior levels, with a view to eventually merging.

Not only will increased trade and investment between Canada and Brazil create jobs and economic growth in our two countries, it will help all North, Central, South American and Caribbean countries move toward a more integrated and prosperous hemisphere.

Brazil is already Canada's third-largest export market in the western hemisphere, following only the United States and Mexico. Canadian exports to Brazil are up by more than 30 per cent since 1990. Trade between Canada and Brazil has exceeded $1.5 billion in the last few years, and has been extremely well balanced. Canadian investment in Brazil exceeds $3 billion.

1995 is a year of unprecedented opportunity for Canada and Brazil to expand this relationship. At the northern end of the bridge, Canada represents a great opportunity for Brazilian entrepreneurs wishing to expand into the NAFTA marketplace by investing in Canada or going into joint ventures with Canadian companies.

At the southern end of the bridge, President Cardoso has taken over a country with strong economic growth and improved stability. He has promised to make Brazil an even better place for everyone to do business.

I am encouraging Canadian businesses to look at MERCOSUL as an opportunity to move into rapidly-expanding southern markets.

President Cardoso and I have committed our governments to reaching economic agreements on such matters as foreign investment protection and film co-production.

The progressive reduction of tariff and non-tariff barriers in the 1990s has provided new opportunities for Canadians to expand in fields such as agriculture, informatics, consumer products and manufacturing technology. There are likely to be exciting opportunities in the oil and gas sectors.

The Canadian business leaders accompanying me on this trip have expressed interest in investing in many different sectors in Brazil.

They welcome President Cardoso's commitment to open new sectors of Brazilian industry to outside investment. We hope that these will lead to further opportunities in the telecommunications, mining and energy sectors -- areas in which Canada is displaying its expertise around the world.

President Cardoso has told me that he will seek the elimination of discriminatory provisions on foreign investment, including the mining sector. Canada is no stranger to mining: it has been part of the backbone of a strong Canadian economy since the 1800s.

We recognize that paradise cannot be created overnight. I am a politician, and I know that President Cardoso does not have a magic wand in his back pocket.

In Canada, as in Brazil, change does not always happen as quickly as business people might like. I believe President Cardoso will proceed as quickly as he realistically can. In my view, the shift to democracy and economic liberalization in Brazil has been impressive. Canadians and Brazilians must join hands and seize these exciting new opportunities.

I think everyone in this room will agree with me, whether the language they speak is the dollar or the real: the timing could not be better for expanding economic links between Canada and Brazil.

Something very good has been underway for a long time between Canadians and Brazilians. I am counting on people like you to help take us from the very good, to the great.

On behalf of all Canadians, I would like to thank the government and the people of Brazil for your hospitality to me during this trip. There is a common spirit in Canada and Brazil. We believe in ourselves, and we believe in each other. Let us move forward together.