The Hon. James Moore, P.C., M.P. - The Pacific Gateway: Realizing Canada's Asia Pacific Opportunity

Speaking notes for
The Honourable James Moore
Minister of Canadian Heritage and Official Languages
and Minister responsible for British Columbia

The Business Council of British Columbia Conference
Vancouver, British Columbia, September 23, 2011

I appreciate the opportunity to meet with members of the Business Council of British Columbia (BCBC), who are actively advancing our Government’s goal of “realizing Canada’s Asia Pacific opportunity.”
I have come today, on behalf of Prime Minister Harper, to underscore our Government’s keen interest in – and concrete actions to – expand our relationship with Asia.
As you heard earlier from my former cabinet colleague, Stockwell Day, cultivating stronger ties with Pacific-rim countries has been one of our Government’s priorities since we first formed government in 2006.
All told, since 2006, more than 30 ministerial-level official visits to the Pacific Rim have been successfully concluded – more visits at a greater pace, than any Government in Canadian history.
To supplement these missions, we’ve opened six new trade offices in East Asia – clear evidence that our Government is committed to increasing trade with Asian nations to secure Canada’s 21st century economic success.
Members of the Business Council of British Columbia know, probably better than most, what is at stake. Ensuring Canada gets the largest possible share of the expanded business opportunites of trade liberalization – especially in fast-growing Asian markets – is central to the future property of all of Canada.
If we are to sustain Canadians’ standard of living and quality of life in the future, we must continue to shift our focus to the Asia-Pacific.
Thanks, in part, to federal trade missions I described, and persistent and personal engagement of Prime Minister Harper and his Asian counterparts over the past few years, we have witnessed dramatic growth in our trade with the region.
Our exports to China have surged 69.6 percent over the past half decade. China is now Canada’s second largest merchandise trading partner and our third largest export market.
To put this into a British Columbia context, provincial wood exports to China were up from $23 million in 2001 to $794 million in 2010.
We exported a record 4.5 million cubic metres of softwood lumber products to China in 2010, up 76.8 percent over 2009. And this growth continues to surge. June of this year saw a record-breaking month for B.C. softwood lumber exports to China with 824,484 cubic metres exported — that’s up 183.6 per cent by volume over the same month last year. From January to July of this year, B.C. exported 4.2 million cubic metres to China, up over double from last year in both volume and value.
Trade with other Asian countries, including India and South Korea is also on the rise. Trade between India and Canada is up 73 per cent since 2004, with exports increasing over 140 per cent over the same period.
We are leaving no stone unturned in the possible expansion of trade liberalization with India. At the Toronto International Film Festival I announced the negotiation of expanded cultural agreements with India as well – including a co-production agreement between Canada and India on film and television production.
While we are engaged in there, we have not missed the opportunity to also ensure we take advantage of the impressive economic growth throughout Southeast Asia.
The Southeast Asia region and China combined represent 1.9 billion people and a total GDP of 7.7 trillion US dollars.
We are working to secure a greater share of bilateral trade. In 2010, annual two-way merchandise trade between Canada and the South East Asian Nations reached $13.8 billion. That’s an increase of 26.2 percent since 2005.
As positive and encouraging as these trends are, we know we must do more. From the Hudson Bay Company through FTA, NAFTA and now the Asia Pacific Gateway & Corridor Initiative, Canada has always been a trading nation. Today over 60 per cent of our GDP is tied to trade.
At the risk of sounding immodest, I would like to proudly assert something at this point: Our Government is the most aggressively pro-free trade Government that Canada has seen.
In fact, since we formed Government just five and a half years ago, our Government has launched an ambitious free trade plan, increasing opportunities for Canadian workers and businesses by concluding new free trade agreements with eight countries: Colombia, Jordan, Panama, Peru and the European Free Trade Association member states of Iceland, Liechtenstein, Norway and Switzerland.
Canada and China are currently negotiating a Foreign Investment Promotion and Protection Agreement (FIPA)—a pact that will set the stage for a significant increase in two-way investment where both Canadian and Chinese firms will benefit from a predictable investment environment with effective dispute settlement measures.
Negotiations are also under way with the European Union and India, which, taken together, could boost Canada’s economy by at least $18 billion.
And just a couple weeks ago, Prime Minister Harper announced the Canada-Honduras Free Trade Agreement.
Added to these agreements, I would also point out that since we formed Government in 2006, we have successfully negotiated new open sky air agreements or updated and liberalized further existing agreements with: Mexico, Costa Rica, Brazil, Qatar, Algeria, Egypt, Jamaica and Trinidad and Tobago, Switzerland, El Salvador, Tunisia, Ethiopia, Morocco, Cuba, the European Union (EU), South Africa, New Zealand, South Korea, Japan, Turkey, the Dominican Republic, Panama, the Philippines, Barbados, Mexico, Singapore, Iceland, Jordan, Kuwait, Ireland, the United States, Croatia and Serbia.
In fact, we have concluded bilateral air agreements with 86 foreign countries and territories, including all 27 European Union Member States, and we are considering air agreement negotiations with other countries and territories in most regions of the world.
We achieved all this at a time when protectionists were on the march, both at here in Canada and abroad, arguing against liberalization, against trade expansion, and in favour of turning back the clock on our progress to date.
The fact is, with the current downturn in the United States and the particular rise of Asian economies, we need to more aggressively pursue new trade possibilities than ever.
Recognizing this, our Government is taking steps to ensure that Canada’s economy is strong and our country is known throughout the world as a great place to invest and do business.
This includes unprecedented investments in Canada’s infrastructure, establishing a foundation for economic growth. Our $62-billion Economic Action Plan has helped to stimulate job creation while strengthening our trading capacity.
But taking action isn’t only about investing money. Fiscal prudence – both before and since the global economic slowdown – coupled with our commitment to quickly reduce the deficit, provides us with other significant advantages.
Canada’s debt-to-GDP ratio is the lowest of all G8 countries. Because of our responsible management of the public purse, both before and after the recession, Canada is seen as a safe, responsible country to invest.
Our government has made a number of policy changes, as well, to attract more investment to Canada and to ensure trade flows more freely.
Canada is the first tariff-free zone for manufacturers in the G-20. So, where some countries have Free Trade Zones, Canada is a Free Trade country.
We stand out among our global competitors for reducing barriers to trade and investment at a time when some countries are adopting protectionist measures.
Canada also offers the lowest overall tax rate on new business investment in the G7 – a rate well below the OECD average. Added to these advantages, the World Economic Forum describes Canada’s financial system as the world’s soundest.
Without doubt, one of our most important moves – and certainly one of Canada’s greatest competitive advantages – is the Asia-Pacific Gateway and Corridor Initiative.
This innovative approach to transportation network brings together all of the key transportation, labour, and logistics providers across our supply chains to facilitate pan-Pacific trade.
The Government of Canada has partnered with all four Western provinces, municipalities and private sector partners to support strategic infrastructure projects worth over $3.5 billion in the Asia-Pacific Gateway. This includes federal contributions of over $1.4 billion.
These investments are translating into tangible time and money savings for businesses on both sides of the Pacific.
We’ve also updated our policies and regulations to speed up the pace of doing business. For instance, shippers can get goods from Canada’s west coast to Chicago in just over 100 hours or just a little more to Memphis. That’s because we can offer streamlined cross-border security processing. The Canada-U.S. border is smart, efficient and secure.
We have focused on other competitiveness measures, too, such as building our partnerships and collaboration with industry and across the public and private sectors.
And, to promote all of these investments and advantages, we implemented a major advertising campaign targeting marine and air shipping trade publications throughout the Asia-Pacific region. We’ve worked hard to get our good news story out – making sure Asian governments, businesses and investors know that, in Canada, we mean business.
And it’s producing results. The Gateway is revolutionizing the way Canada trades with the Asia-Pacific region, producing direct benefits for businesses in British Columbia.
In 2010, two of Canada’s west coast ports reported records for handling cargo, fuelled by growth in Asia-Pacific trade. Port Metro Vancouver handled 2.5 million TEU’s, up 17 per cent from the year before. Bulk products were a record 80 million tonnes. Prince Rupert reported a 35 per cent increase in 2010 of over 16 million tonnes of cargo. Fairview Terminal handled 343 thousand TEU’s last year – an increase of over 29 per cent from 2009.
Keep in mind that this was happening while much of the world was slowly recovering from the worst global recession since the Second World War.
The trade corridor is not only about importing goods: it’s about helping Canadians access Asia-Pacific markets as well. By strengthening our overall transportation system, we’re improving how we move freight from North America westward across the Pacific to Asian nations.
Everything from Canada’s traditional wealth of natural resources to next-generation manufactured goods can now make their way quickly and efficiently to those markets.
Whichever direction cargo is moving, Canada’s world-class transportation infrastructure means affordable, fast and reliable access to North American and global markets.
The success of the Pacific Gateway has opened up countless opportunities for trade – both across Canada and across the Pacific. In fact, many of the opportunities and possibilities you discuss at this event will be made easier because of this gateway. What we’re capable of doing today was impossible even 20 years ago.
I can assure you, we’re not stopping there. We will continue our outreach activities as we enter a second important phase in the Asia-Pacific Gateway – an approach that is about adding value to the investments in physical infrastructure we’ve already made.
In his address yesterday in Parliament, Prime Minister David Cameron, gave an impressive presentation on the economic path ahead for both our countries.
He took his time to make a particular point about trade and the obligation we have to renew our energy to defend the foundational arguments for liberalized trade.
He said:
“We've got to re-fight the argument for free trade all over again. And for me there’s nowhere better to do it than here in Canada – a country built on trade.
Because the truth is that trade is the biggest wealth creator we’ve ever known. And it’s the biggest stimulus we can give our economies right now. A completed trade round (at DOHA) could add $170 billion dollars to the world economy.
And yet too many people still seem to believe that trade is some sort of zero sum game. They talk about it quite literally as if one country’s success is another country’s failure. That if our exports grow then someone else’s will shrink. That somehow if we import low cost goods from China we’re failing.
As if all the benefits of China’s exports go to China alone.
When actually we benefit too: from choice, from competition, low prices in our shops.
The whole point about trade is that you're baking a bigger a cake.”
Prime Minister Cameron has it precisely right.
It is imperative for those of use who believe in economic growth, trade liberalization, who understand the opportunities inherent in exploiting our comparative and competitive advantages, to stay engaged, to remain vigilant in the face of those voice of protection who sit in our provincial and national legislatures and beyond.
Do not assume the argument for free trade has been won for all times. Do not assume that the opponents of more trade, free enterprise, freer markets and liberalization have forever lost and will slink off into the night.
As a matter of fact, the opposite is the truth. The voices of protectionism are gathering steam. The Official Opposition party - the "government in waiting" in both Victoria and Ottawa - are stridently opposed to the very projects were are discussing here today. They have opposed, without a moment of hesitation for examination, every single free trade deal, air liberalization agreement, and bilateral or multilateral investment or trade negotiation we have undertaken.
For us to succeed, we must continue to work together, to build together, to be constructively critical of where we've missed opportunities and where we should go next.
But, most importantly, our larger success will hinge on our understanding of the need to be persistent in our defence of the values of free trade, expansion, enterprise, and to seek out and to debate and defeat those who would like to see all the progress we have thus far achieved be undone.
I look forward to this challenge, and I hope you are prepared to join with us and move forward together.
Thank you very much.

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