Thank you, Mr. Chairman. Good morning, ladies and gentlemen.
Thank you very much for allowing us to have a few moments of your time.
As the chair has mentioned, I'm joined by Stewart Beck. In the second phase, David Plunkett, who's behind me, will be discussing some of the bilateral and regional trade negotiations, in particular, EFTA.
It is really a great pleasure to be here to talk about some of our priorities at DFAIT. We place a very high value on the work done by this committee. Indeed, previous committees have done such things as “Elements of an Emerging Markets Strategy for Canada” and have visited certain countries and allowed us to reshape our priorities.
Your work contributes greatly to how we see the world and how we need to proceed. We look forward to working with you in the time ahead, especially during this time of serious instability in the global economy.
We cannot lose sight of the importance of participating in international trade and investment. We're seeing a good example playing out today in the United States, where we're working hard with our global partners to push against the protectionist measures being proposed in the American stimulus package. In our view, the last thing the world needs right now is restricted trade.
The nations of the world need to grow our way out of this crisis together, as partners. That means pushing hard for open markets that will stimulate economies, create jobs, and keep our country strong in the face of these challenges.
We also recognize the enormous competitive pressures in the global economy, especially from emerging giants like Russia, Brazil, India, and China. At the same time, governments are competing with governments to support their businesses and investors in the right ways, in the right markets, with the right tools.
Minister Day and Minister Cannon have ensured that an economic perspective is at the forefront of all DFAIT priorities.
Addressing these challenges is what we call our global commerce strategy. It's based on three areas of concentration: making Canada the best country and partner of choice to do business with; market access, not only in the narrow, older sense to markets, but to capital, to technology and to talent; and connecting businesses to opportunities. It's a fundamental part of our U.S. and Americas strategy, as well as growing and emerging markets. We think of it as a road map to help our businesses and investors adapt to the complex realities of trade today.
We've entered a period marked by what we call “integrative trade”, that is, all the various ways in which Canadian businesses create value in the global economy. It's about trade. It's about investment. It's about global value chains. And it's about other areas like innovation, science and technology, air services, and the many other value-added tools and policy instruments that governments can provide.
Our global commerce strategy represents our plan to give Canadian businesses and investors the support they need to continue building links to global markets.
Of course, market access for our businesses and investors will always be a crucial focus of our work. The WTO remains our preferred forum for market access. While the prospects are uncertain, at least in the short term, we'll continue working with our partners to push hard for a conclusion to the Doha round in the coming year.
In the meantime, we're stepping up our efforts on the bilateral front, first and foremost as a partner in the enormously successful North American commercial platform.
Canada benefits greatly from being part of the North American Free Trade Agreement. We're working closely with the U.S. and Mexico on a range of issues to keep trade, investment, and talent moving across our borders and to ensure that the North American partnership remains strong and prosperous. Also, as I've mentioned, we're working closely with both countries to ensure that the doors to trade remain open, not closed.
We're also getting more aggressive on the bilateral front outside North America. As you know, Canada's first new free trade agreement since 2001, with the European Free Trade Association, the EFTA countries of Iceland, Norway, Switzerland and Liechtenstein, is moving through the parliamentary committee process now.
We've also recently signed free trade agreements with Peru and Colombia. We're moving forward on a long list of other FTA negotiations around the world, primarily in Asia and the Americas, and we're working closely with the European Union on a closer economic partnership initiative.
As I mentioned, David Plunkett, director general for bilateral and regional trade policy, will be here later to talk to you about the EFTA in particular, encompassing multilateral, bilateral, and regional access issues, but at the moment just let me say that market access will always remain a focus of our department's work.
We have focused on other kinds of agreements as well. Air services agreements are a good example. We currently have more than 70 in place.
Investment agreements are another example. With integrative trade driving global commerce today, we understand the importance of fostering two-way investment. Stewart Beck will give you more details on our efforts to promote Canada as an investment destination, including how we're leveraging the Asia-Pacific gateway and the 2010 Olympics to draw more attention and investment to our country.
But there's also a policy element to this. Canada now has more than 20 foreign investment protection and promotion agreements, FIPAs, in place with key partners in the world, with more in process. These agreements give investors from Canada and other nations the stable, predictable investment environment they need.
Stewart will also tell you how we're recognizing the importance of innovation and science and technology in our activities, and leading the wave. Certainly S and T is a key driver in investment, trade, and our national profile.
We're also keenly aware of the important role that strategic government services can play in helping connect our businesses and investors to global opportunities. For example, we're working closely with Canadian business to develop a series of targeted, sector-based market plans for key markets. These plans have raised a full range of international business activities, from exports, imports, and investment, to S and T, licensing, and the negotiation of market access through trade and investment agreements.
We also enjoy a wide-reaching international commercial network—our trade commissioner service. These dedicated men and women posted across Canada and in trade offices around the world can help businesses quickly identify contacts in key global markets. And they understand the demands of the world, because even in these challenging times, there are opportunities out there, but it's expensive and time-consuming for Canadian businesses to scope out these opportunities on their own.
We've received a lot of great feedback over the years. Businesses have told us that our trade commissioners have saved them time and money, connecting them to the people who matter in global markets, connecting their products or services to marketplaces all over the globe, and providing them with critical information to help them avoid costly mistakes.
We currently have about 950 trade commissioners active in more than 150 cities around the world, including 17 regional offices across Canada. They help thousands of Canadian companies each year, particularly small and medium-sized companies. And the demand for our services is rising.
As new global business models and non-traditional global commercial activities continue to develop, Canadian companies are becoming increasingly reliant on the services of our trade commissioners. In fact, demand for these services is expected to increase by at least 15% over the next five years. That's why we're boosting our presence in existing trade offices, both domestically and globally, and we're opening new offices in key markets like China, Brazil, Mongolia, and India.
Internally, we're also looking at creating a better mix between positions in Canada and abroad. This means reallocating positions and resources from our headquarters here in Ottawa to where they can make a deeper impact in our trade offices abroad. More generally, we're also focused on reorienting the services provided by the TCS depending on the realities and opportunities in each market. In some markets, for example, trade commissioners are focused more on investment and less on traditional export business. Some trade offices are working exclusively on innovation, technology partnerships, and science and technology. Some will be very active to support market access issues or trade negotiations. Others will be focused on more traditional export promotion activities, and still others will be performing all these functions. In short, we're seeing different focuses in different markets, as opposed to the old idea of just a brass plaque of “we do this” around the world.
The end goal is the same: building Canadian links in supply and value chains. But the journey will be different depending on each market, in keeping with the nature of the integrative trade model. Our trade commissioners are adapting to these new global realities and supporting our businesses in their efforts to create wealth and opportunities for Canadians, and partnerships with nations around the world that will benefit all of our economies.
As you see, the global commerce strategy is our road map to help our businesses and investors adapt to the complex realities of trade in the 21st century, especially during these tough economic times.
Thank you very much.
I'll turn to Stewart for his comments, and then we'll be very pleased to answer your questions and comments, and go forward.
Thank you.