Thank you, Mr. Gagnier (Daniel Gagnier of Alcan who chairs this plenary), Gérald Tremblay (Mayor of Montréal), Dr. Kaberuka (President of the African Development Bank who will speak after Mr. Bernier), Mr. Lamy (Director-General of the World Trade Organization), distinguished guests, ladies and gentlemen.
On behalf of the Government of Canada, let me first welcome all of you to Montréal, especially those of you who have joined us from abroad.
You are here in the second-largest city in the French-speaking world. This Quebec metropolis is a prime expression of Canadian diversity. It reflects the richness of our history and the dynamism of our economy.
It gives me great pleasure to take part in the 12th Conference of Montréal. I congratulate the Chairman and Founder, Mr. Gil Rémillard, on his acumen in putting together this vital forum on globalization.
Our government was elected last winter. It is therefore my first time participating in the conference as Canada's Minister of Industry.
Wholly in keeping with our government's vision is the topic that we explore today: “Partnerships and Global Prosperity.”
These two ideas are inseparable. Cultivating alliances is essential to prospering in today's world.
This is certainly true for businesses. They must create partnerships with their employees so they can deal with challenges together. They must establish strategic agreements with centres of research to support innovation. They must also foster efficient and flexible supply chains in which each link is a vital partner.
This is also true for nations — the new Europe, NAFTA, Mercosur — and for international solidarity that was once again expressed following the recent earthquake in Indonesia.
The necessity of cultivating alliances to achieve prosperity is also true when it comes to security. Our Mexican and American colleagues will likely speak to the valuable work that has been accomplished by the security and prosperity partnership of North America.
It's also true even within states. Here in Canada, we have undertaken partnership renewal between the federal government and the provinces. We fully respect provincial and territorial capabilities. And we are likewise making sure that each order of government has the resources to respond to the needs of citizens. We are orienting Canadian partnerships around prosperity — the prosperity of our cities, our regions and our citizens.
The issues of today's world are complex. This is as true in business as it is in diplomacy. In this context, power — or leadership — has become collaborative. Global challenges call for global solutions.
The more competitive our world becomes, the more interdependent it becomes. This is one of the paradoxes of globalization.
We are just as often face-to-face as we are side by side. Alcan is a prime example — in Quebec, Alcan competes with Chinese companies, but in China, it partners with them.
The same applies to the Government of Canada. Last September, Canada entered into negotiations with China concerning a science and technology agreement. This agreement will provide a framework for facilitating relations and improving science and technology collaboration. Canada signed a similar agreement with India in November.
In Canada, we have decided to unequivocally play the globalization card. But it is also the global partnership card. With it, we have influenced trade liberalisation.
You can bet we'll succeed.
Today, Canada has the strongest economy and the lowest debt-to-GDP ratio in the G7.
Our economy is among the most modern in the world. There are approximately 32 000 firms in Canada's information and communications technology sector alone.
Around us — right here in Quebec — you will find one of the largest groups of biotechnology firms in North America, along with Ontario, California and Massachusetts.
Canada's economic growth rests on solid foundations. We have abundant oil reserves, but we, like everyone in the industrialized world, face competition from emerging economies.
To face these realities, we must rely on innovation, the growth of R&D investments and productivity improvement.
We will face these challenges not through the re-emergence of protectionism, but by making Canada a centre of knowledge and innovation. By encouraging international partnerships, our ever-increasing knowledge base will become a source of mutual enrichment.
Canada spends more on university research as a percentage of GDP than any other G7 country. In 2004–2005, direct payments surpassed $9 billion.
But we must do even better.
Our government supports innovation, and in doing so, aims to improve the manoeuvrability of businesses. We want them to invest more in R&D and improved productivity.
It's our way of being partners in their growth. Our government's first budget demonstrates our determination:
We have announced a reduction in the federal commodity tax.
We have abolished the federal capital tax.
We have announced a general reduction in the corporate tax rate.
We believe in the free market and open competition.
As minister of Industry, my goal is to ensure that Canadian businesses can evolve in the best possible environment — one that encourages prosperity and innovation, and one that puts Canadians to work. That means fiscal competitiveness and clear and simple regulation. That also means, in a large country like ours, ensuring sound infrastructure.
My objective is also to ensure that Canada is recognized around the world as putting out the welcome mat for successful firms, entrepreneurs and investors.
For us, competition, including that with emerging economies, is not a threat, but a catalyst. It's a constant motivator for innovation, developing our knowledge base and enriching our research.
Competition is bringing about new partnerships between businesses, between governments and between people.
For us, globalization is an opportunity.
We believe that it is business that generates wealth. And it's this wealth that allows us, as a government, to invest in improving the quality of life of Canadians. It's this wealth that allows us to better respond to the needs of our aging population, to better care for Canadians across the country and to better support Canadian families.
For us, a free economy does not conflict with strong social values. On the contrary, it allows them to be reaffirmed in today's world.
It is in this way that we are becoming partners with our citizens and that we are participating in global prosperity.
Thank you.
