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UNCLAS SECTION 01 OF 03 OTTAWA 000889 
 
SIPDIS 
 
STATE FOR WHA/CAN, EEB, EUR, EAP 
COMMERCE FOR 4320/OFFICE OF NAFTA/GWORD/TFOX 
STATE PASS USTR 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EINV CA EFTA CH BR IN
SUBJECT: CANADA TO OPEN NEW TRADE OFFICES IN CHINA, MEXICO 
AND BRAZIL TO PROMOTE "AGGRESSIVE" TRADE POLICY 
 
OTTAWA 00000889  001.2 OF 003 
 
 
¶1. (U) Summary: In a June 19 speech, International Trade 
Minister Emerson announced that Canada is establishing 10 new 
trade offices in China, Mexico, and Brazil as part of 
Canada's "aggressive" trade policy.  This is in addition to 
new trade offices in India and Mongolia announced in April. 
The government will add staff to existing trade offices in 
Brazil, Chile, China, Colombia, India and Panama.  In 
addition, Canada is expanding its Trade Commissioner Service 
in Canada with four new satellite offices in Ontario and 
British Columbia.  The expansion in trade offices are part of 
the Harper government's Global Commercial Strategy, which is 
providing C$50 million per year to further develop Canada's 
trade and investment interests at home and overseas. 
Emerson's remarks laid out the basic direction of Canada's 
trade policy, including NAFTA, the Asia-Pacific Gateway, the 
Doha Round, and also stressed the importance of Canada's 
negotiation of bilateral and regional agreements as a 
complement to Doha.  The speech outlined Canada's trade, 
investment and civil aviation successes in Europe, Latin 
America and Asia during the last year.  End Summary. 
 
¶2. (U) Each year Canada's International Trade Minister gives 
a major speech on the occasion of International Trade Day, an 
event bringing together the Canadian business community, 
senior government officials, industry stakeholders and 
academics to discuss issues and priorities in international 
trade and economics.  The speech is often the occasion for 
important announcements.  This year's speech by Foreign 
Affairs and International Trade Minister David Emerson in 
Mississauga, Ontario was no exception.  (Note:  At the time 
of the speech, Emerson served as interim Foreign Affairs 
Minister as well as International Trade Minister.  On June 
25, Prime Minister Harper named Emerson Foreign Affairs 
Minister and gave the International Trade portfolio to 
Senator Michael Fortier.  No change in trade policy is 
anticipated because of the change in Ministers.  End Note) 
 
¶3. (U) The Minister announced that new Canadian trade offices 
will open in six cities across China (Chengdu, Nanjing, 
Qingdao, Shenyang, Shenzhen, and Wuhan), two in Mexico 
(Tijuana and Villahermosa) and two in Brazil (Porto Alegre 
and Recife).  These are in addition to two offices in India 
(Hyderabad and Kolkata) and one in Mongolia (Ulaanbaatar) 
announced in April.  The government will also add new trade 
staff to existing offices in Brazil, Chile, China, Colombia, 
India, and Panama. 
 
¶4. (U) Emerson described the Chinese cities selected as 
important regional hubs and key commercial centers that offer 
opportunities in education, research, transportation, tourism 
and high technology.  The new Mexican offices will help 
Canadian firms take advantage of promising markets in 
northwestern Mexico and along the Gulf of Mexico coast.  The 
Brazilian offices will provide a strategic link to Brazil's 
Mercosur partners of Argentina, Chile, Paraguay, and Uruguay. 
QMercosur partners of Argentina, Chile, Paraguay, and Uruguay. 
 
¶5. (U) Comment: More generally, the location of the new 
offices also reflects the Harper govrnment's foreign and 
trade policy priorities: re-engagement in the Americas and 
enhanced relations between Canada and emerging Asian markets, 
especially in China and India.  End comment. 
 
¶6. (U) On the domestic front, Emerson said that Canada is 
expanding its Trade Commissioner Service in Canada with four 
new satellite offices in Ontario (Kitchener, Windsor, Ottawa) 
and British Columbia (Victoria).  Additional trade officers 
will be added to existing offices.  Regional or satellite 
offices are usually the first point of contact for firms 
wanting to link up with the Canadian Trade Commissioner 
Service (TCS) worldwide network.  The TCS is currently 
staffed by about 900 trade commissioners working in 150 
cities outside Canada and 13 Canadian cities. 
 
¶7. (U) Emerson explained that Canada is expanding its 
international footprint to maintain its competitive advantage 
 
OTTAWA 00000889  002.2 OF 003 
 
 
in key markets and to bolster the domestic economy and 
quality of life for Canadians:  "These new trade offices will 
help provide (Canadian) companies with the tools they need to 
access global supply chains and expand their commercial 
activities."   The Minister said business has been demanding 
more services in growing markets abroad as well as enhanced 
local service in Canada.  Domestic offices "play a key role 
in encouraging small and medium-sized enterprises to seek 
international opportunities and succeed in new markets. 
Expanding our domestic points of service means more Canadian 
businesses will be active on the world stage." 
 
¶8. (U) In his speech, Emerson also outlined the milestones 
Canada reached in trade, investment and civil aviation during 
the last year in Europe, Latin America and Asia.  He 
described how the government has vastly increased bilateral 
trade ties with Canada's global partners in line with its 
Global Commerce Strategy.  Earlier this year, Canada signed a 
new free trade agreement (FTA) with the European Free Trade 
Association (EFTA) countries of Iceland, Liechtenstein, 
Norway and Switzerland.  In addition, Canada signed an FTA 
with Peru and concluded negotiations with Colombia.  The 
government is continuing negotiations with South Korea, the 
Caribbean Community, the Dominican Republic, Jordan, 
Singapore and the Central American Four of El Salvador, 
Guatemala, Honduras, and Nicaragua, while looking to possible 
new initiatives with countries such as Panama. 
 
¶9. (U) Emerson said that Canada has concluded negotiations of 
foreign investment promotion and protection agreements with 
India and Jordan, and negotiations with several other 
countries are underway.  Canada also concluded new air 
agreements with Jordan, Iceland, New Zealand, Singapore, 
Mexico, Barbados, the Philippines and Panama, and launched 
negotiations with the EU for a comprehensive open skies 
agreement that would govern air services between Canada and 
all 27 EU countries.  Emerson said that Canada has expanded 
its work with China and India through existing science and 
technology agreements.  Earlier in June, Canada took an 
important step to deepen and broaden its commercial and 
economic relations with France with the signature of a 
Canada-France Joint Action Plan. 
 
¶10. (U) In reviewing the recent accomplishments, Emerson told 
his audience that "We know that trade follows investment. 
With all these bilateral arrangements, Canada is attaining a 
stronger position to climb global value chains, increase 
inward and outward investment, gain preferential market 
access for Canadian firms and, ultimately, generate 
prosperity at home and abroad." 
 
¶11. (U) No doubt in response to recent statements in the U.S. 
political campaign, the Minister stressed that "in today's 
global economy, NAFTA needs to be a platform for all North 
America's business -- Canadian, American, and Mexican - to 
reach out to the world's markets."  He saw NAFTA as a 
powerful tool that enables North American workers to take on 
Qpowerful tool that enables North American workers to take on 
intensifying global competition: "NAFTA is not the problem. 
NAFTA is part of the solution."  He also advocated 
collaboration to develop a smooth, efficient Canada-U.S. 
border "to bring our sectors together by removing red tape, 
improving transportation and logistics and sharing our 
commercial strengths." 
 
¶12. (U) However, Emerson acknowledged that his country should 
diversify its trade and investment patterns beyond North 
America.  In particular, he praised Canada's Asia-Pacific 
Gateway and Corridor Initiative as a "visionary" effort to 
create a globally competitive transportation system linking 
the heartland of North America and Asia through integrating 
ports, airports, roads, railways and border services.  These 
remarks came as no surprise since Emerson served as Minister 
for the Pacific Gateway in addition to his other 
responsibilities. 
 
 
OTTAWA 00000889  003.2 OF 003 
 
 
¶13. (U) Emerson said that WTO remains the foundation of 
Ottawa's efforts to negotiate away remaining barriers in 
international markets: "Canada continues to be an active and 
vocal supporter of the Doha round of negotiations."  Failing 
a deal by the end of 2008, "we run the risk of a potentially 
lengthy freeze in the negotiations."  The Minister said that 
Canada is ready to do its part for a successful deal, but a 
success depends on the "meaningful engagement and 
contributions of all WTO members, including large developing 
countries." 
 
¶14. (U) Since there is uncertainty in the "broad and 
ambitious" Doha process, and for "offensive and defensive 
reasons," Emerson said Canada now recognizes the importance 
of negotiating bilateral and regional agreements as a 
"complement" to Doha.  He recalled that last year he said 
Canada was falling behind its trading partners such as the 
U.S., the EU, Mexico, Australia and Chile, among others, in 
signing bilateral trade deals which put Canadian companies at 
a competitive disadvantage in key markets.  That was why 
Canada recently accelerated its activity to reach its own 
bilateral and regional trade deals. 
 
¶15. (U) International Trade Day was also marked by the 
release of the latest versions of two annual publications: 
Canada's State of Trade: Trade and Investment Update 2008, 
which reviews Canada's performance in international trade and 
investment in 2007, and Canada's International Market Access 
Report 2008.  The Trade and Investment Update said that 
despite the appreciation of the Canadian dollar and slowing 
U.S. growth, Canada's exports of goods and services increased 
by 1.9 percent to a record C$532.7 billion.  Its imports of 
goods and services advanced 3.2% to C$502.5 billion.  The 
report also noted that Canadian exporters are diversifying. 
Goods and services exports to the EU grew by 17.6 percent, 
while those to markets outside of the U.S., the EU and Japan 
grew by 13.3 percent.  China replaced Japan as the third most 
important market for Canadian merchandise exports.  The U.S. 
remains Canada's largest trading partner. 
 
Visit Canada,s Economy and Environment Forum at 
http://www.intelink.gov/communities/state/can ada 
 
WILKINS