Tagged: Development

Magdy Martínez-Solimán: Statement at the Policy Symposium on “Financing Asia’s Future Growth”

06 Apr 2015

Ambassador Mr.  Abulkalam Abdul Momen (PR of Bangladesh to the UN),

Ambassador Mr. Mr. Durga Prasad Bhattarai (PR of Nepal to the UN),

Ambassador Mr. Desra Percaya (PR of Indonesia to the UN) (TBC),

Mr. Lenni Montiel, Assistant Secretary-General for Economic Development, UN DESA

Mr. Shang-Jin Wei, Chief Economist, Asian Development Bank

It is my great pleasure to welcome you to this seminar on “Financing Asia’s Future Growth”. This symposium is timely and important. Timely because the third International Conference on Financing for Development, to be held in Addis Ababa, Ethiopia, in July 2015 is a historic opportunity for the international community to agree on an ambitious framework for the post-MDG era. It is also important because of the ongoing inter-governmental discussions both on FfD and on post-2015 development agenda.

I bring you warm greetings from Haoliang Xu, UNDP Regional Director for Asia and the Pacific. Mr. Xu sends his sincere and heartfelt apologies for not being able to be with you today. I am grateful for his invitation to Chair this Symposium.

I am especially pleased that this event is being jointly hosted between UNDP and the Asian Development Bank (ADB). This year’s Asian Development Outlook (ADO) will give us a reference to guide our discussions. The ADO is ADB’s flagship annual economic report, analyzing trends in and proposing forecasts for the Asia-Pacific region. ADO is smart and influential  also inside the UN’s development community and beyond.

Excellencies, distinguished delegates, Ladies and Gentlemen,

This year’s ADO has as its special theme “Financing Asia’s Future Growth.” The way in which the report approaches the challenge of financing is refreshing and extremely relevant for the broader discussion around finance for development.

In the MDG-era, financing was often conceived as tallying up the resources available from different sources (mobilized domestically as well as international private flows, ranging from FDI to remittances) available to developing countries to meet the MDGs, with the gap being filled with Official Development Assistance (ODA). Over the last 15 years, estimates abounded of the billions in ODA that would be required to meet the MDGs.

It is clear that this “gap-filling” approach is insufficient as we confront the implementation of the post-2015 agenda. The universality and broad breadth of the new agenda (from poverty eradication, to economics lifestyle changes towards sustainable patterns of production and consumption, to promoting peaceful and inclusive societies) imply that estimating gaps – which is only partially possible – will inevitable take us to amounts in the trillions of dollars. We need to think anew about how we approach the challenge of financing development. And we need to think big.

While doing so, I want to emphasize the continued importance – and value – of development aid. The Addis Ababa conference represents an opportunity for donor countries to reaffirm their longstanding commitment to allocate 0.7% of GNI to ODA as well as pledge to allocate at least 0.15-0.2% of GNI to the LDCs or more. The current draft of the Addis Ababa outcome document being considered even suggests that countries agree to meet these targets by 2020. But the post-2015 agenda cannot be achieved through aid alone. There is a need to consider other forms of international public finance for investments in communicable disease control, climate change adaptation and mitigation, science, innovation and new technologies. More public resources for climate finance are needed, but these should not come at the expense of ODA.

Even lumped together, all sources of public finance will not suffice. We need to find the right convergence between policy driven and profit led sources of development finance. Incentives are needed to ensure that private investment decisions move the world towards sustainable development aspirations. The progressive elimination of inefficient and ineffective subsidies could help to shift transportation and energy investments towards less fossil fuel intensive and more sustainable options, while releasing public resources for social and development purposes. The ADO argues that the current context of low world oil prices presents an opportunity in Asia for this type of fiscal reforms. In fact, the report shows that several countries in Asia are already seizing on this opportunity, either by reducing fossil fuel subsidies, increasing taxes on their use, or both. This is the type of policy action that sends the right incentives to people and businesses, while releasing public resources, that are important in the context of the new agenda.

Financing for development in the post-2015 era cannot be considered only in the context of ‘stable times’; there are fewer of them and we have to recognize that volatility is becoming the new normal. This is particularly relevant to Asia, a region especially vulnerable to extreme climate events. But there are many sources of risk beyond disasters, with the costs of shocks as diverse as conflict and disease outbreaks high and increasing.
And, of course, we continue to face recurrent economic crisis. Asia had a painful experience with a major financial crisis in 1997/1998. The ADO reminds us of the traumatic growth collapses that occurred in 1998: Indonesia’s economy contracted by 13 percent, the Republic of Korea’s by 6 percent, Malaysia’s by 7 percent, and Thailand by 11’s percent (from pre-crisis annual growth in excess of 7 percent in every country). The development setbacks were deep and long-lasting. But Asia also showed resilience and has put in place a range of policies to better protect countries from economic shocks. It has bounced back with energy. What we need to achieve sustainable development is for nations and communities to be resilient, not only to economic but to a wider set of shocks, so that they are able to anticipate, shape and adapt to the many shocks and challenges that can devour development gains. All development needs to be risk-informed.

Excellencies, distinguished delegates, Ladies and Gentlemen,

In this context, and without preempting the detailed presentation of the report and its special theme, I want to emphasize that the perspective taken in the ADO on how to finance Asia’s growth is particularly relevant. The challenge of financing is presented less as one of mobilizing resources (domestically or from abroad), and more as one of ensuring that the financial systems in Asia work to allocate savings to high-return and productive investments. This is the type of analysis that will enable us to think more broadly about financing, as a challenge of unlocking funding by pursuing policies that enable more efficient and effective resource allocation.

Excellencies, distinguished delegates, Ladies and Gentlemen,

Allow me, before I introduce our speakers, to elaborate briefly on the important of financing for the achievement of post 2015 as well as the importance of inclusive financial sector for the eradication of extreme poverty and reduction of inequality.

Today 2.5 billion adults – more than half of the world’s working adults – are excluded from formal financial services. This is most acute among low-income populations in developing countries, where approximately 80% of poor people do not have access. Access to well-functioning and efficient financial services can empower poor women and men. It is now well-established that giving low-income households access to formal financial services can help reduce poverty and inequality.

In the Pacific, financial inclusion is particularly challenging, where less than 10 percent of adults seem to have access to basic financial services. Challenging geography, poor infrastructure and the high costs associated with delivering services to sparse populations are barriers in this region. UNDP and UNCDF are therefore jointly implementing a Pacific-wide Financial Inclusion Programme (PFIP), which helps low-income households to gain access to quality and affordable savings, insurance, credit and other financial services and financial education. The programme, with funding from the Australian Government, the European Union and the New Zealand Government, also disburses grants to financial service providers. The programme aims to add one million Pacific Islanders to the formal financial sector by 2019 by spearheading policy and regulatory initiatives, facilitating access to appropriate financial services and delivery channels and by strengthening financial competencies and consumer empowerment.

As we consider the importance of financial systems to help finance the post-2015 agenda and the need to ensure financial inclusion, UNDP’s programme in the Pacific is an illustration of the comprehensive and inclusive development approaches that we will need to pursue to finance development.

Let me take a moment to introduce our guests here.

We have with us today, Mr. Shang-Jin Wei, ADB’s Chief Economist. Mr. Wei is a key spokesperson for ADB and oversees the Economics and Research Department. Mr. Wei previously served as Professor of Finance and Economics at Columbia University’s Graduate School of Business. Before joining Columbia University, he held senior positions at the IMF, at the Brookings Institution, and at Harvard University’s Kennedy School of Government.

Ambassador Mr. Abulkalam Abdul Momen, Permanent Representative of Bangladesh to the United Nations, New York, has been serving in this role since August 2009. Prior to that, he served as Chairman of the Department of Economics and Business Administration, Framingham State College. He also worked earlier in senior positions in the government of Bangladesh.

Ambassador Mr. Desra Percaya, Permanent Representative of Indonesia to the United Nations, New York, has been serving in this role since Feb 2012. Prior to this, Dr. Percaya was Indonesia’s Deputy Permanent Representative to the United Nations in Geneva. He has held a variety of posts related to multilateral diplomacy and international security since joining the Ministry of Foreign Affairs in 1986.

We have with us today Ambassador Mr. Durga Prasad Bhattarai, Permanent Representative of Nepal to the United Nations, New York. Prior to this, he served as the Permanent Secretary of Nepal’s Ministry of Foreign Affairs. A career diplomat, Mr. Bhattarai held senior posts in Nepal’s foreign service and government.

Finally, we have with us Mr. Lenni Montiel, the Assistant Secretary-General for Economic Development, at UN DESA. Prior to his appointment, Mr. Montiel was the Director for Economic and Social Affairs in the Executive Office of the Secretary-General, preceded by a distinguished career in development as a colleague of ours in UNDP.

Thank you.

Benefits of Historic Trade Achievements for Ontario in 2014

Under Canada’s Global Markets Action Plan (GMAP), the government’s pro-export, pro-jobs plan, new markets around the world have been opened for Ontario exports. These historic trade achievements will benefit hard-working Canadians in Ontario and throughout Canada.

In just one year, the government has delivered on its GMAP commitment to eliminate tariffs and support Canadian companies, especially small and medium-sized enterprises (SMEs), and to boost exports, including through:

  • the conclusion of negotiations and release of the complete text of the historic Canada-European Union trade agreement. The agreement will eliminate tariffs on virtually all of Ontario’s exports. Ontario is one of the hubs of Canada’s manufacturing activities and is set to benefit greatly from this agreement. On the first day of the agreement’s coming into force, 99 percent of tariffs on manufactured products entering the EU will be duty-free.
  • the conclusion of Canada’s first free trade agreement in Asia with the landmark Canada-Korea Free Trade Agreement (CKFTA), which will come into force on January 1, 2015. Ontario will see tremendous opportunities for export growth, given the complete elimination of South Korean duties on many Canadian products. For example, as of January 1, over 95 percent of South Korean tariffs on industrial products will be eliminated. This will lead to increased market access for key sectors of interest to Ontario, include aerospace, medical devices, clean technology, food manufacturing, information and communications technologies, life sciences, and metals and minerals.

Historic trade agreements require historic trade promotion, and under GMAP, the Harper government is supporting workers and businesses in Ontario and ensuring that SMEs have all the necessary tools to seize new opportunities and realize their full export potential.

Key elements of the trade promotion efforts include:

Go Global Export Workshops

Over the next several months, the Honourable Ed Fast, Minister of International Trade, is holding workshops across Canada in collaboration with Canadian Manufacturers & Exporters and all the Government of Canada’s export support agencies. Under GMAP, the Canadian Trade Commissioner Service, Export Development Canada, the Business Development Bank of Canada and the Canadian Commercial Corporation have been aligning their activities, facilitating referrals, sharing market intelligence and information, and providing a whole-of-government approach to boost SME exports. In 2014, over 300 SMEs participated in Go Global workshops, including one in Mississauga, Ontario, in November.

Minister Fast will be hosting Go Global workshops in Kitchener-Waterloo on January 20 and in Richmond Hill on January 29, 2015.

Regional Trade Commissioner Service (TCS) Activities

In 2014, the TCS’s Ontario Regional Office assisted 732 SMEs, providing them with on-the-ground international business support, including 1,083 targeted services, and connecting them to new business opportunities.

Trade commissioners have been embedded with public and private sector partners across Canada, including in Ontario—with the Aerospace Industries Association of Canada, Canadian Manufacturers & Exporters – Ontario, the Canadian Services Coalition – Canadian Chamber of Commerce, the Information Technology Association of Canada, the MaRS Discovery District and the Ontario Chamber of Commerce—so they may work closely with businesses to ensure the Government of Canada is responsive to their needs.

Export Development Canada (EDC)

EDC helped 2,041 Ontario companies finance or insure $19.42-billion worth of international sales and investments. For example, General Electric (GE) Canada and EDC worked together to identify and introduce innovative and globally minded Canadian companies into the supply chain of two GE Canada divisions in Peterborough; EDC provided financing for Toronto-based Merus Labs for its acquisition of an established pharmaceutical product in several European countries; and EDC led a $20-million commercial project finance facility for BioAmber to develop a biochemical production facility in Sarnia.

Overall, EDC’s new outlook calls for Ontario exports to increase by 7 percent in 2014 and 5 percent in 2015.

Canadian Commercial Corporation (CCC)

In 2013-14, CCC worked with over 65 companies in Ontario on export opportunities abroad, including Allen Vanguard Corp. of Ottawa, General Dynamics Land Systems – Canada of London, and Manitex Liftking of Vaughan.

Attracting Job-Creating Investments in Ontario

Significant investments were made in Ontario in 2014 that created jobs and opportunities for Canadians.

Through the Invest Canada – Community Initiatives program, the Government of Canada provided a total of $1.6 million to 22 Ontario communities or community organizations: Burlington Economic Development Corporation, Canada‘s Technology Triangle Inc., Chapleau Economic Development Corporation, City of Guelph, City of Hamilton, City of Niagara Falls, City of Welland, Greater Peterborough Area Economic Development Corporation, Greater Toronto Marketing Alliance, Invest Ottawa, Invest Toronto, Kingston Economic Development Corporation, London Economic Development Corporation, Niagara Region, Quinte Economic Development Corporation, Regional Municipality of Durham, Sarnia-Lambton Economic Partnership, Southwestern Ontario Marketing Alliance, Municipality of Chatham-Kent, Regional Municipality of Halton, United Counties of Stormont, Dundas and Glengarry, and Town of Whitby.

As part of GMAP, the government attracts investment to Canada, benefiting hard-working Canadians and their families. In the 2013-14 fiscal year, the Canadian Trade Commissioner Service (TCS) worked with provincial, territorial and municipal investment partners to facilitate 146 successful investment projects worth $3.65 billion and create over 5,500 new jobs within Canada. 

Opening Markets and Supporting Ontario Businesses Abroad

In 2014, Minister Fast led 13 trade missions to 20 countries. Trade missions connect Canadian businesses, especially SMEs, with new opportunities to boost their exports, which creates jobs, growth and prosperity across all regions of Canada, including Ontario. Minister Fast was joined by representatives of 78 Ontario companies on several of these missions—including Germany in March, where he was joined by 12 representatives; the United Kingdom in September, where he was joined by 11 representatives; and China in November, where he was joined by 28 representatives.

During his trade mission to India in October, Minister Fast was joined by eight Ontario companies: Best Theratronics, DataWind, Deloitte LLP, Environmental Waste International, IT Measures Ltd., LM Technologies Canada, Nrich Canada and Prudential Consulting. While in India, the Minister witnessed the signing of an agreement between Novadaq Technologies of Mississauga, Ontario, and Kirloskar Technologies of New Delhi to market innovation technologies in India.

During his trade mission to China in May, Minister Fast witnessed the signing of a contract potentially worth $10 million between EHC Global of Oshawa, Ontario, and the Shanghai Mitsubishi Elevator Corporation to develop innovative solutions for the Chinese elevator and escalator market.

Also during his trade mission to China in November, Minister Fast witnessed numerous signing agreements between various Chinese and Ontario companies, including:

  • one between Anemoi Technologies Inc. of Ontario and CSR Sifang to design and supply a high-speed train crash-testing facility;
  • one between Candu Energy of Ontario and the China National Nuclear Corporation to develop the Advanced Fuel CANDU Reactor and deliver CANDU new build projects in China and international markets;
  • one between Ontario-based Firan Technology Group Corporation and Shanghai Avionics Corporation concerning the design, development, manufacturing and product support of display system control panels for the Chinese C919 aircraft;
  • one between Ontario-based KELK and Wuhan Iron and Steel Group to supply state-of-the-art electronic measurement equipment for new builds or revamping of steel rolling projects;
  • one between Ontario-based LeMine Investment Group and Guizhou Fengguan Group for exporting canola oil;
  • two for Ontario-based Michael H.K. Wong Architects Inc. for design services for the headquarters building of the Fujian International Business Association and for the new Yangjiang Guo-Fu-Yi-Jia Health Care & Resort Centre in Guangdong; and
  • one between Ontario-based Plasco Energy Group and Shougang Group to bring Plasco’s waste-to-energy facilities to Beijing.

Innovative companies from Ontario can also count on the support of the Canadian Technology Accelerator (CTA) program. Seventy-six companies from Ontario have recently participated in CTA programs, including 41 in 2013-14 and 35 in 2014-15. These include dynamic companies like iNTERFACEWARE Inc., which took part in a CTA program in Philadelphia, and Voices.com, which which took part in a CTA program in San Francisco.

Minister Fast encouraged Ontario-based businesses to take advantage of the Enterprise Canada Network, provided in partnership with EDC and Canadian Manufacturers & Exporters, which provides online access to more than 30,000 business profiles and opportunities in the European market to help Canadian companies take full advantage of the historic Canada-EU trade agreement

Under GMAP, the Harper government committed to developing comprehensive strategies in key sectors. Strategies released this year that support Manitoba businesses include the International Education, the Extractive Sector and the Corporate Social Responsibility strategies, and an export-oriented Defence Procurement Strategy. 

Minister Fast invited businesses in Ontario to accompany him on his first trade mission of 2015. This trade mission to South Korea, which will take place from February 8 to 13, will enable businesses to take full advantage of the Canada-Korea Free Trade Agreement and benefit from the on-the-ground support from the Government of Canada.

Quotes

“This year, 2014, has been the most successful year for international trade in Canadian history, benefiting hard-working Canadians in Ontario and in every region of the country. Under Canada’s Global Markets Action Plan, we will continue our vigorous trade promotion efforts to boost our exports.

“In 2015, we will continue to focus on the real priorities of hard-working Canadians: creating new jobs and prosperity.”

– Ed Fast, Minister of International Trade

Associated Links

Quotes from Ontario Stakeholders

Trade Missions

“The trade mission to India was a fabulous experience overall. It was a great way to get the inside scoop on the feel and flavour of India by meeting the local entrepreneurs and elected officials who make the country work. The positive effects of this India mission for me included higher sales revenue opportunities, visibility and goodwill and a better perspective. An additional benefit was that the mission helped us develop close business relationships. This was a great way for the participants who were looking at doing business in India for the first time to initiate the process of breaking into a new market.”

– Dilip Ghose, Director/President, Global Business, LM Technologies Canada Inc.

“The trade mission provided a number of opportunities to connect with other Canadian companies operating within the region, as well as with key stakeholders and clients in Tanzania. We appreciate the support of the Canadian government to engage in this trade mission to Tanzania, as it highlights the current opportunities and ultimately benefits Canadian companies.”

– Peter James, Senior Consultant, CPCS Transcom Limited

“My company is very satisfied with the results of this trip, and all our strategic objectives have been met. We were impressed by all the work done by embassy personnel and commercial delegates and by ministers Bernier and Fast during this extremely well-organized event.”

– Marc Carrier, Account Director – Business Development, Rheinmetall Canada Inc.

“We are most appreciative of the opportunity to participate in this trade mission with Minister Fast. The whole-of-government support for defence export sales was an important factor in our recent contracts with Colombia and Peru. The ability to sign government-to-government contracts through the Canadian Commercial Corporation with a sovereign guarantee of performance provides a significant advantage to Canadian exporters.”

– Chris Brown, General Dynamics Land Systems-Canada

“We have found the support of Canadian Trade Commissioner Service officers to be extremely valuable. The experience with the other participants during the trade mission helps to verify our common interest in this market. With the support of the officials, we met with a client yesterday truly interested in a solution for their situation. We are very grateful.”

– John MacDonald, President, IT Measures Ltd.

Canadian Technology Accelerator

“The Canadian Technology Accelerator experience helped refine and accelerate segment plan and pipeline development refinements, and help received during CTA participation has create an accelerated sales process and a more successful market strategy. The CTA was a useful facility in accelerating business/market planning, saving a substantial amount of time and effort and compressing plan-to-execution cycle.”

– Toni Skokovic, Vice President, Sales, iNTERFACEWARE Inc.

“The Canadian Technology Accelerator located in San Francisco’s RocketSpace provided Voices.com with the launching pad necessary for connecting with key stakeholders, for drawing new customers and engaging existing customers already in the San Francisco area, and for securing new partnerships with heavy hitters like Adobe—many who were part of RocketSpaces’ corporate development arm. Thanks to the CTA, a number of invaluable relationships were created for Voices.com. The growth experienced in the CTA has supported the expansion of our London, Ontario office.”

– David Ciccarelli, ‎Founder and CEO, Voices.com

Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

“The industry congratulates the Prime Minister and the Minister of International Trade on the government’s ongoing commitment to opening international markets and successfully negotiating CETA. The health of the Canadian economy depends on the ability to competitively export to markets around the world. CETA will deliver significant dividends for the Canadian economy over the years ahead.”

– Andrew Casey, President and CEO, BIOTECanada

“Ford Motor Company of Canada congratulates the Government of Canada on reaching a transformational free trade agreement with the European Union. Ford is a company built on free trade. Throughout our history, Ford has supported deals that provide an opportunity to increase effective two-way trade among all partners. Expanding trade opportunities is fundamental to Ford’s business plan, and the EU market represents a significant global market for our vehicles.”

– Dianne Craig, President and CEO, Ford Motor Company of Canada

“We applaud Canada and the EU for completing a modern, high-standard comprehensive economic and trade agreement that will provide enhanced opportunities for growth in both regions. We appreciate the hard work to find creative solutions that improve market access for Canadian-produced automobiles, while ensuring Canada continues to benefit from the integrated manufacturing sector that has developed in North America over the past 50 years.”

– Kevin Williams, former president and managing director, General Motors of Canada

“The EU is the largest buyer of Canadian soybeans, with more than a million tonnes exported to the region annually. We look forward to even greater trade with Europe with the implementation of CETA.”

– Barry Senft, CEO, Grain Farmers of Ontario

“Canada has some tightly controlled pricing regimes as [they] relate to drug products, and subsequently as time moves forward there should be no reason as to why drug prices would increase from the levels that we currently are at. This is good for Canada. It enables us to become more competitive with other countries around the world that currently have better intellectual property regimes.”

– Chris Halyk, President, Janssen Inc.

“We anticipate that this agreement, when it comes into force, will open new markets to Canadian exporters like NOVO Plastics throughout Europe and will generate significant commercial opportunities for all Canadian small to medium-sized businesses. NOVO Plastics will benefit from the elimination of EU tariffs on auto parts, which are as high as 4.5 percent. This will provide us with a competitive advantage in the EU market that few other countries have.”

– Baljit Sierra, President and CEO, NOVO Plastics Inc.

“Gaining preferential access to the world’s largest economy—with a GDP of almost $17 trillion and a market of 500 million consumers—will be good news for a trading nation like Canada. The value of the [financial] industry’s exported services has doubled in the past decade, and the sector now accounts for roughly half of Canada’s total stock of outward foreign direct investment. What’s more, exports by financial companies are growing faster than [those in] other sectors, and CETA could open new opportunities for our financial services providers.”

– Janet L. Ecker, President and CEO, Toronto Financial Services Alliance

“The European Union has become a key export market for us, with customers in Poland, Hungary and Slovakia who appreciate the high-quality and low-cost products we are able to provide. This agreement will make our products even more cost-competitive, which will expand our business, create new sources of prosperity for current and future employees and benefit Canadian manufacturers as a whole.”

– Ben Whitney, President, Armo Tool Limited

“Our exports to the European market are an important and growing aspect of our business. Creating an improved access to the European market with reduced tariffs and barriers would help us to continue to diversify our customer base and stabilize employment at ODG.”

– Michael Eckardt, CEO, Ontario Drive and Gear Ltd. (ODG)

“We at Miovision are in full support of a Canada-EU trade agreement, and would consider freer trade with Europe to be a milestone achievement for the government procurement sector. At a minimum, the reduction of technical barriers to trade will allow companies like Miovision to reap far greater gains from existing deals with European customers. Ultimately, the faster Canada can gain preferential access to the European Union, the faster companies on both sides of the equation can grow and create jobs.”

– Kurtis McBride, Co-founder and CEO, Miovision Technologies

“In the eyes of our industry, CETA means increased demand here in Canada for construction. It means expanding companies. It means housing for the new workers. And it means people have the confidence to invest in their future and in construction. Hand in hand with seeking increased trade in the Asia-Pacific [region] and our existing free trade with the United States, freer trade with Europe will benefit Canadians and construction for decades to come.”

– Terrance Oakey, President, Merit Canada

“There is no doubt that a Canada-EU comprehensive economic trade agreement will be a huge win for the Waterloo region. As a regional economic development partnership, we seek to attract investment by showcasing the region as a place of great opportunity with an exceptionally talented and innovative labour force. That is exactly what this agreement will help us do, and is why Canada’s Technology Triangle Inc. supports a successful CETA as a means to improving the Waterloo region’s competitive edge in the world.”

– John G. Jung, CEO, Canada’s Technology Triangle Inc.

“This is the classic way to create jobs, by lowering trade barriers. We are a trading nation. We are convinced that with better opportunities in Europe we can increase our production, therefore hire more people and, therefore, create jobs. That is how it is done.”

– Paul Van Meerbergen, Business Development Manager, Lamko Tool and Mold Inc.

“The Chemistry Industry Association of Canada strongly supports the government’s pro-trade agenda and successful completion of the comprehensive economic and trade agreement with the EU. A trade agreement would help Canada’s chemistry manufacturing industry secure new markets; stimulate economic growth, job creation and investments; and provide more opportunities to develop Canada’s natural resources—including energy—into value-added products for the benefit of the broader manufacturing sector.”

– Richard Paton, President and CEO, Chemistry Industry Association of Canada

“As a world-class supplier of medical and industrial high purity alcohol, a comprehensive economic trade agreement with the European Union will allow GreenField Ethanol to expand our operations into the lucrative EU market and take our products global. This agreement is about moving Canada forward and positioning Canadian companies to compete and succeed in the 21st-century global economy. Access to the European market through the reduction of tariffs and other barriers to trade will open up new opportunities for my business and allow me to create well-paying jobs right here in Canada.”

– Kenneth Field, Chairman, GreenField

Canada-Korea Free Trade Agreement

“This trade agreement is of tremendous importance to the food and beverage processing sector in Ontario and across Canada. For the agri-food sector the agreement commits to eliminating nearly 87 percent of tariffs on products from Canada to Korea. An open door to Korea will offer new opportunities for Ontario food and beverage processing companies not just in Korea, but all of Asia through a network of supply chains.”

– Steve Peters, Executive Director, Alliance of Ontario Food Processors

“The Winery & Grower Alliance of Ontario is supportive of a Canada-Korea free trade agreement. South Korea is the second most important Asian market for Ontario wines, particularly our premium product, icewine. Such an agreement should increase the competitiveness of Ontario wines in Korea and ultimately lead to increased exports.”

– Patrick Gedge, President and CEO, Winery & Grower Alliance of Ontario

“The signing of a free trade agreement between Canada and Korea is great news. We anticipate this agreement, when it comes into force, will open new markets to Canadian exporters like NOVO throughout the dynamic and fast-growing Asian market and will generate significant commercial opportunities for all Canadian small to medium sized businesses.”

– Baljit Sierra, President and CEO, NOVO Plastics Inc.

“Free and open trade with priority markets in Asia, most notably Korea and Japan, is vital to Canada’s national interest to be globally competitive, create jobs and increase prosperity. The successful conclusion of a trade agreement with Korea would also allow Canada to direct its full resources towards the swift completion of the economic partnership agreement with Japan.”

– Jerry Chenkin, Chairman, Japan Automobile Manufacturers Association of Canada

“With the imminent completion of these negotiations with South Korea, we expect that the Government of Canada will move expeditiously to finalize a Canada/Japan economic partnership agreement to level the playing field for all vehicle distributors in the Canadian market, which will create benefits for Canadian consumers.”

– David Adams, President, Global Automakers of Canada

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERETSE KHAMA IAN KHAMA,

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERET…

13/11/14

1. Madam Speaker, before we begin may I request that we observe a moment of silence for those of our citizens who have departed from us during the past year. Thank you. 2. Honourable Members, it is my pleasure to once more present an updated assessment of how Government intends to move Botswana forward by seizing opportunities to secure our future. 3. As this is the first session of the 11th Parliament, let me preface my remarks by welcoming the newly elected members of this Assembly. Let me further congratulate you Madam Speaker on your own election.

STATE OF THE NATION ADDRESS BY HIS EXCELLENCY LT. GEN. SERETSE KHAMA IAN KHAMA, PRESIDENT OF THE REPUBLIC OF BOTSWANA, TO THE FIRST SESSION OF THE ELEVENTH PARLIAMENT – “MOVING BOTSWANA FORWARD”

 

INTRODUCTION

 

1. Madam Speaker, before we begin may I request that we observe a moment of silence for those of our citizens who have departed from us during the past year. Thank you.

 

2. Honourable Members, it is my pleasure to once more present an updated assessment of how Government intends to move Botswana forward by seizing opportunities to secure our future.

 

3. As this is the first session of the 11th Parliament, let me preface my remarks by welcoming the newly elected members of this Assembly.  Let me further congratulate you Madam Speaker on your own election.

 

4. Today’s gathering is an outcome of our 11th consecutive general election. As is our tradition, the ballot was conducted in a peaceful, free and fair manner. For this we can once more thank Batswana in general, as well as the Independent Electoral Commission (IEC) and other individuals and organisations that helped to ensure the poll’s success.

 

5. In any democracy elections are the means to the greater end of forming a Government capable of translating the popular will into public service delivery. We who have the honour of sitting in this House are accountable to the hundreds of thousands who entrusted us with their votes. Although divided in their choices, the voters were united by a shared desire for a better future. It is, therefore, our responsibility to ensure that together we deliver that future by at all times putting the national interest before our own.

 

6. Last month my party, the Botswana Democratic Party, was re‐elected on the basis of a detailed manifesto that promised to secure our common future by building on our past achievements. Today, before this House I reaffirm our commitment to honour that pledge.

 

7. In as much as we recognise that a government of and by the people is not an event but a process; this administration shall continue to engage Batswana across the country about their concerns through various fora and media, from the venerable realm of dikgotla to the digital world of interactive online communication. It was as a result of wide-ranging consultation that our manifesto was predicated on what we understood to be our citizens’ core aspirations. These include achieving:

 

• Job creation for sustainable livelihoods and income generation;

• Food security through continued agricultural renewal;

• Expanded access to land and housing ownership;

• Access to world-class quality education that caters to current and future needs;

• Citizen, including youth, economic empowerment;

• Dignity for all through the eradication of poverty;

• Zero tolerance for corruption in all of its manifestations;

• Elimination of mother-to-child transmission of HIV; and

• Government reform that leverages on the application of new technologies. 

 

8. Each of these commitments is based on realistic analysis of where our country is and needs to go in order to meet the reasonable expectations of its people, while improving our global standing in an ever more competitive world. Taken together they are consistent with our broader vision of achieving inclusive sustainable development that upholds the dignity of all.

 

ECONOMIC OUTLOOK

 

9. Madam Speaker, owing to the prudent economic and financial management by my Government, the country was able to survive the 2008/09 global financial crisis and economic recession with minimum impact on the domestic economy. We were able to save jobs in both the public service and private sector, as well as continued to provide essential public services to our people.

 

10. Having successfully weathered the storm of the economic downturn, we can look forward to better days ahead, with economic growth buttressed by reduced inflation. These positive trends should allow us to revive some of our postponed projects, along with outstanding issues affecting the conditions of service among public employees. Our optimism is in part based on forecasts of continued, albeit still fragile, global economic recovery, with worldwide output projected to grow by 3.3% in 2014 and 3.8% in 2015.

 

11. Turning to the domestic economy, the gross domestic product (GDP) at current prices stood at P124 billion in 2013 and it is projected to expand to P136.5 billion in 2014. In real terms, the GDP grew by 5.8% in 2013, and is projected to grow by 5.2% in the current year, driven by both the mining and non-mining sectors.   Within the non-mining sector, retail and hospitality industries, as well as agriculture are experiencing growth.

 

12. Average national inflation continued to decline from 8.5% in 2011 to 7.5% in 2012 to 5.9% in 2013 and further to 4.5% in September 2014, which is well within the Bank of Botswana objective range of 3 to 6%. This positive trend gives us confidence in our ability to maintain a low inflation environment, which is necessary for domestic enterprises to compete in the global market.

 

13. In terms of our fiscal management, Government succeeded in restoring a balanced budget during 2012/13 financial year, after four years of budget deficits. For the 2013/14 financial year we were able to collect P 48.9 billion, up from the P 41.7 billion received in 2012/13, while total expenditures and net lending for 2013/14 amounted to P 41.73 billion. This resulted in a budget surplus of P7.2 billion, largely due to the good performance of the mineral sector. For 2014/15 a budget surplus of P1.3 billion is currently projected. These savings will allow us to reduce our debt burden and rebuild our financial reserves.

 

14. To sustain a positive balance sheet will, however, require expanded revenues. Here I can report that we were able to collect P48.9 billion in the 2013-14 financial year, up from the P41.7 billion received in 2012-13. The 2013/14 outturn for expenditure and net lending was P41.7 billion.

 

EMPLOYMENT

 

15.  Madam Speaker, to be meaningful to Batswana, economic growth has to be accompanied by expanded employment, which is why our manifesto listed job creation at the top of our aspirations. To reiterate what I said in my own message to the voters, of all our campaign promises tackling unemployment is the most important one. While there has been some progress in recent years, current estimates put unemployment among those 18 and above at just over 17%. Although this reflects a modest reduction since 2007, it has been insufficient to absorb all those seeking employment, especially among our talented youth. We can and shall do more.

 

16. Our Economic Diversification Drive (EDD) is a key instrument for job creation. Since its 2010 inception, EDD has been facilitating employment generating business opportunities by promoting the consumption of local products. While our immediate focus has been leveraging public procurement in support of domestic industries, as we move forward our emphasis will shift to developing greater internal capacity for export-led growth, while continuing to value local goods and services.

 

17.  So far a total of P13.3 billion worth of goods and services were recorded since the inception of the initiative. Out of this figure, the value of local manufacturers and service providers (EDD purchases) amounted to P590.5 million for 2010/2011, P1.8 billion for 2011/2012 and 2012/2013 and P2.3 billion for 2013/2014. Over one thousand enterprises have so far been registered under the EDD Programme, which has contributed to the employment of 28,000 Batswana.

 

18. We have already begun implementing our EDD Medium to Long Term Strategy, to develop sustainable sectors for economic growth and diversification. A leading example is the Leather Sub-sector Strategy, which is focused on the establishment of a Leather Park in Lobatse at a total cost of about P225 million. Government has agreed to finance the park’s primary infrastructure, a Common Effluent Treatment Plant, estimated to cost P102 million, while other components of the project will be financed through private sector investment.

 

19. Government had also budgeted over P20 million to provide temporary assistance for over 12 months to support 34 textile companies, employing 2,912 workers.

 

20. While the nurturing of SMMEs, support for existing industries and value addition remain critical in our achievement of job creation, we further anticipate that over the next few years local formal sector employment will be generated with the emergence of new economic opportunities through the synergies generated by the development growth nodes or clusters across the country.

 

21. In the Chobe region, for example, we anticipate an expansion of opportunities in tourism, construction, transport services and agriculture resulting from the construction of the road and rail bridge at Kazangula and phase one of the water pipeline to Pandamatenga, along with associated infrastructure. It is estimated that when completed these two mega-projects will create over 9000 permanent jobs.

 

22. Additional emerging labour intensive opportunities are already being generated in our urban areas, as reflected in Selebi-Phikwe’s development as a metallurgical hub, the continued growth of Gaborone as a global diamond as well as regional technical services centre, and Francistown’s growth as a nexus for trade and transport. We further anticipate additional jobs through synergies generated by new mining activities, the continued expansion of commercial agriculture and the development of Trans-Kgalagadi road and potential rail corridor.

 

COMPETITIVENESS    

 

23. A key to unlocking these job creation opportunities will be increasing our global competitiveness. To improve our competitiveness ranking in the area of goods market efficiency we have tightened our market monitoring for greater efficiency in the provision of goods and services, while the Competition Authority is reviewing mergers and potential cartel activity involving both local and foreign companies.

 

24. Madam Speaker, job creation is inevitably linked to investment. In this respect the latest FDI Intelligence report indicates that Global Greenfield FDI showed signs of recovery, increasing by an estimated 11% from 2012 to 2013. The increase in local investment has been even greater, with UNCTAD’s 2014 World Investment report showing Botswana having grown by 27% in 2013.

 

25.  The Botswana International Trade Centre (BITC) continues to promote our country as a competitive location for investment, making business contacts and generating leads. During the 2013-2014 financial year, BITC helped realise a total combined investment capital of just over 1 billion pula, of which P 642 million was from foreign direct investment (FDI) and P449 million came from new domestic investments. In 2012/13, BITC further recorded P1.9 billion worth of goods and services exported into the region and beyond, of which P738 million was attributable to financial and international business services by the financial services cluster.

 

26. Botswana was ranked number one in the 2014 Baseline Profitability Index, surpassing Hong Kong as a location for medium to long term returns on investment. In essence the Index suggests that investors can expect to do well here once they have established themselves in our market.

 

27. Government is, furthermore, working to limit the number of licenses and permits, while allowing mixed land use zoning, adopting risk based approach for Environmental Impact Assessments and Management Plans, and decentralising the management of electricity connections.

 

28.  Government has also embarked on a National Work Ethic programme to promote productivity. So far, 254 facilitators have been assessed to implement the programme, which commenced in May 2014.

 

29. The drafting of a Bill which will provide the legal framework for the establishment of Special Economic Zones and the Special Economic Zone Authority is being finalized.

 

30. The Rural Development Council (RDC) has been upgraded as the national consultative body to promote and coordinate the implementation of rural development policies and programmes. As a result community based projects such as the Zutshwa Salt Project and the Mogobane Irrigation Scheme, to mention some, have been resuscitated.

 

CITIZEN EMPOWERMENT

 

31. Madam Speaker, it is pleasing to note that to date, CEDA has funded 5,462 enterprises with a total value of nearly P8.55 billion, in the process creating over 48,935 thousand jobs.  During the 2013/14 financial year, CEDA assisted 151 new enterprises with a total monetary value of P152 million, collectively generating 1042 new jobs.

 

32. Since its inception, LEA has also facilitated the creation of 4995 new jobs, including 568 in the ongoing financial year. The Authority has further trained a total of 9,317 entrepreneurs. In an effort to inculcate an entrepreneurial culture, LEA embarked upon the Entrepreneurship Awareness Workshops among secondary school leavers, vocational trainees and prison inmates; over 26,000 of whom have been trained.

 

33. Madam Speaker, through the Botswana Bureau of Standards (BOBS), we have encouraged our small and medium enterprises to implement quality assurance activities within their businesses. Progress has been made in certification of goods especially in the building and construction industry. To further ensure that prescribed goods entering our borders comply with domestic standards, a BOBS office has been opened at the Tlokweng Border.

 

RULE OF LAW

 

34. Madam Speaker, adherence to the rule of law remains a cornerstone to our national development. It is thus encouraging that independent comparative surveys, as well as domestic polling, consistently place us among the best in the world as well as first in Africa in terms of our upholding the rule of law while ensuring the safety and security of all our citizens. These surveys include:

 

• 2014 Ibrahim Index of African Governance, where we ranked first in the category of safety and security;

• World Justice Project’s 2014 Rule of Law Index, where we were ranked 25th in the world as well as first in Africa;

• 2014 Global Peace Index where we were at 36th place, ranking above half of European countries surveyed;

• 2014 Legatum Index for Governance and Rule of Law, where we were ranked 28th in the world; and

• 2013 Global Democracy Index, where besides ranking 35 out of 167 countries we achieved a near perfect score in the area of civil liberties.

 

35.  In light of such reputable findings it is unfortunate to say the least that some individuals, working through foreign as well as domestic media, including rumour mongering on social media, have attempted to instil the perception of Batswana living in fear. This is in an apparent effort to undermine this country’s longstanding and shared record of peace, order and good Government.

 

36. While the mass circulation of false and malicious reports intended to incite undue alarm may be aimed at promoting the political agenda of some, it is at the collective cost of tarnishing the image of the country as a whole. It is also a threat to the economy we all must depend upon for our livelihoods. Such disinformation should therefore be rejected with contempt by all peace-loving Batswana. All citizens, residents and potential visitors to Botswana can be confident that this Government will continue to both abide and uphold the rule of law without fear or favour.

 

37. Let me, nonetheless, also observe that we have not, and shall not, allow past achievements or international accolades to breed complacency as we recognise that, here as elsewhere, criminal activity is constantly evolving and increasingly sophisticated. We therefore remain determined to pursue a zero tolerance approach to all forms of criminal activity, including corruption.

 

38. To counter emerging domestic and trans-national challenges the Police Service has deployed integrated law enforcement strategies to combat all forms of criminality and anti-social behaviour. This has involved an ongoing redirection of resources to deal with violent and intrusive, cross border and cyber based criminal activities.

 

39. Whilst total recorded crime excluding road traffic violations rose by 4.7% during the year 2013, significant reductions were, however, registered in respect of violent and intrusive crimes.  Offences in this category, which included burglary, store breaking, robbery, house breaking, threats to kill, murder, rape, motor vehicle and stock theft, declined by 15.4%.

 

40. Road traffic management poses an additional policing challenge. Analysis of road accidents shows a youth bias, expressed in reckless driving, often aggravated by the influence of alcohol. As a result of the increase in the intensity of road policing initiatives, the number of detected road traffic offences rose by 32.4%, while there was a corresponding decrease in the number of fatal road accidents by 2.6%.

 

41. Madam Speaker, the Department of Prisons and Rehabilitation continues to improve security in the prisons and rehabilitation of offenders. While overcrowding has been a problem in some of the Prison institutions, there has been substantial reduction in congestion since 2008. In June 2014 there were 3824 offenders held in prisons, which was 13% below the authorised holding capacity.

 

42. Madam Speaker, the internal and external challenges of today’s constantly changing security landscape, call for a structurally aligned, strategically focused and adequately resourced, as well as highly trained and motivated, defence force. The BDF will thus continue to evolve its structures and strategies to defend the nation, while continuing to provide assistance to other law enforcement agencies in combating crime, including poaching.

 

ACCESS TO JUSTICE

 

43. Madam Speaker, as was most recently demonstrated in the Judgments of the High Court and the Court of Appeal upholding the constitutionality of the Standing Orders of this very House, our Judiciary continues to independently and effectively deliver on its constitutional mandate of settling disputes, both large and small, without fear or favour.  This Government will, as always, respect decisions of the Courts and expects all citizens to do the same.  Equally, we must all display tolerance and recognize everyone’s right to approach the Courts for the resolution of any legal issue no matter how strongly we may disagree.

 

44. To improve everyday access to justice several special court projects like the stock theft, maintenance, traffic, small claims and most recently corruption court have been put in place so as to speed up and improve the case disposal rates, while promoting greater access to justice by simplifying court rules and processes to make them more user friendly.  In addition a Court Annexed Mediation will be in place by the end of the current financial year.  This f

Press Releases: Joint Statement of the 2014 United States – Republic of Korea Foreign and Defense Ministers’ Meeting

The text of the following statement was released by the Governments of the United States of America and the Republic of Korea on the occasion of the United States – Republic of Korea Foreign and Defense Ministers’ Meeting in Washington.

Begin Text:

Preamble

U.S. Secretary of State John Kerry and Secretary of Defense Chuck Hagel convened a “2+2” meeting with ROK Foreign Minister Yun Byung-se and Minister of National Defense Han Min-koo in Washington on October 24, 2014. The “2+2” session followed the Security Consultative Meeting (SCM) between Secretary Hagel and Minister Han at the Pentagon. Building on the vision for the Alliance expressed in recent summit meetings and through the Joint Declaration in Commemoration of the 60th Anniversary of the U.S.-ROK Alliance, the four Ministers reaffirmed the strength of the alliance in the face of existing security threats and new and evolving regional and global challenges. The United States reaffirmed its unyielding commitment to the defense of the Republic of Korea under the Mutual Defense Treaty.

The Ministers recognized that the U.S.-ROK Alliance, over the past 60 years, has played an enormous role in maintaining regional stability and prosperity, and is stronger than ever before. Both sides reaffirmed their commitment to further develop the Alliance into a global partnership that is more than just the linchpin of peace and stability in Northeast Asia. With a common understanding of the Alliance’s global capabilities, the Ministers committed to building on those capabilities to actively address emerging challenges to peace and security around the world, including Ebola and ISIL.

U.S.-ROK Alliance

The Alliance between the United States and the Republic of Korea, now in its 61st year, remains the linchpin of peace and security in the Asia-Pacific region. Secretary Kerry and Foreign Minister Yun acknowledged the extensive and continuing work by the U.S. Department of Defense and the ROK Ministry of National Defense, discussed at length during the SCM, and they welcomed the SCM Joint Communique, released earlier by the Defense Ministers of both countries.

Following up on the presidential decision in April 2014 that, due to the evolving security environment in the region, including the North Korean nuclear and missile threat, the current timeline for the transition of wartime operational control (OPCON) in 2015 can be reconsidered, Secretary Kerry and Foreign Minister Yun welcomed that after productive consultations the two sides reached an agreement on the decision at the SCM to implement the ROK-proposed conditions-based approach to the transition of wartime operational control from the U.S. forces-led Combined Forces Command (CFC) to a new ROK forces-led combined defense command. The ROK reaffirmed that it will continue its efforts to build the necessary capabilities required to lead the Combined Defense, while the U.S. provided assurance that the United States will continue to remain committed to the defense of the ROK and the stability of the region.

The Ministers highlighted the importance of our longstanding, mutually beneficial cooperation on the peaceful uses of nuclear energy, and welcomed the significant progress made in negotiations on a new agreement, which will serve as a strong foundation for bilateral civil nuclear cooperation for the future. Both sides reaffirmed their commitment to conclude an agreement in a timely manner. The Ministers also praised the work of the U.S.-ROK Bilateral Cyber Policy Consultations and the 2nd U.S.-ROK Cyber Cooperation Working Group, and reaffirmed their shared objective of an open, interoperable, secure, and reliable cyberspace. Both sides looked forward to the next Consultations meeting, to take place in Washington in 2015.

The Ministers welcomed our shared commitment and partnership on nuclear safety and security, as well as the global non-proliferation regime, such as the IAEA, the Global Partnership, the Global Initiative to Combat Nuclear Terrorism, UNSCR 1540, the Proliferation Security Initiative and other key international mechanisms. They decided to work together to ensure a successful Nuclear Security Summit in 2016, to be hosted by the United States.

The Ministers reaffirmed their commitment to strengthening cooperation on space, building on the first ROK-U.S. Civil Space Dialogue in July 2014 as well as the signing of the Memorandum of Understanding (MOU) on Space Situational Awareness (SSA) Service and Information Sharing at the 4th ROK-U.S. Space Cooperation Working Group (SCWG) in September 2014. The Ministers also decided to cooperate closely in addressing challenges to space security and sustainability, particularly by encouraging the early adoption of the International Code of Conduct for Outer Space Activities.

North Korea

The Ministers agreed that the denuclearization of North Korea is critical to lasting peace and security on the Korean Peninsula. Echoing the discussions at the SCM, the Ministers expressed their solidarity in the face of North Korean threats and urged North Korea to denuclearize and refrain from provocations. The Ministers also urged North Korea to return to credible and meaningful negotiations aimed at the complete, verifiable, and irreversible denuclearization of North Korea. The Ministers underscored that North Korea cannot succeed in pursuing economic development without denuclearization and that it will remain isolated internationally unless it relinquishes all of its nuclear and missile programs and fully complies with its international obligations under the U.N. Security Council resolutions and commitments under the September 19, 2005 Joint Statement of the Six-Party Talks. The Ministers urged all countries, including the Six-Party Talks partners, to fully implement all sanctions and other measures set forth in the relevant UN Security Council resolutions.

The Ministers agreed on the need to establish a foundation for peaceful reunification as envisioned in the Initiative for Peaceful Unification on the Korean Peninsula proposed by President Park on March 28, 2014 and confirmed by President Obama during his April 2014 visit to Seoul. The Ministers called on North Korea to take positive actions that will lead to improved inter-Korean relations.

The Ministers also welcomed increased international attention on human rights in North Korea. The UN Commission of Inquiry’s report clearly documents the systematic, widespread, and gross violations of human rights taking place in North Korea. The United States thanked the ROK for its commitment to host a field-based structure to be established by the U.N. Office of the High Commissioner for Human Rights, which will help enhance the international community’s awareness of ongoing human rights violations in North Korea and of the need to implement the COI recommendations.

Regional Issues

The Ministers recognized that trilateral security cooperation between the United States, the ROK, and Japan strengthens deterrence against the North Korean threat and expressed their intention to expand trilateral security cooperation and coordination, and decided to continue consulting on trilateral information sharing measures as discussed at the Shangri-La Dialogue in May 2014. The United States briefed the ROK, earlier this month, at the senior-level on the ongoing consultations with Japan on the revision of the U.S.-Japan Defense Guidelines, which will proceed in a transparent manner within the framework of the U.S.-Japan Alliance. The Ministers recognized the value of the Defense Trilateral Talks and the trilateral Foreign Ministers talks on the margin of the ASEAN Regional Forum.

The Ministers were in agreement on the importance of constructive cooperation with China through various forms of dialogue to further our shared goals of peace, stability, and prosperity. The Ministers emphasized the importance of maintaining peace and stability, ensuring maritime security and safety, and freedom of navigation in the South China Sea. The Ministers shared the view on the need for full and effective implementation of Declaration on the Conduct (DOC) and the early adoption of a meaningful Code of Conduct (COC) by ASEAN and China.

The ROK Ministers highlighted the ongoing efforts to promote cooperation in the region, including the Park Administration’s signature Northeast Asia Peace and Cooperation Initiative (NAPCI), and plans to hold a NAPCI conference in Seoul on October 28. In the spirit of the Joint Declaration in May 2013, which states that the United States and the ROK are prepared to address common challenges and to seek ways to build an era of peace and cooperation in Northeast Asia based on the U.S.-ROK Alliance, the Ministers recognized the contribution that such a dialogue can make to addressing diverse regional challenges.

Global Partnership

The Ministers stressed the commitment of the United States and the ROK to combat the scourge of Ebola, emphasizing that it is not just a public healthcare issue affecting a limited region but a grave threat to the international community. Secretary Kerry outlined the U.S. effort to organize a thorough, coordinated international response to the spread of Ebola. Secretary Hagel reaffirmed the Department of Defense’s plans to establish a command center in Liberia, build more than a dozen Ebola Treatment Units (ETUs), and distribute kits with sanitizing equipment and medicine. The ROK has contributed more than $600,000 to the effort so far, and Ministers Yun and Han reaffirmed the ROK’s plans to contribute additional $5 million through the UN Ebola Response Multi-Partner Trust Fund and to send highly-skilled health care personnel to West Africa to help fight the further spread of the Ebola virus.

Acknowledging the grave humanitarian situation in Iraq, the Ministers reaffirmed their commitment to assisting the people of Iraq against the threat of ISIL and Foreign Terrorist Fighters. The United States thanked the ROK for its recent commitment of an additional $4 million in humanitarian assistance to Iraq. Both countries condemned the brutality of ISIL, underscoring that their actions violate the basic norms of humanity and civilization, and expressed their support for the international community fighting against the threat of ISIL. The Ministers also underscored the continuing need to assist Syrian refugees and reiterated their call for a political transition in Syria that ends the crisis.

Secretaries Kerry and Hagel expressed appreciation for President Park’s announcement at UNGA that the ROK would seek to enhance the quality of its overseas development assistance. They welcomed the ROK’s commitment to long-term sustainable growth in developing countries, recognizing its positive impact on peace, prosperity, and global security. Both sides also reaffirmed their close diplomatic and military cooperation in support of humanitarian assistance and disaster relief.

Regarding the Iranian nuclear issue, the Ministers reaffirmed the importance of successfully reaching a comprehensive arrangement between Iran and the P5+1, deciding to continue to work together towards this goal by the November 24 deadline. The United States thanked the ROK for its support of the joint efforts in Afghanistan, particularly its participation in the International Security Assistance Forces (ISAF) in Afghanistan and development assistance, including its provincial reconstruction team. The ROK Ministers reaffirmed that the ROK would continue assistance efforts to Afghanistan even after the termination of the ISAF mission in 2014.

The Ministers reaffirmed their respect for the sovereignty, territorial integrity, and independence of Ukraine, and stressed that the international community does not recognize the purported annexation of Crimea by Russia. The Ministers called for the full implementation of the 12-point Minsk agreement.

The Ministers emphasized the importance of mitigating and adapting to climate change, particularly to achieve a new climate regime agreement by the 2015 Conference of the Parties in Paris. In May, the ROK hosted and the U.S. Secretary of Energy attended the 5th Clean Energy Ministerial, a high-level global forum to share best practices and promote policies and programs that encourage and facilitate the transition to a global clean energy economy.

Conclusion

The U.S.-ROK Alliance continues to benefit not only the United States and the Republic of Korea, but increasingly the Asia Pacific region and the world at large. Acknowledging that today’s meeting was very productive and useful, the Ministers decided to continue to hold close bilateral consultations to deepen and intensify our cooperation in growing areas of mutual interest.

Two Europes or One Europe?

European Commission

[Check Against Delivery]

José Manuel Durão Barroso

President of the European Commission

Valedictory speech by President Barroso

European Parliament plenary session

Strasbourg, 21 October 2014

Mr President, Honourable Members,

First of all, I would like to thank you for the invitation to address this Parliament in what would be the last time I have this opportunity. In fact, we are coming to the end of my second mandate as the President of the European Commission and I am very happy to be here with you and my colleagues to present to you our bilan, since this is my second Commission, I think I can also refer to the last ten years.

I want to share with you my feelings, my emotions, what I think about the way the European Union has responded to these very challenging times and what I think are the most important challenges for the future.

I think you can agree with me that these have been exceptional and challenging times. Ten years of crisis, and response of the European Union to this crisis. Not only the financial and sovereignty debt crisis – let’s not forget at the beginning of my first mandate we had a constitutional crisis, when two founding members of the European Union rejected, in referenda, the Constitutional Treaty. So we had a constitutional crisis, we had a sovereign debt and financial crisis, and in the most acute terms we now have a geopolitical crisis, as a result of the conflict between Russia and Ukraine.

The constitutional crisis that we had was in fact solved through the Lisbon Constitutional Treaty. The reality is that at that time, many people were saying that it would be impossible for the European Union to find a new institutional setting. And in fact there were moments of ambiguity and doubt. But basically, we could keep most of the acquis of the European Union, including most of the new elements of the Lisbon Constitutional Treaty, which was ratified by all Member States including those that today seem to have forgotten that they have ratified the Lisbon Treaty.

More recently – because I learned to leave to the end the economic issues because they are still with us – we had this very serious challenge and threat to our stability, in Europe, coming from the unacceptable behaviour of Russia regarding Ukraine. And we took a principled position. We offered Ukraine an association agreement and a free trade agreement and I am happy that, in spite of all the difficulties, Ukraine was there, signing and ratifying the association agreement, and I want to congratulate this Parliament, because the same day at the same hour the Parliament in Ukraine was ratifying this agreement, you were also ratifying the agreement showing you can offer hope to Ukraine as part of the European family of nations.

At the moment I am speaking to you, this crisis is not yet solved – we know that. But I think we can be proud that we have kept a position of principle, that we have condemned in the most unequivocal terms the actions of Russia and that in fact an association agreement was ratified, not only with Ukraine, but also with Georgia and Moldova because I believe we have a duty to those countries that are looking to Europe with their spirit and their hope to share with us the same future and because they want to share with us the same values.

At this moment we are still mediating and, today, there is a meeting mediated by the Commission on energy with the Russian government and the Ukrainian government, so a political negotiated solution is possible, we are working for that. It is in the interest of all the parties to have a political agreement, but a political agreement that respects the principles of international law, a political agreement that respects the right of country that is our neighbour to decide its own future and a political agreement that respects the sovereignty, the independence of that country. So, we should be proud of what we have been doing in this very challenging geopolitical crisis.

And we also had the financial and sovereign debt crisis. The reality is that the crisis was not born in Europe, but the fact is that because we were not prepared, because the Euro-area had not yet the instruments, we were very much affected by it – not only in financial terms, in economic terms, in social terms and in political terms. I think this crisis was probably the biggest since the beginning of the European integration process in the 50s of the last century. Let’s now put things into perspective.

Dear Members of Parliament,

Let’s remind ourselves what was the main opinion of most analysts in the economic and financial media, or even many of our countries or outside of Europe, about what could happen: everybody was predicting Greek exit, Greece exiting the Euro, and, of course, Greece exiting Euro would certainly, immediately have had a cascading effect in other countries, a domino effect that was indeed already felt in countries such as Ireland or Portugal. But let’s not forget, Spain was also under very heavy pressure, and Italy. We were staring into the abyss. I remember well what happened in discussions in the margins of G20 in Cannes in 2011, I remember well when analysts were predicting with almost unanimity a Greek exit and at least 50% of them were predicting the implosion of the Euro. And what happened? Not only was there no exit of the Euro, now we are to welcome the 19th member of the Euro, Lithuania will join us in the 1st of January 2015. And not only did Greece not leave the Euro area, it has enlarged and the European Union has been enlarging as well. This is a point that has been very much underestimated in our analysis.

2004, the year I had the pleasure and the honour to assume the leadership of the European Commission, do you remember that we were 15? Today, we have 28 countries. So we have almost doubled the membership of the European Union during this crisis. Is there a better proof of the resilience and the capacity of adaptation of our Union? The fact that we were able to remain united and open during the crisis I think confirms the extraordinary resilience and the strength of the European Union and this should not be underestimated.

I know that, for some, these things do not count for much. They are in a way making an idealisation of the past; they dream probably of a closed Europe; they think Europe was better when half of Europe was under totalitarian communism. I don’t think that. I think Europe today is better than when half of Europe was under communism. The fact that the European Union was able, during all this crisis, to open, to consolidate and to unite on a continental scale almost all of Europe around the values of peace, of freedom and of justice, I think it is a great thing we should commemorate and not to be ashamed of, as some seem to be.

So, this is I think also a reason to commemorate. Many people were predicting, as you probably remember, those of you following these issues at that time, that the European Commission would not be able to function with 25 or 27 or 28 Members, that the European Union would be blocked. The reality is that the European Union was not blocked by the enlargement; the reality that I can share with you now is that sometimes it was more difficult to put together some of the founding Members of the Union than all the 28 countries of Europe.

So I think we should be proud of that as well, collectively, because the European Union was able to remain united and open during the crisis. And when I say open, I mean it in all senses of the word, including with an open attitude towards the world. For instance, when we have promoted a proactive climate agenda after the failure of the Doha Development Round and the Doha trade talks. And we are now leading in that sense, because I believe that trade can be one of the best ways to support growth globally and in the European Union. Or when we, because it was an initiative of the European Union, went to the former President of the United States of America, inviting him and convincing him to organise the first G20 meeting at Heads of State or Government level, because that was a way of having a global cooperative approach and to avoid the return to ugly, nasty protectionism. That could be a temptation in times of crisis. So we were able to keep Europe not only united and, in fact, enlarging its membership, but also open to the rest of the world.

But now, are we stronger or are we weaker? I know that the most critical people today will say that we are weaker. But are we really?

In fact, when the crisis erupted, we had almost no instruments to respond to it. We were facing, as it was said at that time, an unprecedented crisis. Yet we had no mechanisms, for instance to support the countries that were facing the immediate threat of default. A lot has been done. We have collectively, the Commission and the Member States and always with the strong support of the Parliament, we have created a new system of governance. We have today a much more reinforced governance system than before, including with unprecedented powers for the community institutions, and we have done everything to keep the community method at the centre of our integration. For instance, the Commission today has more powers in terms of governance of the Eurozone than before the crisis. The European Central Bank has today the possibility to make direct supervision of the banks in Europe, something that would have been considered impossible earlier; it would have been almost unimaginable before the crisis. And I remember when we spoke about the banking union, when I gave an interview saying that we need a banking union, I received some phone calls from capitals saying ‘Why are you speaking about the banking union? This is not in the Treaties’. And I responded, ‘Yes it is not in the Treaties, but we need it if we want to fulfil the objective of the Treaties, namely the objective of stability and growth’. And today we have a banking union.

Honourable members,

If we look at things in perspective and we think where we were ten years ago and where we are now, we can say with full rigour and in complete observance of the truth that today the European Union, at least in the euro area, is more integrated and with reinforced competences, and we have now, through the community method, more ways to tackle crisis, namely in the euro zone. Not only in the system of governance in the banking union, but also in the legislation of financial stability, financial regulation, financial supervision.

We have presented around 40 new pieces of legislation that were all of them approved by the European Parliament. And once again I want to thank you, because in almost all those debates the European Parliament and the European Commission were on the same side of the debate and were for more ambition, not less ambition for Europe. And so today, I can say that we are stronger, because we have a more integrated system of governance, because we have legislation to tackle abuses in the financial markets, because we have much clearer system of supervision and regulation. So, I think we are now better prepared than we were before to face a crisis, if a crisis like the ones we have seen before should come in the future.

Of course, you can say that there are many difficulties still. Yes, and I am going to say a word about this in a moment regarding the prospects for growth, but please do not forget where we were. We were very close to default, or, to use a less polite word, to a bankruptcy of some of our Member States. And look at where we are now. From the countries that had to ask for adjustment programmes, Portugal and Ireland exited the programme successfully. Ireland is now one of the fastest growing countries in Europe. And in fact all the others that were under the imminent threat of collapsing, are now in a much more stable mood. Spain, that asked for a programme for the banks, also has improved successfully. So in fact only two countries of all those, because we should not also forget the Central and Eastern European countries that also had adjustment programmes, even if they were not yet in the euro area, only two countries are still completing their adjustment programmes.

The deficits now on average in the Eurozone are 2.5%. This is much less than in the United States or in Japan. So, in terms of stability, we are much better now than before. By the way, the Eurozone has a trade surplus. The European Union in general now will have a surplus in goods, in services and, for the first time in many years, in agriculture.

I am saying that because very often the opinion in some of the political sectors is that we are losing with globalisation. This is not the case. Some countries of our Union in fact are not winning that battle, but on average we can say that Europe is gaining the global battle in terms of competition, namely in terms of trade and investment.

But of course, growth is still timid. I think that basically we cannot say that the crisis is completely over, because threats remain, but we have won the battle of stability. Today nobody in the world will honestly bet on the end of the euro. The euro has shown that it is a very strong, credible and indeed stable currency. The reality is that our growth is still timid and clearly below expectations.

So what can we do for growth? This is the important question. And for that I need to make a reminder once again. I know very well that very often the European Union policy and namely the European Commission policy has been presented as completely focused on austerity. I think this is a caricature.

We have constantly asked at least for three important lines – fiscal consolidation certainly, for the countries that are feeling the pressure of the markets. It would be completely irresponsible if they could not frontload a programme of rigour to correct their public finances, but we have always said with equal vigour, probably some would not like to listen, the need for structural reforms, for competitiveness, because the reality is that even before the crisis we were growing under our potential, that is the reality, and with serious problem of lack of competitiveness in some of our countries and so that is why we needed more ambitious structural reforms.

But we have also argued in favour of investment. I have always said that we need more investment, public and private investment. Private investment will come the more we show that we have competitive economies that we can attract private investment. Indeed I am now happy to see that most of our countries, certainly at a different pace, but they are pursuing ambitious structural reforms that would have been considered completely impossible before the crisis.

And the reality is, if we want to be honest in terms of the analysis that the countries that have suffered the most during the financial crisis were precisely those that have lost in terms of cost competitiveness before the crisis. And now, for instance the reforms that have been made by Spain, by Ireland, by Portugal, by Greece, are impressive.

Now, apart from the political consolidation and the structural reforms, we have always seen the need for more investment. Private investment, but public investment as well. You will remember the debate about the MFF. President Schultz remembers certainly. We were together in many meetings asking the Member States to do more in terms of investment and the most important instrument we have at European level for investment is the Multiannual Financial Framework, that is around one trillion euros.

So if there is not more ambitious investment it was not because of a lack of ambition of this Commission, or a lack of ambition of this Parliament. It was because of the opposition of some capitals. This is the reality. We are for solid investment, targeted investment for growth. Not only with the MFF. Remember the proposals that for instance here in the State of the Union speeches with you I have put forward. The increase of the capital for the EIB that finally was agreed. The project bonds that the Member States have accepted, but only as pilot project bonds. The facility that we have created for SMEs with loans from the EIB and funds from the structural funds, from our budget. Unfortunately only two countries wanted to pursue that line.

Or, for instance, the programme for youth, the Youth Guarantee that we have proposed and that the Member States have agreed. But now with the Youth Employment Initiative, only two countries have accepted to have a dedicated programme for youth employment.

So, my dear colleagues, let’s be clear: we are for investment. I wish all the best to the new Commission and to my friend and colleague Jean-Claude Juncker, to have the support of the Member States for a more ambitious investment programme for the next years. I believe this is possible now, I believe the awareness is much bigger on this matter. But once again this is part of a comprehensive strategy that combines fiscal consolidation with structural reforms and investment, and, of course, all the measures taken by us in terms of the banking union and in terms of financial regulation for stability.

And I’m saying this with this vigour because I think it would be now a mistake, after everything we have done, to give up, to show less determination, to abandon the road of structural reform. I think we have done a part of the job, stability is broadly there, growth, even if it is slower than what we would like to have, but now we need determination to complete the reforms so that sustainable growth, not growth fuelled by debt, excessive public or private debt – because such growth is artificial, it’s a fictional growth, and afterwards, sooner or later, we would pay the price – but sustainable growth – that I believe it is possible if we continue the courageous path of reforms and a stronger governance for the European Union.

I don’t have the time now to go over all the other policies we have been developing over the years. But let me just highlight one or two, because I think they are very much at the moment of decision, and I think they are important.

I’m extremely proud that is was my Commission in my first mandate, in 2007, that put forward the most ambitious programme for climate protection in the world. And we are still leading in the world in terms of the climate agenda.

In fact, we were able to join the climate agenda with the energy security agenda, and I’m saying that because this week we are going to have an important discussion in Brussels at Heads of State and Government level, and I hope that the European Union will keep its leadership role – of course not to be isolated but to have others, because we have a responsibility towards our planet. And this is was certainly one of the great advances of these years, that the European Union was able to make the most important and bold steps in terms of fighting climate change.

Another area where I think we could very proud is – in spite of all the restrictions because of our financial situation – that it was possible in the MFF to get 30% more for Horizon 2020, for research and technology. I think there is a great opportunity now for us to do more in that area, as also in the culture side, with our Creative Europe programme.

The reality is that in some areas it was possible, in spite of the economic and financial crisis, to increase investment at European level.

But I’m also very proud that in spite of the pressures of our budgets, we could always be there in terms of development aid and neighbourhood policy.

Whenever there was a big tragedy in the world, from the tsunami in Indonesia to the recent Ebola crisis, from the Syrian refugee crisis to Darfur, we were there, we were among the first. And I think we, Europeans, should also be proud of that, because we are still, together with our Member States, the most important donor for development aid in the world. That is something that corresponds very much to our values and I’m happy that in spite of all the crises we did not abandon our obligations in terms of development cooperation.

I have already said a word about trade. I think it is very important to keep an ambitious trade agenda, an open Europe but for free and fair trade. And the Commission has concluded a record number of agreements, not only with South Korea, Singapore, Central America – the first region to reach an agreement -, Peru, Ecuador, recently with Canada, with Western Africa, Eastern Africa and Southern Africa. And I could also mention some others that are now progressing, like Japan, the United States and also an investment agreement with China.

So we are the most important trade bloc in the world. We are the biggest economy in the world.

And I’m saying that because today I know it’s very fashionable the pessimism, the defeatism about Europe, what I call the intellectual glamour of pessimism. But I believe that we have a good record to show and I believe that together, collectively, we are much stronger and we can better defend our interests and protect our values.

Dear colleagues – I call you colleagues because I believe we have been sometimes in discussions but we have been colleagues in this great enterprise that is the European project -, I think politically we have some lessons to draw.

One is that we have shown great resilience. I think we can say that the forces of integration are stronger than the forces of disintegration. And I believed that day and night, sometimes in very dramatic moments, sometimes when I had to make dramatic appeals to some capitals: to the richer countries, asking them to show more solidarity; and to the poorer countries asking them to show more responsibility.

Sometimes we have done it very discretely, it’s true. The European Commission is probably more discreet than others. I did not want the Commission to be part of the cacophony of different voices during the most acute moments of the crisis. It was extremely market sensitive that situation. But I can tell you, in my full conscience, that we have done everything we could with existing instruments to avoid the fragmentation of the euro or to avoid a division in the European Union. And I very often had to call on my colleagues in the European Council, Heads of State and Government, to show the ethics of European responsibility.

But one of the lessons I draw from this is that if eventually it was possible to come to decisions, it is true that it was sometimes extremely painful and difficult. And took time. We have said also, and I think it is something that we can all agree: democracy is slower than the markets are.

The Commission would have preferred, and I’m sure this Parliament as well, decisions to be bolder, more comprehensive, faster. But we are a Union of democratic states, we are not a super state. And we have to respect different sensitivities.

One of the conclusions I draw from these ten years of experiences is the need to cooperate between institutions. I know sometimes it is more popular to put forward impossible ideas and to criticise others. But I firmly believe that we need to engage with different institutions, that it is not a solution to oppose the countries to the European Union. On the contrary, we have to show to our countries that they are stronger if they are part of the European Union. That we are not diluting their national identity but, on the contrary, we are asking them to share their sovereignty so they can project better their interests globally. I’m firmly convinced of this.

And I’m saying this to you now, as I am leaving in a few days: my only interest is that these lessons are learned so that we do not repeat some mistakes in the future. At the same time, I think we can say that it is not through confrontation but through cooperation that we can attain our objectives.

At the moment I prepare to hand over this very challenging and interesting job to my good friend Jean-Claude Juncker, I want to say here, on my behalf and on behalf of all my colleagues of the Commission, that we wish the new Commission all the best, that they have a great challenge ahead of them but that they could count also on our support. And I’m sure of the support that this Parliament is going to give to them.

Because, Mr President, the relations were not always perfect. But I think you can agree that we were able to establish a fruitful relationship between the Parliament and the Commission.

I’ve been in this Parliament more than 100 times. There was never a Commission that was so often represented in the Parliament as my two Commissions. We have established this cooperation and I’m so grateful because this Parliament, sometimes with very strong demands, was always supportive of the community method, was always supporting the community institutions. And I believe this is very important for the future of Europe.

My dear colleagues of the European project,

The way to solve the problems we have in Europe is not through revolution and even less through counter-revolution. It’s by compromise, it’s by reform. Evolution and reform. We have to reform to adapt to the new challenges but not with new clashes between the institutions, not with clashes against our countries. And I believe that if this idea of strong cooperation putting the European common good above all else, I think my colleague and friend Jean-Claude Juncker and his new Commission will have success, of course based on the support I’m sure you are going to give them.

Because the European Union is a union of values. In these last days I had to face many journalists and they asked me ‘what was your most emotional moment? Which moment did you prefer?’ And I have many, and I also had very difficult ones, to be honest. But one of my most emotional moment was when, on behalf of the European Union, together with Martin Schulz and the President of the European Council, Herman Van Rompuy, we received the Nobel Peace Prize on behalf of the European Union.

I think this was a powerful reminder sent to us from the global community that we count in this world and that what we do is very important. That the values that were at the origin of the creation of our Union, namely the value of peace, are still at our essence today. And that we have to fight for them.

And I think is the moment I really said I want to share with all those in the different institutions, including this Parliament, that have been working for a united, open and stronger Europe. And when I leave this office, with all my colleagues at the Commission, I can tell you that we have not achieved everything we could, or everything we would have liked to have achieved, but I think we have worked with the right conscience, putting the global interest of the European Union above specific interests. And I believe that now there are conditions to continue to do work for a united, open and stronger Europe.

I thank you for your attention.

Auf wiedersehen, goodbye, au revoir, adeus.

Muito obrigado, thank you very much.

Following the statements of the Members of the Parliament, President Barroso made the following closing remarks:

Mr President,

I should like to take up a number of the points raised by the previous speakers. Firstly, I believe that proof that we – and by “we” I mean the Commission of which I have had the honour of being Presidentare on the right track lies in the fact that the criticisms have come from the opposite ends of the spectrum, though often couched in the same terms, resolutely ignoring the difficulties and extraordinary challenges that we have had to face and failing to put forward any coherent response.

The truth is that we have been through possibly the worst economic and financial crisis we have seen since the countries of Europe began to come together and that it was not the European Union or Europe that spawned the crisis. This is what some defenders of national sovereignty, as they like to call themselves, do not or will not understand. It was not Europe that created excessive private debt or caused the financial sector to behave irresponsibly. Quite the opposite – this all took place under national scrutiny, or rather lack thereof. Europe is the answer. We now have one of the most ambitious regulatory and supervisory systems in the world, if not the most ambitious. In other words, saying that Europe is worse off because of the European Union is simply not true. It shows a complete lack of respect and a lack of intellectual rigour. Europe is not responsible for the financial crisis, which had its roots in the United States. Europe had its weaknesses, but what the European Union did was to respond. The blame for this does not lie with the European Union, and I believe this is something that all those who share the European ideal – be they at the left, right or centre of the political spectrum – should have the courage to state, because by remaining silent we will be reinforcing the populist rhetoric of the extreme right and extreme left.

I listened carefully to those of you who said that populism was on the rise and who laid the blame for this at the door of the European Union. Ladies and gentlemen, this is not true. It is abundantly clear that populism and xenophobia exist outside the European Union. Look at the anti-immigrant incidents that have taken place in Switzerland. Look at what happened in Norway when that terrorist killed all those young people because he was opposed to a multicultural Europe. Look at the Tea Party movement in the United States. Is Europe to blame for America’s Tea Party movement?

We are currently seeing an aggressive form of populism around the world, which espouses arguments from both the left and the right. Sometimes it is difficult to tell the difference. So to say the European Union is responsible for this shows a lack of intellectual rigour and a lack of political integrity. What we have to do, as Europeans, is to demonstrate that it was not Europe that caused the crisis or the public debt in the Member States. There was little that Europe could do when, for example, one Member State falsified its accounts. This is something Europe had to face. The first initiative of my second Commission was to ask the Member States to give us more powers to supervise national statistics, because in my first Commission this was rejected. And not by Greece. It was rejected by the big Member States, which were reluctant to hand more powers over to the European Union. So if we really want to have a debate, let us be quite clear and strict in terms of intellectual integrity and political candour.

Ladies and gentlemen, there is one thing that I would like to say to you with the greatest of conviction. The team that I have had the honour of heading has worked with enormous commitment and diligence, whilst always putting Europe’s interests first. There is something that I want to say to you, since this is a political assembly with a wealth of political dynamics, but where the emphasis is always on the common European good. My Commission was not made up of colleagues from the EPP, socialists or liberals. It was made up of people who worked for Europe. My party is the EPP and I am proud of that, but, as President of the Commission, my party is Europe and that is the message I wish to convey, in particular to the major forces of the pro-European centre-left and centre-right.  Differences must, of course, be aired, but they must not be allowed to weaken the pro-European camps. We cannot hand the extreme right or extreme left anything else on a plate. Pro-European forces must come together. They must have the courage to defend Europe. They must do so at national level, and not just here in Strasbourg. We need a major coalition of this nature for Europe because I believe that we have the strength to win the battles of the present and those of the future.

Thank you very much for your attention.

Governments of Canada and New Brunswick Invest in Knocean Foods Ltd.

New value-added seafood production facility in Scoudouc Industrial Park

August 13, 2014 – Scoudouc, NB – Atlantic Canada Opportunities Agency (ACOA)

Knocean Foods Ltd., a value-added food processing company, welcomed news  today of a combined investment from the Government of Canada and the Province of New Brunswick for equipment purchases for their newly built processing facility, which will result in export sales and the creation of up to 25 new new jobs for the region.

The Honourable Rob Moore, Regional Minister for New Brunswick and Minister of State (Atlantic Canada Opportunities Agency), and the Honourable Bruce Fitch, Minister of Economic Development and Minister Responsible for Invest NB made the announcement today.

This project involved the construction of a 22,977 square foot facility in the Scoudouc Industrial Park and the purchase of production equipment.

The Government of Canada, through ACOA’s Business Development Program, and Invest NB both invested $500,000 in the form of repayable loans in this project. Invest NB also provided a $225,000 payroll rebate over 6 years for the creation and maintenance of 25 positions. The investment is expected to add $2.75 million to New Brunswick’s gross domestic product once all 25 jobs have been created.

Quick Facts:

  • New Brunswick’s fish and seafood sector is a vital component of the province’s social and economic fabric. More than 7,000 New Brunswickers are employed in the province’s world-class fish and seafood industry, which was responsible for an average of 21.3 percent of Canada’s fish and seafood exports to the world between 2010 and 2012.
  • With one in five Canadian jobs linked to exports, the Government of Canada recognizes the important role that opening new markets plays in Canada’s long-term prosperity.  That is why it has prioritized initiatives such as the Canada-European Union Comprehensive Economic and Trade Agreement and the Canada-Korea Free Trade Agreement – so that leading exporters can continue to grow and fuel the region’s prosperity for many years to come.

Quotes:

“Our Government understands the importance of investing in core industries in order to create jobs and economic growth in the region.  Our repayable contribution allowed Knocean to construct a brand new facility and purchase the equipment necessary to take their operation to the next level.”

– The Honourable Rob Moore, Regional Minister for New Brunswick and Minister of State (ACOA)

“The Province of New Brunswick is pleased to invest in Knocean Foods. The construction of a new processing plant and the creation of 25 new jobs in the value added seafood sector will benefit Scoudouc and surrounding communities.”

– The Honourable Bruce Fitch, Minister of Economic Development and Minister responsible
for Invest NB

“Knocean Foods Ltd. appreciates the support of the Government of Canada and the Province of New Brunswick in this project. With their support, we can be competitive, which allows us to establish ourselves in the global market.”

– Étienne Dodier, President, Knocean Foods Ltd.

Associated Links:

• www.acoa-apeca.gc.ca
• www.actionplan.gc.ca
• http://www.investnb.ca

Contacts:

Kelsie Corey
Director of Communications
Office of the Honourable Rob Moore
Atlantic Canada Opportunities Agency
613-941-7241

Ted Parisé
Senior Communications Officer
Atlantic Canada Opportunities Agency
506-452-3917

Nora Lacey
Director of Research, Marketing & Communications
Invest NB
506-453-6262

Étienne Dodier
President
Knocean Foods Ltd.
506-533-0181

Western Premiers focus on competitiveness and rural and remote communities

Iqaluit, Nunavut (July 10, 2014) – Western Premiers met in Iqaluit over the past two days and emphasized the importance of continued economic growth in the West. Premiers discussed a number of priorities including labour market development, market access and internal trade. They also acknowledged the vital role that rural and remote communities play in the prosperity of Canada.

Developing the labour market

The need for skilled labour continues to increase in Western Canada. With a number of major projects either underway or in the development phase, existing labour shortages are only expected to deepen.

Premiers agreed that residents in their rural and remote communities need to be prepared to take advantage of increased job opportunities from the growing economy. They emphasized the shared role of employers, industry and government in skills development and on-the-job training to build capacity at the local level, particularly in Aboriginal and northern communities.

Having trusted, reliable, and up-to-date labour market information is essential for governments, employers, and for workers making employment decisions. Premiers discussed the importance of prioritizing the use of data to make joint decisions, and committed to sharing labour market information.

Western Premiers agreed to:

  • call on their Labour Market Ministers to continue developing opportunities for individuals in rural and remote communities to build the skills needed to benefit from economic development;
  • ask Western Labour Market Ministers to prepare a report on labour mobility and demand of major projects within the western provinces and territories;
  • show leadership and cooperation in supporting worker mobility by enhancing the transferability of post-secondary and trades education credits, including competency-based assessments; and
  • call on the federal government to provide better access to existing data from areas of federal jurisdiction, such as Employment Insurance data by economic development region and tax data.

When discussing changes to the Temporary Foreign Worker Program (TFWP) announced by the federal government on June 20, 2014, Premiers agreed that it is important to ensure Canadians have the first chance at the available jobs, and that employers should be held responsible for violating the rules of the program. However, Premiers are concerned that the recent changes go too far in restricting access to the program. Western Canada has a strong economy and unique labour market needs that often make it necessary for employers to rely on foreign workers when qualified Canadians cannot be found. Limiting the ability to hire foreign workers to address critical labour shortages will unduly punish responsible employers in Western Canada, particularly those in smaller and remote communities where Canadian workers are not readily available. Premiers also noted that temporary foreign workers often transition to permanent residency, such as through the Provincial and Territorial Nominee Programs, and become long-term contributors to the labour force. Premiers emphasized the need to ensure that the planned overhaul of Canada’s economic immigration system in 2015 is responsive to the diverse needs of western Canadian jurisdictions.

In advance of the FPT Labour Market Ministers’ meeting, Western Premiers discussed their concern about the federal government’s intention to alter provincial-territorial Labour Market Development Agreements (LMDA). 

Labour Market Development Agreements enable provinces and territories to provide direct assistance to Employment Insurance-eligible clients, ensuring they attain the valuable skills required to return to the workforce as quickly as possible. Premiers noted that existing programs have proven to successfully support Canadians getting the training they need to get back to work. Western Premiers also noted that the responsibility over skills training has been devolved by the federal government to provinces and territories, as they are best placed to better deliver training and support programs that meet local needs. The federal government has provided no evidence that any change in approach is needed. Western Premiers will also discuss this issue at the 2014 Summer Meeting of Canada’s Premiers in Charlottetown, Prince Edward Island later this summer.

Western Premiers also discussed the challenges posed by the timing of LMDA and TFWP changes. Premiers urged the federal government to:

  • consider how these changes may reduce labour availability; and
  • engage in a collaborative dialogue with western Canadian provinces and territories to explore ways to accommodate the unique labour challenges of the region.

Improving market access

Western Premiers congratulated the federal government on concluding the Canada-Korea Free Trade Agreement. They welcomed federal efforts to secure further free trade agreements (FTAs) with key markets to strengthen Canada’s competitiveness and urged the rapid conclusion of ambitious FTAs, including the Canada European Union Comprehensive Economic and Trade Agreement, the Trans-Pacific Partnership (TPP) and bilateral agreements with India and Japan.

Premiers noted that an ambitious TPP would improve Canada’s access to the Asia-Pacific region and ensure that Canada remains a preferred market for the United States (US).  US protectionism continues to be a concern for Premiers.  Premiers supported the federal government’s work in the US and in international forums, to address US Protectionism, particularly the Grow America Act.

Premiers also discussed the need for improved bilateral air transport agreements to ensure western provinces and territories can fully capitalize on the FTAs.

Canada’s trade success hinges on having an effective and efficient transportation system to reliably get goods and services to market. To this end, Western Premiers:

  • welcome a transparent review by the federal government of the Canada Transportation Act, focusing on regulatory and policy changes to improve the competitive environment and balance the relationship between shippers and railways;
  • call on the federal government to expand monitoring systems and information sharing and ensure full transparency between stakeholders involved in Canada’s supply chain system; and
  • call on the federal government to work with provinces, territories and the private sector to ensure that gateway facilities and transportation networks, in particular the Asia-Pacific gateway, accommodate current and future exports.

Modernizing internal trade

Premiers agreed it is essential to accelerate cooperative efforts to strengthen Canada’s economic union. Western Premiers support an ambitious modernization agenda to achieve substantial progress. Premiers noted that the original Agreement on Internal Trade (AIT) was signed as a direct result of Premiers’ leadership in 1994 and took effect in 1995. Since that time, significant progress has been made by the provinces and territories to broaden the AIT’s coverage on labour mobility and public procurement, to remove technical barriers in the agriculture and foods sector, and to put in place an enforceable dispute resolution mechanism.

Western Premiers remain committed to the objectives originally set out in the 1994 Agreement.  However, the Canadian economy and the global trading environment within which Canada operates have evolved since the AIT was signed. As such, bold new steps must be taken to maximize our country’s ability to be globally competitive and to ensure consistency between our internal and international trade agreements.

Exploring solutions for off-grid communities

Western Premiers are committed to supporting economic growth throughout the West and noted the challenges faced by some off-grid and remote communities that rely on diesel-fueled energy generation technologies, which are often expensive and emissions intensive. Premiers agreed that resource development and community and economic growth should be enhanced through the availability of innovative off-grid energy solutions in these communities.

Western Premiers directed their Energy Ministers to work on identifying barriers to the reduction of diesel use in off-grid communities and ways to increase access to affordable, clean, and reliable supplies of energy. Ministers are asked to focus on practical solutions that use innovative technologies that can be applied to small communities. Premiers directed Energy Ministers to report back on this work at the Western Premiers’ Conference in 2015. Western Premiers will also work with their colleagues across the country in addressing this issue through the Canadian Energy Strategy.

Improving access to housing

Western Premiers recognized that access to stable and affordable housing is fundamental to a strong economy and to the health and well-being of western Canadians. Adequate housing allows families to participate more readily in the workforce, reduces dependencies on costly government programs such as healthcare, policing and justice and increases the level of academic achievement attained by children and youth. This is particularly evident in Aboriginal and northern communities. Premiers stressed the need to work with the federal government to develop a long-term, sustainable partnership to support housing needs.

Addressing aboriginal child welfare

Western Premiers discussed the disproportionate and large number of Aboriginal children taken into care across the country. They recognized the need for governments to work in consultation with Aboriginal communities to address this Canada-wide problem.

Western Premiers urge the federal government to show leadership and commit to working in partnership with provinces, territories and Aboriginal communities to address these critical issues facing Aboriginal children and families.

Western Premiers directed provincial and territorial Social Services Ministers work with Aboriginal Affairs Ministers to consider ways to reduce the number of Aboriginal children taken into care by child welfare authorities and to improve the quality of care.

Disaster management and assistance

Western Premiers discussed the frequency and severity of recent natural disasters, including current major floods in Manitoba and Saskatchewan, and stressed the critical importance of continuing strong, reliable federal support for disaster management and recovery assistance.

Premiers call on the federal government to:

  • broaden the definition of a “disaster event” to include multiple smaller events that have large, cumulative impacts;
  • maintain its longstanding 90-10 cost-sharing arrangement for disaster recovery; and
  • allow communities to rebuild to a higher, more resilient standard.

They praised first responders and Canada’s military for their exemplary efforts in dealing with emergency situations across the country and acknowledged that they had been key to saving lives and livelihoods. Noting that advance planning and investment in disaster mitigation infrastructure have been proven to reduce the scale and costs of natural disasters, Western Premiers called on the federal government to substantially strengthen its new mitigation programs to enable provinces, territories and Aboriginal communities to move ahead quickly with high-priority flood protection and other projects.

2015 Western Premiers’ Conference

Premier Wall confirmed that Saskatchewan will host next year’s Western Premiers’ Conference.

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Contact Information:
Yasmina Pepa
Press Secretary to Premier Taptuna
867.975.5059
ypepa@gov.nu.ca