Responsible trade

From the perspective of pure trade economics, each dollar of Canadian direct investment abroad creates around two dollars of future Canadian exports. Economic Development Canada (EDC) plays an important role in developing markets by promoting Canadian expertise and investment in developing countries. In 2003, EDC helped broker $10.54 billion worth of transactions in such countries, of which mining and related infrastructure constituted $2.3 billion.

Canadian-led projects also result in the transfer of technology, the introduction of international trade standards, and the creation of a more competitive business environment — all of which contribute to higher economic growth and the alleviation of poverty and improvements to environmental management.

Responsible trade is a priority for host countries also. Foreign investment enables host countries to strengthen their ability to enforce regulations and build institutions for managing development projects.

EDC support has been instrumental to the involvement of Canadian companies, one example being Mozal, an aluminum smelter in Mozambique. The smelter was completed in 2000 and is the largest private-sector investment in the country. It employed 9,000 people during peak construction and resulted in the creation of 740 jobs, most of which are filled by Mozambicans. Indirect employment is estimated at 2,500.

As Canadians, we can help improve trade practices and push for higher international standards. In so doing, we can secure Canada’s reputation as a responsible global trader.

— The preceding is an edited version of a presentation made at an international conference. The author is the vice-president of energy, infrastructure and services with Economic Development Canada.