Living in Peru : your everyday companion

excerpts of a speech by
Eric Siegel

"The last time I was here -- in October 2007 – we were experiencing a very different trade world – a much more optimistic one. Business was booming everywhere.

We all know what happened just one year later. Today, the difficult global economy is weighing on all of us..."

"...Tonight, however, I’d like to focus on our new representation in Peru and the Andean region, which of course also includes Bolivia, Colombia, Ecuador and Venezuela.

In recent years, we have been more aggressively leveraging our relationships internationally to increase contacts for Canadian companies with potential foreign buyers and project investment opportunities.

This location is our 14th in the world’s high-growth emerging markets. Our representation strategy has helped expand our emerging market business volume to $22 billion in 2008, a third more than the previous year. This also represents a quarter of EDC’s total business volume.

In today’s slump, growth in these markets is predicted to outperform the world average – and certainly will outperform the United States, Europe and Japan. Indeed, your region is among the bright spots and future of global trade.

Why did we choose Peru in particular? Let’s look at three of our many reasons to celebrate Peruvian-Canadian-and-EDC relations.

First of all, congratulations. We all happen to be in the best place to do business in Latin America this year.

According to the International Monetary Fund, Peru, which is ranked as Latin America’s 7th largest economy, is expected to have the region’s highest economic growth this year – almost 4 per cent -- incredible in a world of negative growth. This ranking is a clear sign of Peru’s strong economic and trade potential.

Secondly, the Government of Canada recently introduced legislation to implement the Canada-Peru Free Trade Agreement, signed a year ago this month. This is Canada’s second such agreement in South America. [The first was with Chile; Canada is now in negotiations with Colombia.]

Once implemented, we expect this Agreement will level the playing field for foreign competitors and stimulate more commercial trade and investment for all our businesses.

Already, two-way merchandise trade between Canada and Peru reached close to $3 billion in 2008, a 15 per cent increase over 2007.

EDC alone works with more than 250 Canadian companies in Peru and the Andean region, including 30 of our country’s most renowned names – such as Teck Cominco, Barrick Gold, Scotiabank, SNC-Lavalin, Dessau, Stantec, Golder and Sandwell. We’re pleased to see some of you represented here tonight.

Third of all, Peru truly fits its meaning in the Quechua language as "land of abundance." The extractive and infrastructure opportunities are unlimited. Today Peru ranks among the world's top producers of gold, silver, copper, lead, and zinc. [Its petroleum industry is one of the world's oldest, and its fisheries are among the world's richest.]

I’m speaking to the converted tonight, because Canada is the fourth largest foreign investor in this country– more than $2 billion invested currently. We’re also the main investor in the mining sector..."

"...In closing, I firmly believe that the governments and private sector of both Peru and Canada, working together with EDC, can bring forth exciting new projects that will benefit the people of Peru and Canada."

To learn more about EDC, click here!