His Excellency Robert Ready spoke about the long standing relationship between Jamaica and Canada at the JSE’s Best Practices Awards. Please read his speech below……..
Speech to Jamaica Stock Exchange
Robert Ready, High Commissioner of Canada to Jamaica
December 3, 2014
Introductions
Thank you for the opportunity to speak at your awards banquet. I am honoured and grateful for the opportunity to engage this group of eminent Jamaicans who are leaders of entrepreneurship in the country.
My instructions are to share some of what Canada is doing in the area of corporate social responsibility. We are pretty active in this area so I will be happy to do so. However, I would be remiss to my principle mandate from my government if I did not spend a bit of time talking about a couple of other things.
So rather than just CSR, I am going to touch on three things tonight. First, what drives our bilateral relationship and Canada’s contribution to Jamaica. Second, I want to raise the issue of international trade as it is an issue I care a lot about. Finally I will do what the organizers have asked, and will spend some time on Corporate Social Responsibility.
Bilateral Relations
Canada and Jamaica have a long and deep history together. Canada is “well invested” in Jamaica as some of you in the JSE might say. You probably all know the references. Codfish for rum brought us together in the days of the British Imperial Trading System and brought you your national dish; the first West Indies cricket tour was to Canada in 1886; our first Prime Minister had a Jamaican wife and named his railway car “Jamaica” to make her feel at home; Canada (my hometown Kingston) supplied steam engines to Jamaica railroad…one is still parked Downtown; BNS being here before Toronto; Alcan and early bauxite development; Air Canada’s role in getting Air Jamaica going. Some of you may even know about what became known as the Great Canada-Jamaica Patty War of the 1980s. There has been a lot of water under the bridge.
But to understand what drives the Canada Jamaica relationship it is important to step back a bit. Canada is as active as we are in Jamaica not because we share so much history (which we do) and not because we are nice people (I hope we are)…we do what we do here because it is in our interest to partner with Jamaica.
· It is in our interest that Jamaica has a sound and sustainable economy with increasing levels of growth and that does not have to depend on international bailouts
· It is in our interest that Jamaica can leverage its locational advantages and strong tourism offering to participate in the international trading system and thereby generate growth
· It is in our interest that Jamaica is more prepared for the inevitable natural disasters that affect the Caribbean region and is not in a position to have to regularly seek disaster relief
· It is in our interest that Jamaica has a security and justice system in which all Jamaicans can have confidence and where criminal actors are prevented from moving, along with their illicit goods/activities beyond Jamaica’s borders only to become problems for others, including Canada.
These interests drive our program here and explain why there is such a rich and diverse set of partnerships.
Development Partnership
· $600 Million Regional Program in Region – over 25 programs focused on Sustainable Growth, Justice and Disaster Mitigation
· $65 Million to Jamaica in 5 years…Canada is the 2nd largest grant donor behind the EU. That is all of the EU combined
Security Partnership
· Support to anti-corruption efforts in JCF and in broader society
· Significant military assistance (training and infrastructure)…Jamaica and the JDF are now becoming the centre of excellence for military training in the region
Justice Partnershp
· $20 M Justice Reform Project with Jamaica…focused on MOJ, Courts, DPP, Legislative Drafting
· Will announce another $20 M in this area next week
Immigration Partnership
· Farm Workers Program
· Student Visas
The Jamaica Stock Exchange is one particular area where our interest in a Jamaica that can sustain economic growth has resulted in us working together. I understand that in the past Canada assisted the JSE with its first set of Rules and the JSE’s Securities Course. More recently, most of you I am sure know, Joe Oliver, Canada’s Finance Minister announced in June that stocks on JSE main market have obtained tax-free status in Canada. What this means is that as of June 2014 CANADIAN investors ARE NOW exempt from taxes on income derived from buying stocks on the main Jamaica Stock Exchange (JSE) market. The JSE is now a designated stock exchange under the Income Tax Act in the North American jurisdiction. This has some potential I would think as stocks on the JSE’s Main Market will become more attractive to Canadian pension funds, investment managers and investors including in the diaspora.
Congratulations on this recent development! This will no doubt further solidify our important trade and investment relationship.
So, to recap my first point, our interests drive our engagement in Jamaica and it is a very active engagement that we have.
Trade
The next subject I would like to touch on is the importance of international trade, specifically international trade agreements and what Canada is doing in this area of international economic policy. The Government has made this a top priority of our economic program recognizing that open markets stimulate trade, investment, growth and jobs. Longtime members of the WTO, but frustrated with the pace of liberalization there we were early adopters of the Free Trade Agreement. Many other countries in the world have embraced this as approach as well.
We are now the only country with preferential access to the US (through the NAFTA) and the EU through the recently concluded CETA deal. We also have negotiations going with the Transpacific Partnership, which would bind a large number of countries including US, Canada, Mexico, Aust, NZ, some ASEAN members, Chile, Peru and Japan into a single free trade area. We are also negotiating bilaterally with Japan and India. We have also recently completed deals with Korea and Honduras and have agreements with Peru and Colombia.
Canada has been seeking for 7 years to conclude a deal with CARICOM to expand trade and economic prospects for both sides. In my time here as High Commissioner I have also been the Chief Negotiator for Canada. Unfortunately, the joint political deadline that had been established for these negotiations expired on June 30 of this year with no agreement. No future talks have been scheduled.
CARICOM countries, including Jamaica, have enjoyed unilateral duty free preferences into the Canadian market for many years. Canadian exporters currently face bound tariffs of approx. 50%; applied tariffs of 10% in Jamaica. Bilateral trade is stagnant or decreasing.
It is my view that CARICOM and Jamaica face some real issues moving forward on the international trade front.
· Duty preferences such as enjoyed into Canada will erode over time as global liberalization proceeds putting more and more of the rest of the world on an equal footing with you in our market
· the new economy of service industries and investment looks for markets with growth potential and will go where they can have confidence in least burdensome regulatory frameworks and non-discriminatory treatment, and
· International trade partners will prioritize markets where there are reasonable chances of success.
These issues are really not to CARICOM or Jamaica’s favour.
I am not in a position to comment on what the next step, if any, there will be in international trade negotiations between us. These are political decisions for elected representatives on both sides to make. But I would urge you, as significant stakeholders on the Jamaican side, to continue to advise government to be bold;
– to look outward;
– to develop new export markets;
– to accept that cheaper imports also means cheaper inputs;
– to offer treaty based guarantees to foreign companies concerning fair and non-discriminatory treatment; and, above all,
– to not be left behind in the trade liberalization agenda that the rest of the world is moving on with. Experience around the world suggests this is the way to prosperity.
I know you really didn’t ask for my advice on that matter, but I felt compelled to give it anyway.
Corporate Social Responsibility
I will now turn to what the organizers really asked me to focus on…corporate social responsibility. I know that the JSE is interested in having listed companies in Jamaica operate at the highest international standards and I hope some of what I will say will be of interest and use.
Corporate Social Responsibility (CSR) is about the integration of economic, social and environmental considerations into the decision-making structures and processes of business. It is about using innovation to find creative and value-added solutions to societal and environmental challenges. It is about engaging shareholders and stakeholders and collaborating with them to more effectively manage potential risks and build credibility and trust in society. It is about not only complying with the law in a due diligent way but also about taking account of society’s needs and finding more effective ways to satisfy existing and anticipated demands in order to build more sustainable businesses. Ultimately, it is about delivering improved shareholder value, providing enhanced goods and services for customers, building trust and credibility in the society in which the business operates, and becoming more sustainable over the longer term.
The research that has been done in Canada on this issue suggests that while there are different ways to frame the benefits, there is a clear business case that can be made for CSR that includes the following:
- stronger financial performance and profitability through operational efficiency gains
- improved relations with the investment community and better access to capital
- enhanced employee relations that yield better results respecting recruitment, motivation, retention, learning and innovation, and productivity
- stronger relationships with communities and enhanced licence to operate
- improved reputation and branding
Those companies interested in advancing CSR and in improving their social and environmental performance as part of their business have a wide range of choices when looking for guidance.
They can look at the example of individual Canadian companies that have been paying attention to the demands of the marketplace and the pressures from citizens and governments on such challenges as environmental protection (e.g. climate change, pollutants), human resource management practices (e.g. diversity), community development (e.g. supporting community initiatives, local hiring), consumers (e.g. product choice and safety), and others. Canadian business is increasingly using CSR or similar concepts such as corporate sustainability, corporate citizenship, corporate accountability and corporate stewardship to address what has become the triple bottom line challenges of economic, social and environmental results.
They can also look at entire Canadian industries (Petroleum, Electricity, Forest Products) that have responded to CSR and sustainable development challenges on a collective basis. Industry associations in particular have been developing approaches for their industry sector members to advance CSR and sustainable development – frequently with a focus on some specific facet of CSR. For example, many of the industry-wide initiatives have tended to focus on the environmental protection element of CSR. Overall, companies are recognizing the value of working collectively and cooperatively to develop voluntary solutions in forms such as voluntary codes of practice as well as voluntary action plans and accountability reports that are transparent to stakeholders.
The Government of Canada’s approach to CSR is multi-faceted and relies on a combination of initiatives, including domestic legislation, voluntary government-promulgated and private sector developed guidelines. I won’t go through it all, but will focus on initiatives related to those businesses that operate internationally.
Canada has helped to develop CSR best practice guidelines and standards in a variety of international fora such as the UN, OECD, G8, Asia-Pacific Economic Cooperation, the OAS, la Francophonie, International Labour Organization, to name a few. This body of work represents a rich source of guidance for companies, associations, or even other governments when embarking on the creation of CSR frameworks of their own.
Our most recent policy developments in CSR were announced last week by Trade Minister Fast, and focussed on the extractive sector, largely because this is one of the industries that is particularly vulnerable to social and environmental risks in the course of their operations, particularly in countries with weak governance. These international companies represent the “Canada Brand” and, in an effort to help mitigate risks for industry performance as well as Canada’s international reputation, the Government has set out clear expectations for corporate behaviour.
The Government of Canada has said it expects Canadian companies operating abroad, among other things, to respect human rights and all applicable laws, and to meet or exceed widely-recognized international standards for responsible business conduct. It is expected that Canadian companies will understand local customs and culture, engage local citizens and organizations in planning operations and explore opportunities to build local capability.
While we hope to encourage positive relations between companies and their stakeholders, when necessary, we have mechanisms to assist with company – community dialogue facilitation and conflict resolution: the review processes of Canada’s National Contact Point for the OECD Guidelines for Multinational Enterprises (NCP) and of the Office of the Extractive Sector CSR Counsellor.
The recent CSR policy announcements that I referred to above indicate that Canadian companies are expected to align with CSR guidelines. If they do so they will be eligible for enhanced Government of Canada economic diplomacy assistance. As a penalty for companies that do not embody CSR best practices and refuse to participate in dispute resolution processes, Government of Canada support in foreign markets will be withdrawn.
We promote our CSR approach internationally through our diplomatic missions. In this regard, among their other duties, the High Commission staff in Jamaica work to promote corporate social responsibility through seminars, conferences and workshops, which are aimed at stimulating discussion and dialogue on the value of integrating CSR into business activities.
Over the past 3 years, the High Commission, in collaboration with key partners such as BNS, Press Association of Jamaica and the University of Waterloo, has hosted a variety of CSR forums on topics such as “Best Practices in CSR, Education and the Environment”, “Engaging the Media to promote Trust and Competitiveness in Governance” and “ What Women mean to the Boardroom”.
We will be offering a seminar on the topic of self-regulating the financial sector through CSR in the new year, in partnership with University of Western Ontario.
So there you have it. A quick tour of our bilateral relations; international trade and some of the things we are doing in Canada on CSR.
All of what I have referred to and more is available on line so if anyone wants more information, please feel free to see me after the presentation. The Canadian High Commission is on social media, articulate or otherwise. For those who are interested I would invite you to follow us to keep up to date with all that we are doing.
In closing, I would like to express my appreciation in being included in your program this evening, I wish all the award winners and nominees congratulations on their efforts and look forward to tonight’s ceremonies.
