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Rt. Hon. Peter Mandelson - Former Secretary of State for Trade and Industry (Jul 1998 - Dec 1998)British-Argentine Business Conference |
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BRITAIN AND ARGENTINA: A PARTNERSHIP FOR THE NEXT MILLENNIUM Mr President, your Excellencies, my Lords, Ladies and Gentlemen Mr President, it is both an honour and a pleasure warmly to welcome you to London and to this important conference. I am sure everyone here will agree that your personal role in rebuilding the historic partnership between our two countries has been immense. And we must thank you for that. The very fact that we are here today celebrating British-Argentine business relations, and looking forward to taking them into the next Millennium, is a great tribute to you. But, of course, the greatest legacy of your Presidency has been in your own country of Argentina. The rebuilding of your country's economy has been impressive by any international standards:
This helped reassure both the markets and investors alike. In today's difficult market conditions, Argentina is seen as better placed than many to confront external shocks. Indeed, I am advised that Argentina currently meets the Maastricht criteria in full, though I have not heard that you plan to apply for membership of the European Union. But Argentina is already a strong pillar of another growing and very important regional trading group: that of Mercosur. I am delighted that my colleague the Minister for Trade, Brian Wilson, will be taking part in a discussion on trade and regional integration this afternoon. What he will emphasise is our commitment to open markets and therefore further liberalisation. It is a commitment which I know Mr President that you share. All of the developments in Argentina that I described have enabled our two countries to rebuild a business relationship which has deep historical roots. Figures illustrate the re-building process: during the 1990s bilateral trade grew from £100m to £750m. Last year there were few other markets in the world where our exports grew as rapidly, doubling over the years 1996 and 1997. But both of us will agree I am sure that this can get even better. The opportunities are there for what I believe are two natural trading partners with a similar open market outlook. This conference is a testimony to that and I congratulate the British-Argentine Chamber and its Director, Michael Cannon for the great effort that they have put into it. This has fully justified, for instance, the increasing number of trade missions which my Department sponsors to Argentina each year. We have just announced a further 7 for next year, including one to be run by the Chamber. It is crucial that our companies become directly engaged in each others markets. Business is best done face-to-face not at arms length. Newcomers to Argentina soon discover that it is a sophisticated market with an equally sophisticated business community. But long held perceptions can be so critical and too often negative. It has therefore been one of our tasks, particularly through the Link Into Latin America campaign, to demystify markets and to change outdated perceptions. In this we have been fortunate to have received significant support from Rogelio Pfirter, your Ambassador here in London. But trade is a two way process. Equally, therefore, we welcome inward missions of Argentine companies. I am therefore delighted, Mr President, that you have brought such a large and distinguished business delegation with you. Many areas of our economy could be receptive to Argentine products. Already, for instance, Britain is the number one overseas market for your excellent wine. But perhaps the most visible sign of confidence and commitment in any market is the direct foreign investment it attracts. It represents a clear signal from the business community about the stability they look for, as we know full well here in Britain. I am therefore delighted that Britain is once again a significant and growing investor in Argentina. More than $4 billion of new British investment has been made over the last 4 years ranging from companies as Johnson Matthey, with a new autocatalyst plant near Buenos Aires, to BG who operate the Metrogas gas distribution company in Buenos Aires. They have accompanied many other household names in committing themselves to Argentina such as Cadbury Schweppes, Glaxo-Wellcome, National Grid, HSBC, Lloyds Bank, P&O and Sun Alliance. There is also a warm welcome waiting for Argentine companies who wish to set up business in the United Kingdom. They will find an attractive business environment allowing them to take advantage of the huge European markets. What this surely demonstrates is that in the modern global economy competing countries must also look to be partners. This will be increasingly important as the world's economies confront the current difficulties. What began last year as a downturn in Asia, intensified by difficulties in Japan and Russia, has become a global problem affecting all of us. How we all respond to this will be critical. Looking inwards, trying to cut ourselves off from the rest of the world, or retreating into economic blocs is a luxury we do not have. As Gordon Brown, the Chancellor of the Exchequer, said in Japan last month, no one country can either escape its responsibility or be required to bear the whole burden with all the risks of protectionist sentiment that this would entail. Burden-sharing in other words rather than burden-shifting is the way forward for us all. Slower world growth will affect all of us. But we should not talk ourselves into a recession. The UK is well placed to keep its economy on track as I firmly believe that the fundamentals are sound. From what I have said earlier, it is also clear that many observers see Argentina as similarly well-placed to face up to the consequences of global economic developments. I am convinced therefore that one way forward is through partnerships in areas where we can complement each other and build on each others respective strengths. I am especially glad that both Governments will seek to promote co-operation between our small and medium sized enterprises. These are the seedcorn of our economies. And one of its important engines for growth. The future does not have to be a daunting one if we confront the challenges with confidence and grasp the opportunities. An immediate challenge is to tackle the so-called Millennium Bug. The British Government's "Action 2000" programme is raising awareness amongst Small and Medium Sized Companies and prompting them to take action. But failure to tackle the Bug world-wide could wreak havoc on international commerce. Sharing information will be the key. Our Embassies and High Commissions around the world have held discussions with their host Governments. We are also developing a series of seminars, one of which we hope to run in Buenos Aires. But the long term challenge - and the source of our opportunities - is the chance to take part in the new information revolution. It is underway everywhere: in science and technology; the digital revolution; in information communications. The creation of this Knowledge Driven Economy is not some distant dream. It is all around us. The creativity driving it affects every stage of the manufacturing process. Product design. Innovation. Marketing and after sales service. I am therefore pleased that we are planning a exhibition of Millennium products in Argentina in 2000. "E-commerce" and the Internet are increasingly becoming a part of everyday life. Free access to the Internet is already being offered in the UK. And the introduction of digital television is bringing these developments into our living rooms. I am therefore determined that the UK should be the leader in Europe in the development of digital technologies. So when our two countries look to the future together and for ways of co-operating we must seek to embrace these exciting developments. I am therefore delighted that during your visit Mr President the British Council will be signing a bilateral agreement on co-operation in science and technology. Already my officials can access scores of web-sites giving up to date information on Argentina: from the media of the Buenos Aires Herald and La Nacion to INDEC - the National Institute of Statistics & Census. And my Department has revolutionised the way it puts overseas buyers and UK sellers in touch. Using today's information technology the new TradeUK service is being delivered, largely free, through the Internet. It includes a National Exporters Database and an Export Sales Leads Service. But while Governments can create an environment in which business can thrive, the real agents of change in the economy are here in the audience today. The entrepreneurs. Both those who have accompanied you Mr President and those from my country who have come to hear you speak and to learn more about Argentina. This business relationship between our two countries has been a long one, despite set-backs and difficulties. I am therefore delighted to say that I will be visiting Argentina myself in December. The future looks too promising to miss and we must surely seek out new ways to further replenish our partnership. Mr President, I know that this message of partnership is one of the key themes of your very important visit to Britain. It will give a clear signal to everyone that our historic relationship is being firmly rebuilt. Your contribution to that reconciliation, Mr President, has been immense and you are a most welcome visitor. Your Excellencies, my Lords, ladies and gentlemen, the President of the Argentine Republic, Carlos Menem. |
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Other speeches by Rt. Hon. Peter Mandelson - Former Secretary of State for Trade and Industry (Jul 1998 - Dec 1998)
(the following are available from the archive) |
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