Ottawa – Before I talk about Canada and Chile, I want to take this chance to speak briefly about yesterday’s inflation data here in Canada. Inflation in Canada fell to 3.4 per cent in May—that is down from 4.4 per cent in April, and from a high of 8.1 per cent last June. Our economic approach is an approach of fiscal responsibility—and that approach is working.
Inflation in Canada is lower than in the United States where it is at four per cent, lower than France where it is at 5.1 per cent, lower than Germany at 6.1 per cent, lower than Italy at 7.6 per cent, and lower than the United Kingdom at 8.7 per cent.
Among G7 countries, inflation is lower only in Japan—where deflation has been the primary challenge over the past few decades. And in Japan, inflation in May was 3.2 per cent—a mere 0.2 per cent lower than in Canada. So, these numbers were good news for our economy. We are not there yet, but at 3.4 per cent, inflation is now close to the Bank of Canada’s target range. So for our Chilean visitors: yet another reason why Canada is a great partner. I am very glad to be able to say to all of you: bienvenidos a Canadá y a Toronto.
Toronto is home to a proud Chilean community, and, indeed, Canada is home to a proud Chilean community. Sitting just before me in the front row is someone I’m very proud to call a friend and a member of our governing Liberal caucus, a Chilean-Canadian: Soraya Martinez Ferrada from Montreal.
From the first Chileans who found their way to Canada in the 1800s, to the opening of embassies during the Second World War, to President Boric’s visit to Canada in June of last year, the ties between our countries stretch back for generations—and grow stronger every day. And these bonds are not just built by the Canadians hiking Chile’s magnificent mountain passes, by the young Chileans studying in our universities, or by the excellent Chilean wine on our tables.
What binds us so closely together are the values we share. A resolute commitment to equality and human rights—one exemplified by Chile’s launch of South America’s first feminist foreign policy. A mutual determination to build economies that can deliver for working people. And a shared belief that democracy is something that must never be taken for granted. Canada is proud to have a close friend in Chile, and to be your close friend—and I know that the friendship between our countries will only continue to grow stronger in the years to come.
That is why we are all here today: to strengthen the friendship between our two countries. We are building on a strong foundation. In 1997, the Canada-Chile Free Trade Agreement came into force. That is Canada’s second oldest, following only NAFTA. The free trade agreement with Canada was Chile’s first—and that is a real honour for us and we are very proud of that. Since that time, bilateral trade between Canada and Chile has nearly quadrupled.
And Canada is the largest source of foreign direct investment in Chile—from our largest pension funds, to our hosts today from Scotiabank, to corporate leaders in energy, water, agriculture, and beyond who bring with them to Chile our Canadian commitment to environmental protection, Indigenous participation, and gender equality.
And as one of the Ministers who helped negotiate the CPTPP, let me say that Canada was very pleased to welcome Chile’s ratification earlier this year. There has never been a better time for Canada and Chile to work even more closely together. The race to build the global clean economy is the most significant economic transformation since the Industrial Revolution itself. At the same time, Putin and the pandemic have revealed to the world’s democracies the risks of economic reliance on dictatorships.
As a result, our allies are moving quickly to friendshore their economies by building their critical supply chains through countries that share their values—countries that value human rights, uphold environmental standards, and are resolute in their defence of democracy: countries like Canada and Chile.
And as we navigate this fundamental economic shift—as we navigate the great economic transformation of the world—one essential sector where Canada and Chile can lead the way together is critical minerals and metals.
From electric vehicles to green steel and aluminum, the clean economy of the 21st century will depend on critical minerals and metals—on lithium from the Atacama salt flat in Chile, on low-carbon nickel from Voisey’s Bay in Newfoundland and Labrador, and on so many of the minerals and metals that our two countries have in such fortunate abundance.
With historic investments in our clean economy here at home in Canada—including a $3.8 billion Critical Minerals Strategy and a major investment tax credit for clean technology manufacturing that we launched in our budget this spring—that tax credit will support the extraction, processing, and recycling of critical minerals and metals. Canada is working to become a reliable supplier of critical minerals and metals to our friends and allies around the world.
We believe—we know—that Chile has the resources, the expertise, and the determination to do the same thing. And we are very excited about the opportunity to be your partner in this effort.
Our two countries have a longstanding relationship in the mining sector. As just one example: Teck Resources, one of Canada’s premier mining companies, has invested nearly $8 billion in Quebrada Blanca 2—one of the largest copper projects in the world.
The Toronto Stock Exchange and Venture Exchange is home to more mining companies than any other stock market in the world—and dozens of these companies do business in Chile and create good careers for people in both of our countries. By strengthening our partnership, we can seize a generational economic opportunity for Canadians and Chileans—and, together, play an essential role in building the global clean economy.
The truth is: the world needs us right now. The statement of intent on critical minerals that our two countries signed in April is an important step—and I’m very glad to be meeting with Minister Marcel this afternoon to discuss how we can continue to work even more closely together.
From clean hydrogen, to infrastructure, to agriculture and the financial sector, the opportunities for people and businesses in Canada and Chile to benefit from our close and deepening friendship in the years to come are tremendous.
The challenges that we face today are the most significant in our lifetimes.
When President Biden was here and spoke to our Parliament, he talked about how the world is at an inflection point—the kind of moment of change and decision which you only encounter once every four or five generations.
Here’s what we’re facing: an existential fight against climate change—and you see that when you walk outside and see something really disturbing, which is the smoke in the air from forest fires. We have the challenge of building clean economies that fight climate change but that also deliver for working people. And we have the challenge of defending democracy—at home in our own countries, and around the world.
Chile is a leader in the Americas—and we in Canada know that we are fortunate to have you as a partner and as a friend as we work to meet this historic moment together. That is why days like this are so important. Because through good times and through challenging times, Canada has always valued our friendship with the Chilean people.
A friendship that is made stronger every day by the Canadians and Chileans who fly between North and South America because of the warm welcome they receive. A friendship exemplified by everyone in this room who is working to create prosperity and jobs for both Canadians and Chileans. And a friendship built upon the values we share—upon a belief, as President Boric said in his inaugural address, that “no one is superfluous.” That “democracy is built by all of us, together.” Thank you very much. Merci beaucoup. Muchas gracias.