EASTERN AND CENTRAL EUROPE

"We actively support the process of economic and political transition under way for over five years in Central and Eastern Europe."

Grade: +1

Analysis:

The Canadian Government's record in the domain of economic and political transition in Central and Eastern Europe has been impressive and its contribution, substantial. In particular, Canada has actively supported the process of economic transition under way in Central and Eastern Europe through trade and investment initiatives. Such initiatives have not only strengthened Canada's trade and investment ties in the region but have also supported economic development in these newly-democratized countries and significant European markets through the promotion of Canadian technology and expertise.

In 1996, three successive trade missions to Eastern Europe were undertaken either by the Minister of International Trade or by his Foreign Affairs colleague. In Poland, International Trade Minister Eggleton signed a Memorandum of Understanding under which the Polish export credit agency (Kuke) and its Canadian counterpart, the Export Development Corporation (EDC), will back a joint project in Morocco. In Russia, the Minister announced that large private sector Russian firms would now be eligible for EDC loans. In addition, the Canadian International Development Agency (CIDA) will fund three new projects valued at $5.2 million to support economic, environmental, and legal reforms in that country. In Ukraine, Canadian businesses signed several trade contracts, and Foreign Affairs Minister Axworthy announced a contribution of $7.5 million for four projects to upgrade hydroelectric power plants.

The Canadian Government, however, also continues to support the political transition under way in Central and Eastern Europe. At the end of December 1996, Minister Axworthy announced that Canada would participate in the Organization for Security and Co-operation in Europe (OSCE) mission to the Federal Republic of Yugoslavia to investigate the issues surrounding the Serbian municipal elections of 17 November 1996 and the subsequent repeal of their results in certain municipalities. According to Minister Axworthy, Canada's participation in this mission represents the country's "recognized expertise in democratic development and, in particular, the role Canada has played in the region, such as Bosnia, in the conduct of democratic elections."

The following list is a record of further initiatives that have been pursued by the Canadian Government since the last G7 Summit in Lyon, France:

1997

January 3: Axworthy urges President Milosevic to respect all November 17 election results

February 3: Canada and Croatia sign foreign investment promotion and protection agreements

March 6: Canada signs agreements with Ukraine on peacekeeping and information sharing

1996

August 29: Canada and Republic of Lithuania sign tax convention designed to enhance bilateral trade and investment

September 12: Canada provides mission to observe elections in Bosnia

October 9: Eggleton travels to Poland and Russia to promote trade and investment

October 15: Eggleton trade mission expands business links with Poland

October 16: Eggleton announces export financing for Russian companies

October 18: Axworthy to lead business delegation to Ukraine

October 24: Axworthy trade mission expands business links with Ukraine

December 20: Canadian to participate in OSCE mission to Federal Republic of Yugoslavia