By Hugh Stephens
Asia-Pacific Foundation
In recent years, Canada has been largely ambivalent about its role as an Asia-Pacific nation. Canada can be a significant player in the Asia-Pacific. Despite strong immigration from Asia, historical links and growing trade across the Pacific, engagement with Asia that was well developed from the 1970s through the 1990s (Canada hosted the APEC summit in Vancouver in 1997), Canada’s involvement in the region has declined significantly in the first decade of this century.
Recently the government of Prime Minister Stephen Harper has “rediscovered” Asia, at least from a trade perspective, and this year Canada made a successful push to be invited to join the Trans-Pacific Partnership (TPP) trade negotiations. At the APEC summit in Vladivostok earlier this month, Canada and China finalized a foreign investment protection agreement and there is talk of launching sectoral trade negotiations with China, even as the Canadian government reviews the proposed acquisition of Canada’s Nexen Energy by state owned CNOOC.
Against this backdrop, the Asia Pacific Foundation of Canada has just released the report of its Task Force on Regional Architecture entitled “Securing Canada’s Place in Asia.”
The report points out, for instance, that while Canada has taken episodic interest in the region, “its nemesis has been staying power and the ability to maintain focus, resources, and momentum for more than limited bursts.” While the Harper government’s new-found enthusiasm for trade with Asia is welcome, the report points out that commercial policy alone will not succeed for Canada. “A one-legged (read economic) strategy will seriously handicap Canada’s ability to compete successfully with other countries that have recognized the importance of a comprehensive and coherent strategy in approaching the region”. What is required, the report’s authors say, is a greater Canadian presence in a broad spectrum of multilateral and bilateral processes.
On the trade front, there is a strong endorsement in the Task Force report for completing the stalled FTA negotiations with Korea, pursuing negotiations on an Economic Partnership Agreement with Japan and pursuing an FTA with China based on the recently completed complementarities study. The ongoing FTA negotiations with India should be completed and consideration should be given to initiating a free trade agreement with Taiwan. In addition to this ambitious agenda, Canada needs to participate fully in the TPP and explore the option of a trade agreement with ASEAN.
These specific recommendations in the report are underpinned by pleas for more resources generally to be dedicated to the region, for physical infrastructure to be improved, for greater focus to be given to the study of Asian languages in Canada, and for the development of a coherent and predictable investment policy for incoming foreign direct investment (FDI). This latter point is especially topical given China’s interest in Canada’s resources.
At this stage it is still just a report. Its implementation faces economic realities, such as reductions of government spending in Canada and pressure for attention from other geographic areas. However, Canada has a legacy in Asia-Pacific to build on, and a strong economic interest in doing so. If the study moves from report to road map, it will have made a significant contribution to helping secure Canada’s place in Asia.
Extracted from a piece originally published in The Diplomat. Hugh L. Stephens is Executive in Residence at the Asia Pacific Foundation of Canada, in Vancouver, with 35 years of government and business experience in Asia. He is also principal of Trans-Pacific Connections.
Add new comment