Canada needs more Asian engagement

Canada risks losing both economic and regional political clout if it doesn't get a lot more involved in Asia-Pacific affairs and become considerably more attentive to trade opportunities in the region, says a report released Thursday by the Asia Pacific Foundation of Canada.

So far, Canada is not doing so well when it comes to engaging our neighbours, which include some of the world's fastest-growing economies.

For example, in 2009, the receipts Canadian services provided to customers in Asia were just under $6 billion - less than one-sixth of the value of the services we sold to the United States, and less than half of what went to economically moribund Europe. And our investment in fast-growing Asia was barely more than one-fifth of the money we sank into the stalled U.S. economy, or a third of what we spent in Europe.

Australia, with a population and an economy just two-thirds the size of Canada, managed to increase its trade to Canada's five major Asian export destinations at a rate four times faster than ours. "In 2010, the value of Australian exports to these same major markets exceeded the value of Canadian exports by a whopping C$143 billion," the report said. "This amount is equivalent to almost half of our total exports to the United States in that same year.

Canada and Australia compete directly in several sectors, it notes, and Canada's tepid performance carries a huge cost for Canadians.

The report contains 17 recommendations to create a comprehensive long-term strategy that is sustained over time.

Many of them call in general terms for greater engagement, better dialogues and sharper focus. But those that are more specific include:

. Seeking early admission to the East Asia Summit;

. Participate more broadly in activities of the Association of South East Asian Nations;

. Conclude "as a matter of urgency" a free-trade agreement with South Korea;

. Pursue as a top priority comprehensive economic partnership negotiations with Japan.

. Move towards a trade agreement with China;

. Conclude trade negotiations with India;

. Engage fully in Transpacific Partnership negotiations;

. Consider trade agreements with Taiwan and with ASEAN.

. Pursue double taxation and foreign investment agreements with as many countries as possible.

Other measures it calls for include:

. Better physical infrastructure to facilitate trade with Asia;

. Better capacity for research on Asia;

. Efforts to increase Canadian's Asian Literacy, including language training and travel exchanges;

. Increased people-to-people connections though tourism, international students and more;

. A "coherent and predictable" Canadian investment policy;

Even if Canada makes these changes, the report warns, success is not guaranteed.

"But limited or partial involvement will marginalize Canada, have a negative impact on our prosperity and our influence in regional and global institutions."

Correction: In my column earlier this week on the value of research at UBC, I misinterpreted one figure that was provided by the university.

The figure of more than $100 million in revenue from licensing agreements is not annual, as I said, but rather it is cumulative.

Sourced: vancouversun