Asian Regionalism, Asia Pacific Bilateralism, and Canada

Abstract:

Three years after the onset of the economic crisis, a new Asia is emerging. Spurred by dissatisfaction with the perceived failure of global institutions to mitigate the economic downturn, and by positive geopolitical developments, Asian countries are starting to explore new forms of economic cooperation. Concurrently, bilateral trade negotiations have emerged as the key mode of Asia Pacific economic diplomacy. Singapore has taken the lead, concluding a trade agreement with New Zealand, and exploring similar deals with six other countries, including Canada. Canada’s interests are not served by Asia-only regionalism, which may limit our ability to play a role in the future of this dynamic region. Canada’s strategy should be firstly to reform global institutions to take account of the increasing influence of Asia Pacific counties, and to maintain leadership in the G-20. In addition, Ottawa should focus on the Asia Pacific Economic Cooperation forum as a policy vehicle, because it is the only government-level institutional bridge between the Americas and Asia Pacific. Canada should seek to make APEC a “Pacific Organization for Economic Cooperation and Development,” a multilateral body cutting across divisions and helping to secure our place in an inclusive Asia Pacific partnership.