Editorials

Opportunity for Provinces to Get Serious on Asia

Author(s): Jack Austin

Published: July 19, 2011  

Op-Ed

It's time that our provinces got serious about Asia, and their upcoming meeting in Vancouver, July 20 ‐ 22, called the Council of the Federation, provides a great opportunity. At a recent speech in Toronto, B.C. Premier Christy Clark showed her strategic focus. Addressing the Economic Club of Toronto, she talked of trade and investment opportunity with Asia as a major economic growth and job creating value for Canada and in particular for those provinces which are prepared to act on their special competitive advantage.

Premier Clark set as a major priority to seize the "promise of opportunity" which Asia affords "not just for B.C., but for all of Canada". She emphasized the need for Canadians in all provinces, territories and sectors to recognize the goodwill that is held in Asia for Canada along with enduring Asian relations and networks and to build on these advantages. Canada is a Pacific country and Canadians everywhere must join B.C. in looking across the Pacific to their future.

Why Asia? The short answer is that the Pacific Ocean is now a highway by sea and by air for people and commerce and is growing exponentially. Our global competitors are ahead of us in recognizing the growth of wealth and consumer demand in an area which holds 60% of the world's population. Starting from a low base 30 years ago, Asia has become the world's greatest investor in new infrastructure ‐ highways, rail, airports, cities with some of the world's most advanced architecture. Asia has become the world's leading producer of mass consumer goods ‐ electronics, clothes, shoes and jewelry for example. This new economic capacity in Asia needs Canadian resources but also our technologies, our educational facilities and our experience in entrepreneurship and governance.

In the last few years we have seen aggressive investment by Asian businesses in world resources and other businesses. With the cash reserves in hand, Asia has been a source of investment in the Canadian business sector and the funds are significant to the Canadian economy. Think of $ 1.7 billion invested in Teck Resources for its coal operations in B.C., or Essar Global of India investing $1.8 billion to acquire Algoma Steel of Ontario, or Sinopec of China investing $ 4.6 billion in the Syncrude oil sands operation in Alberta. Other examples easily exceed $ 5 billion.

Why have we let all other developed countries forge ahead of us in a better understanding of the people of Asia, their aspirations, their needs, their culture, and their outreach? The Asia

Pacific Foundation of Canada found in its latest 2011 National Opinion poll that when asked whether Canada was a Pacific country, 11% of Canadians feel strongly that Canada is part of the Asia Pacific as compared to 65% for the Americas and 49% for the North Atlantic. Of concern is that only 26% of Canadians, compared to 30% in 2008, recognize Canada as a Pacific country.

Premier Christy Clark is right in asking her provincial and territorial leaders to give heightened focus and leadership to Canada's opportunities in Asia and with Asians in Canada. Some Provinces are taking positive steps on their own. Alberta recently created an Asia Advisory Council to examine its relationship with Asia and develop its own strategies. Most provinces have marketing and promotional activities in Asia with a representative located in key business centers. But these are low key responses compared to the opportunity and the competition from others which have to be met.

What is an action plan the Council of the Federation should address at its July session? Here are some suggestions.

1. Create a Council of Ministers on Asia to assess Asian business and investment strategies; share information; encourage public discussion; develop school curricula in common to teach high school students Asian history, culture and economy;

2. Create a secretariat to the Council of Ministers on Asia to co‐ordinate provincial ministerial and Premiers visits, consolidate offices, plan sectoral business missions, invite leading Asians to visit Canada, inform Canadian businesses of opportunities in Asia and Asian interest in investment in Canada, and link to Federal government policies and priorities.

For the provinces and territories to take appropriate action they need a well‐informed and supportive public which is why the Asia Pacific Foundation of Canada recently launched the National Conversation on Asia to get Canadians thinking and talking about the rise of Asia, and acting on its implications for Canada. Canadians have waited long enough to see and act on their interests in Asia. Dramatic urbanization, growing populations, expectations of a more comfortable life style, an industrious and educated work force, have created a global demand for energy, natural resources, new and more efficient building products and technologies, and rapidly rising environmental standards. Climate change, pressures on regional food supply chains, and food safety concerns have seen increasing demands for Canadian fertilizers and agri‐foods. These are some of the areas where Canadians can make a difference.

Council of the Federation – it’s time you led the way!

Jack Austin is a former Senator and Minister in the Cabinet of Prime Minister Trudeau and Prime Minister Martin. He is Senior Fellow at the Institute of Asian Research at the University of British Columbia.

This article was first published in the Vancouver Sun on July 19, 2011.

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