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Canada as an Asia-Pacific Nation

Remarks delivered by the Hon. David Kilgour, P.C., M.P.

Secretary of State, Asia-Pacific and M.P. for Edmonton Southeast

University of Western Sydney, Centre for Canadian Studies

Sydney, Australia

March 4th, 2002

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Heartiest congratulations to all Australians on your prowess in winter sports. Not only do you now dominate the pools, but apparently the rinks and ski hills as well. I hear rumours of mountains with snow near Canberra, but I still haven’t figured out where you hide the rinks.

But seriously, it’s a great pleasure to be with you this morning. It’s my first visit to Australia, and I can’t begin to say how warmly I’ve been welcomed. It really has been like visiting family, and has reinforced my early impressions of the strong relationship between our two countries. The opening ceremonies at CHOGM in Coolumb the other day should have made all 20 million Australians very proud.

This is the first Canadian studies centre ever established at a university in Australia (1994); it’s a very appropriate place for me to come as Canada’s new Secretary of State for the region.

The western border of “my” region begins in Afghanistan, moves southeast past India, Indonesia, here to Australia and New Zealand, then shifts north and east through the Pacific islands, towards China, the Korean peninsula, and Japan.

Although I only came into this job in mid-January, half-way through an official visit to North Africa, my interest in Asia-Pacific is not skin-deep. I’ve travelled to a number of countries in the region - and have also lived vicariously (as we all do from time to time) through children: my daughter, Margot, backpacked extensively throughout Southeast Asia and my daughter Eileen currently lives in Bangkok.

The district of Edmonton-Southeast, which I’ve been honoured to represent for over 20 years, is a good example of how important Asian-Pacific communities now are to Canada. The President of my party riding association is of Pakistani origin – and was actually in Karachi on September 11th. The treasurer is from Vietnam. The two vice-presidents are from India. My re-election 15 months ago would not have been possible without the overwhelming support I received from Sikh, Chinese, Indian, Pakistani, Filipino and other Asian-Pacific communities. Unfortunately, there are few Australians, presumably because no one wants to leave this blessed land!

The question of newcomers is one of the many reasons why this region is so terribly important to Canada and Canadians. Over 120,000 people a year, 53% of total landings in Canada, are from the region. Between 1993 and 2000, 60% of Vancouver’s immigrants, or over 200,000 people, came from Asia. South of the city, whole communities now function largely in Mandarin or Cantonese. Canada’s policy towards the Asia-Pacific in coming generations will certainly be shaped by these communities.

Asia, as Australians know well, has become the focal point of global attention. Balance of power politics on the sub-continent have surfaced with curiously propitious timing. Despite the severe impact of the Asian economic crisis, Asia-Pacific is once again the world’s fastest growing region, with growth rates in the 7% to 9% range in some countries. China’s recent accession to the WTO makes it a priority for all industrialized countries. China is emerging as an alternate pole for a regional economic framework in East Asia as Japan’s economy faces continuing difficulties. Although Japan remains a regional and global powerhouse, no one can ignore the lasting effects of 10 years of recession and the challenges posed by significant demographic changes. As our Department of Foreign Affairs Chief Economist puts it: “At no-time does it seem since World War I has “Great Game” politics been so fluid and so pregnant with potential to influence the shape of the future world order.” Asia-Pacific is right at the centre of it all.

Canada and Australia are similarly engaged in this increasingly uncertain environment. Canadian and Australian soldiers are both in theatre in Afghanistan. Canadian forces worked closely and successfully with Australian forces in helping establish peace in East Timor. Both our countries maintain substantial overseas development assistance programs to the region, with Canada contributing over CDN$1 billion annually to the region’s 24 developing countries.

The extent and importance of Canada and Australia’s broadly based relationship cannot be overstated. In addition to bilateral, political, cultural, academic and defence links, our policies converge on many international issues, particularly in multilateral fora such as the UN, the Commonwealth, the WTO, and APEC. Both countries advocate free-trade and actively support a strong multilateral trading system. People-to-people contacts are extensive between our legislatures, private sectors, community groups and academia. As students of Canada, you know that we share with Australia a rich indigenous heritage and a long-history of immigrant settlement.

Trade and investment are equally vital cornerstones of our relationship. Although we are only each other’s 14th and 15th largest trading partners, the dollar totals (all Canadian) are substantial. According to Statistics Canada, total bilateral trade between Canada and Australia in 2000 totalled $2.73 billion. Canadian exports to Australia increased by 24% between 1999 and 2000, from $958 million to$1.18 billion. In the same time frame, Australian exports to Canada increased by 28%, to over$1.5 billion. By 1999, Canadians had invested over $3.7 billion in Australia and Australians over $2.2 billion in Canada.

Our two peoples have in recent years benefited enormously from the effects of globalization. As exporters of commodities to the British Empire, both our countries were essentially born globalized. Today, our populations are linguistically, culturally, and ethnically varied. We have modern, industrialised economies. Canada and Australia have exhibited solid growth rates, low inflation, and low unemployment. Indeed, globalization has on balance been very kind to us.

Prior to September 11th, our own economy was in a precarious position; the events of the day seemed to tip us over. Layoffs were announced on what seemed like a daily basis, and almost all economic indicators pointed to a recession in the United States. Many analysts assumed a similar fate for Canada. Just as Australia remained in relatively good health throughout the Asian flu crisis, Canada now seems poised to do the same. Combined with a sound fiscal policy, globalization has helped diversify our economy and soften the recessionary blow from south of our border. Although over 86% of our exports go to the U.S., in the face of their self-avowed recession, our economy still created over 70,000 new jobs in January 2002.

Canada and Australia have been able to weather economic storms wrought by globalization, but we can’t say the same thing for other parts of the world. Globalization has created wealth; but not for everyone. It has fostered dynamic efficiencies; but not everywhere. It is popular among those whose interests its serves, including our own. But it has failed many. There is much work to do to balance the potential managed globalization offers with the results it has so far delivered. Since 1960, the ratio of incomes for the wealthiest 20 percent of nations to the poorest 20 percent has increased from 30 to 1 to 74 to 1. As Amartya Sen has written, “Even though the world is incomparably richer than ever before, ours is also a world of extraordinary deprivation and of staggering inequality.” To that I would add, “and fundamental misunderstanding.”

“Poverty,” Mahatma Ghandi wrote, “is the worst form of violence.” To tackle it and avoid the violence, among other things, that it nurtures, many Australians and Canadians, I believe, would agree: the answer is to be found in “better” globalization. Globalization, fairly distributed and well managed, can offer more fulfilled lives to people everywhere; for artists, for farmers; for students; for everyone. Countries cannot succeed in isolation today. A poor country that closes its borders to investment is likely to stay poor. Globalization can champion stability, democracy and better lives generally around the world.

For this to be successful, substantive and smarter steps must be taken. Technological and developmental gaps must be reduced, through participation from both developing and developed countries. The New Partnership for Africa’s Development – NEPAD – is a prime example. African leaders have said they are prepared to take responsibility for the economic and political situation on their continent. As the host of the next G8 meeting, Canada has taken the lead in ensuring real engagement. Our most recent budget set aside a special $500 million fund for Africans. It will support the objectives of the New Partnership for Africa's Development through implementation of the G8 Africa Action Plan.

In some ways, September 11th reaffirmed Canada’s foreign policy agenda. Undoubtedly, it has served to highlight the depth of our close relationship with American neighbours. On the 11th, Canada accepted over 224 diverted passenger planes and more than 33,000 passengers and aircrew in airports across the country. In small communities like Gander, Newfoundland – population 10,000 – 12,000 people were welcomed into homes, schools gymnasiums, and community centres. It has also served to reinforce our human security approach to international affairs. The focus remains on the security of people – protecting individual civilians, supporting peace operations, preventing conflict, and fostering principles of good governance.

Our commitment to the international system has at its core our commitment to human security. We are trying to build a world where universal humanitarian standards and the rule of law effectively protect everyone; where those who violate these standards are held accountable. Vaclav Havel of the Czech Republic observed, “The sovereignty of the community, the region, the nation, the state...makes sense only if it is derived from the one genuine sovereignty - that is - from the sovereignty of the human being.” In a similar vein, the concept of peace and security - national, regional, and global - can only be realized if it is derived from individual security.

Our relationship with the United States and our human security agenda do influence our approach to the Asia-Pacific region. Canadians’ gaze, both economic and political, often turns southward. Our relationship with the United States (and Mexico to a lesser extent - our two way trade with Mexico has grown in the last decade from about $3.5 billion to $20 billion) is largely symbiotic, punctuated by an accelerating trend towards continental and even hemispheric integration. To put this in a concrete perspective: we do as much trade in one day with the USA as we do in a year with Australia. The challenge Canada faces in the Asia-Pacific then, as in other parts of the world, is to heighten our profile in light of the sometimes overwhelming importance of this other relationship.

One area where our profile in Asia is now felt in a way it hasn’t been in almost 50 years is in Afghanistan. In support of the International campaign against terrorism, Canadian soldiers are currently in Afghanistan, our first deployment of ground troops in an established conflict zone since the Korean War. As part of “Operation Apollo,” the Government of Canada is contributing 3000 Canadian men and women to the international campaign against terrorism. Included is a 1000-strong unit to support coalition efforts to provide short-term stabilization in certain areas, allowing for the entry of humanitarian assistance.

Returning to the challenge of increasing our profile in Asia, human security provides the basis for our policy initiatives. It provides a road-map of underlying principles from which Canada develops its foreign policy. Canada, as a member of the G7/8, considers itself a global player, which necessitates a global reach. Our policy agenda in Asia needs to be understood in this global context. This is slightly different from the way Australian counterparts approach foreign policy in the region. Asia-Pacific is after all in Australia’s back yard. This has resulted in your pragmatic and realistic approach to the challenges and uncertainties that currently shape politics in Asia. One of the purposes of my visit is to learn from your experience, particularly in the Islands of the Pacific, to help promote Canadian values and interests.

There are three areas (in no particular order) which I’d like to focus on as the Secretary of State for Asia-Pacific: the promotion of Canadian education services and products; advancing Canada’s trade agenda; and promoting good governance – particularly in those vulnerable states in South Asia and in the South Pacific.

One area where I feel Canada can make significant inroads is in the marketing of Canada as a country with one of the most advanced higher education infrastructures in the developed world. Australians have had enormous success in achieving this. Over 68,000 students from South-East Asia were present here in 2000. We are having success, with recent figures showing a 20% increase in student authorizations in 2000, but more remains to be done. Hopefully some of you might have some insight as to how we too can succeed. Canada’s post-secondary institutions need to be promoted, particularly those outside of urban areas. Efforts to foster linkages between Canadian institutions and their counterparts in Asia-Pacific need to be redoubled.

Does Canada in Asia not need to overcome its reputation as a producer of only commodities? Canada needs to brand itself a dynamic, modern, high tech multi-cultural society. Our trade flows, unfortunately, remain remarkably one-dimensional. With Japan and China (incl. Hong Kong), our second and third largest trading partners respectively, wood products remain our largest export. We have much too offer: my home city of Edmonton was recently named by KPMG as the most cost effective city in which to conduct business in the G8. As I mentioned earlier, Canada’s economic recovery continues to outpace our neighbours to the south. This is not due to growing exports of lumber or electricity. This recovery is being driven along Canadian manufactured high-speed Internet connections and Canadian wireless technology. More importantly, it is occurring in a multicultural forum, founded on Canadian values. Efficient, ethical, and effective business practice and technologies are what Canada has to offer.

Every time we promote our technology and business interests, we build on an increasing impetus towards transparency, accountability, and democratic legitimacy. Fostering good-governance in Asia-Pacific will buttress any economic advances Canada makes. Human rights and good governance are good for business; there is no contradiction. Legitimate forms of dissent and demands for greater decision making power are still suppressed in parts of Asia. I feel Canadians have the responsibility to ensure that our trade needs are consistently tied to our human security agenda. It is my conviction that Canada cannot legitimately pursue its trade goals with Asia-Pacific without pursuing principles of good governance and human rights.

To conclude, I’d like to thank you again for inviting me. I have come not only to share Canada’s policies with you, but to also learn from Australia’s academics, businesspeople, officials and legislators on what works for Australia in Asia-Pacific. I’d very much like to hear what you think. How can Canada and Australia enhance our co-operation?

Thank you.