Canada
and Asia-Pacific: Common Interests, Mutual
Dependence
Remarks for the Hon. David Kilgour, P.C.,
M.P.
Secretary
of State (Asia-Pacific) and Member of Parliament
for Edmonton-Southeast
Canadian
Institute of International Affairs
McGill Faculty
Club, Montreal
September
25, 2002
Thank you
for inviting me to be with you tonight.
Your President
has asked me to speak tonight about Canada’s
interests in Asia-Pacific. The topic is
one I could go on about all night. Allow
me to make some remarks about our relationship,
then we can open the floor for a discussion
about the region, and any other topics of
interest.
What are
our interests in Asia? Why is there so much
focus on the region? Why do we have a Secretary
of State for Asia-Pacific?
In short,
our mutual interest is enormous and it is
growing constantly.
The numbers
are hard to ignore:
·
If we shrink the earth's population down
to a village of one hundred people but keep
all existing human ratios the same, there
would be 57 Asians, 21 Europeans, 14 people
from the Western Hemisphere (North and South
America), and 8 Africans.
·
In 1960, Asia’s share of the world’s
gross national product was 4%. Today it’s
over 30%!
The World
Within Our Borders
When I speak
about reaching out to Asia-Pacific, some
ask how we as Canadians can relate to the
region? Quite simply, we can talk to the
world because we have the world within our
borders. From Afghanistan to the South Pacific,
Mongolia to Australia, each Asia-Pacific
nation has a community in Canada. One in
thirty Canadians is of Indian origin, for
example. At almost 250,000 individuals,
Canada has the largest Sri Lankan expatriate
community in the world. There are now 1
million Canadians of Chinese origin.
It is quite
appropriate that "the global village"
metaphor should have been coined by a Canadian,
Marshall McLuhan. I like to think that we
are the Phoenicians of the 21st century:
one in three jobs and about 45% of our economy
already depend on exports. With more than
one third of our urban population being
the children of immigrants or immigrants
themselves, and with French and English
as our official languages, Canada is truly
an international community.
Our country
offers an alternative concept in North America
to that of our closest neighbour. Our brand
in the world today is diversity and inclusiveness.
We are a non-colonizing power that believes
in constructive multilateralism.
Asianification
of Canada
Recently,
I argued in a newspaper column that Canada
has undergone "Asianification.’"
This is a short-hand way of describing several
emerging dynamics. First, Canada’s
population is increasingly tied to Asia
through immigration and education. Second,
our economy, while closely integrated in
North America, now increasingly looks west
to Asia: every year since 1990, Canada’s
trans-Pacific trade has surpassed trade
across the Atlantic.
While the
currency crisis of the late 1990s tarnished
some of Asia’s allure, Canada’s
relations with Asia are maturing. If anything,
they are getting stronger in many areas.
That said,
our relationship is in many areas not what
it can and should be. A number of challenges
remain:
First, we
must continue to look beyond countries in
isolation and focus on the region as a whole.
Malgré
la diversité incroyable des pays
de l’Asie-Pacifique, mes nombreuses
visites m’ont enseigné que les
questions et défis principaux sont
transsectoriels :
·
la saine gestion publique, la transparence
accrue et le respect de la primauté
du droit;
·
un désir d’augmenter le flux
des échanges et l’investissement
étranger;
·
la nécessité de promouvoir
l’échange d’étudiants
et d’autres changes individuels entre
nos pays (comme le success atteint par les
australiens présentement); et
·
le défi d’assurer la sécurité
régionale.
Few issues
are unique to only one or two countries
and we would be well-served to view them
on an increasingly ‘macro’ level.
Branding
‘Asia-Pacific’ for Canadians
Despite our
active involvement in the region and our
significant people-to-people links, there
remain significant problems regarding the
‘brand’ of Asia-Pacific in many
Canadians’ eyes.
Southeast
Asia, for example, is viewed by some as
a breeding ground or haven for terrorists.
Publicity since September 11th has certainly
been less than favourable. Front page stories
on terrorism on the cover of a popular weekly
magazine exclaiming, “Indonesia: The
Weakest Link”, aren’t exactly
good for business.
Stories tying
Malaysia, Singapore, the Philippines and
others to major terrorist networks make
for very bad PR. The reality is Southeast
Asia is a region of relative economic stability
and enormous potential. On the terrorism
front, individually and as a region, virtually
all Asian governments have taken strong
strides to condemn the terrorist attacks
and fight terrorism. Canadian businesspeople
and Canadians generally need to know this.
Many Canadian
investors burned by the “Asian Flu”
continue to view Asia-Pacific as economically
unstable. Perceptions of instability and
market fluctuations have led to a reluctance
to invest on the part of Canadian businesspeople.
Again, the region’s potential far outweighs
its risks - Canadians will need to return
to viewing Asia-Pacific as an attractive
destination for their investment dollars.
Some recent
trade disputes with the U.S. indicate that
diversification of our exports is a valuable
goal. Undeniably, the U.S. represents our
most important bilateral relationship. Our
closeness does not, however, preclude us
from focusing elsewhere as well. It’s
commonly believed that about 85% of our
exports go to the U.S. alone, although it
is little known that this figure includes
goods entering the U.S. en route for somewhere
else (E.g. Singapore). The actual figure
could be as low as 75%. Few people know
that approximately 95% of our trade is done
in U.S. dollars. The fact that our currency
is so little traded is attributed by some
to be a key reason for its volatility. Asia’s
alternative currencies, vast market size,
relative stability, and diversity of needs
make it an ideal target for Canadian investment.
We’re
working on changing these and many other
perceptions that exist in the eyes of Canadians.
As Secretary of State (Asia-Pacific), much
of my time is dedicated to addressing some
of very serious challenge of re-branding
Canada in Asia-Pacific.
Creating
‘Brand Canada’
Comme mentionné
précédemment, nos relations
n’atteignent pas leur potentiel dans
de nombreux secteurs. Selon des rapports
produits récemment par des
universitaires,
comme Carin Holroyd de l’Université
de Saskatchewan et Wendy Dobson de l’Université
de Toronto, notre relation économique
avec le Japon est « sous exploitée
» de pas moins de 30 %.
The roots
of our branding problem lie in the widespread
perception of Canada as a travel destination
as opposed to a business partner. Just last
week on a flight between Victoria and Vancouver,
I found myself sitting beside a young Japanese
woman who had just visited Banff, Victoria
and Vancouver. Asked about her impressions
of Canada, she said politely, “beautiful
scenery ... kind people.”
Internationally,
many people see Canada as a vast unspoiled
wilderness. That's great if you run an eco-tourism
business in Northern Quebec, but it's not
so good if you're trying to interest potential
partners in supporting your high-tech start-up.
The point, of course, is that Canada encompasses
both realities.
We’ve
recognized that we have an image problem.
What do we do about it? What do we want
to tell Asia-Pacific about Canada?
Open for
business
First, we’re
‘open for business’ - and we’re
an attractive, worthy partner.
We have enjoyed
ten years of low inflation. We are the only
G7 country with a balanced budget this year,
our fifth in a row. We are still enjoying
the longest period of uninterrupted growth
in 30 years, and the economy seems to be
actually strengthening despite all the background
noise as we move into 2003.
Indeed, the
IMF and OECD both predict that Canada will
lead the G7 in growth this year and again
next year. According to the OECD, Canada
has the lowest regulatory barriers to entrepreneurship
among OECD countries, with the exception
of the U.K.
A major international
study by KPMG has identified Canada as the
most affordable nation in the industrialized
world in which to do business. Released
by KPMG in last January, the study looked
at the cost of doing business in 86 cities
in nine developed countries. It considered
such factors as labour costs, taxes, transportation
costs, energy costs and others.
Compared
to all of the other G7 countries, as well
as Austria and the Netherlands, Canada placed
first in 7 out of 12 industry sectors, including
such promising areas as electronics assembly,
biomedical research and development, specialty
chemicals, and advanced software.
Along with
all our other advantages, we are the most
affordable place to do business in the industrialized
world. The KPMG study gives us a valuable
tool for taking our message to foreign investors.
Business
with whom?
So, we’re
open for business. But business with whom?
In what? Whom are we trying to attract?
We have to
change the perception of Canada as just
a source of raw lumber, metals or wheat.
We have to show the countries of Asia-Pacific
that while those sectors remain important
to our economy, our information technology,
aerospace, biotechnology and other knowledge-based
industries are now equally representative
of the Canadian present and future. They
are thriving; the success stories are easy
to find.
Nous pouvons
également montrer au reste du monde
que même dans les industries plus
traditionnelles, l’innovation canadienne
a contribué à transformer
nos industries. En effet, les entreprises
canadiennes demeurent des chefs de file
mondiaux en raison de l’innovation
constante. Par exemple, l’industrie
minière canadienne est maintenant
l’un des chefs de file mondiaux les
plus dynamiques et techniquement avancés
dans l’exploitation minière
à distance et l’automatisation.
Trade and
Human Development
Our desire
to increase trade and our focus on investment
relationships should not be misinterpreted
as solely bottom-line focused.
On the contrary,
our business relationships are helping us
to tackle one of the most fundamental challenges
facing all regions: good governance.
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, including growth
at home. 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 universal
human rights.
What about
human rights?
Take the
example of China. As many of you know, it
formally joined the World Trade Organization
(WTO) in December of last year. Chinese
accession to the WTO will protect and further
Canada's substantial trade and investment
interests in that country, and allow us
to take advantage of increased market access.
But what
about our human rights concerns? Is it hypocritical
to condemn human right abuses on one hand
and encourage trade on the other? In this
situation, the answer is ‘no’.
In acceding
to the WTO, China has accepted the principles
and disciplines embodied in the WTO Agreements,
such as transparency, due process, and the
independence and impartiality of the judiciary.
Although these obligations will apply only
to trade-related laws and measures, they
will represent a significant strengthening
of the rule of law. Our closer relationship
doesn’t preclude us from raising our
concerns. On the contrary, we have more
opportunities and contacts to whom we can
make our case.
As an aside,
I had the privilege of visiting China just
over a month ago. The first thing that struck
me was China’s size: the sheer enormity
of the numbers is awe inspiring. From population
to total GDP, trade performance to land
mass, the chronicling of the poor and the
newly rich, the cell phone subscribers and
Internet users –– regardless of
the measure, one thing remains clear: China’s
potential as a market is enormous. And the
country is full of surprises: who would
have guessed that the number of cell phone
users is increasing at a rate of 5,000,000
a month!
Of course,
some see China as a pending disaster, pointing
to a series of obstacles in need of pressing
reform - growing income disparities, rising
unemployment, and gaping holes in the regulatory
regime, to name a few. Granted, the economy
is in need of further reforms, but the potential
of China remains unchanged.
Canada is
committed to a fair, open global trading
system reflecting the same principles that
protect human rights and allow individuals
to realize their potential, free from persecution
or discrimination. We need to harness the
potential of managed globalization to make
it a force for inclusiveness and interdependence,
not only of economies but of culture, concepts
and human expectations.
Notre politique
étrangère continuera de poursuivre
ces objectifs: la promotion de la démocratie
et de la saine gestion publique, des droits
de la personne et de la primauté
du droit, et de la prospérité
par le développement durable.
Ces objectifs
sont rapidement reconnus comme des «
valeurs canadiennes ». Je tenterai
assurément de les promouvoir comme
telles pendant mes nombreux voyages à
l’étranger. Au pays, chaque
expérience positive qu’a un
consommateur ou un investisseur asiatique
avec un homme ou une femme d’affaires
du Canada renforce « l’image
de marque du Canada ».
Education
Successfully
building ‘Brand Canada’ depends
heavily on capitalizing on the expertise
and natural advantages we already have.
Education, therefore, is a natural focus.
Canada has
some of the top post-secondary institutions
in the world. We have a tradition of excellence
and access to cutting edge technologies.
We can offer a range of large schools as
well as regional and smaller institutions
that offer small class sizes and individualized
teaching. Our schools are leading the way
in education services and products such
as private sector software products and
‘learnware’, e-learning courseware
and distance learning products. And we have
excellent opportunities for studies and
research at the masters and doctoral levels.
Taken together, Canada’s universities
offer an enormous range of choices - large
and small, denominational or secular, English,
French and bilingual, in cities, small towns,
or reaching out through the electronic highway.
I’ve
often said that what the Swiss are to banking,
Canadians can be to education, long distance
learning and technology transfers. Again,
it’s a matter of packaging. We’ve
got to do an even better job of telling
the world that Canada is the place to study!
There are
now an estimated 130,000 international students
enrolled in undergraduate programs in Canada’s
universities, with many also in preparatory
language training. Each of these students
is creating a bond with Canada that will
last a lifetime. These linkages are invaluable.
Security
Challenges
Your President
has also asked me to speak today about security
in the region. Certainly, it is an ongoing
concern. Asia-Pacific has a number of unresolved
border disputes, human rights abuses, an
increase in weapons acquisitions, ecological
degradation, population growth, and narcotics
trafficking.
Small arms
are a particular concern: there are at least
600 million in circulation today. They have
been the weapons of choice in 46 of 49 major
conflicts since 1990. An estimated 500,000
people around the world are killed by them
every year - more than 80% of whom are women
and children. This is absolutely unacceptable!
Fortunately,
many countries in Asia-Pacific are rightly
adopting a regional approach to stopping
the proliferation of these weapons. In June
I co-chaired a conference in the Phillippines
with precisely that goal. Canada will continue
to advocate the strict control of legal
flows of small and light weapons, the prevention
of illicit trafficking of small arms, and
the expunging and if possible destruction
of surplus weapons left over in post-conflict
zones. A key problem in the region, however,
is the “gun culture”. As in most
parts of the world, crime is glamourized.
Easy access to small arms encourages violence
as an option to settle differences. To make
real progress on the issue, small arms must
no longer be seen as tools for survival.
As we are
reminded almost daily by the media, nuclear
weapons still threaten us: the disposal
of nuclear weapons in the former Soviet
Union and nuclear proliferation threats
elsewhere, notably Iraq, North Korea, India,
Pakistan, and the Middle East, will continue
to preoccupy the international community,
and require concerted efforts to prevent
new sources of potentially catastrophic
conflict. The threat of criminal or terrorist
organizations coming into possession of
nuclear materials, either through sale or
theft, is a growing concern that must be
addressed more effectively.
Iraq
While we’re
on the subject of security, let me say a
word about Iraq. President Bush’s September
12th speech to the U.N. calling for decisive
action to enforce Iraqi compliance with
UN Security Council resolutions represented
a welcome return to multilateralism on the
issue - one Canada has long advocated.
Like the
U.S., Canada wants the speediest possible
return of United Nations weapons inspectors
to Iraq, and Iraq's unconditional cooperation
with them - that means unfettered access
to any site, without conditions. This is
the first step by which it can prove its
compliance with UN resolutions. We’ve
also been clear, however, that there need
to be consequences for a failure to act.
UN members are exerting diplomatic pressure,
and we are hopeful that the Security Council
will issue an unambiguous, very strong resolution.
One would be foolish, however, to think
that the threat of military action hasn’t
helped shape Iraq’s response.
Iraq’s
pledge to allow the unconditional return
of weapons inspectors is encouraging. But
we have long learned that what Iraq says
does not always reconcile with what Iraq
does.
As our Foreign
Minister, Bill Graham, said in regards to
Tony Blair’s ‘Iraq dossier’
released yesterday, “While the evidence
is important - it demonstrates why we must
be vigilant, why we must absolutely ensure
that Saddam Hussein conforms to the mandate
to admit free inspections - it doesn’t
make a reason to attack Iraq today or tomorrow.”
I’m
anxious to hear your thoughts on this issue.
Do you think a Security Council resolution
will be effective? Will arms inspectors
ever have truly unconditional access? Should
we be backing the U.S. if they pursue military
action? At what point do we make that commitment?
Does Canada’s voice matter on this
issue? How successful have we been to date
at communicating our position with the Canadian
people?
In closing
The sheer
volume of news, and of course, opinion,
generated daily on these issues can be overwhelming.
It is often a struggle just to keep up with
what’s happening in Asia-Pacific’s
43 countries.
But as one
of our national heroes, retired Canadian
General, Romeo Dallaire, says, “It’s
easy to clear out an Inbox. It’s a
lot harder to take a step back - to think
in the big picture and plan for the long
term.”
I’m
happy to be here tonight because I hope
we’ll have a chance to do just that.
Your meetings are renowned for the high
caliber of your debates - hopefully tonight
will be no exception.
L’une
des plus importantes parties de mon travail,
et souvent des plus difficiles, consiste
à obtenir des opinions réfléchies
à l’extérieur du ministère
des Affaires étrangères et
d’autres sources traditionnelles. N’hésitez
pas à me faire part des vôtres.
Ce soir,
j’ai expliqué certains éléments
moteurs de notre démarche dans la
région, souligné certains
défis auxquels nous faisons face
lorsque nous essayons de promouvoir la nouvelle
image de marque de l’Asie Pacifique
aux yeux des Canadiens, et inversement,
et j’ai décrit de nombreuses
préoccupations et possibilités
devant lesquelles nous nous trouvons.
·
Sommes nous sur la bonne voie?
·
Les efforts sont ils faits où nous
le devrions?
·
Qu’est-ce qui nous échappe?
·
How can we better market Canadian universities?
·
Should Canada be looking at an ASEAN free
trade region?
·
What other international issues are on your
minds?
Thank you
again for your time. I look forward to a
healthy discussion.
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