OTTAWA – Western Canada wants the federal government to do more to increase exports of natural resources to Asia.
In November, Federal Foreign Minister Mélanie Joly presented a strategy aimed at strengthening relations with the countries of this continent in order to counteract China’s growing influence.
Alberta Commerce Secretary Rajan Sawhney says the federal strategy is a good start, but it requires greater commitment to include exports of fuels like liquefied natural gas to eastern Alberta. She plans to organize a summit with other western provincial leaders to coordinate an offensive to change federal strategy to better reflect the needs of her region.
“Some people in Ottawa understand what we can offer in terms of energy resources and what we can offer in the future,” she says. And there are others who reject that.”
Experts complain that western Canada has disproportionate trade ties with China.
According to Stephen Nagy, a professor at the International Christian University in Tokyo, links between western Canada and China depend on Ottawa-Beijing ties. He adds that these trade ties represent “a net gain” for Canada.
“During the pandemic – amid heightened tensions between Canada and China – trade between western Canada and China has increased.”
Professor Nagy points out that the federal strategy is effective in identifying ways Canada can improve its economic ties with China while restricting trade with technology companies and encouraging agricultural products and natural resources.
He regrets that the federal government does not seem to be speaking with one voice on this issue. Some ministers openly want closer trade ties, while others want to back away from it. He fears this dissonance will be exacerbated by allegations of Chinese government interference in Canadian elections.
‘This will have an impact on exporters in western Canada,’ says Professor Nagy.
Mac Ross, director of trade policy at Pulse Canada, argues that despite Canada being the world’s largest exporter, the pulses sector in Asia faces major challenges.
“This is truly an important opportunity for the farming community in Western Canada to position itself as the region’s leading agrifood supplier,” he said. But at the same time it is a region where protectionism and anarchic tendencies are on the rise.”
For example, India and Pakistan have suddenly introduced tariffs and fumigation policies, causing headaches for exporters. Nepal and Sri Lanka have banned the import of certain products in order to stabilize the domestic money cycle.
“What all of these measures have in common is that Canada has seen no warning signs of it. The problem only arose when deliveries were refused in ports,” says Ross.
Meredith Lilly, an economics professor at Carleton University, criticizes the lack of precision in the federal strategy. In particular, she wants to know how the Trade Commissioner Service will be strengthened to better support companies expanding into Asia.
“It is very clear that the authorities have not yet developed an implementation plan,” said Prof Lilly, a former adviser to former Prime Minister Stephen Harper.
The lack of a concrete plan gives the states the opportunity to put pressure on the federal government to emphasize certain issues. However, she warns against conflicting demands that could delay Canada’s engagement in Asia. She recalled that internal squabbling over softwood lumber hampered the federal government’s response during the US trade crisis.
Prof Lilly also wants the federal government to reassess some of its environmental policies, such as upcoming regulations on fertilizer emissions and the carbon tax. These measures could make Canadian products more expensive in world markets.
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