Canadian-Asian Affairs

In the recent Economic Plan presented to parliament the Conservatives have indicated that they may at times consider blocking investment by foreign owned corporations. It is generally understood to refer to investment in strategic sectors, especially the energy sector. One suspects that this is generally aimed at China. There was talk of Husky oil being bought by one of the Chinese Petrochemical firms a few years ago. The rumours made many nervous and prompted calls for control of state-controlled FDI.

This really is much ado about nothing. As of now the Chinese have very little investment in the Canadian energy sector. It would be better to encourage investment, and thereby ties to the Chinese, than mutter veiled threats about the ultimate goals of their partial state-owned corporations.

Link:

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20061125/foreign_investors_061125/20061125?hub=Canada

Posted by Ryan at 11:54 AM | Permalink | Comments (0) | TrackBacks (0)

The big issue in Canada post APEC summit has been the state of Canada's relations with China and how the Conservatives are approaching the issue. There isn't much consensus on the issue. Many individuals have competing assessments of what needs to be done to best pursue Canada's goals. Some are pro-trade, others claim human rights trump trade, others argue that the two are not mutually exclusive.

Harper said he will not "sell out" Canadian values for trade dollars. No one is really sure what he meant by this. He followed up with a bunch of buzz words including human rights, and democracy without really defining what he meant.

First off, Harper and his handlers should look at the China question from a longer perspective than they seem to be taking. China has been on a road of improving human rights for about thirty years now. Since the end of the cultural revolution the situation has improved drastically, and it continues to do so in slow increments. There are certainly still issues in China, and they need to be dealt with. But the best way to deal with them is not blowing the human rights horn at a summit intended to discuss economic issues.

Harper has clearly been playing to voters in Canada. He hopes to attract voters who may vote liberal, but feel 'human rights' are an important issue. The problem with this tack is that by playing for the Canadian voters he has compromised Canada's efficacy in China. The Chinese see Harper's treatment as condescending. We have less influence than Harper would like to think. The way to effect change with the Chinese is to treat them with the respect they deserve, foster ties and thus influence, and address issues when and where it is appropriate to address them.

Posted by Ryan at 02:04 PM | Permalink | Comments (0) | TrackBacks (0)

China has indicated that it is interested in importing Canadian uranium for use in its nuclear power generators. It has also suggested that it may consider purchasing more CANDU reactors for its anticipated nuclear power expansion project. However China has already snubbed Canada once on CANDU after the Canadian government hesitated at transferring technology to them. Another issue is that Canada has very strong controls over uranium export and as of now will not export large amounts to China. The usefulness of this policy is highly questionable. China already has a complete nuclear arsenal. By refusing to sell them uranium Canada is doing itself no favours. Australia certainly appreciates Canada's stance. They recently signed a lucrative deal with China to provide massive amounts of Uranium for China's growing nuclear power generation.

The IAEA and nuclear non-proliferation treaty have processes and institutions in place to control uranium. Canada should sell uranium to China with the simple caveat that if breeches in proper handling conduct occur the supply will cease.

Link: http://ca.today.reuters.com/news/newsArticle.aspx?type=topNews&storyID=2006-11-15T113725Z_01_PEK88560_RTRIDST_0_NEWS-ENERGY-CHINA-CANADA-COL.XML

Posted by Ryan at 11:54 PM | Permalink | Comments (0) | TrackBacks (0)

David Emerson has indicated from the APEC summit in Vietnam that Canada will resume free trade talks with Singapore. The hope is that a deal will be reached by 2007. The expectation is that it will give Canada more penetration into the ASEAN market. Eventually ASEAN may agree to hold group negotiations for trade deals, which Canada would in all likelihood be highly interested in pursuing.

Link: http://www.iht.com/articles/ap/2006/11/15/business/AS_FIN_APEC_Canada_Singapore_FTA.php

Posted by Ryan at 11:52 PM | Permalink | Comments (0) | TrackBacks (0)

The Globe published a story this morning indicating that the Americans have asked Canada to participate in enforcing the Sanctions that the UN has approved against North Korea. While Canada still hasn't officially responded, it seems likely that it will participate on at least some level. This is the sort of hands on work Canada needs to be doing to raise its profile and influence in Asia. The Pacific fleet has a number of ships suitable for the task.

The question will of course be one of politics, as the Conservatives guess whether or not the mission will have public support. They've been quite battered recently on the Afghanistan issue and are thus unlikely to be keen on starting another commitment which may prove unpopular. As this action would have a very low possibility of casualties, and has UN approval it seems likely that the public will approve. The only major reservation would be that participating at this point would move Canada closer to committing in some way to a possible conflict on the Korean peninsula. However, it seems exceptionally unlikely that the situation will descend into a hot conflict. We've got a navy for a reason, and this is just the sort of mission they should be participating in.

Link: http://www.cbc.ca/canada/story/2006/11/17/korea-cda.html

Posted by Ryan at 03:14 PM | Permalink | Comments (0) | TrackBacks (0)

I wrote a letter to Peter MacKay quite some time ago regarding the Celil case. Today, a few months after my letter, I received this response:

On behalf of the Honourable Peter G. MacKay, Minister of Foreign Affairs, I am responding to your email of July 22, 2006, co-addressed to Ms. Alexa McDonough, Member of Parliament, in which you express concerns regarding the detention of Mr. Huseyincan Celil. I regret the delay in replying to you.

I wish to assure you that officials at Foreign Affairs and International Trade Canada are very aware of Mr. Celil's case and have been working tirelessly toward a resolution. Officials are actively continuing their diplomatic efforts and are in regular communication with Mr. Celil's family.

The Consular Affairs Bureau is mandated by the Privacy Act, which prohibits the disclosure of personal information by a government department or agency unless the consent of the individual who is the subject of the information has been obtained. Any personal information cannot be disclosed to unauthorized parties without the explicit written consent of the individual concerned.

As you can appreciate, the Canadian government has a legal obligation to safeguard the privacy of Canadian citizens. We would like to stress, however, that the Government of Canada is pursuing this matter very seriously.

Thank you for writing and taking the time to express your concerns.

Sincerely yours,

Janice Hayes
Director
Ministerial Correspondence Division

From what I understand DFA has been quite vocal with the Chinese about their concern for Celil. It's a difficult case as the Chinese refuse to recognize his Canadian citizenship. I do not envy the officers charged with pursuing his case on behalf of DFA.

Posted by Ryan at 03:23 PM | Permalink | Comments (0) | TrackBacks (0)

Prime Minister Harper was officially snubbed by the Chinese when Hu Jintao declined a private meeting. Harper has responded by telling Canadian reporters that his government will not back down on its stance on 'human rights' in order to improve the Canada-China relationship. This noble position is going to do nothing except compromise the small amount of influence Canada once held with the Chinese. If Harper is going to take such a principled stand he needs to define what he means by human rights, and he needs to let China know what he expects. Not that he'll get any response from them but then at least everybody would know what he's on about.

As it stands the treatment of the China relationship has been bungled and confusing. Different departments have been saying different things. The Conservatives need to unify their message. And if they want Canada to have access to China they need to unify that message in a way that keeps dialogue open. The pushing of 'human rights' needs to be measured and well defined. Western human rights weren't built in a day. Many Asian countries argue that Western individualistic values are not applicable to their societies. While this is debatable, it deserves to be treated as a valid concern when criticizing China's treatment of its citizens.

Link: http://www.cbc.ca/world/story/2006/11/15/harper-snub.html

Posted by Ryan at 04:58 PM | Permalink | Comments (0) | TrackBacks (0)

The APEC summit is gearing up in Vietnam. The talk in Canada is about the Conservative bungling of the China relationship and possible regional free trade deals. It's a shame about the Canada-China situation. Hu Jintao is really snubbling Harper by making him wait so long, which indicates he is not very pleased with Stephen. The free trade deals are still only in rudimentary talking stages so they haven't caught much attention here in Canada.

The trade talks at APEC are considered by some as a substitute to the stalled Doha negotiations. APEC accounts for 47% of world trade and thus is an important bloc.

Also keep an eye on security talks during the summit. Energy security, nuclear waste managment systems, and non-proliferation endeavours are all likely to get some coverage.

Posted by Ryan at 08:39 PM | Permalink | Comments (0) | TrackBacks (0)

Harper has requested a private meeting with Hu Jintao at next week's APEC meeting. However the Chinese have yet to get back to him as to whether or not the meeting will go forward. The prevailing interpretation is that this is a not so subtle diplomatic signal that China is less than pleased with the Conservative's handling of the Canada-China relationship.

It' surprising how much coverage this situation is getting in the media. It seems every week there is another story or two about how the relationship is being bungled.

Link: http://www.theglobeandmail.com/servlet/story/RTGAM.20061110.wxchinaharper10/BNStory/National/home

Posted by Ryan at 08:55 PM | Permalink | Comments (0) | TrackBacks (0)

Trade Minister David Emerson has indicated that Canada is considering joining the United States and Japan in pursuing tougher intellectual property law enforcement in China. China will not seriously enforce IP laws until it is in the interest of the Chinese state to do so. If concerned countries utilize the WTO to punish lax IP rights enforcement it may have some impact. But the natural increase in Chinese innovation and patent/copyright ownership is the only thing that will really lead to compliance by the Chinese authorities.

Link: http://today.reuters.com/news/articlenews.aspx?type=industryNews&storyID=2006-11-02T233255Z_01_N02247520_RTRIDST_0_INDUSTRY-TRADE-CANADA-CHINA-DC.XML&WTmodLoc=EntNewsIndustry_C2_industryNews-4

Posted by Ryan at 12:54 PM | Permalink | Comments (0) | TrackBacks (0)

Two news stories popped onto the radar today. One is an editorial from Embassy, which argues that Canada still has time to change its stance towards China. It advocates a balanced approach between business 'rights' and human rights. While the thought is nice, it might do little beyond hampering Canada's business prospects in China. Harper can crow all he likes about being an 'energy superpower' but as of yet Canada has very little clout even with energy hungry giants like China.

Trade Minister David Emerson claims that Ottawa has not given up on the China relationship. Apparently how best to pursue Canadian objectives in China is as of yet undecided. Any observer could have told reporters that. Emerson is pointing out the obvious. What he should be doing is talking about how he and his compatriots are going to work on the relationship, and figure out a policy. On a positive note, he mentioned that he and Peter McKay are likely to make a China trip in early 2007.

Links: http://www.embassymag.ca/html/index.php?display=story&full_path=/2006/november/1/china/
http://ca.today.reuters.com/news/newsArticle.aspx?type=domesticNews&storyID=2006-10-27T231559Z_01_N27283489_RTRIDST_0_CANADA-CHINA-COL.XML&archived=False

Posted by Ryan at 08:41 PM | Permalink | Comments (0) | TrackBacks (0)