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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

New Zealand Institute of International Affairs

Wellington, New Zealand

March 6th, 2002

*Check against delivery

As Canada’s new Secretary of State for Asia-Pacific, the western border of “my” region begins in Afghanistan, moves southeast past India, Indonesia, to Australia and here to 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 knowledge and interest in Asia-Pacific is not skin-deep. The district of Edmonton-Southeast, which I’ve been honoured to represent for over 20 years, is an excellent example of how important Asian-Pacific communities now are to Canada. The president of my riding association is of Pakistani origin – and was actually in Karachi on September 11th. The Treasurer is from Vietnam. Two vice-presidents are from India. My re-election 15 months ago would not have been possible without the overwhelming support I received from the Indo-Canadian, Chinese, Pakistani, Filipino and other Asian-pacific communities. Unfortunately, they are few New Zealanders, presumably because almost no one wants to leave this wonderful country!

The question of newcomers is one of the many reasons why this region is so terribly important to 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 in Mandarin or Cantonese. Canada’s policy toward Asia-Pacific in the coming generations will certainly be shaped by these communities. I know that multiculturalism is also a New Zealand reality and that New Zealand’s recent integration of some of the “Tampa” refugees stands in stark contrast to your large neighbour.

Asia’s importance

Asia, as New Zealanders know all too 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 for some countries. China’s recent accession to the WTO and strengthening economy make it a priority for all industrialized countries. China is also 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 have “Great Game” politics been so fluid and so pregnant with potential to influence the shape of the future world order.” Asia-Pacific is right in the centre of it all.

This increasingly uncertain Asian environment is equally important for Canada and New Zealand. 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. Both our countries have recently re-established diplomatic relations with the Democratic People’s Republic of Korea, trying to coax that desperately poor country from its 50 year isolation.

The extent and importance of Canada and New Zealand’s mature and broadly based relationship cannot be understated. Our long-standing friendship draws on our close ties of culture and kinship, a shared inheritance of parliamentary democracy and social values, and a continuing convergence of experience and interests. Both countries advocate free-trade and actively support a strong multilateral trading system. People-to-people contacts are extensive between our parliaments, private sectors, community groups and academia.

Globalization and its aftermath

Our two peoples have benefited enormously from the effects of globalization. As net exporters of commodities to the British Empire, both our countries were essentially born globalized. Today, our peoples are linguistically, culturally, and ethnically diverse. We have modern, industrialised economies. Canada and New Zealand 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 the scales. Massive layoffs were announced on what seemed like a daily basis, and almost all economic indicators pointed to a deep recession in the United States. Many analysts assumed a similar fate for Canada. However, Canada’s economy, much like New Zealand’s, has shown incredible resilience in bouncing back as quickly as it has. Combined with a sound fiscal policy, globalization has helped diversify Canada’s economy and soften the recessionary blow from south of our border. Although over 80% 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 New Zealand have been able to weather the 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. As a result, 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 the income of 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 New Zealanders 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 greater sharing 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 developed and developing 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 Africa. It will support the objectives of the New Partnership for Africa's Development through implementation of the G8 Africa Action Plan.

Canada’s foreign policy agenda

In some ways, September 11th reaffirmed Canada’s foreign policy agenda. Undoubtedly, it has served to highlight the depth of our close relationship with our 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, 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 all people; where those who violate these standards and laws 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.

Human security provides the basis for our policy initiatives. It provides a roadmap 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 approach here in New Zealand. Asia-Pacific is after all in New Zealand’s back yard. One of the purposes of my visit is to draw on New Zealand experience, particularly in the Islands of the Pacific, to help defend and promote Canadian interests.

Asia-Pacific priorities

With respect to these 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 Asia and the South Pacific.

I feel Canada can make significant inroads in the marketing of Canada as a country with one of the most advanced higher education infrastructures in the developed world. We are having success, with recent figures showing a 20% increase in student authorizations in 2000, but more remains to be done. As New Zealand itself is a large education market for students from Asia, some of you might hopefully 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. From what I understand, there is a similar challenge here in that over 50% of your overseas students enrol in Auckland.

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 multicultural society. Our trade, unfortunately, remains 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 to offer: my home city of Edmonton was recently named 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 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 contention that Canada cannot legitimately pursue its trade goals with Asia-Pacific without pursuing principles of good governance and human rights.

Canada and New Zealand have co-operated on the international stage for a very long time. Our soldiers fought together in the trenches of the First World War. We both made significant contributions in the Second World War. More recently, our peacekeepers have worked together in such trouble spots as Bosnia, the Persian Gulf, the Middle East, and East Timor. We are both committed internationalists and work closely together in the UN. That will continue.

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 New Zealand’s politicians, academics, businesspeople and officials on what works for New Zealand in Asia-Pacific. I’d like to hear what you think. How can Canada and New Zealand enhance our co-operation?

Thank you.

 
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