GLOBE-Net, September 13, 2012 - A few days before the signing of the Canada-China Foreign Investment Promotion and Protection Agreement during the APEC Summit in Vladivostok, a report published by the Asia Pacific Foundation of Canada (APF Canada) contended that Canada required a comprehensive engagement that extended beyond a commercially focused, and bilateral-centered approach if it were to secure its place in Asia.

Securing Canada's Place in Asia: Institutions, Means and Mechanisms recommended 17 ways for Canada to advance a full-scale engagement with Asia, particularly through a combination of regional institutions and bilateral mechanisms.

The report considered objectives and priorities for Canadian participation in various Asian regional forums and relationships in the region. The report was co-authored by taskforce members: Don Campbell, Senior Strategy Advisor to Davis LLP; Paul Evans, Professor of Asian International Relations at the University of British Columbia; and Pierre Lortie, Senior Business Advisor at Fraser Milner Casgrain LLP.

"Ottawa has done a commendable job over the past three years to put Canada back on track with our engagement with Asia," noted Don Campbell. "The challenge now is for Canada to sustain and build on its foothold in Asia through a more coherent strategy that utilizes bilateral and regional processes. Currently, Canada is either not present or on the margins of some key institutions."

"Our government is committed to creating the right conditions for Canadian businesses to compete globally."

The Canada-China Foreign Investment Promotion and Protection Agreement, which was announced in February was witnessed by Prime Minister Stephen Harper and Chinese President Hu Jin-Tao on Sunday.

"Our government is committed to creating the right conditions for Canadian businesses to compete globally," Harper said. "This agreement with China - the world's second largest economy - will provide stronger protection for Canadians investing in China, and create jobs and economic growth in Canada."

Advocating for a large-scale, ambitious, coordinated, cross-partisan, multi-dimensional and long-term Canadian strategy in Asia, the report offers key recommendations including: make the conclusion of a free trade agreement with South Korea an urgent priority; appoint a Canadian ambassador to ASEAN; and expedite trade negotiations with China, Japan and India.

The task force urges the Canadian government to seek membership in several pan-Asia organizations and also recommends Canada volunteer to chair and host APEC in 2017.

"Some might question the value of Canada joining process-filled forums in Asia, but keep in mind that the rules of engagement in Asia are different," Campbell said. "Being active participants at these tables is critical to building long-term trust with Asian counterparts.

This is ultimately vital to Canada's long-term prosperity."

Not to be left behind, the Province of BC itself is building stronger local ties in Asia as reflected by the announcement today by Premier Christy Clark that the province will open a trade and investment office in Hong Kong, as well as two new Indian trade offices, in Mumbai and Chandigarh.

"China is British Columbia's second-largest trading partner and is a vital and growing market for our products, services and resources, particularly natural gas," Clark said.

Asia's quest for natural resources has had major effects worldwide in the realm of economic, foreign and security policies. There has also been in recent years a surge of Asian investment, particularly by state-affiliated companies, in the development of global energy and other resources.

As seen in Canada with the $15.1 billion offer by China National Offshore Oil Co. to buy Calgary-based Nexen Inc., this leads to significant concern when state-owned companies in Asia seek to buy local companies in strategic sectors of the economy.

Another APF Canada report published in June outlined the case for making a broad-based Canada-Asia energy relationship a national priority. (See related GLOBE-Net article.)

In Securing Canada's Energy Future, the Canada-Asia Energy Futures Task Force called for leadership to develop a strategic framework to enhance energy relations with Asia through diversifying Canada's geographic markets within Asia, its product offerings and the industries it focused on.

The taskforce co-chair and vice-chair of BMO Financial Group, The Hon. Kevin Lynch stated that, "We need to think critically, strategically and wisely about Canada's energy future with Asia. We have an immense opportunity to turn Canada's energy trade with Asia into a benefit for all regions of Canada, but to do so requires leadership and collaborative innovation on many levels."

To serve Canada's interests in the energy sector and others of critical importance for the country's potential growth future, last week's AFP Canada report confirms the need for a consolidated approach through a "large-scale, ambitious, coordinated, cross-partisan, multi-dimensional and long-term Canadian strategy in Asia."