In the previous two weeks, we talked about the parts that South Korea and Japan play in Canada's recently released Indo-Pacific Strategy (the "Strategy"). Today, we will focus on the Association of Southeast Asian Nations ("ASEAN").

The purpose of this third bulletin in our series is to identify how important the ten nations that form the ASEAN are in the eyes of the Canadian government. These ten nations are: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

The Global Importance of the Indo-Pacific Region in General and the ASEAN Countries in Particular

The Strategy recognizes that the Indo-Pacific region – composed of forty economies, over four billion people, and $47 trillion in economic activity – is the world's fastest-growing region. In this region, the ASEAN countries form a group of nations with a combined population of over six hundred and sixty-one million people and a gross domestic product of $4.1 trillion. Canada was the fourth-largest merchandise trading partner with the ASEAN countries in 2021 and was also the eighth-largest investor in the region in 2021.

Canada's Strategic Objectives and Initiatives in the Indo-Pacific Region

Canada has five strategic objectives in the Indo-Pacific region: (i) promoting peace, resilience, and security; (ii) expanding trade, investment, and supply chain resilience; (iii) investing in connecting people; (iv) building a sustainable and green future; and (v) cementing Canada as an active and engaged partner in the Indo-Pacific region.

Expanding Trade, Investment, and Supply Chain Resilience

Among the initiatives set out in the Strategy, the strengthening of Canada's science, technology, and innovation partnership with one specific ASEAN country, Singapore, is worth highlighting. Furthermore, and in order to increase export diversification and free trade access, Canada is seeking to improve market access through new comprehensive free trade agreements (such as those being currently negotiated with the ASEAN, India, and Indonesia), in addition to new and/or modernized foreign investment promotion and protection agreements.

How Canada Is Engaging With the ASEAN Countries

The Strategy stresses that Canada will build a key multilateral dialogue and forum including the ASEAN and the ASEAN Regional Forum.

The ASEAN Regional Forum includes countries such as Canada, Australia, China, the European Union, and others. Its objective is to foster "dialogue and consultation on political and security issues of common interest and concern" and to "make significant contributions to efforts towards confidence building and preventive diplomacy in the Asia Pacific region."

The Strategy goes on to state that "Canada deeply respects the centrality of the ASEAN in the region. The ASEAN countries include over 660 million people and many of the world's fastest growing economies". In order to deepen its relationship with the ASEAN, Canada will pursue the following objectives:

  • Confirm the relationship with the ASEAN at the level of strategic partner;
  • Augment Canada's contribution to the "ASEAN-Canada Plan of Action Trust Fund",1 which will direct funding towards the priorities determined by the ASEAN;
  • Seek to negotiate and implement a Canada-ASEAN Free Trade Agreement and a comprehensive economic partnership agreement with Indonesia;
  • Launch a Canadian "Trade Gateway" in Southeast Asia as a market entry point and catalyst for Canadian businesses to grow their engagement and presence in the region as well as to enhance Canada's profile as a commercial and investment partner. Canada's Trade Gateway will expand Canadian businesses and investment in networks linking existing incubators and accelerators as well as increase their awareness of Indo-Pacific markets, with an emphasis on sectors and solutions where Canadian innovation responds to regional demand; and
  • Continue to recognize and support ASEAN centrality in the region, including by reinforcing alignment between Canada's Indo-Pacific strategy and the ASEAN Outlook on the Indo-Pacific (the ASEAN counterpart of Canada's Strategy, which contains an affirmation of the role of the ASEAN to maintain peace, security, stability and prosperity in the region).

Provincial Initiatives

The Québec Strategy

The province of Québec has created a separate provincial strategy for the Indo-Pacific region. The Québec strategy, titled the "Pathway to Economic Growth: New Ambitions for Québec", recognizes that the Indo-Pacific region has become the new global economic centre of gravity. Relatedly, Québec has recently opened an office in Singapore with a mission to monitor the entire ASEAN region. The Québecpublic pension plan, the Caisse de dépôt et placement du Québec, also has a growing office in Singapore.

British Columbia's Trade Initiatives

Singapore and Vietnam serve as significant partners for British Columbia within the ASEAN. Accordingly, the Premier of British Columbia has underscored their substantial business ties with the province. Within this context, British Columbia is at the forefront of a trade diversification strategy towards Asia, aimed at growing provincial businesses, generating quality employment opportunities, and enhancing the reliability of supply chains for goods and services. The province is committed to reinforcing its reputation as a reliable partner on the cutting edge of clean energy, clean technology, biotech, agritech, education, and responsible resource development. British Columbia has directed substantial efforts towards engagement in the ASEAN countries, ensuring that the province maintains a leading position in leveraging the federal Strategy to deliver stability, jobs, and opportunities for all British Columbians in a time of global uncertainty and rising costs.

Saskatchewan's Trade Initiatives

Saskatchewan was Canada's leading exporter to the ASEAN region in 2022 with $2.9 billion in exports, including products such as potash, wheat, and semi-chemical wood pulp. The province has likewise established offices in Singapore and Vietnam to facilitate trade and investments.

Ontario's Trade Initiatives

In 2017, Ontario undertook a business mission led by Premier Kathleen Wynne aimed at fortifying international ties stimulating job creation and opportunities in Ontario. This first official visit of an Ontario Premier to Vietnam inaugurated a policy to diversify Ontario's trade and investment relationships, aligning with the core principles of Ontario's global trade strategy. Presently, the current provincial government is planning an infrastructure business mission to the Built Environment Xpo (BEX) Asia in Singapore. This mission focuses on showcasing the strengths of Ontario's companies in market intelligence and energy-efficient solutions, with the aim of forging business partnerships and unlocking new export markets across Southeast Asia.

In the fourth and last bulletin of this series, we will focus on India.

Footnote

1. The ASEAN-Canada Plan of Action Trust Fund will support activities that promote cooperation between the ASEAN and the Government of Canada in mutually agreed priority areas aligned with the Government of Canada's Feminist International Assistance Policy.

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