Canada’s Indo-Pacific Strategy: Time to get realistic and get busy

My family came to Canada from South Korea in the 1960s. As a young man growing up in Canada who was fortunate to attend business school at the University of Toronto, I have come to appreciate the opportunities afforded to all Canadians by being welcoming at home but while also showing leadership abroad.

As a business leader in my roles as President and CEO of the Canada Korea Business Council and Senior Fellow at Global Public Affairs, I know there is so much potential in Canada’s new approach to the this critically-important region.

This is why I was so interested in the release of Canada’s Indo-Pacific Strategy. It’s notable for several reasons.

Let’s start first with China. In 2015, newly-elected Prime Minister Justin Trudeau’s government promised a fresh approach to foreign policy in the region, particularly pledging greater co-operation with China. This was followed in 2019 by the appointment of Dominic Barton, trusted advisor to Ottawa, as Ambassador in Beijing.??

Since that time, Canada has had to navigate significant challenges with China, including the Huawei/Two Michaels situation, supply chain issues and allegations of foreign interference in Canada’s elections - not to mention significant political tensions in both Hong Kong and Taiwan that have reverberated at home in Canada.

In 2018, South Korea hosted the “Peace Olympics” and for the first time in a generation, there was real hope of potential stability along the North Korean/South Korean border. Unfortunately, efforts at creating peace have been recently and repeatedly disrupted by North Korean missile testing.

In the bigger global context, it seems like the world we live in has been turned on its head. The election of President Trump in the United States and the COVID-19 pandemic were both highly disruptive to global economic and political stability and in many ways, Canada was caught in the crossfire.

For these among other reasons, this is why I wholeheartedly welcome the release of the new Canada’s Indo-Pacific Strategy and its potential to benefit Canada and the region.

For the past several weeks, I have been busy both in Ottawa and in South Korea working to promote greater co-operation. Here are a few observations I came away with:

Canadian optimism – particularly towards China – has now changed to a “clear-eyed” assessment of the world in which we live in. That’s pragmatic and will serve us well in the years ahead.

It’s also key that the government will focus on increasing trade with India, South Korea, Japan as well as countries such as Australia, Singapore and Malaysia

For business, the government’s new strategy will provide a welcome and principled guide for industry leaders to follow in approaching how best to do business in the region. Importantly, it lays down a few tracks and commitments:

• Canada’s policy is in lock step with that of the United States;
• Canada is stepping up with respect to defence, as illustrated with the new $750 million in spending on security as well as greater military cooperation with allies;
• The launch of a new Canadian Trade Gateway in Southeast Asia will expand Canada’s business and investment engagement, and networks in the region are being bolstered by the appointment of a new Canadian Indo-Pacific Trade Representative to advance Canada’s regional trade policy, promotion, and economic cooperation objectives in the region; and,
• There is a concerted effort to increase Canada’s diplomatic presence and engagement in the region through more frequent high-level travel, through more diplomatic representation and by deepening engagement in regional groupings.
• Canada looks to become a provider of clean energy, clean energy technology and critical minerals, while at the same time these products will be of interest to Indo-Pacific companies looking to set up shop in Canada.

These investments and commitments are welcomed. If Canada wants to increase its influence in the Indo-Pacific and wants to enjoy the economic benefits that come with it, we must be “in the traffic”, with a strong presence on the ground and integrated into different facets of the regional economy.?

The calibration of all of this will be a delicate balancing act. This does not mean walking away from current trade relationships with China, but it does mean understanding the risks. It also means that we should emphasize growing the investment and trade relationships with other Asia Pacific partners as we move forward.

Sonny Cho is President and CEO of the Canada Korea Business Council and a Senior Fellow at Global Public Affairs