“This is a generational change,” Trudeau told leaders gathered in Phnom Penh for a summit of the Association of Southeast Asian Nations. “I’m announcing specific investments that are part of our commitment to this relationship,” he said, before listing $333 million in new funding. He was speaking at an event celebrating 45 years of Canada’s relationship with ASEAN, which comes as the group negotiates a free trade agreement with Canada. The 10-country bloc includes some of the world’s fastest-growing economies, and the Liberals say they want to steer trade away from China over concerns ranging from human rights to intellectual property. “There are no surprises; the cards are on the table and our goal is to be present in the region,” Foreign Minister Melanie Jolie told reporters in French. Trudeau unveiled funding for closer ties to Southeast Asia, spread over five years. The largest chunk, $133 million, will go to feminist-focused development assistance in ASEAN countries, a quarter of which will go to Canadian civil society groups. From left to right, Secretary of State Mélanie Joly, US President Joe Biden, International Monetary Fund Managing Director Kristalina Georgieva and Prime Minister Justin Trudeau speak during the ASEAN Summit Dinner, Saturday, Nov. 12, 2022, in Phnom Penh, Cambodia. (Alex Brandon/The Associated Press) Ottawa will also spend $84.3 million on a new Shared Oceans Fund aimed at cracking down on illegal fishing in the area and $40 million on an escrow fund to help public officials and civil society research the area Indo-Pacific. The Liberals are earmarking $24 million for a private sector center to inform businesses of opportunities in Asia and the same amount for the Asia Pacific Foundation to operate an office on the continent. Funding is also available to conduct educational exchanges and to assist ASEAN counties in negotiating trade agreements with Canada.
The business group says Canada is falling behind on trade
Meanwhile, Trudeau’s office said ASEAN granted Canada the status of a comprehensive strategic partnership, which is the highest level of recognition for third countries. The US and India also received this status on Saturday, placing them alongside previously recognized partners Australia and China. ASEAN as a bloc is already Canada’s sixth largest trading partner. The majority of the population in ASEAN member countries is under the age of 30, a demographic shift that is shaping economic opportunities in the region. A rising middle class is bolstering countries like Indonesia and Thailand, while the prospect of cheap labor is forcing companies to move jobs from China to places like Vietnam and the Philippines. As for Cambodia, Canada is one of its top trading partners, with bilateral trade reaching $1.82 billion last year. About 98% of that was in goods that Cambodia sold to Canada, such as clothing and footwear, in exchange for just $38.5 million in Canadian goods such as vehicle parts and artificial fur. Trade between the two countries has increased despite a limited diplomatic presence. In 2009, the government of then-prime minister Stephen Harper closed the Canadian embassy in Phnom Penh, downgrading it to a consular office. At the time, Ottawa cited a “serious review of Canada’s current diplomatic representation abroad,” but many questioned the move toward budget cuts. Trudeau met Saturday with Cambodian Prime Minister Hun Sen, but made no mention of opening an embassy, and Jolie was vague about the idea. WATCHES | Former ambassador to China on Canada’s evolving stance:
Minister Joly warns Canadians doing business in China: ‘You need to keep your eyes open’
“I expect China to react very negatively, but in reality, we have no other choice,” said former Canadian ambassador to China Guy Saint-Jacques of Canada’s evolving China policy, as broadly outlined by the Minister Foreign Mélanie Joly on Wednesday in Toronto. “Our goal is to be more present in the region,” he said in English, noting that the Liberals have opened embassies in Africa after their Conservative predecessors closed them. Wayne Farmer, head of the Canada-ASEAN Business Council, said Ottawa is lagging behind the US, Australia, Britain and France in building strong trade ties with the region. “It’s the furthest part of the world from Canada; it’s furthest from Africa, it’s furthest from North Asia and it’s furthest from Europe. It’s no wonder we’d be late,” Farmer said. “But in today’s world with communication and transportation the way it is, that’s not much of an excuse.”
Vaccine policy is still a factor, the expert says
Jeffrey Reeves, director of research at the Asia-Pacific Foundation, said the West is also hurting its reputation by doing little to enable developing countries to produce vaccines for COVID-19, such as through patents. “China provided vaccines to most of Asia, while the global West stockpiled supplies and blocked the transfer of technology to overseas production,” he noted on a panel on November 1. “Such things honestly don’t go unnoticed and are not easily forgotten.” Stephanie Martel, a professor of international relations at Queen’s University and a leading ASEAN expert, says Canada could play a role in building consensus on a number of issues. He said Canada can build relationships with Southeast Asian countries by focusing on their individual trajectories, rather than painting them as under the thumb of China or the United States. Martel says this comes down to “recognizing and respecting the fact that many of these countries don’t fit neatly into these democratic and authoritarian categories.”
