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SUMMARY: Canada’s New Indo-Pacific Strategy

Calling China an “increasingly disruptive global power,” the document notes that dealing with Beijing forms a critical part of Canada’s strategy.

November 28, 2022
SUMMARY: Canada’s New Indo-Pacific Strategy
Canadian Minister of Foreign Affairs Mélanie Joly said the document “sends a clear message to the region that Canada is here, and they can trust we are here to stay.”
IMAGE SOURCE: ADRIAN WYLD/THE CANADIAN PRESS

On Sunday, Canadian Minister of Foreign Affairs Mélanie Joly unveiled the government’s long-awaited new Indo-Pacific Strategy, which Ottawa says is a “comprehensive road map to deepen our engagement in the Indo-Pacific over the next decade, increasing our contributions to regional peace and security, strengthening economic growth and resilience, enhancing our significant people-to-people ties, and supporting sustainable development across the region.” With an investment of nearly $2.3 billion over the next year, the document “sends a clear message to the region that Canada is here, and they can trust we are here to stay.”

The 23-page document acknowledges that though Canada already has strong relationships in the Indo-Pacific, it must deepen existing friendships and seek new partners to diversify its diplomatic networks. Keeping this in mind, Ottawa plans to broaden its engagements with important multilateral groupings and organisations such as the Association of Southeast Asian Nations (ASEAN), the ASEAN Regional Forum, the Asia-Pacific Economic Cooperation (APEC), and the Pacific Islands Forum, while also continuing to engage with key allies such as the United States (US), the European Union (EU), Australia, New Zealand, both individually as well as through the Group of Seven (G7) and Five Eyes.

“Canada will continue to engage with Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) partners on high economic standards and a wide range of partners including democratic partners on pressing governance issues,” the strategy stressed. However, it also pointed out countries with whom Canada “fundamentally disagrees” and must therefore “be clear-eyed about the threats and risks they pose.” Ottawa said it wants to “remain in dialogue with those with whom we do not see eye-to-eye” to face collective challenges like climate change, biodiversity loss, and nuclear proliferation.


REGIONAL OBJECTIVES 


China

Calling China an “increasingly disruptive global power,” it notes that dealing with Beijing forms a critical part of its strategy.

“Our approach to China is shaped by a realistic and clear-eyed assessment of today’s China,” the document states. It accuses Beijing of disregarding international norms and said that even Canada has felt the “impact of coercive diplomacy and non-market trade practices, such as forced labour.”

“China is looking to shape the international order into a more permissive environment for interests and values that increasingly depart from ours,” it notes.  


Nevertheless, the document acknowledged that “China’s sheer size and influence [...] makes coperation necessary to address some of the world’s existential pressures, such as climate change and biodiversity loss, global health, and nuclear proliferation.”

In addition, its economy offers significant opportunities for Canadian exporters. However, the strategy maintains that “Canada will, at all times, unapologetically defend our national interest, be it with regard to the global rules that govern global trade, international human rights or navigation and overflight rights.”

“In areas of profound disagreement, we will challenge China, including when it engages in coercive behaviour—economic or otherwise—ignores human rights obligations or undermines our national security interests and those of partners in the region,” it adds.

In this regard, Canada will continue to strengthen the defence of Canadian infrastructure, democracy, and citizens against foreign interference domestically, which includes reviewing, modernising, and adding new provisions to the Investment Canada Act to protect national interests, acting decisively when investments from state-owned enterprises and other foreign entities threaten national security, including critical minerals supply chains, protecting intellectual property and research, and strengthening its cyber security systems.

It also aims to pursue dialogue with China to promote Ottawa’s national interests “while remaining true to our values, all the while focusing relentlessly on Canadian priorities” by reviewing all memorandums and mechanisms across all departments at the bilateral level.

At the regional level, Canada will work to deepen diverse partnerships, influence best practices, advance institution building, and support a rules-based approach to a peaceful, prosperous, and sustainable Indo-Pacific. Ottawa will also continue to “push back against any unilateral actions that threaten the status quo in the Taiwan Strait, as well as the East and South China Seas.” The document nevertheless reaffirms Canada’s adherence to the one-China policy, while also continuing collaboration on trade, technology, health, democratic governance, and countering disinformation with Taiwan.

Canada will work closely with its partners to face the “complex realities of China’s global impact” and continue to invest in international governance and institutions at the multilateral level.

Additionally, Canada will increase its presence, supporting analysis, consultation, and diplomacy related to China at multilateral missions to the United Nations (UN), the EU, and the North Atlantic Treaty Organization (NATO) to understand “how China thinks, operates and plans, and how it exerts influence in the region and around the world.” However, the document marks a clear distinction between differences with the current Chinese government and the Chinese people, which is emphasised form the “bedrock” of bilateral relations.

India

Canada wants to grow economic ties with India by concluding an Early Progress Trade Agreement (EPTA) as a step toward a Comprehensive Economic Partnership Agreement, describing New Delhi as an important ally to help Ottawa fulfil its goals in the Indo-Pacific. In a bid to strengthen relations, Canada will also bolster visa-processing capacity in New Delhi and Chandigarh, support academic, educational, cultural, youth and research exchanges, accelerate cooperation in the fight against climate change by deploying green technologies, and send enhanced Team Canada trade missions in priority sectors of mutual interest like renewable energy and clean technology.

“India’s strategic importance and leadership—both across the region and globally—will only increase as India—the world’s biggest democracy—becomes the most populous country in the world and continues to grow its economy,” the document states.

The North Pacific

The strategy notes that the region “faces growing security challenges, notably from North Korea, as its increasingly frequent and reckless testing of missiles demonstrates.” In this respect, Canada will open new opportunities for security cooperation with Japan and South Korea, strengthen critical minerals, hydrogen, and clean energy sources to meet the two countries’ increasing demand, and work to support and strengthen stability in the Korean Peninsula.

Noting that Japan is Canada’s only G7 partner in the region, Ottawa aims to implement the Six Shared Priorities as agreed upon with Tokyo last year, work together toward sustainable energy, free trade, address climate change, and environmental protection, conclude the General Security of Information Agreement, support both defence procurement and broader national security objectives, work closely with Japan when it takes over the G7 presidency next year, and participate in the 2025 World Expo in Osaka to showcase Canadian innovation, resources, investment, and education.

The document acknowledges South Korea as a strong democratic partner with long-standing trade and cultural ties. In this respect, Canada will advance the Comprehensive Strategic Partnership agreed upon with South Korea in September 2022 and launch a high-level Dialogue on Economic Security, working together in support of resilient supply chains, the supply of critical minerals and high labour conditions and environmental protections, including the transition to clean energy, support South Korea’s efforts to achieve a denuclearised, peaceful, and prosperous Korean Peninsula, and establish a new annual Canada–South Korea climate change dialogue.

ASEAN

The document recognises ASEAN’s centrality to the region and therefore plans to confirm its status as a Strategic Partner. It also plans to negotiate and implement a Canada-ASEAN free trade agreement and a Comprehensive Economic Partnership Agreement with Indonesia, and 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 and enhance Canada’s profile as a commercial and investment partner.


STRATEGIC OBJECTIVES AND INITIATIVES


Promote peace, resilience and security

Canada will invest in an enhanced military presence, along with intelligence and cyber security, to promote security in the region and ensure the safety of Canadians. It will also support the implementation of UN Security Council sanctions against North Korea through participation in current operations like Operation NEON, and work with partners to uphold regional security and advocate for Pyongyang’s denuclearisation.

Expand trade, investment and supply chain resilience

In order to seize economic opportunities and strengthen and diversify regional partnerships whilst building a stronger and more secure economy at home, Canada will launch a Canadian Trade Gateway in Southeast Asia, support the economic empowerment of Indigenous Peoples through the implementation of the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA) in cooperation with Australia, New Zealand, and Taiwan, provide enhanced support to women entrepreneurs, and open its first Agriculture and Agri-Food Office in the region to help Canadian farmers and producers to diversify their exports and position Ottawa as a preferred supplier in key emerging markets.  

In addition, to increase export diversification and free trade access, Canada will seek to join and meaningfully contribute to the newly-established Indo-Pacific Economic Framework for Prosperity.

Invest in and connect people

With nearly 18% of Canadians having family ties to the region and 60% of the international students coming from the Indo-Pacific, Canada plans to strengthen people-to-people exchanges through expanded education exchanges, greater visa-processing capacity, and empowering Canadian organisations and experts to engage in the region even more. Ottawa will also increase its feminist international assistance to address local development challenges, advance collective efforts toward Sustainable Development Goals, and continue actively engaging in defending human rights in the region, including women’s rights.

Build a sustainable and green future

Canada will share expertise in clean technology, ocean management, energy transition, and climate finance through FinDev Canada to support high-quality and sustainable infrastructure. It will also work collaboratively across the region to reduce emissions and prevent further biodiversity loss. Furthermore, it will work in concert with G7 to help the region meet its growing $2.1 trillion infrastructure funding gap.

Canada as an active and engaged partner to the Indo-Pacific

Ottawa will seek to reinforce its influence among partners and allies in the region, offer more diplomatic, economic, military, and technical support and cooperation, appoint a Special Envoy to the region, strengthen engagement with the Pacific Island Countries by opening Canada’s first mission to Fiji, and answer the call from regional partners for deeper engagement.