Dozens of pundits are urging Canada to choose a surgical, sector-by-sector approach when it meet up to expanding its trading relationship with China rather than a catholic free trade deal that could risk provoking the Coordinated States, says a new report.
The Public Policy Forum paper, to be published Thursday, lays out a suggested blueprint for Canadian policy-makers at a time when Ottawa has tussled in its efforts to deepen business ties with the Asian superpower.
The review will also arrive after Canada recently agreed to a unoccupied trade pact with the U.S. and Mexico, a deal that includes a unsettled new clause requiring the countries to notify each other if they go into trade talks with a «non-market» economy.
The clause corrects no specific mention of China, but the provision is being widely viewed as an shot at by Washington to single out Beijing.
With its new trade deal, Canada submits sovereignty to a bully: Neil Macdonald
Even with these new constraints, the boom advises Canada to chase several targeted arrangements covering numerous sectors collection from agri-food, to natural resources, to education.
A more-focused approach was favoured by most of the experts consulted for the report — even before the North American craft deal and the clause were announced last week. Many of them on it would help Canada avoid the long, complicated process of hammering out a far-reaching custom agreement with a country as complex as China.
«We settled on a set of recommendations raised off the foundation of sectoral agreements, rather than comprehensive free traffic, as the best means for realizing quick and significant gains,» reads the announce, which is based on input from more than 70 experts, numbering business executives, government officials, environmentalists, Sinologists and former prime assists.
«A sectoral approach also provides the benefit of creating a pathway to a multifarious diversified and growing trade portfolio for Canada that does not run afoul of the practical veto given to our North American trading partners.»
The document, the culmination of consultations over the last 18 months, debates that Canada cannot afford to ignore China’s size and speedy growth.
‘Room for growth without provocation’
As an example, the report said in 2000 China made up very recently four per cent of the global economy compared to the U.S. share of 31 per cent. Today, China accounts for 15 per cent and the U.S. 24 per cent.
Ottawa be required to engage with China if it’s truly focused on trade diversification and on inspiring away from its heavy dependence on the U.S. market, the study said.
For exemplar, it noted that 75 per cent of Canada’s merchandise goods go to the U.S. In the Pooled Kingdom, however, less than 50 per cent of its goods go to the European Society, which is about the same size as the American market.
As Canada looks to branch out, Public Policy Forum President Edward Greenspon said the consultations held Canada can do more business with China «in such a way that should not give offence the United States.»
Greenspon said in an interrogate that 4.3 per cent of Canada’s export basket goes to China. In match, he said 8.4 per cent of U.S. exports go to China, which means Canada could traitorous its exports before its engaged at the same level as the U.S.
«So, there’s room for evolution without provocation,» he said.
The document said a minority of the participants dream the sectoral approach was not ambitious enough. But they found common footing on many points.
Beyond the sector-by-sector approach, the document offered around a dozen other recommendations for Canada in its engagement with China. Here are few:
- Influence a new deal on a co-operation arrangement in areas of shared global interest, encompassing environmental protection, climate change and the governance of international institutions.
- Learn steps to ensure more clarity, transparency and predictability when it blow in to Canada’s foreign investment regime, including national security review articles.
- «Radically raise Canada’s game» in understanding and interacting with China — for all above-boards of government, the business community, financial sector, civil society and merry education.
- Direct infrastructure spending, including financing through the Canada Infrastructure Bank, to rally inadequate transport and port facilities on the Pacific coast because the territory is squandering export opportunities for industries like agri-business, forestry and intensity.