Canada’s Prime Minister Mark Carney embarks on his first official visit to Asia on Friday in an attempt to deepen trade and security ties at a time when the North American country is struggling to lessen its overwhelming dependence on the USt and redefine its foreign policy in pursuit of new markets.
Canadian government officials said Carney’s week-long trip might also include a meeting with Chinese President Xi Jinping, in a possible effort to reset a previously fractious relationship worsened by an ongoing trade war.
Some analysts say it will be critical for Carney to explain to Asian leaders that Canada has its own agenda and is no longer as aligned with the US, whose President Donald Trump has repeatedly threatened to annex Canada as the 51st state.
“While the world economy is fragmenting, Carney needs to make it clear that Canada stands apart and is still interested in rules-based trade and globalisation,” said Vina Nadjibulla, vice president of the Asia Pacific Foundation of Canada.
Last month, Canada signed a trade deal with Indonesia, aiming to establish duty-free access for up to 95% of its goods exported there in the next year.
Trade Minister Maninder Sidhu said Canada is now targeting agreements with the Philippines, Malaysia, South Korea and Japan.
Carney will attend the Association of Southeast Asian Nations summit in Kuala Lumpur, visit Singapore for meetings and attend the Asia-Pacific Economic Cooperation summit in South Korea.
While Carney says he wants to diversify exports over the next decade, Canada still relies on the US for about 75% of its exported goods.
Fen Hampson, a professor of international affairs at Carleton University, said there were far greater business opportunities for Canada in Asia than in Europe.
“The economies in Southeast Asia are much more dynamic and compatible with Canada in terms of energy and commodities trade,” Hampson said.
He noted, however, that any deals Canada pursues with China will inevitably be coloured by geopolitical dynamics between the US and China.
Relations between Canada and China worsened during the premiership of Carney’s predecessor, Justin Trudeau.
Canadian citizens were detained, and security authorities concluded that China interfered in at least two federal elections.
Analysts say Carney’s credentials as a former central banker and international experience give him credibility that his predecessor lacked.
Carney said last month he expected to meet senior Chinese leadership soon to “see where the trade relationship evolves.”
“Whatever deals there are, what will be just as important is how Carney comports himself with Xi Jinping,” said Isaac Stone Fish, CEO of Strategy Risks, a business intelligence firm specialising in China.
“Appearing to literally bow to Xi will look weak, and Carney certainly knows the importance.”
