Canada sets sights on Asia

The CEO of Export Development Canada (EDC) has called for Canada to aggressively increase exports and investments in emerging Asian economies.

The ECA’s chief executive officer, Eric Siegel, also adds: “A quick comparison of projected growth rates for the next two years makes it obvious that we can no longer depend on our traditional markets. What projections are telling us is that if Canada is to exceed expectations, which currently put us in line with US growth rates, we have to put our energy and resources into the areas that will give us the biggest return. I am convinced that means Asia.”

Siegel also comments that the country’s trade and investment patters are heavily skewed towards their US neighbour and that the ratio of total trade to the size of the economy is slipping.

In a fiery speech given at an event to celebrate the launch of the Asia Pacific Foundation of Canada’s latest survey, Siegel adds: “Canada cannot afford to waste one minute in turning those numbers around. We need to do better. Trade is the life-blood of the Canadian economy; one in three jobs in the country depends on it.”

However, Siegel did highlight ways in which EDC is adapting to help Canadian businesses to succeed in the evolving trade environment: “The reality of integrative trade means we need to look differently at exports. Gone are the days when companies located abroad only as a means to access foreign markets without having to pay tariffs. Companies are positioning their operations where it makes the most business sense.

“For EDC, this evolution means looking beyond exports, to investment opportunities that open doors for us to develop investment partnerships and facilitate the entry of Canadian companies into these markets.”

Siegel also mused on just how far the trend in trade has shifted: “A few years ago it was popular to talk about Asia decoupling from the rest of the world, particularly the US. But rather, what we are seeing is a rebalancing of Asia’s relationships with the western world. Far from decoupling from the developed world, Asia is becoming more integrated.”