FAIT Committee Report

CHAPTER II — THE PROBLEM DEFINED: A SHRINKING CANADIAN PRESENCE IN A REGION BRIMMING WITH OPPORTUNITY

Recommendation 1:

That in light of the tremendous economic opportunities in Asia-Pacific, as well as the importance of trade growth to maintaining Canada’s standard of living, the federal government make the expansion of economic ties with Asia-Pacific its number one policy priority for increased trade and investment with countries outside of the NAFTA area.

Recommendation 2:

That, although it has already identified China, Japan and India as its priority markets in Asia-Pacific, the Canadian government ensure that opportunities to improve economic ties with other countries in the region are not missed. These opportunities are particularly evident in South Korea and the leading members of the ASEAN community — Thailand, Singapore and Malaysia — among others.

Recommendation 3:

That when working to enhance trade and investment ties with Asia-Pacific, the federal government not only focus on encouraging Canadian exports and outbound investment, but also look for ways to attract more foreign direct investment into Canada from the region. In particular, more should be done to encourage investment from emerging economies.

Recommendation 4:

Because a sustained effort is needed in order to yield meaningful results, the federal government should not give Asia-Pacific intermittent attention as in the past, but commit itself to a long-term strategy for expanding trade and investment with the region.

CHAPTER III — TOWARDS A NEW ASIA-PACIFIC POLICY FOR CANADA

Recommendation 5:

That the Government of Canada negotiate with Japan, and any other country where one is needed, a Social Security Agreement that eliminates the need for companies to contribute to social security programs in both countries when benefits can only be collected in one.

Recommendation 6:

That the federal government seek out and negotiate free trade agreements on an ongoing basis with any countries with which Canada shares a free trade vision and respect for human rights. Steps should be taken to ensure that the government has a sufficient number of well-trained negotiators to carry out this mandate.

Recommendation 7:

That Canada adopt a trade negotiating strategy in which parliamentarians play a more active role. Parliamentarians should be consulted when the basic framework of the Canadian position in future trade negotiations is determined. Officials in charge of negotiations would be bound to stay within this broad framework and through the process of negotiations would provide regular updates on progress and challenges to interested and/or concerned parliamentarians or Parliamentary Committees. Finally, and beginning with the Canada-Singapore free trade negotiations, parliamentarians should be consulted before any tentative agreement is signed.

Recommendation 8:

That, given the importance of trade and investment in stimulating economic growth, and the need for a stable legal and regulatory environment to attract investment, the Government of Canada provide increased support to least developed countries for trade-related technical, policy and legal reforms.

Recommendation 9:

That in cases where issues such as agriculture protection prevents a comprehensive free trade agreement from being negotiated, Canada should instead pursue alternative economic co-operation agreements that promote trade or pursue sectoral agreements within the WTO. Free trade in services is an example of such an agreement.

Recommendation 10:

That to demonstrate its commitment to improving economic ties, as well as to cultivate a closer working relationship with Asia-Pacific, the federal government significantly increase the number of visits to key markets in the region by ministers, parliamentarians and senior government officials. Furthermore, these official visits should be more consistent, strategic and focused on achieving specific policy objectives.

Recommendation 11:

That the federal government invite willing provinces to jointly develop a national strategy on international education to more aggressively promote Canada as a study destination for international students.

Recommendation 12:

That the federal government work with the provinces to develop a certification program for education institutions to protect Canada’s integrity and reputation and to prevent immigration scams and abuses.

Recommendation 13:

That, in an effort to more effectively promote Canadian education institutions in Asia-Pacific, as well as to improve linkages between Canadian alumni in the region, the Canadian government, in collaboration with the provinces and the institutions themselves, encourage the Canadian Education Centre Network to work closely with, and strengthen, Canadian alumni associations abroad. The necessary financial support to perform this function should be provided.

Recommendation 14:

That, without compromising the safety and security of Canadians, the federal government ensure that legitimate travel to Canada is not unnecessarily restricted.

Recommendation 15:

That the federal government examine ways to further remove impediments to establishing commercial air travel connections between Canada and key markets in Asia-Pacific.

Recommendation 16:

That when issuing travel advisories in Asia-Pacific, the Government of Canada distinguish between essential and non-essential travel. At the same time, given the large size of many countries in the region, advisories should be as specific to particular locations as possible without jeopardizing the safety of Canadians in the process.

Recommendation 17:

That, as part of a broader strategy to promote long-term trade and investment with Asia-Pacific, new programs that encourage personal exchanges with the region be explored and existing ones expanded. In particular, the Canadian government should consider expanding its Working Holiday Program to include more Asia-Pacific countries and to allow more Canadian youth to participate.

Recommendation 18:

That, the Government of Canada review the mandate of the Asia Pacific Foundation of Canada and ensure that through stable funding it is an effective tool in delivering the information and services that it provides. While conducting this review, the government should also review the effectiveness of other networks for business such as the Canadian Chamber of Commerce.

Recommendation 19:

That the federal government work in conjunction with other countries to harmonize statistical methodologies in the collection of international trade data.

Recommendation 20:

That, given the evidence that many Canadian companies are not sufficiently knowledgeable about the challenges of exporting and investing in Asia-Pacific markets, the Canadian government improve the effectiveness of its Team Canada Inc export-preparedness service. Specifically, it should determine if prospective exporters are aware of, and are using, this service, and whether or not it adequately prepares Canadian businesses for the challenges of exporting to overseas markets.

Recommendation 21:

That, in the interests of improving export-readiness and removing the obstacles to trade and investment in Asia-Pacific, the Government of Canada work with businesses that have demonstrated success in the region to establish criteria by which to evaluate the business plans and export-preparedness of Canadian SMEs looking to the Asia-Pacific market. Contingent upon meeting these criteria, SMEs would be provided with financial assistance to help offset the cost of travel to begin to put that plan into action.

Recommendation 22:

That the Canadian government, through the Trade Commissioner Services overseas, work with Canadian business associations operating in key Asia-Pacific markets to set up a mentorship program that would allow Canadian firms already established in those markets to share their knowledge and experience with new entrants in the region.

Recommendation 23:

That the federal government open three small business incubation facilities in Asia-Pacific — in Japan, Hong Kong and Singapore. These facilities would provide incoming Canadian small businesses with temporary use of office space and access to basic business services in order to ease their entry into the region.

Recommendation 24:

That, as part of a long-term strategy to build Canada’s economic relationship with Asia-Pacific, as well as to exhibit Canadian technology and expertise, the federal government more effectively
encourage Canadian small businesses to participate in trade shows and exhibitions in Asia-Pacific and provide increased financial assistance for SMEs to attend those events.

Recommendation 25:

That, to improve trade, investment and Canada’s image in Asia-Pacific, the Government of Canada encourage a significantly greater number of joint trade missions to the region involving the participation of businesses along with federal, provincial and/or territorial government leaders. Instead of broad-based delegations such as Team Canada missions, smaller missions focused on specific sectors should be favoured.

Recommendation 26:

That, in recognition of the critical role played by Canada’s Trade Commissioner Service in promoting international trade and investment, and the importance of trade and investment to Canada’s standard of living, the Canadian government substantially increase its funding of the Trade Commissioner Service in order to raise the number of trade officers operating abroad, particularly the number of sectoral specialists. The increase in resources should be concentrated in the Asia-Pacific region with the goal of Asia-Pacific accounting for 50% of all TCS expenditures abroad.

Recommendation 27:

That the Government of Canada extend the length of term of international postings for its trade officers to a period of five years.