As Canada faces a trade war with the US, it pivots to Asia for new partners, including Singapore

SINGAPORE: Mark Carney is currently on a trip to several Asian countries, his first as the Prime Minister of Canada. On his two-day leg in Singapore on Oct 28 and 29, he was hoping to attract investors to boost Canada’s beleaguered economy.

Stronger relationships in Asia will help Canada as it grows less dependent on the United States, with which ties have become more contentious since President Donald Trump started his second term this year.

Mr Carney met with Singapore Prime Minister Lawrence Wong on Tuesday (Oct 29).

PM Wong wrote in a Facebook post that he and the Canadian Premier “had candid discussions on global trends and how Singapore and Canada, as like-minded partners deeply committed to free trade and the multilateral order, can further strengthen our cooperation.”

He added that he particularly welcomes Canada’s interest in having a free trade agreement with the Association of Southeast Asian Nations (ASEAN), which had its 47th summit last weekend.

“I was also glad PM Carney had the chance to connect with companies here, exploring trade and investment opportunities that will benefit both Canadians and Singaporeans,” wrote PM Wong.

The Canadian media channel CTV News noted that part of Mr Carney’s aim on his Asian tour is to tout his nation as a dependable trading partner even as Canada endeavours to extend relations beyond the US, where 80 per cent of its exports currently go.

While the US and Canada have historically been close allies, this has changed dramatically since President Trump took office, much to the detriment of Canada’s economy.

According to an article published in the New York Times on Oct 28, Mr Carney is facing “a worsening economic picture at home. Plants were closing and jobs were being lost. Inflation was edging up, and there were signs that the country was sliding toward a recession.”

The Canadian Prime Minister has said that, within 10 years, his aim is to double exports from Canada to other countries, and the pivot to Asia is particularly important to this goal, the NYT piece added.

At present, ASEAN is Canada’s second-largest trading partner, although it only makes up 10 per cent of the country’s exports.

“This is a region of nearly 700 million consumers with a market worth over $5 trillion. Federal ministers are working hard securing deals and building relationships across Asia,” the Canadian Prime Minister told journalists at the ASEAN summit over the weekend.

Meanwhile, CTV news quoted Stéphanie Martel, a Canadian academic specialising in Southeast Asia, as saying, “Canada probably needs ASEAN way more than it needs us — and they know it, but I don’t think we necessarily do. They have much bigger fish to fry, so we need to actually make a strong and convincing case about (our) added value.” /TISG

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