Canada and China

Canada’s negotiating position in China

BNN interviews Colin Robertson on what can be accomplished during Trudeau’s first official visit to China.

http://www.bnn.ca/video/canada-s-negotiating-position-in-china~941042

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Justin Trudeau goes to China

Trudeau visits China: 6 things to watch

Prime minister leaves today for his first official visit to Beijing

By Susan Lunn, CBC News Posted: Aug 29, 2016 5:00 AM ETLast Updated: Aug 29, 2016 12:48 PM ET

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Trudeau departs for China and G20 1:20

As Prime Minister Justin Trudeau departs for his first official visit to China, Canada’s second-largest trading partner, here are six things to watch.

How warm a welcome?

When Stephen Harper first went to China in 2009, the prime minister received a frosty reception and was famously chastised by Chinese Premier Wen Jiabao for not visiting sooner.

And that was when journalists were still in the room.

A senior official quipped afterwards that the reception was so frosty, icicles nearly formed on the mirrors in the room at the Great Hall of the People.

Trudeau has been critical of the Harper government’s handling of the relationship.

“Over the past government’s mandate, unfortunately, relationships with China were somewhat inconstant. They went from hot to cold depending on the issue, depending on the day, it seemed,” Trudeau said Monday.

TRUDEAU CHINA TRIP 1973

Chinese Premier Zhou Enlai toasts Prime Minister Pierre Trudeau during a banquet held at the Great Hall of the People in Beijing on Oct. 11, 1973. (Peter Bregg/Canadian Press)

By all accounts, Trudeau should receive a much different welcome.

“The name Trudeau is almost as good as being [revered Canadian doctor Norman] Bethune, because it was, after all, Pierre Trudeau who took the step to recognize China in 1971,” said former diplomat Colin Robertson, who at one point was posted in Hong Kong.

Robertson noted Justin Trudeau and Chinese President Xi Jinping also have something in common: they are both sons of famous fathers.

“So he starts off well past first base, whereas Stephen Harper was still working his way to first base even when he got there.”

Progress on a free trade deal?

As Canada’s biggest trading partner behind the United States, China would like a free trade agreement with Canada.

The previous Conservative government produced studies on the idea that were positive, but not much has been done since.

What will Canada agree to during this visit? Exploratory talks? Or more study?

Robertson said he doesn’t think the Trudeau government has decided yet, and that could be a problem as officials get ready to sit down with the Chinese.

“When you negotiate with the Chinese, despite the tea and buns, they are much more dragon than panda.”

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Prime Minister Justin Trudeau says he wants to set “a very clear and constructive relationship with China.” (Justin Tang/Canadian Press)

Canadian investment in Asian infrastructure

Beyond free trade, China would also like Canada to invest in its $100-billion Asian Infrastructure Investment Bank.

The AIIB was created to support the development of infrastructure in China. Countries that invest in the bank give their country’s firms preferential access to projects funded by the AIIB.

Canadian firms are keen to get a piece of this business and are hoping Trudeau will send a positive signal during this visit, said former Conservative cabinet minister Stockwell Day, now a vice-president with the Canada-China Business Council.

“I think there’s a huge opportunity for Canadian firms; large firms, mid-size firms. We’re very well acquainted with issues related to developing infrastructure in cold weather and in extreme climates. We’ve got so much to offer there,” Day said.

David Mulroney, Canada’s former ambassador to China, disagrees.

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David Mulroney, Canada’s former ambassador to China. (Pawel Dwulit/Canadian Press)

“I actually think we made the right decision in not joining,” said Mulroney, who’s now president of the University of St. Michael’s College in Toronto. “China is, in my view, far from ready for hosting a major multilateral financial institution.

“As they were announcing the launch of the bank they were shutting down the website for Reuters, which is one of the premier financial media outlets in the world.”

Asked about potential investment in the bank, senior Canadian government officials would only say, “We will have more to say on the trip.”

Human rights and global security

Trudeau has promised to balance economic interests with human rights.

“What we want to do is set a very clear and constructive relationship with China that yes, looks at the potential economic benefits of better trade relationships, while at the same time ensuring that our voice is heard clearly on issues of human rights, of labour rights, of democracy, environmental stewardship,” Trudeau said.

He will get a chance to raise thorny issues like human rights, canola exports and the espionage case of Canadian Kevin Garratt when he meets with the Chinese premier and president Wednesday in Beijing.

Garratt family

Kevin and Julia Dawn Garratt, flanked by their son Peter and daughter Hannah, were detained in August 2014 near the border with North Korea. They were accused of stealing Chinese military secrets. Julia Garratt was released on bail on Feb. 5, 2015. (Simeon Garratt)

Day accompanied Harper on two of his visits to China, and he has no doubt Trudeau will raise these issues as well, in the appropriate way, behind closed doors.

“You can make headway sitting down around a table, eyeball to eyeball, and without trying to make political points,” Day told CBC.

Mulroney adds the Chinese are very used to foreign leaders raising these issues.

“You want to address it in a non-confrontational way because you want the conversation to continue. And you want to nudge and move the Chinese system into a direction that’s going to be helpful for Canada,” he said.

Canada and the G20

China has promised to ratify the Paris Accord to fight climate change in advance of the G20 summit in Hangzhou, which begins Sept. 4.

There are media reports the U.S. will also sign, with China, two days before the international summit.

Canada has promised to ratify the accord by the end of the year. There have been no such reports it plans to do so in China.

Canadian officials are also expected to talk with European delegations about the Canada-EU free trade deal.

Reasonable expectations

The general advice for Trudeau seems to be to not rush into anything with China, but rather to focus on building a long-term relationship.

Day said both parties have an “assured sense” they’ll be dealing with each other for at least the next several years, “so it gives some opportunity to build some types of relationships and decision-making that can have long-term effects and prosperity for Canadians.”

How Trudeau’s visit to China could help the case of a Canadian jailed for spying
Head By Andrew Russell National Online Reporter Global News

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WATCH ABOVE: Justin Trudeau hopes to reset relations with China on 1st official visit
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As Prime Minister Justin Trudeau heads to China on his first official visit, two issues that could be on the agenda as he meets with Chinese president Xi Jinping are human rights and the case of Canadian Kevin Garratt who has been charged with espionage.

Ahead of the official visit, Trudeau said his government would balance strengthening business ties between the two countries with concerns over human rights issues in China.

“What we want to do is set a very clear and constructive relationship with China that yes, looks at the potential economic benefits of better trade relationships, while at the same time ensuring that our voice is heard clearly on issues of human rights, of labour rights, of democracy, environmental stewardship,” Trudeau told reporters last week in Sudbury, Ont.

READ MORE: Justin Trudeau hopes to reset relations with China on 1st official visit

The Chinese regime has been accused of targeting activists and dissidents, persecuting people for religious beliefs, and using torture. But China’s ambassador to Canada, Luo Zhaohui, made an attempt to quell fears of his government’s troubled human rights record ahead of Trudeau’s trip.

WATCH: PM Trudeau heads to China to talk trade, human rights. Shirlee Engel reports

“You say you’re concerned about human rights issues? I think this is understandable,” Luo told the Canadian Press. “Every country has their own problems with human rights issues. No country thinks that their human rights situation is perfect.

“(In) China, we’ve got a long way to go to improve the human rights situation, but at the same time we have also made a lot of progress in the past many years.”

READ MORE: Chinese official angered by question from Canadian journalist

Who is Kevin Garratt?

Trudeau will also get the chance to speak with Chinese officials about the case of Kevin Garratt – a Canadian man who was charged with spying and stealing Chinese state secrets. Garratt and his wife Julia — who have lived in China for 30 years — were arrested in August 2014 by the state security bureau. Julia Garratt was released on bail in February 2015.

Their son Simeon Garratt, who lives in Vancouver, has previously denied his parents were involved in any wrongdoing.

Former Canadian ambassadors who spoke with Global News said Trudeau could send a strong message just by raising the issue when he sits down with Jingping on Wednesday.

“Just by raising the arrest of Mr. Garratt he flags to the Chinese authorities that this is something the Canadian government puts some priority on. That alone sends the message.” said Colin Robertson, a former diplomat and vice-president with the Canadian Global Affairs Institute.

Gar Pardy, the former head of Canada’s consular services, said in rare cases China has been known to release prisoners based on high-profile representation. Garratt’s case was also raised by the former Conservative government.

Pardy said releasing Garratt would be an “easy” gesture for Chinese officials looking to improving the relationship between the two countries.

“Whether or not they will do it no one can hazard any sort of a definite answer,” Pardy said.

Robertson added that Trudeau will be closely watched by the press on the issues following a visit in Juned from China’s Foreign Minister Wang Yi.

WATCH: China’s Minister of Foreign Affairs blasts Canadian journalist over human rights question

Tension over China’s jailing of the Garratt’s boiled over after Minister Yi publicly berated a Canadian journalist for asking about the case.

“Your question is full of prejudice against China and arrogance … I don’t know where that comes from. This is totally unacceptable,” Minister Yi said through a translator at a joint news conference with Foreign Affairs Minister Stephane Dion.

Dion, who was sharply criticized for staying silent during the incident, has said that both he and Trudeau raised Garratt’s case with Wang and discussed human rights.

China admits human rights concern ahead of Trudeau visit
China admits human rights concern ahead of Trudeau visit

Canadian prime minister aims to strengthen economic ties with China

World Bulletin / News Desk

Prime Minister Justin Trudeau left on Monday for his first official visit to China, in a bid to better relations between the two countries.

But one sticking point has already been addressed – that of human rights.

“[In] China, we’ve got a long way to go to improve the human rights situation, but at the same time we also made a lot of progress in the past many years,” Chinese ambassador Luo Zhaohui told the Canadian Press wire service in an interview prior to Trudeau’s trip.

The admission could be considered a preemptive strike to ease tensions since Canada has chastised China on its human rights issues many times in the past. Trudeau had promised to revisit the issue during his week-long visit.

But better economic ties between the two countries is the major objective, Canadian media reported.

Next to the United States, China is Canada’s largest trading partner and China would like to negotiate a free-trade agreement with Canada.

It is not always easy to broker deals with China, according to former Canadian diplomat Colin Robertson, who was at one time was posted to China.

“When you negotiate with the Chinese, despite the tea and buns, they are much more dragon than panda,” he told the Canadian Broadcasting Corporation, Canada’s state media.

Relations between the two countries was frosty when Stephen Harper was Canada’s prime minister. Trudeau’s Liberals took over government after winning election in the fall of 2015.

“Over the past government’s mandate, unfortunately, relations with China were somewhat inconstant,” Trudeau told reporters Monday. “They went from hot to cold, depending on the issue, depending on the day, it seemed.”

But Robertson said Trudeau has a better chance of reaching deals with China because the prime minister’s father, who is also a former prime minister of Canada, was one of the first Western leaders to recognize communist China in 1971.

Economics again is slated to dominate the visit.

China also wants Canada to invest in its Asian Infrastructure Investment Bank to the tune of CAN$100 billion.

China is more likely to look favorable on countries that have invested in the bank when it comes to awarding contracts for various projects within China and Canadian businesses are eager for a piece of that, according to the CBC.

On Sunday the G20 Summit in Hangzhou convenes and Trudeau’s stated goal of improving economic ties with China will have a chance to strengthen – leaders are expected to discuss ways to advance global economic co-operation and development, the Globe and Mail, Canada’s largest newspaper, reported.

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Trump, Clinton and Canadian Trade

 

What Canada needs to do as Trump, Clinton talk trade

Colin Robertson The Globe and Mail Tuesday, Aug. 16, 2016.

Even when we are not the target, Canada is often collaterally damaged by U.S. trade action. In preparing for the next U.S. administration, our federal and provincial governments should be recalibrating their own economic policies.

The Trudeau government is mapping out the various scenarios depending on the election outcome. We need to closely examine the areas for collaboration and conflict in the policy platforms of Donald Trump and Hillary Clinton. Our place in continental supply chains should benefit from the reinvigoration of U.S. manufacturing promised by both candidates. Adoption of the Trump corporate tax rates would oblige us to re-examine our own regime. There is more opportunity in the Clinton plan for collaboration in green energy, research, and infrastructure projects.

Meanwhile Ambassador David MacNaughton and our U.S. envoys are reaching out to Americans to stress the value of the relationship to Canada, especially in terms of jobs and investment. This exercise should be co-ordinated with the provinces and business.

But we need to do more.

It should start with a doubling-down on trade liberalization at home and abroad.

Our sesquicentennial present to ourselves should be to finally tear down interprovincial trade barriers. The premiers made progress at their recent Whitehorse meeting, but they now need to deliver on their promised Canadian free-trade agreement.

A recent Senate report estimates the annual cost of interprovincial trade barriers is $130-billion. Last month, Quebec, Ontario and British Columbia agreed to co-ordinate online wine sales, but as the Senate report observed, it’s only a modest step. The top 10 barriers cited by the Senate, which include trucking, food (notably cheese, wine and beer) and varying standards, should be the starting point for provincial action.

Internationally, we need to ratify the Canada-Europe trade agreement (CETA) as soon as possible and then launch an ambitious trade promotion exercise, led by the Prime Minister and premiers, to take advantage of the deal. Our European missions should already be identifying the trade opportunities of an agreement and, working with the provinces and business, matching the new opportunities against Canadian products and services.

A Canada-China free-trade agreement is in the cards. We should approach this carefully. What lessons can we learn, for example, from the experience of the New Zealand and Australian free-trade agreements with China?

Better prospects are closer economic ties starting with Japan and Mexico, and they should be top of our list if Ottawa or the U.S. Congress fails to pass the Trans-Pacific Partnership (TPP) trade agreement.

We can resume the economic partnership negotiations with Japan. And we should be working more closely with Mexico in our continuing advocacy efforts, reminding Americans why our continental economic partnership creates jobs and growth for all of us. Mexican ministers are regularly visiting U.S. states to point out the jobs created by trade with Mexico. We should do the same.

Through the TPP we have already effectively negotiated trade agreements with many ASEAN and Pacific Alliance nations. We should quickly turn these into regional agreements. There are continuing economic partnership negotiations with India. While difficult and frustrating, we need to keep plugging away.

Of the Trudeau Government’s many policy reviews, the recommendations of the Barton committee on Economic Growth could potentially shape our economic future in a fashion similar to the Macdonald Commission on Economic Union. Their policy deliberations should include advice on:

getting the most out of trade liberalization, especially in ensuring that the negotiated trade policy gains become realizable results for business. Can we do more with the Export Development Corporation and Canadian Commercial Corporation?;
managing foreign investment to our advantage, including its place in our planned big infrastructure transportation projects designed to get our goods to market;
in developing global champions in our oil and gas, mining and agri-food sectors, what kinds of incentives and performance measures will work?;
how to more closely align and co-ordinate government-funded research and its practical application? Genome Canada is an effective model;
how higher education can better contribute to skills and training. Shouldn’t we be revaluing our community colleges and putting higher public value on the dignity of our trades?

Both levels of government need to better explain how trade liberalization policies benefit Canadians. They also need to help those affected by change. Governments no longer get a free pass on trust.

The U.S. will always be our main market and our principal trade partner. Our broad economic policy approaches, of necessity, are often complementary, but not the same. And when the U.S. takes a wrong turn, we should not panic, but improve our own game.

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China Trade Talks

 

In trade talks with China, Canada must have a negotiating position

COLIN ROBERTSON The Globe and Mail Wednesday, Aug. 03, 2016

With Prime Minister Justin Trudeau’s official visit to China a month away, Canadian policy toward the Middle Kingdom is under review. Closer relations will serve Canadian interests, mindful that when dealing with China, the game is long and often tortuous.

The Chinese want a free-trade deal and their objectives are clear: improved access to our energy and agri-food resources and a more relaxed regime for Chinese investment, especially state-owned enterprises.

But what are our objectives?

Recent studies – notably those by Wendy Dobson and Paul Evans, and Laura Dawson and Dan Ciuriak – point out the potential benefits of a free-trade agreement (FTA), and the Canadian business community has been mostly encouraging.

But now we need negotiating positions.

The Harper government’s complementarities studies are now four years old and there is little evidence the Track II dialogue around a maritime energy corridor made any progress. The Trudeau government ruminates about joining the China-inspired Asian Infrastructure Investment Bank but shouldn’t this fit into our larger strategy?

A good starting position should be the recently negotiated Trans-Pacific Partnership and the standards it sets for investment, intellectual property and services, as well as environment and labour.

Launching an FTA with China will startle American policymakers who take for granted the Canadian energy that underwrites their “energy independence.” Getting more of our oil and gas to Pacific tidewater will get us a better price as well as leverage in dealing with resurgent American protectionism.

Talks with China should encourage Japan to resume the nascent Canada-Japan economic partnership negotiations, set aside in favour of the Trans-Pacific Partnership. The TPP is now at risk of becoming a victim to U.S. protectionism.

The Chinese are tough negotiators. As a rising great power they confidently believe they hold the upper hand. They are skilled in playing off Western impatience. For China a tentative “deal” is often just the starting point for serious negotiations.

The Chinese are also masters at “hardball.” The recent public dressing-down of a Canadian journalist, by Chinese Foreign Minister Wang Yi, for her “prejudice” and “arrogance,” is right out of the Chinese playbook on forcing “foreign devils” to kowtow to them. During his 2009 visit to Beijing, Prime Minister Stephen Harper had to endure the public scolding of Premier Wen Jiabao for taking too long to visit China.

Recent Chinese behaviour – that of their Foreign Minister as well as their rejection of the recent international tribunal ruling on the South China Sea – deserves a response.

Prime Minister Trudeau can underline his credentials as a G7/20 leader by speaking before a Chinese audience to the responsibilities of all nations, including China, to the rules, norms and institutions of the liberal international order. Foreign Minister Stéphane Dion, blindsided by Wang Yi in Ottawa, should speak to Chinese students about human rights, press freedom and the rule of law.

Tougher, necessary and behind-closed-doors conversations should also be held around ongoing Chinese cyberespionage and cybertheft aimed at our institutions and on efforts to influence our elected officials. There should be a discussion of Hong Kong as well as the consular case of Kevin Garratt, the Canadian missionary indicted by China for espionage.

Much easier will be the discussions around enhancing our people-to-people ties.

The Harper government achieved “approved destination status” for Chinese travellers. They are now our third-largest tourist source. There are more than 100,000 Chinese students in Canada. Representing one-third of our foreign students, they inject over $2-billion annually into our economy. Recent Chinese immigration has also increased their numbers to over 500,000, the second-largest foreign-born group in Canada. These ever-expanding family ties are an advantage, especially given the overseas Chinese business networks.

Pierre Trudeau once remarked that “Canada has a ringside seat on the Pacific.” But our engagement has been episodic and lacking in sustained strategic direction. We were late, often reluctant, participants in the Trans-Pacific Partnership. Our investment in regional security is minimal. The people flow requires more effective marketing. It’s time to get into the ring, and China is the place to start.

In negotiating with China the Trudeau government needs to be disciplined, focused and patient. Nor should we ever forget that as negotiators the Chinese are more dragon than panda.

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