Sunday, August 05, 2007

To Give Trade its Due(CSCB)

To Give Trade its Due(CSCB)

This article is extracted from the 31 July 2007 edition of “globeandmail.com”.

Trade officials have always been the second-class citizens of Canada's missions abroad…. That attitude is folly as Canada scrambles to forge new global trading links. So it is encouraging that Stephen Harper is upgrading or opening foreign offices in regions where Canada sees more trade potential or where its companies have mining and energy interests.

The decision, part of the Prime Minister's effort to put a Conservative stamp on the nation's foreign policy, comes at a good time, as Canadian companies diversify away from American markets. Although the value of Canada's merchandise exports to the United States did not shrink last year, in part because of energy exports, trade with other nations, especially in Western Europe and the Asia-Pacific region, is growing more rapidly. And a significant chunk of that new trade comes from resource exports.

In response, Canada's energy and resource firms are increasing their presence abroad. In Yemen, where the oil industry has significant interests, Canada has only an honorary consul. That diplomatic post is said to be in line for an upgrade; so is Mongolia, partly because Canadian companies have significant mining interests there but Canada has no trade officials….

The shuffle is significant, because Foreign Affairs is considering closing as many as 19 offices abroad as it deals with a budget cut this year of nearly $143-million. It recently eliminated two consulates in Japan and Italy. At the same time, in a strong signal of his priorities, Mr. Harper moved this month to deepen trade ties with Colombia and Chile. In the past two months, his government has forged foreign investment protection and promotion agreements with India and Jordan. Similar investment talks are under way with China, and free-trade talks are well advanced with South Korea.

Those initiatives are especially timely as the U.S. economy begins to stall….

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