CANADIAN ENERGY PUSH IN ASIA
Energy, agriculture and critical minerals are central to Canada’s diversification strategy in the region, said Sidhu.
“Here in Asia, energy plays a key role in that (strategy). We’re an energy superpower. We have the resources that the region needs,” he added.
Canada is the world’s fifth-largest producer of natural gas and fourth-largest exporter, though most exports have historically gone to the US.
Last June, Canada shipped its first liquefied natural gas (LNG) cargo to Asia, giving its producers direct access to energy-hungry Asian markets for the first time.
With five LNG projects in various stages of development, Ottawa sees strong potential demand from countries such as India, where energy needs are projected to rise sharply.
“India needs 70 per cent more energy by 2040 and Canada has that energy,” Sidhu said.
Beyond fossil fuels, Canada is also pitching nuclear technology to Southeast Asia.
Ottawa has invested US$2 billion in developing small modular reactors (SMRs), which it expects to become the first commercialised reactors of their kind by a Group of Seven (G7) country.
“Especially with the Philippines and Indonesia, they’ve got thousands of islands that need power. We’ve got SMR technology in Canada. And we have a steady supply of uranium,” Sidhu said.
CRITICAL MINERALS & JAPAN
Japan is another priority partner as Tokyo ramps up defence capabilities, boosts advanced manufacturing and seeks to revive its semiconductor industry – all of which require secure supplies of critical minerals.
Sidhu said Ottawa is ready to work with Japan’s new government led by Prime Minister Sanae Takaichi, who won a strong mandate in a snap election on Sunday.
“Canada (can) play a key role as we’re resource-rich,” he added. “(Our) conversation with Japan is around getting reliable critical mineral supply chains … (and also) mining, defence, agriculture and energy, including LNG.”
MANAGING TIES WITH CHINA
Even as Canada works to reduce reliance on the US, it is also navigating its relationship with China, its second-largest trading partner.
During Carney’s visit to Beijing last month, Canadian officials struck deals to lower tariffs on US$7 billion worth of Canadian agricultural goods.
Sidhu, who accompanied Carney, added that discussions also covered energy, tourism, investment, aerospace and consumer goods.
“We’re going in with eyes wide open, with a practical approach to continue engagement with China in a pragmatic way,” he said.
ASEAN TIES
Canada is also leaning on its extensive trade network to reinforce its middle-power credentials. The country has 15 free trade agreements covering 51 countries, giving it access to around 1.5 billion consumers and about 60 per cent of global gross domestic product (GDP).
Vietnam, this year’s chair of one such pact – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will be a key stop for Sidhu. He said discussions will focus on strengthening the agreement and exploring ways to bridge it with the European Union.
Canada also wants to push for completion of negotiations on a free trade agreement with the Association of Southeast Asian Nations (ASEAN) this year, Sidhu said.
He added: “ASEAN is a cornerstone of Canada’s Indo-Pacific trade strategy and one of the fastest-growing economic regions in the world.”
As global trade becomes more fragmented, Sidhu said it is important to “make sure that rules-based trade works” and that Canada intends to play its role as a “reliable, stable partner (that) will continue to be active in the region”.
https://www.channelnewsasia.com/asia/canada-maninder-sidhu-trade-minister-interview-diversification-reliable-middle-power-5922811
