By strengthening ties with Asia, Canada would secure economic resilience and enhance its diplomatic leverage, navigating the shift to a multipolar order. (Credit: Jason Payne\/ PNG) <\/p>\n
By Daniel Araya<\/p>\n
Confronted by a perilous convergence of trade shock, underinvestment and population churn, the Canadian economy<\/a> is now facing enormous headwinds. The Organization for Economic Co-operation and Development<\/a> forecasts a very gloomy future for Canada, with little or no economic growth on the horizon. Navigating this new reality will require careful planning.<\/p>\n The challenges facing the Canadian economy are about more than recent trade disputes with the United States; they are about a changing geopolitical order. Given the abundance of opportunities found outside North America, it\u2019s time for Canadians to prioritize trade with Asia. Diversifying toward Asia is not only prudent, it is necessary for Canada to realize its economic potential.<\/p>\n For much of our country\u2019s history, Canadian prosperity has been tethered to the economic development of the U.S. Currently, three-quarters of Canadian exports flow south of the border. However, Washington\u2019s embrace of protectionism and restrictive trade measures has exposed Canada\u2019s unique economic and political vulnerability.<\/p>\n Indeed, even as America\u2019s electorate favours isolationism and the country\u2019s global primacy wanes, Canada risks becoming hostage to American decline. Diversifying trade, especially trade with growing markets in Asia, is critical to strengthening Canada\u2019s economic resilience.<\/p>\n For Canada \u2014 a trading nation \u2014 deeper engagement with Asia offers enormous opportunities.<\/p>\n In agriculture, Canadian wheat, canola and pulses already enjoy a strong reputation across Asia. In energy, Asian demand for liquefied natural gas<\/a> (LNG) is surging as countries transition away from coal. And in technology, Asian states are becoming the world\u2019s largest markets for investments in artificial intelligence<\/a> (AI), quantum computing, clean energy and robotics. Canada\u2019s reputation as a technology leader is an asset that could translate into strategic opportunities.<\/p>\n The truth is that policy action on trade with Asia is long overdue. By strengthening ties with Asia, Canada would secure economic resilience and enhance its diplomatic leverage, navigating the shift to a multipolar order. Most importantly, by engaging more deeply with Asia, Canadian industries would have the exposure they need to grow in markets that North America and Europe simply can no longer match.<\/p>\n