Asia trip an eye-opener for mayor
With millions of middle-class consumers, China offers amazing markets for food products and other value-added exports.
But Canadian companies have been slow to respond, says Mayor Chris Spearman.
“With a population of over one billion, they have a population of about 400 million who have middle class or higher income status,” he told reporters, after returning from a trade mission to China and Japan.
“There is a significant amount of wealth.”
Those 400 million outnumber the population of the U.S., the mayor noted — and the middle class is growing and buying.
“Everywhere you go in China, you see Australian beef in the restaurants. Australia is there — they have a relationship with China,” including a free-trade agreement.
But China’s trade officials are looking for more suppliers. Spearman says one official asked him why Canada hasn’t negotiated a trade agreement as well.
While Japan was anxious to see the Trans-Pacific Partnership proceed, Spearman reports, Chinese officials are just as ready to reach bilateral agreements. Now, with President Trump vowing to scrap U.S. participation, the initiative may collapse and Japan may remain a difficult market for Canadian exporters.
Historically, “Japan has been very resistant to free trade.”
But not China. If the Trans-Pacific plan dies, “That gives an advantage to the Chinese.”
They need to import more food products, Spearman points out, because millions have left the nation’s farming areas to earn more in the big cities. They’re buying cars and looking for higher-quality food.
“They have dollars to spend and to this point, Canadian companies are not participating to the extent they could in the Chinese market.”
Visitors are surprised by the number of luxury cars seen in China’s cities, Spearman adds. Even more surprising, the American ones are hit with a 100 per cent import duty, while licence plates cost Chinese drivers about $20,000.
“The pace of progress in China is outstanding,” he says. “You see construction everywhere.”
Spearman says the trip — taken as part of his council travel budget (in 2016, the mayor’s alloted travel budget was $28,500 including per diem, and Spearman was less than that) — proved to be “an eye-opener in terms of the way the people do business, to see the more traditional Chinese government administration and their free enterprise approach to business is an interesting combination.
“China has come a long way in 38 years, from a closed market to one that is very open. It’s amazing what they’ve accomplished in a short period of time.”
All told, Spearman says, “It was a very positive trip. We learned a lot about trade, we learned a lot about politics.”
And Lethbridge visitors made “fantastic contacts in both countries.”
A more detailed report will be prepared for an upcoming city council meeting, the mayor says. Follow @DMabellHerald on Twitter With files from Melissa Villeneuve