Experts debate ‘economic diplomacy’
Should economics come before diplomacy, as is new government policy? Former ministers John Manley and Lloyd Axworthy weigh in with LEE BERTHIAUME.
The federal Conservative government says it is harnessing the entirety of Canada’s diplomatic power to advance the country’s trade interests.
The move, formally announced by Trade Minister Ed Fast Wednesday, is being billed as a historic shift in this country’s approach to the world, and it is already being applauded by some of the country’s largest business groups.
Others say the idea is riddled with problems.
Postmedia News talked to former industry minister John Manley, now head of the Canadian Council of Chief Executives and a member of the advisory panel that helped the government draw up the plan, and former foreign minister Lloyd Axworthy, now president of the University of Winnipeg, about the government’s new “economic diplomacy.”
JOHN MANLEY The government says it is harnessing all of Canada’s diplomatic assets to support the pursuit of commercial success by Canadian companies and investors. Do you agree with this approach?
“In some markets, what they’ve called economic diplomacy is vitally important and has a significant bearing on the success in gaining entry by Canadian firms. So in those markets it’s very important. It’s interesting to note called Hillary Clinton the best commerce secretary the United States ever had because she spent a lot of her time making the kinds of efforts that I hope the Canadian government will try to duplicate.”
Is Canada catching up to what other countries are doing?
“I think it’s formalizing something that many diplomats understood to be part of their responsibility already. And I think that underscoring is valuable and important. If you want to encourage certain outcomes, you need to incent the behaviour that produces it. So I’m assuming here that by making this statement, support for commercial activities will come into the evaluation process for ambassadors and high commissioners and others.”
Why is this important?
“We’re a relatively small country in population terms. And yet we’re now the 11th-largest economy in the world. You don’t have a small country with the 11th-largest economy without building it on the basis of a lot of trade. That’s how we pay the bills. So I think it’s vitally important.”
Does this endanger other noncommercial diplomatic activity?
“I don’t really think so. We put the department of international trade into foreign affairs in 1982 and it hasn’t exactly resulted in the collapse of Canadian diplomacy. … I don’t think this means much of the political work embassies do in bilateral or multilateral fora is going to be ignored. Canada’s brand, to the extent that countries have brands that rub off on their commercial interests, is very much a function of many of those efforts. So those have to continue. Our commercial interests are often advanced by those.”
What if a Canadian diplomat faces a choice between commercial success or some other interest like human rights?
“These things will have to be dealt with pragmatically and literally on a case-by-case basis. I don’t think there’s one size that fits all. … I don’t think this can be simplified down to a binary proposition where we’re either doing it for money or we’re doing it for some other greater good. I think that they’re totally intertwined.”
LLOYD AXWORTHY
The government says it is harnessing all of Canada’s diplomatic assets to support the pursuit of commercial success by Canadian companies and investors. Do you agree with this?
“No. I think that’s bad trade policy. The best way to enlarge your trade prospects and to develop a willingness for agreements and to improve economic exchange is to have a number of contacts to show other countries that you are a willing and cooperative player on matters of security, on matters of human rights and on matters of development. … A foreign policy is not a one-note tune.”
How will other countries react to this?
“I don’t think it will come as much of a surprise because I think a lot of other countries are already beginning to notice that Canadian foreign policy has shifted. … But to make such a bold, bald statement in your policy is kind of a surprise, and I think there will be some dismay because there are a lot of countries who have really counted over the years for Canada to be an effective player in promoting rules of law and promoting stronger development programs.”
Is giving Canadian diplomats extra direction and incentive to leverage their current and ongoing activities to bolster Canada’s economic prosperity an unworthy goal?
“Economic prosperity, not just for Canada but for the global system as a whole, is very worthy. It’s a question of how you achieve it. … What’s missing in this is a balance. I think any country needs to ensure that the multitude of issues you face in a very volatile international world will not be ignored.”
Do we shortchange our own economic prosperity by failing to leverage our brand and noncommercial activities?
“The best brand for Canada is to be a very effective international player. … If you’re simply knocking at the doors on a trade basis, you’ll get some access, but you won’t get the kind of reception that can be developed by a much more flexible and balanced and nuanced foreign policy. I think people get bored after a while listening to just one note.”
Canada and Canadian diplomats are presented with difficult choices every day in terms of balancing various interests, including commercial interests and human rights. How does a government balance these?
“When I received my mandate, it was primarily to provide for the security and protection of Canadians. And that can lead you to a number of other options and choices. But economic prosperity as a primary value for Canada is not, to me, one that should be given prominence over the others.”
THE PLAN
The Global Markets Action Plan is the second international trade policy unveiled by the federal Conservatives since coming to power in 2006. In addition to ordering Canadian diplomats to make trade promotion a top priority, it seeks to strengthen ties with a number of priority markets around the world and bolster Canada’s business advantage in a number of sectors. The top goal is to increase Canada’s small- and mediumsized company market presence in emerging markets from 29 to 50 per cent by 2018. It says doing so will create up to 10,000 new companies and create 40,000 new jobs.