Canada and China's Strange New Deal

~Cynthia Dawn Roy

 

A great new deal is being signed between Canada and China’s economies. It’s a deal that’s been in the works for 18 years and in February the negotiations were finally wrapped up. Hu Jintao and Steven Harper finally signed the deal September 8 in Vladivostok, Russia.

                For some reason, this pact is now getting criticized by Canadian journalists and investment experts in such a way that wasn’t seen months ago while negotiations were underway. What people are most concerned about is the lack of attention is business pact is getting. This deal has not been debated in the House of Commons and only an hour of committee time has been devoted to its steady. Lawrence Martin commented in the Globe and Mail “Our role is to accept it on faith – to take the government’s word for it.” That’s the sort of mindset Chinese citizens are expected to take … not Canadians.

An investment deal with China and Canada is important and actually necessary. China is rising in power every year and Canada needs to step up and take hold of China’s gains. Canada has raw materials and energy China needs so badly. This deal will give Canadian investors rights and protections they didn’t have before and Canadian firms in China will be treated with more respect.

This agreement may become just as significant as the NAFTA agreement was for Canada, except that NAFTA may be dropped within six-months’ notice. The China deal is locked in for at least 15 years. So why is nobody talking about it?

Canada is eager to create positive relationships with such a powerful state, but Harper’s eagerness is now being carefully watched by economic analysts, who think that Harper may be sacrificing too much to create this positive impression. Critics claim this deal is not reciprocal. This deal may leave Canada vulnerable to the “vagaries of the Chinese system,” as Michael Den Tandt puts it. Canadian investors in China are required to use local suppliers and labour, but Chinese investments in Canada don’t have the same requirements. Clauses like this make Canadian critics uncomfortable, especially since no one wants to talk about this pact.