Gantry cranes stand near shipping containers at Yangshan Port outside of Shanghai, China.Go Nakamura/Reuters
Gary Comerford is president and chief executive officer of CMC Global. Dominic Scott is an executive with 33 years of Indo-Pacific experience with Cisco Systems and the Canadian foreign service. Both are practitioner instructors in Simon Fraser University’s new LINC Asia Micro-Credential program.
The numbers tell a stark story. Asia now accounts for more than 50 per cent of global GDP and hosts most of the world’s middle class. Yet more than 70 per cent of Canada’s trade and half our foreign investment remain concentrated in the United States. This overwhelming dependence has left us dangerously unprepared for the economic transformation reshaping the global landscape. Prime Minister Mark Carney has recognized the need for diversification from the U.S., and we believe Asia will be critical to Canada’s future success.
As practitioners, we witnessed firsthand the importance of patience, persistence and preparation in doing business in Asia. During Gary’s years as general manager for India at Sun Life Financial and Dominic’s tenure leading Cisco’s Asia-Pacific government affairs, Canada continually missed opportunities. While Australian, European and U.S. companies were establishing deep relationships across Asian markets, too many Canadian businesses largely remained on the sidelines.
This isn’t about abandoning our traditional relationships – it’s about diversification and resilience. COVID-19 exposed the vulnerabilities of overreliance on single markets and supply chains. As geopolitical tensions reshape trade patterns, countries with diverse international relationships are better positioned to navigate uncertainty.
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The problem isn’t that Canadian businesses lack ambition or capability. But we’ve failed to systematically develop the institutional knowledge and cultural competencies necessary to succeed in complex Asian markets. Understanding regulatory landscapes in India, navigating business relationships in China, or recognizing innovation ecosystems across Southeast Asia requires specialized knowledge that most Canadian professionals don’t possess.
For example, New Zealand, with a population of just 5.3 million people and a GDP only 14 per cent the size of Canada’s, has managed to capture 46 per cent of China’s dairy import market, dwarfing Canada’s tiny presence there. New Zealand has done this by investing the time to really understand China’s unique requirements, including food safety protocols, regulatory frameworks and building long-term government relationships that span decades.
The irony is particularly stark when you consider that Canada, through our former aid program with China, provided the breeding stock – bulls and artificial insemination – that helped build China’s modern dairy industry. The Chinese have tremendous respect for Canadian dairy expertise, and without our supply management system constraining exports, Canada might have captured some or most of New Zealand’s market share. Instead, we helped create the industry and then watched as others profited.
This knowledge gap represents both our greatest vulnerability and opportunity. Asian markets are experiencing unprecedented growth in sectors where Canada has natural advantages: technology, financial services, clean energy and natural resources. But capturing these opportunities requires understanding procurement processes, regulatory functions, business-relationship building and cultural subtleties that make or break deals.
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We have major Canadian companies such as Teck Resources TECK-B-T, Manulife MFC-T, McCain Foods, Brookfield BAM-T, Fairfax FFH-T and many others who have been overwhelmingly successful in Asia, but this is not enough. We must multiply this success tenfold and use their experience as a catalyst to realize our real potential.
Success in Asian markets demands patience and perseverance that many Canadian companies lack. Building meaningful relationships and establishing trust can take years, not quarters. It’s far easier to default to familiar U.S. markets where business culture aligns with our own, but this comfort-zone thinking is precisely what has left Canada behind.
While we debate and delay, our direct competitors like Australia are deepening their Asian relationships and capturing market share that may be difficult for Canada to regain. Australia has made Indo-Pacific engagement a national priority for decades, giving them a competitive edge over Canada in these markets. Australia has established long-term contracts that have positioned it as the largest LNG exporter to Asia, while Canada is only now just starting its first LNG shipments to the region.
Australia’s biggest export to India is coal, making it India’s largest coal supplier and creating a strategic energy partnership that enhances Australia’s geopolitical importance in the region. This deep energy relationship means India pays more attention to Australia and provides Australian government officials with greater access – a stark contrast to Canada’s current strained diplomatic relationship with India, which has significantly limited our access and opportunities.
Canada has natural advantages: our multicultural society, reputation for quality and reliability, expertise in technology and natural resources and stable institutions. In Asia, there’s respect for our governance standards and support for the rules-based international order. But advantages mean nothing without the expertise to leverage them effectively.