Canada Markets

The phenomenal growth of Asian economies during recent times is nothing new. Consumers are well aware that many of their goods are produced in this region, while global exporters focus on the insatiable demand that arises from this region of the world and the impact this demand can have on global prices. Famous investors such as Jim Rogers and Warren Buffet have long had the Asian economy on their radar and have undoubtedly done well by it.

What I find interesting is a release of a white paper in Australia, just days ago, outlining plans for a national strategy to greet this "unstoppable" growth and playing a key role within this economy. The report, titled "Australia in the Asian Century", outlines 25 key objectives to be implemented by 2025 and provides direction for government, businesses and the general population on just how far Australia will go to position its country for this opportunity.

Focusing on the importance of this region to Australia, Prime Minister Gillard states "in this century, the region in which we live will become home to most of the world's middle class and be the world's largest producer of goods and services, and the largest consumer of them." Australia claims it's simply in the "right place, at the right time."

A few observations from the 25 objectives are:

-- Asian studies will be a key part of all school curriculums. Every child will have access to study at least one Asian language. Every school in Australia will partner with a school in Asia for cross-cultural learning opportunities. Universities will have a presence in Asia. Grants will be available for students to study in Asia.

-- Asian expertise will be required throughout government and corporations. The target is 1/3 of senior government officials and board members representing major public corporations have deep-rooted Asian experience.

-- Agriculture goals include increasing two-way investment for the production and processing of food, transportation and infrastructure needs. Integrating food supply chain policies and working towards more free trade of goods is also a goal. It is stated that almost all of the future growth in food demand will come from this region in the world. It's suggested that food demand will grow by 70% by 2050. Collaboration and exporting agricultural-related technology to improve food production across Asia will also become key.

-- More embassies and consulates will be opened and additional ambassadors will be placed within the Asian region.

-- The flow of goods, services, capital and people will be enhanced.

-- Increased collaboration and partnerships will be promoted in sports, the arts, between academics and business persons across the region. A goal exists to increase not only institutional ties but person-to-person ties.

This is a most interesting read and can be found at http://asiancentury.dpmc.gov.au/….

Whether Australia ever achieves its targets as outlined in this research, only time will tell. As a shipper of raw commodities, much like Canada, Australia deserves credit for being focused in its approach. The country not only have a plan, but is aiming to involve the entire population from school age on up, as this country knows where its future lies and the Australians are going for it.

Agriculture exports from Australia to Asian countries are growing and are suggested to continue growing through to 2025. The report suggests that growth in food demand will outpace supply growth and will lead to sustained support for agriculture commodity prices. This will continue to be a supporting factor in global trade, for all exporting nations, for a long time to come.

As Canada is certainly finding out, building trade relations in this area of the world can be complex. While Canadian firms are being denied the opportunity to invest in China, pressure is mounting on our government to make a decision regarding China's potential $15 billion purchase of Nexen, a Calgary-based oil company. Glencore's take-over of Viterra has also been delayed and is suggested to be tied to China's consent. Canadian canola exports into China are slowed due to trade restrictions. If business matters weren't complex enough, there are always things like human rights that governments throw in to further complicate issues.

One thing for certain, Australia is not alone in this race, and this Asian Century will play a vital role in Canada's export future.

Cliff can be reached at cliff.jamieson@telventdtn.com

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