Thursday, February 9, 2012

Canada, Hampered in U.S., Turns to the East


BEIJING -- Prime Minister Stephen Harper of Canada pledged
closer trade ties with China during a meeting with Premier Wen Jiabao on
Wednesday, even as he pressed Beijing over its recent decision to block a
United Nations Security Council resolution against Syria's government.

The trip is part of a broader strategic push by Canada to
more closely align itself with China and reduce its reliance on the U.S. Mr.
Harper aims to increase Canada's capacity to export oil and other resources to
China, an effort that has intensified following the Obama administration's
decision to reject for now TransCanada Corp.'s Keystone XL pipeline, which
would have shipped oil-sands crude from Alberta to the U.S. Gulf Coast.

Finding alternative markets for its natural resources has
become a top priority for Canada, which today sells nearly all of its oil to
the U.S., but sees environmental regulations from Washington as an increasing
impediment to its oil-export ambitions. In that quest, China looms large.

Analysts say the trip is a somewhat tricky one for Mr.
Harper, as he looks to promote deepening trade ties between the countries while
not appearing too cozy with Beijing. He joins other leaders, including German
Chancellor Angela Merkel, who have visited Beijing in recent weeks and
pressured China over its continued defense of regimes in Syria, Iran and
elsewhere.

"There was a view when we took office that you either
had to deal with the Chinese on economics or to deal with them on human rights
and consular matters, but you couldn't do both, and we refused to accept that
view," Mr. Harper said. "My view continues to be that it is possible
and necessary to raise with the Chinese a full range of issue as part of a
frank and productive relationship."

Mr. Harper said he pressed the Chinese premier over
Beijing's decision to block the Security Council resolution calling for Syrian
President Bashar al-Assad to step aside amid intensifying violence there.
"I raised in very clear and strong terms Canada's position on this
issue," Mr. Harper told reporters following his meeting with Mr. Wen.
"We would hope to see in the future action from the Security Council on
this matter, and I was very clear about that."

Mr. Harper, on his second trip to China since taking office
in 2006, declined to say how Mr. Wen responded. Chinese leaders weren't
available to comment on Wednesday, but the country's Foreign Ministry has
deflected criticism previously over the veto, arguing proponents of the
resolution against Syria pushed for a vote before differences had been
resolved. Russia, another permanent member of the Security Council, vetoed the
resolution as well.

For China, rising uncertainty over the reliability of supply
from its traditional oil providers, including Iran, has forced Beijing to
aggressively seek out alternatives across the globe. Canadian officials say the
country needs to harness China's rapid ascent in order to keep its own economy
churning.

"Diversifying our markets is a key priority for Canada
and we look forward to expanding our cooperation in many important areas
including energy, natural resources, tourism and education," Mr. Harper said
during his meeting with Mr. Wen. Mr. Wen, for his part, said China was
"ready to expand imports of energy and resource products," the
state-run Xinhua news agency reported.

In a sign of deepening business ties, the countries said
Wednesday they had finished negotiations on a new series of regulations that
aim to make investing in China easier for Canadian companies.

Canadian investment in China in 2010 increased by 38% to
almost $5 billion. Chinese investment in Canada rose 9% in that period, to $14
billion.