Canada lagging other developed countries in trade with China, says Emerson

OTTAWA (CP) - Canada is falling behind other countries in trade with the world's fastest growing market, says International Trade Minister David Emerson. Canada has lost trading opportunities with China and other Asian countries to Australia, the United States and others, Emerson said Tuesday.

"We're losing ground in terms of market share, of exports," Emerson said during a teleconference from Beijing with reporters back in Canada. "We're losing ground in terms of foreign direct investment and our share that's coming to Canada in a North American context."

Emerson is meeting with Chinese business leaders and government officials in Beijing as part of a tour of the region.

The Conservative government has been focusing on Asia as it moves to energize trade and investment channels between the region and Canada.

Finance Minister Jim Flaherty was expected to join Emerson in Beijing by Wednesday.

In the first two days of this week, Emerson has inked preliminary agreements with China on trade, transportation and scientific research and development.

But Emerson told business leaders in Beijing on Tuesday that Canada is failing to realize its true potential in trade relations with China.

"Merchandise imports to Canada are more than four times our exports to China," Emerson said at an official dinner with China's Canadian business community leaders.

"While Chinese imports from Canada grew 2.3 per cent in 2005, the United States saw 9.14 per cent growth, while Australia reached 40 per cent."

Emerson said the issue of human rights was not a big factor for business leaders with whom he spoke.

In his speech, the minister raised the issue only in passing, linking it to the Tory government's core trading principles.

"As Canadians, we generally believe in market-based economic development, rules-based trade and the rights of individuals," he said in his remarks.

"We see these things as fundamental to eliminating poverty and improving living standards."

Emerson later said he intended to further raise human-rights issues in meetings with Chinese government officials.

© The Canadian Press, 2007