Notes for remarks by H.E. Hon. Ralph Goodale, PC High Commissioner for Canada in the United Kingdom of Great Britain and Northern Ireland to the Empire Club

Toronto, Ontario (and Virtual)
June 5th, 2023

Thank you very much Mr. Almond, Mr. Rabanni, ladies and gentlemen.

It’s a great pleasure to be back for my 4th appearance before the Empire Club of Toronto – this time to tell you a bit about my role as Canada’s High Commissioner in the United Kingdom. It’s a terrific assignment.

That’s partly because London and the UK are simply wonderful places to be, with history and culture and something fascinating or completely outrageous on virtually every street corner.  In addition, London is a major global intersection for international politics, economics, diplomacy and intrigue on many different levels; the whole world passes through London every month or so.

And we’re living through an era of extraordinary events - a Platinum Jubilee, a State Funeral, a Coronation, lots of turbulence in British domestic politics, the ongoing Brexit saga, trade negotiations, COVID and its fallout, a tragic war in Europe, the re-emergence of Big Power rivalries in the world, and coming soon, a British general election – it’s a lively time.

And to top it off, this assignment is terrific because the relationship between the UK and Canada is long and deep – it’s candid, pro-active and productive.

In times of profound international turmoil and change, there’s a risk that we might undervalue a familiar asset like that.  It works well.  We might take it for granted.  But it has great potential to work even better.  In my view, the relationship between the UK and Canada must be positioned as a key part of our tomorrow, not just a cornerstone of our past.

To provide some context, our High Commission in the United Kingdom is Canada’s oldest diplomatic mission abroad; we’ve had representation in London since 1869.  With about 300 employees, this is one of Canada’s largest foreign posts, along with Washington and Delhi.  Perched conspicuously on Trafalgar Square since 1925, “Canada House” is the most visible embassy in all of Britain.

Physically, Canada is 45 times bigger than the United Kingdom, with about half the population.  You could fit all of the UK within the four corners of my home province of Saskatchewan.  In that space, Saskatchewan has about one million people; the UK has nearly 70-million.  So density is one big distinction between our two countries.

We are both wealthy G7 nations.  With GDP at $3.1 Trillion (US), Britain is the sixth-largest economy in the world.  Canada is number nine, with GDP at $2.1 Trillion.  On an individual basis, Canada’s GDP-per-capita is better than the British by about 6% - we’re just above $58,000 (US); they’re just below $55,000.

The cost of living is a concern in both countries.  Inflation in Canada at last report was running at 4.4%, down sharply from its peak of more than 8% a year ago.  In the UK, inflation had been stuck stubbornly at more than 10%, but their most recent figures show the British CPI is now down to 8.7%.  Energy costs have moderated, but food cost inflation in the UK is still running close to 20%.  The central bank rate in both countries is 4.5%.  The credit rating of the Government of Canada is pretty consistently at AAA.  For the UK government, it’s closer to AA.

The overall economic relationship between Canada and the United Kingdom is valued at more than $410 billion.

Two-way trade in goods and services totals about $42 billion annually, making the UK our third-largest trading partner after the US and China.  At the moment, we’re running a trade surplus on goods, and a small deficit on services.

The investment side of things is even more impressive.  Britain is Canada’s second-largest source of foreign direct investment and our second-largest destination.  Including both FDI and portfolio investments, British ownership in Canada now totals more than $160 billion, while Canadian investments in the UK exceed $209 billion.

A key player in much of this is Canada’s major pension funds – their investments currently in the UK are worth about $120 billion.  While not the only form of Canadian “ownership” in Britain, our unique Canadian pension fund model for large-scale, long-term, high-quality investments is a significant factor in Canada’s economic impact in the UK.  In return, the British investment market is a source of stability and reliability for the retirement incomes of millions of Canadians.

Most Britons are likely unaware that Canada is a big owner of British assets, driving economic activity and creating jobs in railways, ports, airports, public utilities, the production, transmission and distribution of energy (both conventional and renewables), innovation and technology platforms, student housing, childcare, commercial real estate and more, ranging from nuclear fusion to the national lottery.

Even more important, Canada and the United Kingdom share hundreds of years of history and heritage, including the same Monarch, similar governmental, legal and commercial systems, strong military traditions, robust cultural and academic ties, too many family linkages to begin to count, and above all, a deep reservoir of respect and trust based on our common lived experience and on values that we have promoted and defended together, and for which we both have always been prepared to sacrifice, to safeguard our way of life.

That tight relationship between Canada and the UK is probably more important now than it ever has been – for two inter-related reasons.

First, autocratic and often violent regimes are in the ascendancy around the world.  Democracy is more of a minority and at greater risk today than ever before in our lifetime.  In large portions of the so-called “Global South”, a combination of audacious diplomacy, disinformation, economic coercion, big dollars and the debt that follows – all poured in by China and Russia - has inflated the influence of those two countries, while diminishing ours.

And secondly, the leading bulwark for democracy in the world – namely, the United States – has been riven by populism, extremism, polarization and foreign interference such that America may potentially be less willing or less available to play the familiar, reliable role in global affairs that we’ve come to know, and depend on, for the past 80 years.  Others are asserting claims of power and leadership, and they have much different values and ambitions.

All of that makes Canada’s connections with the United Kingdom that much more vital – as family, allies, partners and friends. 

The importance of our work together has been especially evident since February of 2022 when Putin illegally re-invaded Ukraine and re-launched his brutal war of imperial aggression.

Putin’s war is crudely punctuated by war crimes, crimes against humanity, sexual violence, torture, kidnapping, the terrorizing of children, the wanton destruction of homes, schools, hospitals and civilian infrastructure, and innocent bodies dumped in mass graves.  Putin holds the poor and the elderly to ransom all across Europe with high energy costs, and hungry people in the most fragile countries are threatened by Putin with greater starvation.

Most countries in the world - more than 140 member of the United Nations - have voted consistently over this past year to condemn Putin’s vile behaviour.  Only a tiny handful of disreputable regimes actually support Russia.  But more than 40 countries abstain or fail to show up when a vote is called, including about a dozen from the Commonwealth.  Putin’s insidious influence is deeply disturbing.

Isolated and delusional, Putin claimed he would be welcomed as a “liberator” in Ukraine.  He thought he would conquer all resistance within days.  He expected the free world to be divided and easily wilt.  He was wrong on every count.

Fifteen months later, freedom-loving people everywhere have never been more united to help defend the sovereignty of Ukraine and their sovereign right not to be attacked and to live in peace.  We’re united also to defend the integrity of international institutions, the sanctity of human rights, the viability of the rule of law and a rules-based system of decent behaviour.

That Putin was surprised at the strength of character in the Ukrainian people is a measure of his ignorance of who they are.  Canadians know who they are.  Ukrainians have been emigrating to Canada for more than 130 years.  They’re nation-builders. Today, more than 1.4 million Canadians (close to 4% of our national population) trace their family heritage to Ukraine. We have the 2nd largest Ukrainian diaspora in the world.

We stand in awe, but we are not surprised, at the strength and skill, the determination and resilience, the tenacity, courage and valour of the Ukrainian people. Their thirst for freedom is legendary.  Their quest for independence and self-determination is unquenchable.  Their culture and identity are distinctive, priceless and very real.

So yes, Ukrainians will fight for all of that for as long as it takes.  And as they do so, they are the global front line for democracy worldwide.  The free world must stand with them, as the G7 reaffirmed unequivocally in Hiroshima just last month.

The United Kingdom and Canada have been “standing with Ukraine” from the very beginning.  In fact, for several years before Putin’s war, we were actively training Ukrainian defence forces at bases in Ukraine.  Now that vital training is continuing at bases in the UK, as well as in Poland and Latvia.  This is practical, high-value support that makes a huge difference on the ground.  Ukrainian forces have been impressively effective on the battlefield, and professional training by Canadians, the British and others is part of the reason why.

Like the UK, Canada is also providing military equipment and supplies, transport logistics, intelligence, economic support, loan guarantees, humanitarian aid, and technical assistance.  Since the beginning of last year, all that adds up to more than $8 billion in Canadian support, so far.  We have also received more than a million refugee applications, and have processed over 700,000 so far.  And coordinating closely with the UK, we have applied extensive sanctions and other more creative penalties to render Putin as much of an outcast as possible.

With Putin bludgeoning Ukraine, with tensions rising in the Indo-Pacific around China’s ambitions, and with risks and threats in other places in a dangerous world, Canada and the UK are carefully examining how best to broaden and deepen our already extensive security, intelligence and defence collaboration.

As one example, Canada is creating a special unit in our Global Affairs department to better detect and combat Russian disinformation, and we are embedding Canadian talent in the counterpart British unit.  Other areas of mutual interest include foreign interference, economic security, reliable supply chains, critical minerals, cyber security and others fields of advanced technology, more robust connections with the Global South, and marshalling resources for Ukraine’s ultimate reconstruction.

Let me move on briefly two other topics that have been prominent on the Canada-UK agenda these past two years - one is trade and the other is the arrival of a new Monarch.

One of my first official visitors at Canada House in the spring of 2021 was Liz Truss in her capacity then as UK Secretary of State for International Trade.  She was launching her public consultations on the proposed negotiation of the first-ever, stand-alone, bilateral Canada-UK Free Trade Agreement.  Both countries were keen.  We finished all the legal and parliamentary preliminaries over the following few months, and formal negotiations began in March of 2022.

Five rounds have been concluded.  Number six will take place this month in Ottawa.  Round seven is set for London in September.  Both sides report good progress and ongoing optimism.  The talks are scheduled to conclude by next spring.

We’re both aiming for an ambitious outcome that will promote successful trade diversification. For the UK, that means diversification beyond the EU, and for Canada, beyond the US.  We also want to work effectively together to protect ourselves against the trade distorting consequences of foreign measures like the massive US Inflation Reduction Act.

We want to advance gender equality, diversity and Indigenous reconciliation.  We want to promote high labour standards and environmental integrity.  Because both of our economies are built around small and medium-sized businesses, we want this agreement to help more and more of them to export and trade, because when they do, they become more competitive, more innovative, more profitable and pay higher wages.

We want to advance the digital economy, which has become such a pervasive part of our lives since the pandemic.  We want to promote science, research and technology, and creative “brainpower” partnerships, which allow us to pool our skills and talents, and take on the world together, in such fields as advanced manufacturing, protein, food and the life sciences, the aerospace and automotive sectors, AI, quantum, clean energy and climate change.

There will always be trade challenges to overcome.  Typically, agriculture and the interests of farmers are among the most difficult issues to resolve, on both sides.  We certainly saw that in the multilateral discussions about the UK application to join the CPTPP - the Comprehensive and Progressive Trans-Pacific Partnership.  That deal, struck successfully a few years ago, brought 11 countries with Pacific interests together as trading partners with high standards, including Canada.  The pact is open for others to join, providing they meet the required thresholds and make the same commitments as the original 11.

The United Kingdom was the first new country to apply to get in.  And from the beginning, Canada was the first CPTPP member to be supportive of the UK application, but it was not a superficial exercise.  The scrutiny was intense.  In the end, the CPTPP will be stronger with the addition of another G7 economy.  Once the UK is fully included, the CPTPP will cover 16% of global GDP and 600 million consumers.

But that’s not to say everyone is happy.  Canadian cattle producers are concerned about the UK’s intention to continue its ban against any beef imports treated with hormones (which is a common practice across North America). 

Canadian producers are also unhappy with false criticism from some British commentators suggesting the Canadian food safety and health-of-animals systems are inferior.

Let’s be crystal clear - Canada has an excellent food system.  It compares favourably to the best on Earth, and it’s certainly every bit as good as the British one.  Our satisfied customers include some of the most sophisticated, demanding buyers in the world.  Indeed, the only major health-of-animals issue in recent memory in Canada dates back some 30 years to when a case of BSE was imported from … the United Kingdom.  That fiasco cost Canadian producers billions.  So we are totally attuned to quality and safety issues, and top-of-the-line animal husbandry.

The basic point is this:the rules of the CPTPP require that any border measure that restricts imports must be rooted in sound scientific analysis.  The original 11 members agreed on that and it applies to all new members too.  The UK asserts vigorously that it is willing and able to meet all CPTPP thresholds.  They must be held to that commitment to sound science, just as all the rest of us are too.

And let me suggest, to advance trans-Atlantic knowledge, understanding and trust on these issues, it would be helpful to have an in-depth, ongoing dialogue among our respective agricultural producers, food processors, government regulators and our scientific communities, to ensure we know each other well, communicate effectively, and operate constructively from the same solid factual foundation.

Finally, let me say a word about His Majesty King Charles III, the new King of Canada.

About a year ago now, we were celebrating the “happy and glorious” Platinum Jubilee of Her Late Majesty, Queen Elizabeth.  Then last September, we said a sad farewell to our longest serving Monarch with a spectacular State Funeral.  Her eldest son, the Prince of Wales, acceded to the Throne immediately, but the formal Coronation of King Charles took place just last month.

No one does “ceremony” quite like the British, and they were at their Royal best this past year.  In terms of logistics and security, London has not seen anything quite like it since World War II.

Of course, you hear questions raised now about the future of the Monarchy.  That’s only natural.  Queen Elizabeth was the only Sovereign most of us have ever known.  When that much-admired persona leaves the stage, and a successor takes over, people will have questions about “where to from here”.

I hope we take this opportunity to study the effective nature of our democratic constitutional Monarchy, as a successful form of government, compared to all the others.  There is significant value in our system, which distinguishes Head of State from Head of Government.  Head of Government is where all the political wrangling happens, as it should.  Head of State is set apart from that - to embody the values and principles that unite us, to provide cohesion, stability and continuity “above the fray”.

When Head of State and Head of Government are combined in one, too often political problems morph into constitutional problems, which become hugely debilitating, as we’ve seen in other countries.  By comparison, our system has functioned rather well.

In addition, there are three practical matters to consider.  First, there is no consensus on “change to what”.  You cannot argue for something different without defining precisely what that is.  Second, you can never open the constitution to adjust “just one little thing”; you will be launching an open-ended constitutional rethink that you can expect to be long and distracting.  And third, this type of amendment requires unanimous agreement among the Senate, the House of Commons and all the provinces, and that is highly unlikely.

King Charles is at focused on things that matter to many Canadians: promoting strong communities in which people volunteer to serve others, securing a clean environment which supports a prosperous economy, providing young people with the skills and opportunities to thrive, and advancing reconciliation and healing with Indigenous peoples.

As Prince of Wales, he has already made 18 official visits to Canada: into every corner of the country.  And on issues like reconciliation, he is no newcomer.  He was traveling to Indigenous communities and listening to Indigenous leaders and elders long before most everybody else.  Just 48 hours before his Coronation, he met personally with the elected leadership of Indigenous organizations from Canada.  The first time something like that has ever happened. 

And it just may be that King Charles, with his Indigenous Vice-Regal representative in Canada, Governor General Mary Simon, can change the course of our history - for the better - for Indigenous and non-Indigenous people alike.

And with that, let me thank you for your patient attention, and I look forward to your questions.