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Canada’s Indo-Pacific Strategy – 2022 to 2023 Implementation Update

ISSN 2818-0771

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Introduction

In November 2022, Canada’s Indo-Pacific Strategy was announced: a whole of-society effort that guides Canada’s actions and ensures that Canadians and people in the region benefit from our engagement. It calls for a generational shift in Canada’s foreign policy—one that harnesses the significant partnership opportunities that the region represents and responds to the inherent challenges.

The Indo-Pacific region: A new horizon of opportunity

The Indo-Pacific will play a critical role in shaping Canada’s future over the next half-century. Encompassing 40 economies, more than 4 billion people and $47.19 trillion annually in economic activity, it is the world’s fastest-growing region and home to 6 of Canada’s top 12 trading partners. The region represents significant opportunities for growing the economy at home, along with opportunities for Canadian workers and businesses for decades to come. It is rapidly becoming the global centre of economic dynamism and strategic challenge.

Enhancing Canada’s engagement in the region through the Indo-Pacific Strategy

Canada is a Pacific nation. Beyond our 25,000 kilometres of Pacific Ocean coastline, Canadians share historical, cultural and long-standing trade and development ties with the people of the Indo-Pacific.

As an active, engaged and reliable partner in the Indo-Pacific, Canada is deepening relationships that have been built through decades of government, private sector, security and civil society cooperation.

The Strategy provides a 10-year framework to manage Canada’s relationship with countries in the region to address joint priorities, anchored in our commitment to protect the safety of Canadians and the strategic interests of Canada. It is a platform on which to cultivate important key relationships, including in the North Pacific with the Association of Southeast Asian Nations (ASEAN) and its member states, as well as with India. The Strategy also provides a robust framework to manage our relations with China according to which we will continue working with China to address global challenges while upholding Canada’s interests and values. Given the complex and dynamic nature of the Indo-Pacific region, challenges will inevitably surface as Canada deepens its engagement in the region. We must remain in dialogue with those with whom we do not see eye to eye.

Canada’s Indo-Pacific Strategy secured $2.3 billion over 5 years, seeking to advance 5 interconnected strategic objectives and deliver on 24 initiatives across 17 federal departments and agencies. The 5 strategic objectives are as follows:

Since the launch of the Strategy, Canada has made significant progress in implementing key initiatives and strengthening engagement with partners across the region. All levels of government—federal, provincial and territorial—as well as Canadian society have been increasing their engagement in the region.

Overview of Canada’s progress on implementing the Indo-Pacific Strategy: Year 1 highlights

Year 1 can be described as a year of advancing strategic engagement and of growth in regional collaboration, as well as a year of pursuing and securing economic opportunities for Canadians. Here are some highlights:

This report provides an overview of some of the progress made in the first year of Canada’s Indo-Pacific Strategy, highlighting Canada’s efforts under each strategic objective.

Promoting peace, resilience and security

What happens in the Indo-Pacific region directly affects global security and stability. As great power competition deepens in the region, interstate tensions are on the rise. Canada recognizes this and is committed to playing its part in supporting the rules-based international order, including upholding the law of the sea. Canada is investing in expanded military operations, training, intelligence and capacity building—from sailing and conducting exercises in the South China Sea and Taiwan Strait to monitoring UN Security Council sanctions imposed on North Korea  and taking on the deputy commander position at UN Command to support stability on the Korean Peninsula. Furthermore, Canada is committed to enhancing and diversifying its security partnerships and building its cyber diplomacy as foreign interference and other cyber security issues become increasingly prominent. The Indo-Pacific Strategy recognizes that Canada must increase engagement as a regional security partner to protect our national interests and outlines a number of initiatives to position Canada as a positive influence on regional stability.

Implementation progress under this strategic objective includes the following:

  1. Enhanced military presence in the region:
    • His Majesty’s Canadian Ship (HMCS) Montréal was deployed to the Indo-Pacific region (March to August 2023), as were HMCS Ottawa and HMCS Vancouver (August to December 2023) and support ship MV Asterix (March to December 2023), to support Operation NEON and Operation HORIZON (formerly PROJECTION).
    • Operation HORIZON was announced with a commitment to annually deploy 3 RCN ships to the region to increase Canadian participation in international exercises and to strengthen relationships with regional partners through increased security cooperation.
    • Canada expanded and diversified its participation in bilateral and multilateral exercises in addition to those undertaken by naval forces, with the Royal Canadian Air Force participating in regional exercises (Operation MOBILITY GUARDIAN) for the first time (July 2023).
  1. Security partnerships and capacity building:
    • The Canada Indo-Pacific Training Symposium (February 2023) on post-pandemic border and migration management was hosted by the Canada Border Services Agency in cooperation with the Cambodian General Department of Customs and Excise. The symposium was an opportunity for Canada to reinforce partnerships and share border management knowledge and expertise with ASEAN member states.
    • Canada signed a 10-year MoU with the Republic of Korea on defence research and development as well as an MoU on UN peacekeeping cooperation with Vietnam.
    • Canada provided dedicated funding of $10 million to support the ASEAN Secretariat and ASEAN member states under the ASEAN-Canada Mitigation of Biological Threats in the ASEAN Region Program to further bolster health security capabilities, including biosafety, biosecurity and disease surveillance.
    • Building on its commitment under the Strategy to continue to focus on Women, Peace and Security, Canada contributed $5 million to help address sexual and gender-based violence in Sri Lanka.
    • Canada grew the Canadian Security Intelligence Service’s partnerships and capabilities vis-à-vis the region.
  1. Cyber diplomacy and security:
    • Global Affairs Canada led an interdepartmental team visit (including DND, the Canadian Armed Forces and Public Safety Canada) to the Republic of Korea and Japan (February 2023) to explore options for bilateral cyber security cooperation as part of the Strategy’s cyber diplomacy and security initiative.
    • Global Affairs Canada convened a meeting of like-minded countries in Vancouver (June 2023) to discuss cyber deterrence and response, with a focus on threat actors in the Indo-Pacific. In addition to allies such as the U.S., the EU, the U.K., France and Germany, several countries from the Indo-Pacific region participated, including Australia, Japan, New Zealand and Singapore.
    • Canada actively engaged with ASEAN countries and other international partners, including the Philippines, Singapore and Thailand, on cyber diplomacy and security during Singapore International Cyber Week (October 2023).
    • Canada participated in the ASEAN Ministerial Conference on Cybersecurity Special Session with ASEAN Dialogue Partners (October 2023), which highlighted the importance of trust and cooperation between government and the private sector through increased engagement with stakeholders and ASEAN dialogue partners.
    • Canada attended the inaugural Pacific Cyber Capacity Building and Coordination Conference (October 2023), which aimed to help coordinate efforts and promote mutual goals in cyber resilience. Meeting participants included all the Partners in the Blue Pacific, as well as a number of Pacific Island Countries.

Expanding trade, investment and supply chain resilience

The Indo-Pacific region makes up more than a third of all global economic activity. Through intensified trade negotiations and Team Canada Trade Missions, new sectoral initiatives and enhanced trade commission service programming, Canada is diversifying and deepening its Indo-Pacific trade and investment partnerships while supporting Canadian companies looking to expand to, and within, this dynamic region. The COVID-19 pandemic made clear the importance of strengthening supply chain resilience, a key driver of Canada’s expanded economic cooperation agenda in the region. As economic security emerges as a shared priority, Canada is expanding its agriculture, energy, clean tech and natural resources ties with Indo-Pacific partners while protecting Canada’s economy from commercial or research partnerships that could threaten Canada’s national security.

Implementation progress under this strategic objective includes the following:

  1. Expanded presence and engagement in the region:
    • Then Minister of Agriculture and Agri-Food Marie-Claude Bibeau announced the location of the Indo-Pacific Agriculture and Agri-Food Office in Manila, Philippines. This joint venture of Agriculture and Agri-Food Canada and the Canadian Food Inspection Agency consists of a mobile team that will advance trade objectives of the sector in the region.
    • Team Canada Trade Missions to the Indo-Pacific were launched in Singapore (February 2023), with the first full-scale missions to Japan (October 2023) and the announcement of missions in 2024 to Indonesia, Malaysia, the Philippines, the Republic of Korea and Vietnam.
    • Delegations from 19 municipal and provincial economic development organizations participated in the Canada Investment and Innovation Roadshow to the Republic of Korea and Australia (October 2023).
    • A trade mission led by Canadian Heritage promoted the Canadian cultural sector in New Zealand and Australia (June 2023).
    • The Asia Pacific Foundation of Canada led the Second Canadian Women-only Business Mission to Japan in December 2022.
    • The Indo-Pacific CanChams Capacity Building Program launched with $1 million of dedicated funding per year to help strengthen the capacity and effectiveness of regionally based Canadian chambers of commerce (February 2023).
    • In the context of the Indigenous Peoples Economic and Trade Cooperation Arrangement (IPETCA), the 4 partner economies (Australia, Canada, New Zealand, and Taiwan) and Indigenous representatives from each economy held the inaugural IPETCA Partnership Council meeting in San Francisco (November 2023). Partner economies agreed to develop the Council’s work plan. The 4 initial areas of exploration include collaboration for business and emergency services, climate change mitigation and adaptation, renewable and sustainable energy, and tourism.
    • The Standards Council of Canada signed a cooperation agreement with the Mongolian Agency for Standardization and Metrology (November 2023) as a basis for a strengthened cooperative relationship and in celebration of the 50th anniversary of Canada-Mongolia diplomatic relations.
  1. Economic security and resilience:
    • The Canada-Republic of Korea High-Level 2+2 Dialogue on Economic Security was launched by Minister Joly and Minister of Innovation, Science and Industry François-Philippe Champagne (May 2023).
    • Canada launched its Critical Minerals Strategy (December 2022) and announced the modernization of the Investment Canada Act (December 2022), as well as a policy on protecting Canada’s research (February 2023).
    • Two Canada-Japan memorandums of cooperation—1 on industrial science and technology and 1 on battery supply chains—were signed in September 2023.
    • The Canada-Korea Memorandum of Understanding on Cooperation in Critical Mineral Supply Chains, the Clean Energy Transition and Energy Security was signed in May 2023, with Canada leading the development of the action plan under the MoU.
  1. Expanded focus on Canadian export to the region:
    • The CanExport program was expanded, with funding for nearly 500 initiatives that include at least 1 Indo-Pacific Strategy market approved to date in fiscal year 2023 to 2024.
    • An Export Development Canada (EDC) representation office in Jakarta, Indonesia, opened in September 2023 and in Seoul, Republic of Korea, in October 2023.
  1. Trade negotiations:
    • In October 2023, Canada and Taiwan completed negotiations on a foreign investment promotion and protection arrangement. It has been in effect since December 28, 2023.
    • The U.K. was welcomed as the newest signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
    • Canada is in the process of acceding to the Digital Economy Partnership Agreement, a new type of trade agreement that focuses exclusively on facilitating digital trade, in keeping with our commitment under Canada’s Indo-Pacific Strategy to promote coherent regulations affecting the digital economy.
  1. Statements and declarations with like-minded countries:
    • Canada endorsed the Joint Declaration Against Trade-Related Economic Coercion and Non-Market Policies and Practices with Australia, Japan, New Zealand, the U.K., and the U.S. (June 2023).

Investing in and connecting people

People to-people ties between Canada and the Indo-Pacific are extensive. Canada recognizes the importance of these ties and is committed to further investing in them. From family reunification efforts and international students and increased civil society engagement from and in the region, we are working to ease visa processing and facilitate travel to Canada for those from the Indo-Pacific region who are interested. At the same time, Canada is building its presence in the Indo-Pacific through scholarships for Canadians to go to the region, events in the region and the physical presence of government offices, such as those of FinDev Canada and EDC, as well as the offices of Canadian organizations such as the Asia Pacific Foundation of Canada and others.

Implementation progress under this strategic objective includes the following.

  1. People to-people ties:
    • Canada opened a new Immigration, Refugees and Citizenship Canada (IRCC) Global Operations Centre in Manila, Philippines (March 2023), to help bolster visa processing and facilitate travel.
    • Canada announced the expansion of electronic travel authorization eligibility for travellers from Thailand and the Philippines, enabling visa-free travel for eligible individuals.
    • Special immigration programs for Hong Kong were extended and expanded, including an open work permit program.
    • The Canada–South Korea Youth Mobility Arrangement was signed, expanding opportunities for international work and travel options for Canadian and Korean youth, and improving people to-people ties and labour market access (May 2023).
    • Canada and Taiwan signed an MoU on health cooperation (May 2023), paving the way for bilateral cooperation on public health to help prevent, prepare for and respond to future global health emergencies.
  1. Civil society engagement:
    • In September 2023, Canada launched a 30-million Call for Proposals entitled Strengthening Civil Society and Democratic Spaces in the Indo-Pacific 2024-2028. The call aims to support the efforts of Canadian civil society organizations and Indigenous organizations in Canada to work with their local counterparts to promote human rights, access to justice, equitable participation in public leadership and inclusive public services in the Indo-Pacific region. Projects selected for support will begin in 2024.
    • A working group was formed by Global Affairs Canada, Cooperation Canada and the Inter-Council Network (ICN) to plan for upcoming civil society engagement opportunities, including a kick-off event based in the National Capital Region in early 2024, and roundtable sessions across the country. Global Affairs Canada is supporting both organizations, respectively, through an agreement and through the existing Inspiring Action for Global Citizenship program, which is led by the ICN.
  1. Development and education:
    • The Asia Pacific Foundation of Canada hosted the largest gathering in decades of Canadian academics, business sector representatives, civil society, provincial institutions and others in Singapore (February 2023). The Canada in-Asia Conference (February 2023) was organized in partnership with Universities Canada.
    • A new grant to the Commonwealth of Learning, valued at $6 million, was announced by Harjit S. Sajjan, Canada’s then Minister of International Development. This project will provide education and skills development for women and girls from disadvantaged communities in Bangladesh, Pakistan and Sri Lanka, supporting sustainable livelihoods.
    • In recent years, Canada has contributed more than $1 billion annually to the Indo-Pacific region under the Feminist International Assistance Policy to deliver outcomes on women’s economic empowerment, gender equality and local economic growth. Additional development assistance under Canada’s Indo-Pacific Strategy will build on these strong foundations to reinforce and broaden relationships across the region.

Building a sustainable and green future

Indo-Pacific countries have some of the highest and fastest-growing greenhouse gas emissions in the world. The region accounts for over half of global carbon dioxide emissions. It also includes nearly two-thirds of the world’s oceans and is among the most vulnerable globally to the effects of climate change. Canada is committed to fighting climate change and biodiversity loss, and has developed expertise in several areas, including clean technology, oceans management, energy transition and climate finance. Sharing this expertise and supporting the region in ensuring a sustainable and green future for both people in the region and in Canada is a priority.

Implementation progress under this strategic objective includes the following:

  1. Oceans management:
    • Canada undertook its first high seas patrol and fisheries enforcement mission to help address IUU fishing in the North Pacific (July 2023). During this mission, Fisheries and Oceans Canada officers documented 58 fisheries violations, including the detection of 3,000 illegally harvested shark fins during foreign vessel boardings and aerial surveillance missions conducted from Japan.
    • Canada deployed its DVD platform, using satellites to track illegal fishing vessels across the Pacific. An MoU was signed with the Philippines to deploy DVD to local authorities (October 2023).
    • Canada co-chairs, alongside the U.S., a Maritime Domain Awareness working group of the Partners in the Blue Pacific, coordinating and implementing capacity support offered to the Pacific Islands.
    • At the Inter-American Tropical Tuna Commission Annual Meeting (August 2023) Canada successfully championed the adoption of a full harvest strategy for North Pacific albacore tuna to keep stock in a healthy state. Canada also led the development and adoption of measures to protect sharks at the annual meetings of the Western and Central Pacific Fisheries Commission and the North Pacific Fisheries Commission.
    • Canada announced $6.5 million over 5 years for the Joint Analytical Cell, an international initiative providing authorities with fisheries intelligence, analysis and capacity building to combat IUU fishing. This will fund collaborative efforts designed to harness fisheries intelligence tools and databases and international partnerships to target IUU fishing operations and associated crimes.
  1. Climate change and environment:
    • Canada hosted COP15, chaired by China, in Montréal in December 2022.
    • Minister Guilbeault attended the China Council for International Cooperation on Environment and Development meeting in China (August 2023).
    • Environment and Climate Change Canada provided $7.5 million from 2022 to 2026 to help, among others, Fiji and Samoa, among other countries, to reduce methane emissions in the waste sector.
    • As announced at the 52nd Pacific Islands Forum Leaders Meeting in November 2023, Canada increased its contribution to the Kiwa Initiative from $10 million to $16 million. Canada’s additional contribution will further strengthen the initiative’s capacity to address climate change and biodiversity challenges through nature-based solutions for climate adaptation, benefiting an estimated additional 20 communities and more than 25,000 people in Pacific Island Countries. 
    • Canada and the Republic of Korea held the first annual Canada-Korea Climate Change Ambassadors’ Dialogue under the Canada-Korea Comprehensive Strategic Partnership in September 2023.
  1. Infrastructure:
    • FinDev Canada is to open its first office in the Indo-Pacific region, focused on renewable energy, transportation, water and digital infrastructure.
    • FinDev Canada and the Asian Development Bank have signed a memorandum of agreement to cooperate on sustainable and inclusive private sector investments that promote sustainable development in the Indo-Pacific (May 2023).
    • Canada is funding a 40-million loan to the Karian Serpong Water Supply Project to improve access to safe and clean water in Jakarta, Indonesia, and surrounding areas, as well as a 64-million loan to the Indonesia Sustainable Least-cost Electrification-1 Program to improve access to sustainable electricity in Eastern Indonesia.

Canada as an active and engaged partner to the Indo-Pacific

The inaugural year of the Strategy has been spent conducting strategic engagement and delivering initiatives at home and in the region. As an active and engaged partner in the Indo-Pacific, Canada is building on its existing activities to enhance its engagement across all strategic objectives of Canada’s Indo-Pacific Strategy. As such, this final strategic objective cuts across all activities. Here are some of the highlights specific to partnership:

  1. Expanding regional capacity and engagement:
    • Over the last year, Canada’s Prime Minister and various Cabinet ministers made approximately 50 visits to Indo-Pacific countries to further collaboration on trade, security and regional stability, innovation, immigration, supply chain resilience, development support in the region, climate change, biodiversity loss and nuclear non-proliferation. They took part in several summits and conferences in the region, ensuring that Canada is part of the discussions at these important forums. This included the G7 Summit (Japan), the G20 Summit (India), the ASEAN Summit and associated meetings (Cambodia, Indonesia), the APEC Economic Leaders’ Meeting (U.S., Thailand) and the Canada in-Asia Conference hosted by the Asia Pacific Foundation of Canada (Singapore). In addition, the Special Envoy for the Indo-Pacific attended the Pacific Islands Forum Leaders Meeting (Cook Islands).
    • Canada appointed its first Special Envoy for the Indo-Pacific (April 2023) as well as Canada’s first Indo-Pacific Trade Representative (September 2023) to support policy coordination and coherence across the government and Canada’s activities in the region.
    • New capacities were put in place abroad and in Canada to support expanded regional and bilateral engagement, including new foreign service positions created and staffed in the Republic of Korea, Taiwan, Singapore, Brunei and Laos, with more to follow in 2024, and additional China-related capacity in place at Canada’s missions to the UN, NATO and the U.S.
    • Diplomatic relations established with the Cook Islands and Niue and the posting of a Canadian diplomat in Fiji are preparing the ground for the opening of Canada’s first mission in the Pacific Islands, planned for 2025.
    • Over the course of the year, Canada hosted high-level visits from countries such as Japan, India, Bangladesh, Brunei, the Philippines and Mongolia.
  1. Strengthening partnership with ASEAN:
    • The ASEAN-Canada Strategic Partnership Agreement was established (September 2023).
    • The ASEAN-Canada Plan of Action Trust Fund was announced, with support for the participation of ASEAN member states in free trade agreement negotiation rounds hosted by Canada.
    • Canada gained observer status in Experts’ Working Groups of the ASEAN Defence Ministers’ Meeting Plus in 2023.
    • The ASEAN-Canada Joint Leaders’ Statement on food security and nutrition was issued.

Looking ahead

Given the long-term outlook of Canada’s Indo-Pacific Strategy, plans are already underway to ensure that we build on a successful first year. In line with the strategic objectives, Canada will continue to strengthen our relationships in the region, remaining active and engaged. As new projects ramp up and ongoing activities continue, the second year of implementing the Strategy is set to further expand Canada’s presence across the Indo-Pacific, increase support for the already significant people to-people ties Canada has with the region, add to the advancement of trade and economic objectives that will benefit Canadians and people in the region, and promote a more secure and rules-based international order.

Here are some highlights of future milestones:

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