This June, during the summit of the 20 largest economies in the world, Canadians will watch with interest the interaction between our country and the biggest of the big, including China and the United States. But as important as these relationships are, other countries in the Group of 20 also deserve our attention.
Take Saudi Arabia, a country with a dynamic economy that offers tremendous opportunities for our businesses and institutions. More than $1.4-billion in Canadian exports flowed into Saudi Arabia last year, making it Canada’s second-largest export market in the Middle East and North Africa. Two-way trade between our countries surpassed $2.6-billion.
... this relationship is about more than trade.
However, this relationship is about more than trade. The shared commitment to innovation and education is growing quickly. About 10,000 Saudis study in Canadian universities each year, including 800 medical students. Integrated postsecondary learning is about sharing ideas, knowledge and understanding. High-quality education and the bright minds that result will fuel many commercial and social partnerships between our countries.
Saudi Arabia and Canada are both poised for continued success. The countries have enormous and challenging geographies and the largest and second-largest oil deposits in the world. Moreover, we are each making strong efforts to broaden our economies.
Since 1984, Canada has embraced a new approach to governance and economic policy. The government has implemented free-trade agreements, a low-inflation policy, significant tax reform, extensive deregulation and spending reductions. These policies continue to be the basis of the country’s impressive economic performance today.
How strong was our performance? Through the recent global recession, Canada fared better than any other country in the G8. The stable Canadian financial system, recognized by the World Economic Forum as the best in the world, has shown the results of strong management. Leveraging this strength can produce continued growth for Canadian banks and businesses. But we must make conscious efforts to work more closely with countries such as Saudi Arabia.
Saudi Arabia has demonstrated that it offers fertile ground for growing strategic alliances. In 2008, for example, SABIC Innovative Plastics, which is 70-per-cent owned by the Saudi government, opened its state-of-the-art research laboratory, the Centre for Manufacturing Innovation, just outside Toronto. In March, 2010, the MaRS Centre in Toronto hosted senior executives of Saudi Aramco to meet with Canadian researchers and business leaders. Just last June, contracts were signed between three Canadian and Saudi companies. There is much more room to maximize the value of our petroleum and human resources by shared investment, innovation and research.
The recognition of the potential benefits of a Canadian-Saudi partnership by the leaders of both countries is encouraging. There have been six major Canadian ministerial visits to Saudi Arabia since 2008. I have been leading a delegation of senior business leaders on a mission to the country this week. I am inspired by the interest government and business leaders there have shown in Canadian companies as sources of, and partners in, investment. Saudi interest is bolstered by our government’s focus on maintaining an open climate for investment, reducing corporate tax rates and diversifying export markets.
Saudis know that Canada possesses not only vast natural resources, but also an outstanding investment climate and an open-minded, diverse, well-educated and motivated population. Just as Saudis are putting aside old myths about Canada, so too must Canadians realize that Saudi Arabia is about more than oil. Both countries seek to boost entrepreneurial, knowledge-based economies with the capacity and zeal to create profitable long-term partnerships.
Our different histories, cultures and systems of government can generate contrasting points of view, but we should be able to address them in a manner that does not jeopardize or undermine the underlying strengths of our partnerships.
Saudi Arabia’s influence on global issues, such as peace and security, will continue to grow in importance. When we share common objectives on these issues, there will be even greater scope for a political and commercial partnership with Saudi Arabia.
Clearly, Saudi Arabia and Canada can go forward – together.
Former prime minister Brian Mulroney is a senior partner at Ogilvy Renault LLP.
