NOTES


 

(1) Except when used in the title of an organization, such as the Asia-Pacific Economic Cooperation, or as otherwise stated, "Asia Pacific" includes: the countries of East Asia, Australia, New Zealand, the Pacific Islands, Canada, the United States, Mexico, and Chile.

(2) East Asia includes: Japan, China, the newly industrialized economies (NIEs) or the "Four Tigers" (Hong Kong, South Korea, Taiwan, and Singapore), the other members of the Association of Southeast Asian Nations (ASEAN) (Brunei Darussalam, Indonesia, Malaysia, Philippines, Thailand, and Vietnam) and the other developing economies in the region (Cambodia, Laos, Papua New Guinea, and Burma).

(3) Standing Senate Committee on Foreign Affairs, Report on Canada's Relations with the countries of the Pacific Region, March 1972.

(4) Singapore, Brunei Darussalam, and Vietnam are also members of ASEAN. For the purposes of this section, Singapore has been included with the NIEs, Brunei Darussalam is omitted because it is relatively small, and Vietnam, a new member of ASEAN, is less developed and more properly should be grouped among the next wave of developing Asian economies, which also includes Cambodia and Laos. In 1992, ASEAN members agreed to form the ASEAN Free Trade Area (AFTA) which would reduce tariffs to 5% or less among AFTA members over a period of 15 years. In 1994, AFTA members agreed to modify the tariff reduction schedule from 15 to 10 years so that AFTA would be realized by 1 January 2003 instead of 2008.

(5) This projection uses purchasing power parities, which are determined on the basis of the amount of goods and services that actually can be purchased. However, when converted at recent exchange rates, the size of the Chinese economy in 1996 was about 9% of the size of the U.S. economy; thus, currently the Chinese economy is comparable in size to that of the Canadian economy.

(6) On the other hand, Japan is now a mature industrial economy and two of the Asian tigers -- Singapore and Hong Kong -- are beginning to resemble mature industrial economies in terms of income levels, education, and labour force utilization. And, according to Professor Paul Krugman and others, the East Asian economic miracle (with the exception of Japan) has been based primarily on extraordinary growth in the quantities of production inputs, such as capital and labour, rather than on increased efficiency in the use of these factors -- in other words, technological progress. In the early stage of development, these economies had underutilized, undertrained workforces, and there was a huge need for investment in physical capital. As East Asian labour forces become educated and the share of investment to GDP reaches a maximum, East Asian growth rates can be expected to converge on those experienced by the industrialized countries (Paul Krugman, "The Myth of Asia’s Miracle," Foreign Affairs, November/December 1994).

(7) In this case, the World Bank category of "East Asia and Pacific" includes only those economies which have been categorized by the World Bank as developing economies. Not included are: Australia, Japan, New Zealand, Brunei Darussalam, French Polynesia, Hong Hong, Macao, Singapore, and Taiwan.

(8) According to Statistics Canada’s definition, the "Pacific Rim" includes the countries of East Asia and Oceania.

(9) Doug Nevison, Profiting in the Pacific Rim: Can Canada Capture its Share? The Conference Board of Canada, Ottawa, April 1994, p. 16.

(10) Ibid.

(11) Walid Hejazi and Daniel Trefler, "Canada and the Asia Pacific Region: Views from the Gravity, Monopolistic Competition, and Heckscher-Ohlin Models," in Richard G. Harris, The Asia Pacific Region in the Global Economy: A Canadian Perspective, The Industry Canada Research Series, University of Calgary Press, 1996, p. 72.

(12) Ibid., p. 73.

(13) Robert N. McRae, "Canada’s Natural Resource Exports to the Asia Pacific Region," in Richard G. Harris, The Asia Pacific Region in the Global Economy: A Canadian Perspective, The Industry Canada Research Series, University of Calgary Press, 1996.

(14) Ibid., p. 133.

(15) Ibid., p. 136.

(16) Jeffrey J. Schott, The Uruguay Round -- An Assessment, Institute for International Economics, Washington D.C., November 1994, p. 99.

(17) The Statistics Canada definition of commercial services includes: communication services, construction services, financial services, computer and information services, royalties and licence fees, equipment rentals, management services, advertising and related services, research and development, architectural, engineering and other technical services, miscellaneous services to business, audio-visual services, and personal, cultural and recreational services.

(18) The net profits of the operation accruing to Canada would, however, be recorded under "investment income" in the Current Account.

(19) Note: This estimate is from the 1996 WTO Annual Report which defines commercial services to include travel and transportation services, as well as other commercial services. In contrast, Statistics Canada provides separate categories for travel and transportation services.

(20) Data respecting Canada-China services trade were not available.

(21) One study found that between 1981-1984 Canadian affiliates operating in the United States purchased from their parent groups in Canada approximately five times the level of sales that the affiliates sold to their parent groups, averaging a US$4 billion deficit from the U.S. perspective (Alan Rugman, Multinationals and Canada-United States Trade, University of South Carolina Press, 1990, p. 68).

(22) A "direct investment" is one in which the investor may exercise some influence over the management of the enterprise. Statistics Canada defines a direct investment as one in which ownership amounts to at least 10% of the equity of an enterprise and that covers claims intended to remain outstanding for more than one year.

(23) Keith Head and John Ries, "Rivalry for Japanese Investment in North America," in Richard G. Harris, The Asia Pacific Region in the Global Economy: A Canadian Perspective, The Industry Canada Research Series, University of Calgary Press, 1996, p. 87.

(24) Ibid.

(25) Ibid., p. 104.

(26) If the United States is included, five of the top ten sources of immigration in 1996 were Asia Pacific countries.

(27) Note that a correlation between the stock of East Asian immigrants and trade levels with the region does not necessarily imply causation. The study’s authors are cautious about drawing the conclusion that increases in immigration from East Asia will open these markets to Canadian exports. (Michael Baker and Dwayne Benjamin, "Asia Pacific Immigration and the Canadian Economy," in Richard G. Harris, The Asia Pacific Region in the Global Economy: A Canadian Perspective, The Industry Canada Research Series, University of Calgary Press, 1996, p. 343.)

(28) On 1 November 1994, the Canadian government announced a moratorium on new IIP proposals. On 18 March 1997, the federal government announced a new, redesigned IIP.

(29) Citizenship and Immigration Canada, "Minister Robillard Announces New Immigrant Investor Program," News Release, 18 March 1997.

(30) Michael Baker and Dwayne Benjamin, "Asia Pacific Immigration and the Canadian Economy", in Richard G. Harris, The Asia Pacific Region in the Global Economy: A Canadian Perspective, The Industry Canada Research Series, University of Calgary Press, 1996, p. 343.

(31) Terry G. McGee, Widening the APEC Agenda: A Canadian Perspective, Institute of Asian Research, University of British Columbia, date unknown.

(32) Asia-Pacific Economic Cooperation, Manila Action Plan for APEC, Vol. 1, November 1996.

(33) APEC Business Advisory Council, APEC MEANS BUSINESS: Building Prosperity for Our Community, Report to the APEC Economic Leaders, 1996.

(34) PECC, PIDS, The Asia Foundation, Perspectives on the Manila Action Plan, 1996, p. 11.

(35) Ibid., p. 7.

(36) There was still room for improvement in lowering peak tariffs for textiles, clothing and automotive products.

(37) PECC, PIDS, The Asia Foundation (1996), p. 19.


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