Cdn. Foreign Affairs Minister wants closer economic ties with South Korea
The Liberal government is focused on building a closer relationship with both South Korea and Japan as it looks to expand its alliances beyond traditional Western partners.
Canada is vying to be the “best of friends” with South Korea, Foreign Affairs Minister Melanie Joly said on May 16 after launching closer talks on economic security with her counterparts in Seoul.
Joly arrived in the South Korean capital with Prime Minister Justin Trudeau, who’s making his first official visit to the country as the two governments try to build closer ties and work together on global security concerns.
Industry Minister Francois-Philippe Champagne joined Joly to begin a “high-level dialogue on economic security,” with both countries committing to have recurring meetings and tracking their progress on moving away from dependence on China.
“Ultimately we’ve been good friends for a long time, but we want to be best of friends,” Joly said in a news conference on May 16.
The visit by Trudeau, who is expected to remain in the country until he heads to the G7 leaders’ summit in Hiroshima, Japan, on May 18, follows South Korean President Yoon Suk Yeol’s trip to Ottawa last fall.
Since then, both countries have released their Indo-Pacific strategies, providing a road map for strengthening military and economic relationships in the region to counterbalance the influence of Beijing.
“I don’t think there was a time when Korea and Canada were so close as now, and I don’t think we’ve had any period where our two leaders have met so frequently,” Lim Woongsoon, South Korea’s ambassador to Canada, said last week in an interview in Ottawa.
Tina Park, a lecturer at the University of Toronto and CEO of The Park Group, said the frequency of meetings between the leaders reflects their commitment to building a stronger relationship.
“There is a new momentum as we reflect upon the 60th anniversary of diplomatic relationship between Canada and Korea this year,” Park wrote in an email.
South Korea is Canada’s seventh-largest trading partner for both imports and exports, amounting to $16.7 billion in merchandise trade in 2021.
Trudeau is expected to address the country’s National Assembly on May 17.
The clean economy and climate change, as well as establishing a youth mobility program between the two countries, are among the trip’s priorities.
Lim said there’s ample reason for Canada and South Korea to strengthen their economic and cultural ties. In addition to its sizable diaspora in Canada, he said South Korea has significant business interests in the critical minerals Canada has to offer, and both countries are aligned in their commitments to move away from carbon-emitting fuels.
The Liberal government is focused on building a closer relationship with both South Korea and Japan as it looks to expand its alliances beyond traditional Western partners amid a growing threat from Russia and tension with China.
Lim said South Korean companies are concerned about over-reliance on Chinese suppliers. The ambassador said that’s why Trudeau’s visit will focus on supply-chain resilience, with the clean-energy transition at “the top of the agenda.”
South Korean companies have shown interest in Canada when it comes to electric vehicles. SK On Co., for example, wants to launch a battery-component factory in Becancour, Que.
Now, there is a dispute between the federal government and automaker Stellantis, which was constructing an electric-vehicle battery plan in Windsor, Ont., in partnership with South Korean battery-maker, LG Energy Solution.
Stellantis stopped construction on May 15, saying the federal government “has not delivered on what was agreed to.”
Champagne said he’s “very confident” that the federal government will come to an agreement with Stellantis. He said negotiations are focused on production subsidies to match the incentives offered by the U.S. Inflation Reduction Act.
Champagne also took the opportunity to call out the Ontario government, which the federal government is partnered with on the deal.
“The message to our Ontario colleagues is, ‘Pay your fair share, and we will bring this stalemate to a conclusion,'” Champagne said.
He said he hopes to meet with the head of LG Energy Solution on May 17.
Beyond critical minerals, Lim said South Korea is focused on moving toward cleaner fuel sources.
He said South Korean companies are investing big in hydrogen ammonia plants around the world, and curious about expanding in Canada. The ambassador tallies the current investments into Canadian green technologies at $8 billion.
