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和平
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26 March 2014
Satellite View of Oil Sands Development, Alberta

Alberta's pivot to Asia

Changing dynamics in the US, Alberta's main market, are foisting the landlocked Candian province into the Asian Century.

For the past century, Alberta's success has been tied most closely to trade with the rest of Canada and the United States. But changing dynamics in the US are now foisting the landlocked Candian province into the Asian Century.

Just last year, Alberta learnt the folly of selling all of its eggs to one customer. The prices she received for her energy exports to the US fell well below those in the rest of the world. And this dynamic is set to continue as the US ramps up its own energy production. Alberta's southern neighbor expects to be self-sufficient in oil by 2020!

This hit Alberta very hard, since energy accounts for three-quarters of Alberta's exports. And in 2012, the US took 99% of Alberta's crude oil and natural gas exports, and 87% of Alberta's total exports.

However, these developments have coincided with a new international landscape. Not only is breakneck economic growth in Asia driving up energy demand. But growing middle classes in China, India and elsewhere are demanding higher quality products like food and household items, which are produced in a safe and responsible manner. Alberta is very well placed to supply such products.

But nations like Australia are aggressively entering Asia and other emerging markets with great success. And Alberta is competing in real time with hundreds of economies to attract capital and labor. In the energy sector alone, it is estimated that companies in Alberta require $43 billion per year over the next 10 years to continue development of the oil sands and conventional oil and gas.

The need for Alberta's new "International Strategy 2013" thus became imperative. All the more so since Australia's momentum is being driven by its government's White Paper, Australia in the Asian Century. This is a roadmap to guide Australia to become a more prosperous and resilient nation, fully part of the region and open to the world.

What are the key elements of Alberta's international vision and objectives?

The vision of the Government of Alberta is that Alberta will be regarded internationally as: a desirable place to live, work, travel, study, and conduct research; a safe, secure and responsible energy producer; and a preferred supplier of goods and services to the world.

The four objectives of Alberta's strategy are to: diversify markets to expand the economy; build Alberta's reputation as a global citizen; prepare Albertans for success in the global community; and prioritize and integrate government action to take advantage of international opportunities. In this regard, the Government of Alberta has identified six key regions: US, China, North Asia, South East Asia, Europe and Emerging Markets.

From the fur-trading posts of the 18th century to the present day, Alberta's success has been tied to strong international relationships that allowed it to attract immigrants, encourage investment and export goods. But today Alberta must pivot East, it must increase exports of commodities to countries outside the US, and increase the revenues Albertans receive for their exports.

As Albertan minister for international and intergovernmental relations Cal Dallas said, "This new strategy will be our road map for the future, helping us to diversify our markets, build and attract international students and labor ... It's essential that we continue to expand our international profile, particularly in today's competitive global marketplace".

It is somewhat ironical that the province of Alberta seems to be ahead of Canada's national government in terms of elaborating a strategy for the Asian Century. Other Canadians can only hope that friendly intergovernmental competition might spur Ottawa into faster action.

Author

John West
Executive Director
Asian Century Institute
www.asiancenturyinstitute.com
Tags: asia, alberta, canada, alberta's international strategy, asian century, CanadAsia 2013

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