Canada-China Relations Committee on Feb. 12th, 2024

[The Chair, Liberal, Ken Hardie]

You have time for just a short question, Mr. Bergeron.

[Stéphane Bergeron, Bloc, Montarville, QC]

Thank you, Mr. Chair.

Thank you for your reply, Mr. Ambassador.

One of the six points of Japan's plan for a free and open Indo-Pacific refers to co-operation between Canada and Japan in preserving the rule of law. Since the rule of law is being challenged by certain powers in the region, specifically China and North Korea, what are your thoughts on potential co-operation between Canada and Japan in maintaining the rule of law?

[Kanji Yamanouchi]

Thank you very much.

I would say that based upon the joint action plan, which is based upon the Canadian Indo-Pacific strategy, we see a great development in Canada-Japan defence co-operation. I would share with you some of the examples.

There is an exercise called KAEDEX. Kaede is the Japanese word for “maple”, so KAEDEX is a nice name for the joint exercise between Japan's and Canada's armed forces. For that, the Canadian navy dispatched three frigates: HMCS Montréal, HMCS Vancouver and HMCS Ottawa. Two frigates out of five frigates over the past exercises. That is a huge commitment. We've been doing these joint exercises and also participating in the United Nations activities, which are under the Security Council resolution to monitor North Korean ship-to-ship transfers.

Along with the frigates, Canada's patrol aircraft, CP-140 Aurora, was also dispatched and stationed at Kadena Air Base on Okinawa. That Aurora made a big difference to those activities.

On top of that, Japan's Self-Defense Force officers have participated in Operation Nanook in the Arctic region. The Arctic is also a very important area, down the road. Canada has an enormous interest in that. Japan is also participating in those kinds of activities, so much so that we're growing things together.

Also, we draw your attention to Canada's memorandum of understanding with the Philippines for defence co-operation. Japan also signed an agreement with Malaysia and the Philippines for the procurement of surveillance equipment. Altogether, Canada and Japan are working together for the betterment, peace and stability of the region.

[Stéphane Bergeron, Bloc, Montarville, QC]

Thank you, Mr. Ambassador.

[The Chair, Liberal, Ken Hardie]

Thank you, Mr. Ambassador.

We'll now go to Ms. McPherson for six minutes.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Thank you very much, Mr. Chair.

Thank you, Your Excellency. This has been very interesting.

I was in Hiroshima just before the G7 with ICAN on nuclear disarmament. It was not long enough, and I look forward to being able to be back in Japan. I met with many members from the Japanese Diet, and it was a wonderful experience.

You have spoken a little bit about Canadian energy and the need that Japan has, and I would like to hear a little bit more. You've been very kind about how the Indo-Pacific strategy is beneficial to both Japan and Canada.

I'm from Alberta, an energy-creating province. You spoke a lot about liquefied natural gas and oil, but could you talk a little bit about the opportunities with regard to critical minerals and with regard to hydrogen, both blue and green, and what that could look like within the framework of the Indo-Pacific strategy?

[Kanji Yamanouchi]

Thank you very much, Ms. McPherson.

My home is in Nagasaki, so I share your feeling for peace and that it's very important to make a commitment to never again have that kind of accident.

Regarding these critical minerals and new sources of energy, I will tell you that Japanese companies are very much interested in blue ammonia in Alberta, because, as I just mentioned, all the countries, including Japan and Canada, are committed to being carbon-neutral by 2050.

It's 2024. We have 26 years, but we have to have progress in those new sources of energy, and ammonia has enormous potential. I do understand that natural gas, which is an ingredient for ammonia, in Alberta has very strong price competitiveness and is a great location for CCS, carbon capture and storage, so they are paying a lot of attention to that. In that sense, Alberta has big potential to help the country to achieve the goal of being carbon-neutral.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

That's wonderful.

I know it's difficult, as you are the ambassador to Canada, but what are those areas within the Indo-Pacific strategy where Canada could be stronger? What are the areas that you would see us perhaps investing in a little bit more or taking a little bit more urgent action? I know that the rollout of the Indo-Pacific strategy was a year ago, and we have heard from other witnesses that it has perhaps not been as quickly rolled out as it could have been.

I'm wondering, from your perspective...and I know that it is a difficult question for you to answer. Perhaps you could frame it around some of our engagement on energy, some of our engagement on post-secondary students or whatever makes sense to you.

[Kanji Yamanouchi]

Thank you very much. Thank you for asking me a tough question.

The Indo-Pacific strategy, as you know, has five pillars, namely, the promoting of peace, resilience and security; expanding trade and investment; investing in and connecting people; building a sustainable and green future; and Canada as an active and engaged partner to the Indo-Pacific.

I think that is very comprehensive. When it comes to this kind of comprehensive plan, it's very easy to point out that this is not enough. As I just mentioned, historically this country has had enormous ties with the European side and the Atlantic side, but this is the first time in history that it has this kind of comprehensive strategy to address the Indo-Pacific.

It's only been one year and two months. Also, the Canadian government has committed a $2.3-billion investment for the first three years to achieve this Indo-Pacific strategy. I think that is a strong commitment.

Nothing is perfect in this world. I think of half full or half empty. We could discuss half empty—

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Maybe it's three-quarters empty. We could refill it for you.

[Kanji Yamanouchi]

I have strong expectations that the Canadian government, the people, the private sector and academia are working for that, because the future of this country, of course, lies on the Atlantic side but also the Pacific side.

That's in all those measures read out in our strategy. They're very hard things. It may take some time, but I'm very glad that Japan is part of it.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

I could ask you one more hard question, because I only have a little bit of time left.

Perhaps you could comment on this. We are looking at the potential impacts of a Trump presidency in the United States. How is that being felt in Japan? How are the outcomes of that being predicted, or are you also not predicting very much because it's very difficult to know?

[Kanji Yamanouchi]

Ms. McPherson, I was in Washington, D.C., as economic minister between 2013 and 2016. Not only Canada and Japan, but also many other countries pay attention to the presidential elections of countries. Sometimes it is very difficult to comment on actual elections in this public place.

I understand that each country is watching it and studying it very carefully and preparing for that.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Thank you very much.

Thank you, Mr. Chair.

[The Chair, Liberal, Ken Hardie]

Thank you, Ms. McPherson.

We'll now go to our second round. We're starting with Mr. Chong for five minutes.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Thank you, Mr. Chair.

Thank you, Ambassador, for appearing in front of us today.

I noted that the G7 communiqué that was agreed to in Hiroshima indicated the need for increased deliveries of liquefied natural gas and acknowledged the need for greater investments in LNG projects.

You mentioned that Japan is reliant on energy imports for 87% of its energy needs. You also mentioned that Japan will be purchasing about 2.1 million tonnes of the 14 million tonnes that are coming online when LNG Canada goes live. Bloomberg recently reported that the long-term LNG supply contracted by Japanese buyers will decrease by 30% or 55 million tonnes from 2022 to 2030, which is only a short few years from now. Last November, Bloomberg also reported that the Ministry of Economy, Trade and Industry is pushing Japanese buyers to sign more long-term LNG contracts to insulate Japan from future supply shocks as well as potential harsher sanctions against Russian LNG.

In that context, can you tell us how interested your government is in securing additional LNG supplies in terms of long-term contracts or spot markets from Canada? Is LNG Canada enough, or would Japan be interested in purchasing even more LNG from Canada?

[Kanji Yamanouchi]

Thank you very much, Mr. Chong.

Energy security is a very important element for national security. As I just mentioned, we need imported sources of energy from all over the world. An important thing is that we have portfolios that do not depend too much on a single country. In that sense, Canada is emerging. I understand that Canada has exported its natural gas only to the United States. This LNG Canada is a big game-changer for Canada too.

First things first, I understand that the first phase will be completed probably in the middle of the 2020s. Hopefully that will start soon. That leads to the second phase. I think the government is always supporting the Japanese companies to diversify their sources of energy.

Also, we are carefully watching the discussions in this country regarding oil and gas in terms of decarbonization. I do think that, given the complexity of the geopolitics, energy security, geopolitics and economic security come together. We have to be very careful. We have to make sure that we are very smart and utilize all possible sources.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Japan is increasing its military spending to 2%, as I understand, by 2027.

In that context, can you tell us what Japan's position is on Taiwan with respect to a potential attack on Taiwan? Is Japan's view to be neutral if Taiwan were to be attacked by another state, or does Japan have a different position on Taiwan?

[Kanji Yamanouchi]

That is a very tough question.

I will give you the same answer I gave Mr. Kmiec. I will repeat that peace and stability in the Taiwan Strait are very important not only for the security of Japan but also for the stability of the international community as a whole. That has been Japan's consistent position for a long time. It expects the issues surrounding Taiwan to be resolved peacefully through dialogue.

Based upon this recognition, Prime Minister Kishida took the lead at Hiroshima among the G7 leaders when they came up with a statement regarding Taiwan, urging a peaceful resolution if there are any issues there and also the importance of peace and stability in the Taiwan Strait. Having said that, the Japanese government takes every possible measure to ensure the protection of Japanese land, people and prosperity. That is all about Taiwan.

Regarding defence spending, by the 2027 fiscal year, the Japanese government intends to increase it by up to 2% of the size of its 2022 GDP. That is much easier than doubling our defence spending and is supported by the people. We see the complexities and difficulties in the security situation surrounding Japan.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Thank you, Ambassador.

[The Chair, Liberal, Ken Hardie]

Thank you very much, Mr. Chong.

We will now go to Mrs. Lalonde online for five minutes or less.

[Marie-France Lalonde, Liberal, Orléans, ON]

Thank you very much.

I certainly want to say thank you very much, Mr. Ambassador, for coming before us today.

I also want to ask a bit about the national security strategy of Japan, which you highlighted in so many ways in terms of measures that both of our countries are taking to enhance security co-operation. Thank you for that.

Maybe I'll follow up on part of the outline in the national security strategy of Japan from December 2022. I'm thinking about the strategy on diplomatic efforts and the participation of Japan in people-to-people and cultural exchanges.

What are some of the outcomes of Japan's efforts regarding participation in people-to-people and cultural exchanges that you could highlight for us this evening?

[Kanji Yamanouchi]

Thank you very much. That's a very important question on people-to-people exchange.

Yes, enhanced relations—friendship and trust—between Canada and Japan's top leaders are inevitable and very important. At the same time, grassroots and people-to-people exchanges also cement friendship and trust among the people.

I would like to share one special initiative. It's what we call the JET program. That stands for “Japan exchange and teaching programme”. It started about 35 years ago regarding Canada. Canada has had more than 10,000 students participate in the JET program over those 35 years. This makes Canada the third-largest participant in the JET program. That is one good example of how we enhance our exchange. Also, Japanese people are coming to Canada through working holidays and schools. This is very basic infrastructure for the friendship between our two countries.

[Marie-France Lalonde, Liberal, Orléans, ON]

Thank you very much.

From that segue, could we talk a bit about how both of our countries, Canada and Japan, are working together on an international development initiative in the Indo-Pacific region?

[Kanji Yamanouchi]

That is also another very important question.

As you may know, we have an agency called the JICA. It's the Japanese agency for international development. We are very proud of it. It is one of the biggest agencies implementing official development assistance and economic co-operation.

Japan and Canada share a lot. You have your Indo-Pacific strategy. We have our own strategy and action plans. Based on those papers, we can work together to help countries in this region. They are waiting for our help, and they are waiting to develop themselves. Along with those recipient countries, Japan and Canada can work together to make the region much better.