Foreign Affairs Committee on Feb. 14th, 2022

[Randeep Sarai, Liberal, Surrey Centre, BC]

Mr. Chair, has the government made any formal diplomatic communications to China regarding its concern about the rising tensions in the Taiwan Strait?

[Weldon Epp]

Mr. Chair, yes, we have done so through bilateral diplomacy at a working level. At my level we frequently have these conversations with the embassy here, or our embassy in Beijing raises these issues. Most recently, our deputy minister Marta Morgan raised it in a conversation with her counterpart from China.

Apart from bilateral communications, we use multilateral statements, including from the G7. There were several last year. If you noted, most recently—I think it was last week—in the Prime Minister's readout of his conversation with his Japanese counterpart, concerns about rising tensions across the strait were raised in that as well.

[Randeep Sarai, Liberal, Surrey Centre, BC]

What are the risks of escalation if we misrepresent the situation in the Taiwan Strait when we're seeing similar things happening in Ukraine right now where tensions are high? What are the risks and ramifications of that in this situation in Taiwan?

[Weldon Epp]

One of our concerns, Mr. Chair, is that any increase in the operational frequency of activity, even if these are test flights, raises the risk, in an incredibly busy sea lane and airspace, of accidents of missed communication and the possibility that it could spill into open tensions.

I'll turn to Mr. Hamilton, who follows these issues very closely, to see if he wants to add to that.

[Kevin Hamilton]

I don't have much more to add. That was an excellent answer.

I would just reiterate that any time there's an increase to operational tempo, there is a risk of accident, and there's a risk of misinterpretation. Certainly what mainland China has been doing with respect to incursions over Taiwan is not conducive to the preservation of international peace and security. It is a destabilizing situation that we monitor on a daily basis.

[The Chair, Liberal, Sven Spengemann]

Thank you very much, Mr. Sarai.

Thank you to the witnesses.

We will now go to our third round.

Leading us off will be Mr. Morantz for five minutes.

Please go ahead.

[Marty Morantz, Conservative, Charleswood—St. James—Assiniboia—Headingley, MB]

Thank you, Mr. Chair.

I realize that you said earlier that you couldn't comment on what we would do in the event of an incursion by China in the Taiwan Strait. I'm just wondering if you could elaborate on what measures are available to the Government of Canada in such an event.

[Weldon Epp]

Mr. Chair, in situations where we oppose the use of military force either in international contexts or, for example, in human rights within borders, one option that the Canadian government has developed and deployed in the past has been economic sanctions.

This committee would be aware that the Canadian government undertook economic sanctions against China for the first time in the context of our concerns about human rights abuses in Xinjiang last year. Obviously, Canada continues to enforce both UN and bilateral sanctions in the case of the DPRK.

Sanctions are one tool. They are not the only tool. One concern that Canada would continue to pursue given the increased tension we've seen in the strait, is to continue to, if I might put it this way, encourage both sides—particularly through our engagement with Taiwan, since that's the topic today—to develop peaceful engagement across the strait and with other partners within the region.

Mr. Reeves mentioned the GCTF. We will double down on our approach to supporting our exporters and investors with respect to Taiwan. We passed an arrangement to support the avoidance of double taxation a couple of years ago.

Some of the bilateral tools we can use to support trade and people-to-people engagement with Taiwan are, frankly speaking, an important part of maintaining confidence and normalcy for the people of Taiwan even as they face increasing military threats. It buys them time to find more peaceful ways to resolve those conflicts.

Canada has always been clear. We're opposed to any unilateral action that would destabilize the situation in the Taiwan Strait.

[Marty Morantz, Conservative, Charleswood—St. James—Assiniboia—Headingley, MB]

Thank you.

I want to circle back to the joint statement. One thing the joint statement said—and presumably China supports it because it signed on to the statement—was about ruling out NATO expansion in eastern Europe.

Are you concerned that China has now embarked on a foreign policy designed to interfere with the decisions of NATO?

[Weldon Epp]

Mr. Chair, I must turn to my colleague Mr. Hamilton for that question.

[Kevin Hamilton]

Mr. Chair, it's a very interesting question. Right now NATO is going through a renewal of strategic concept. It's something that's done roughly every decade. It is happening right now. The results will be announced this summer at the Madrid NATO summit.

One issue under discussion is the necessity for the North Atlantic alliance—even though it's a Euro-Atlantic alliance—to have 360-degree threat perception and the ability to deal with challenges and threats that may come from outside Euro-Atlantic spaces. China is explicitly mentioned in that regard. We're very alive to China's role in the region. China's relationship and efforts are often—

[Marty Morantz, Conservative, Charleswood—St. James—Assiniboia—Headingley, MB]

My time is pretty short, but I get the picture.

Obviously China's watching what's going on in Ukraine very closely. Although the situations aren't completely analogous, many parts of the two situations are very similar.

If the international community's response to an invasion of Ukraine is perceived by the Chinese government as weak, do you think that increases the probability that the Government of China might actually embark on an incursion to reunify with Taiwan by force?

[Weldon Epp]

We're talking about it because it absolutely is a talking point that the risks of what might happen in Ukraine have an impact globally. We are concerned that not just China but others might seek to learn lessons or draw conclusions from that. We'll continue to have those conversations with our allies, both in Europe and around the world.

[The Chair, Liberal, Sven Spengemann]

Thank you very much, Mr. Morantz. We'll have to leave it there in the interest of time.

Thank you, Mr. Epp.

We'll go to Mr. Ehsassi now, please, for five minutes.

[Ali Ehsassi, Liberal, Willowdale, ON]

Thank you, Mr. Chair.

Allow me to also thank all the witnesses for their testimony today.

Mr. Epp, allow me to start off with really good news, the fact that we launched exploratory discussions for the FIPA earlier this year. Would you mind sharing with us what you think the time frames will be going forward?

[Weldon Epp]

We have the benefit of a real expert on that in Ms. Speirs, so I'll turn to her.

[Mary-Catherine Speirs]

Mr. Chair, as I've noted, we have upcoming meetings scheduled to undertake those exploratory discussions with Taiwan towards a future FIPA. Those meetings are scheduled for February and March. They are designed to assess our relative levels of ambition. We will then be in a position to recommend whether to proceed to formal negotiations.

It is hoped that those exploratory discussions can also ensure that, should we proceed to formal negotiations, those would move relatively quickly.

[Ali Ehsassi, Liberal, Willowdale, ON]

Would it be correct to say that Taiwan is the most significant trade partner we have with whom we have yet to negotiate a FIPA? Is that correct?

[Mary-Catherine Speirs]

I won't comment on that.

I will note that Canada recently completed a review of its model FIPA agreement, and we are now in the process of reinvigorating our FIPA program, including with a number of partners.

[Ali Ehsassi, Liberal, Willowdale, ON]

Is there any other jurisdiction with which we do more give and take, more trade, more bilateral investment than Taiwan, with which we do not, as yet, have an agreement?

[Mary-Catherine Speirs]

I'm sorry, but I can't comment on that.

Many considerations are taken into account as we look at where we would consider having FIPAs with potential partners.

[Ali Ehsassi, Liberal, Willowdale, ON]

Could you share with us how many OECD countries have already negotiated FIPA agreements with Taiwan?

[Mary-Catherine Speirs]

I'm sorry, but I don't have that information at hand.

[Ali Ehsassi, Liberal, Willowdale, ON]

Okay, but which of our significant trading partners already have a FIPA with Taiwan? Can you name a few of them?

[Mary-Catherine Speirs]

I'm sorry, but I'll have to follow up on that.