Mr. Chair and members of the committee, thank you very much for inviting us to speak today about Canada's Indo-Pacific strategy and the region as a whole.
Let me begin by saying that the Indo-Pacific remains the world's fastest-growing economic region and the primary driver of global growth. It comprises more than 40 economies, over four billion people and roughly $50 trillion in economic activity.
As a peaceful nation, our prosperity, security and long-term resilience are increasingly influenced by the development of this region. However, while there are ample economic opportunities, geopolitical risks also increase.
According to the government, this new context only reinforces the relevance of the Indo-Pacific region for Canada. The five-year funding of Canada's Indo-Pacific strategy continues to support this central policy instrument to advance Canada's interests and objectives in the region. It's important to note that the strategy was designed as an adaptive framework with an integrated review process to react to an evolving regional context.
As we update the Indo-Pacific strategy—by “update” I mean both in action and in terms of policy advice and decisions taken over the past year—we are increasingly focusing on accelerating our trade diversification efforts, on building strong partnerships that reinforce economic resilience and strategic autonomy, and on developing variable geometry co-operation that draws on Canada's strengths in energy, critical minerals, technology, defence production, AI and other sectors. A concrete example of this is the new Australia-Canada-India technology and innovation partnership.
Let me say a few words about what Canada has accomplished since 2022.
First, Canada's commitment to the region has been reinforced through sustained engagement at the highest level. We had more ministerial and Prime Minister visits to the region between 2022 and 2026 than in any other comparable period in recent history.
Second, from a security standpoint, we've increased our naval presence in the region through Operation Horizon, our participation in multinational exercises, as well as sanctions monitoring through Operation Neon. We have new defence and security agreements with Japan, South Korea and the Philippines. Our partners appreciate the reinforced and regular nature of our engagement and recognize our contributions.
Third, trade and investment diversification remain at the heart of Canada's approach. Since 2023, Canada has led team Canada trade missions to nine Indo-Pacific markets, including six member states of the Association of Southeast Asian Nations, or ASEAN. Canada also concluded negotiations on the Canada-Indonesia comprehensive economic partnership agreement last fall, and we continue to advance trade negotiations with ASEAN, the Philippines, Thailand and India.
Canada has also strengthened its commercial presence through expanded Export Development Canada offices across the region and increased regional engagement by FinDev Canada and the Asia Pacific Foundation, among others. I'll also point to the new office of Agriculture and Agri-Food Canada in Manila, which is supporting market access, food security and supply chain resilience across the region.
Let me take a moment briefly to talk about some of our major regional partnerships.
Canada's strategic partnership with ASEAN, established in 2023, is elevating our engagement across Southeast Asia through deeper co-operation on the digital economy, energy transition and food security. These efforts advance our diversification objectives and strengthen Canada's supply chain resilience by positioning us as a long-term economic partner in the region. Following the Prime Minister's participation in last October's ASEAN summit, both sides are committed to completing negotiations on a Canada-ASEAN free trade agreement by the end of this year.
Separately, we've built dynamic, bilateral relationships with partner governments across the region. Canada's strengths in both conventional energy and clean energy across the subsectors position us as a reliable partner for countries across the region, including Japan and South Korea, as they navigate their energy transition or seek to enhance long-term energy security.
Let me say a few words about India. Over the past year, we've made significant progress in renewing our bilateral relationship, guided by a clear and pragmatic approach based on two complementary pillars: security and diplomacy. This two-track approach has allowed us to rebuild trust, restore regular channels of communication, and refocus co-operation as pluralistic democracies on shared responsibilities and interests.
As one of the world's fastest-growing economies, India is a critical component of Canada's trade diversification efforts. To this end, Prime Minister Carney and Prime Minister Modi have also agreed to start negotiations on an ambitious Canada-India comprehensive economic partnership agreement. We have concluded the first round of negotiations and are preparing for the next one. This reflects India's growing importance as a strategic and trade partner, as we are now ready to advance bilateral co-operation on a new Canada-India road map.
Beyond India, in South Asia, we are also actively deepening our engagement with Bangladesh and Pakistan. They're both poised to play an increasingly important part in our future and in the region's future, given their large populations and growing economies. We very much welcome Pakistan's recent role in helping mediate the recent ceasefire in the Middle East.
I have a couple of words about China, and then I'll wrap up. China remains an important commercial market for Canada in the Indo-Pacific. The Prime Minister's visit in January deepened high-level contact and improved predictability for both Canada and China through a newly refocused strategic partnership that emphasizes pragmatic and constructive co-operation in a few areas, such as energy, food security, trade and people-to-people ties. This recalibration of the relationship reflects the government's commitment to engaging with Beijing where it advances our interests, while remaining clear-eyed about areas of disagreement and concern and putting appropriate guardrails in place to protect our economic and national security.
In conclusion, my main message is that Canada's Indo-Pacific strategy is delivering real results for Canadians. It strengthens the country's economic resilience, fosters trade diversification, strengthens partnerships and positions Canada as a trusted partner.
Thanks for your attention. We look forward to answering any questions you have.