Asia's Where It's At

It also means, as Asia continues to build up its manufacturing capacity, that products from Asia will displace more of what we export to the United States as well as more of what we import from the United States. Ontario and Quebec will face major adjustment problems as a result. It is why significantly improving the capacity for innovation is so important. "With continued growth in Asia, there is the prospect of reduced North American integration," says Whalley, in a Centre for International Governance Innovation paper. This turns current Canadian thinking upside down. The high growth rates of China, India and other parts of developing Asia "suggests a changing global economic structure for Canada, signalling increasing trade with the Asian economies and declining relative trade with North America." The belief in "continuing ever-deepening integration by the Canadian economy into the larger North American economy has been the presumption behind a range of policy-related activities beginning in the mid-1980s," says Whalley. But "it is the prospect of sustained and rapid growth in developing Asia that begins to challenge this presumption." Developing Asia includes China, India and the ASEAN countries. http://tinyurl.com/pvbnh

Note: http://tinyurl.com/pvbnh