Due to the fact that Canada plans to integrate the international market as the member of APEC, it should concerned with the agreement of India with other Asian countries. What is more crucial is that Canada is more oriented on the Asian market, as it is aimed at enhancing its impact on trade by forming multilateral agreements. In its turn, India is planning to oust Western companies from invading Asian trade spaces. Then, another important reason that is crucial to consider is that India’s attempts to form a Large Trading Group is a significant step to the development of Asian market enhancement of its position. This means that Asian trade space will be greatly advanced by this treaty thus decreasing the impact of Westerns countries.
When talking about Pan Asian trading block, it should be stressed that this treaty is more beneficial for poor and developing countries that would obtain more advantages for an economical development. Therefore, those countries may perceive a slight pressure from powerful western blocks. By gaining the trust of Pan Asian block and concluding free trade agreements with Asian countries, Canada will easily penetrate to a desirable space, which was its initial aim. Moreover, a peaceful cooperation with those countries will be advantageous of Canada as well, as the country will manage to keep pace with all agreement concluded within Asian block.
On the other hand, the establishment of Eastern alliance as a result of globalization positively influences an easier penetration of goods and services. This process is also carried out to maximize the profits of both corporations and investors. Therefore, Canada’s concern with this agreement is quite grounded.
As it has been previously acknowledged, the newly appeared trading block has become one of the most influential powers in the East, as it has managed to activate hidden resources in the developing countries and the existed ones in prospering countries of the third world. Therefore, the leading Western countries should do their best to gain confidence of Asian trade alliance, a fast-developing market that has much in store in financial terms.
The first stage of Western trade integration lies in meeting halfway with free trade agreement terms. In other words, Canada or other developed economies should eliminate the limits existed between the East and the West instead proposing the equal terms for trading. This solution would help the developing countries to realize their importance for the international market. What is more important is that it would be desirable to recognize the economic breakthrough of such countries as China and Korea that are the members of the Asian trade block.
It should be stressed that the development of ASEAN trade union opens new possibilities and market segments for Westerns countries and for Canada in particular. Therefore, to benefit from this alliance, it is necessary to enter this trade community and to accept the main principles established in ASEAN. An alternative method can also admit the creation of these conditions, like the creation of another trade community contributing to the prosperity of Asian trade block. In particular, specific strategies should be worked out to engage into the negotiation process pertaining to FTA issues. This solution would considerable increase the power in the region. Besides, the introduction of WTO into discussion would be also beneficial for all parties.
ASEAN trade block is considered to be as another European Union because if this alliance can create their independent market, it can also create its own financial and economic system. In the course of continuous growth and rapid advancement, this successful community can turn into a powerful finance and economic empire so that it would be difficult for other alliances to be competitive with the emerging one.
Arising from the above, Canada whose major strategy is focused on creation of free trade agreements with other countries, should work out a sophisticated strategy to effectively penetrate to the Asian market. For Canada, this transformation will not be beneficial, as being ‘non-official member’ of APEC, it can loose the last chances to conquer the recognition at the Eastern market. Nonetheless, Canadian partnership with ASEAN trade block can be turned out be a negative experience in terms of currency depolarization. It is explained by the fact Canada has a stable currency, which is firmly established in the world. In case ASEAN establishes its own monetary system, which is quite possible, Canada will be considerably hampered in economical and financial terms.
The introduction of new economic alliance can also influence the economies of other economic systems through the development and assertion of the new currency. However, the cooperation of Canada and ASEAN can be beneficial, as the former is considered as respectable foreign investor that can promote the development and establishment of the compatible market segment equal to the already established. In general, Canada is in a profitable position in comparison with other trade communities, as it continuous cooperation with Asian region will surely contribute to Canadian development in future.
The creation of monetary fund has two sides of a coin. On the other hand, this process involves the reunification of small and poor economies that will be completely dependent on the India and China – the dominated countries that will imposes their economic strategies. Despite the development of eastern trade unions aimed at the improvement of Asian social and economical position, other countries with like Viet Nam and Indonesia will not considerably improved in case of their cooperation and economic giants. Indeed, they will be regarded as economic and natural resources appendix to development of other dominated countries. This situation is even more aggravated, as such members of ASEAN never saw any advantages at enhancing and improving the countries with law inputs instead being used as a qualitative weapon against other shaped communities.
Therefore, the partnership with APEC would be much more beneficial for such developing countries, as they would have more chances to make their contribution to improvement of their life and increasing their economic potential. Besides, APEC is more oriented on strengthening social and economic progress of Eastern countries. Hence, their goals a bit different from that of ASEAN, which is more focused on invading the Western countries; they are more concerned with penetrating to the world arena and conquering the international market segment possessed by Western developed economies. Unlike ASEAN, APEC puts an emphasis on the consideration of sphere of health and education as well as social welfare. Certainly, each party has its own hidden goals and interests to achieve so that it is quite difficult to decide for poor countries concerning what part to take.
Works Cited
India for Pan-Asian Trade Agreement: ASEAN Seeks Ties with China, Korea, and Japan. Financial Express. 2006 Web.