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14Th Korea-Canada Forum 14th Korea-Canada Forum October 27-29, 2016 The Plaza Hotel, Seoul “Exploring and Expanding Global Partnership Between Korea and Canada” The 14th meeting of the Canada Korea Forum (CKF) took place from October 27 to 29 at The PLAZA in Seoul, South Korea. Approximately 60 participants joined this forum, entitled “Enhancing the Global Partnership Between Korea and Canada.” The forum was the first since the election of Justin Trudeau as Prime Minister of Canada and was held at a time of deep political uncertainty in Korea and the East Asian region. The meeting provided an opportunity for participants to discuss the latest global trends as well as the state of our relationship and bilateral cooperation. This section summarizes the discussions that took place in Seoul. The 14th Canada-Korea Forum confirmed that the 2014 Strategic Partnership between our countries has growing relevance and usefulness in the face of the game-changing shifts underway globally and regionally in the security, digital technology, economic, and political fields. Following is a menu of bilateral initiatives flowing from each of the Forum’s agenda items that could be taken up by Canadian and Korean governments, businesses, academic institutions and others. POTENTIAL INITIATIVES IN CANADA-KOREA RELATIONS Partnering to promote peace and security in Asia, at a time of competition between a rising China and the USA for regional hegemony, and a leadership change in Washington: In the interest of a stable and peaceful Asia-Pacific, Korean and Canadian governments can work together to provide leadership along with other like-minded states in finding ways to manage serious points of tension in the region while encouraging the U.S. and China to seek a strategic compromise without resort to force. Responding to the Implications of the Digital Revolution: Canadian and Korean governments could form a Study Group to look at the profound impacts of the “fourth industrial revolution” on the functioning of institutions of government, the political process and the delivery of services in our two countries. Given both countries’ strength in ICT, businesses and governments should mine the digital revolution for bilateral opportunities in the economic sector, with a focus on innovative companies and entrepreneurs. Korea’s renowned industrial capacity and ability to commercialize new products, and Canada’s ownership of three of the top 20 start-up ecosystems in the world, and high OECD rating for entrepreneurship, open doors for collaboration and the cross-fertilization of ideas and technologies. Adjusting to the Global Economic Paradigm Shift: In a world still struggling to rekindle sustained economic growth, where global value chains are seen to be reaching maximum development, and with the politics of trade shifting towards increased protectionism, Korea and Canada can provide international leadership while using their Free Trade Agreement to achieve further bilateral growth: • As major traders of similar size, they can work through joint action and leadership to champion old and new trade policy options, regionally and globally, that promote free trade • Officials and business representatives of both countries should sit down and examine the CKFTA for the openings that it creates to take advantage of the shifting paradigm in the global economy both in bilateral economic terms and together in the global marketplace. Cooperative arrangements that can help innovative companies and entrepreneurs, particularly small startups with potentially disruptive technologies, should be a priority. The Next Frontier: Building Arctic Cooperation The complementarity of Canada as an Arctic state and Korea as a Non-Arctic state opens several doors for making Arctic cooperation a major element of the Korea-Canada relationship in the future: • Working with Korea’s strong desire to enhance its voice in Arctic affairs, Canada can help establish a governance model for bringing other non-Arctic states and groups of states into a closer productive relationship with Arctic states within the Arctic Council • Korea’s and Canada’s respective strengths in Arctic science capacities, interests and resources speak to a strong future for exciting cooperation in Arctic research. • Korea’s interest in investment in, and consumption of, natural resources from the Arctic region, added to its strengths in transportation infrastructure, provide two strong drivers for long term economic cooperation between Northern Canadian businesses and Korean companies. Understanding and Finding Responses to the Challenge to Democratic Governance As G20 nations with a deep commitment to democracy, Canada and Korea should use their Strategic Partnership to convene discussions and promote critical thinking about democratic governance in the world, at a time when it is under stress and seems not to be meeting the economic and other aspirations of many citizens in democratic states. • For instance, the D-10, an initiative of the Centre for International Governance Innovation (CIGI) in Canada and the Atlantic Council in the United States, has established a Track 2.5 process (government/non-government) wherein representatives from 10 major countries, including Korea, examine foreign policy and other issues from the standpoint of democracies. It could be enlisted to discuss this critical matter and policy options at a session jointly organized by Canada and Korea Thinking Longer Term – Education and Awareness-building: Despite the large numbers of Koreans students in Canada and Canadian English teachers in Korea, extending over 2 decades, a large knowledge gap still exists between citizens of both countries. Canadian and Korean governments could supplement these developments through more focused and purposeful activities that relate closely to our longer-term objectives. For example, they could: • establish a Canada-Korea education and internship exchange program, which would engage employers on each side, working in cooperation to benefit each other’s’ economic goals (Colleges and Institutes Canada – CIC – is already working on this idea). • organize annual two-way visits of high school students to improve understanding of our strong historical ties and set firmer future foundations for growth in political, security and economic spheres. SESSION SUMMARIES Session One: U.S.-China Relations and Their Implications for East Asian Security Since the election of Donald Trump for the U.S. President, many questions have arisen as to whether the next U.S. administration will take a harsher approach toward Beijing. Throughout this session, the participants examined China’s foreign policy under Xi Jinping and the outlook of Obama’s ‘rebalancing’ strategy toward East Asia with the onset of the next U.S. administration. In recent years, China has become more assertive in a variety of international realms, such as at the 2009 Copenhagen climate negotiations and in the South China Sea. Acknowledging its own limitations, China aims to be a dominant regional power and weaken US influence in East Asia. In response, the U.S. has adopted a strategy of “rebalancing” to Asia in order to increase its presence and prevent regional dominance by China. This rebalance to Asia resulted in efforts to deepen its regional alliances, increase its military presence, strengthen cooperation with ASEAN and increase economic integration. These moves have resulted in heightened competition and tensions between China and the U.S. The Donald Trump administration is likely to create instability in East Asia if it pursues an isolationist policy. It would open the door to the expansion of China’s influence in the region. Since all countries, including South Korea and Canada, want a stable and peaceful Asia-Pacific, they should establish a partnership as middle powers to stabilize relations in the region by encouraging a strategic compromise between the U.S. and China. The ongoing territorial disputes over South China Sea are illustrative of the rising tensions. The South China Sea will continue to define the U.S.-China rivalry. The Filipino President October remarks on his country’s “separation” from the U.S. and rapprochement with China highlight the Sino-American geopolitical competition. China’s approach to South China Sea has worked so far, which may embolden it in the future. This will put Beijing even more fundamentally at odds with the U.S. and its allies who have been trying to improve their relations with Southeast Asian countries. Both the U.S. and China appear to look at power as a zero-sum game, which hampers cooperation. Given that multilateral settings give an equal voice to middle powers, it is time for middle powers to help change the strategic thinking of the two superpowers. Session Two: Innovation in Technology and Digital Transformation The second session focused on the so-called fourth industrial revolution, innovation in technology and digital transformation. The disruptions provoked by rapid changes and developments in technology will have major impacts on businesses, infrastructure and society. Mobile technology is a vivid example, as it has brought and will continue to bring rapid changes, with mobile data growing 50% annually. It is expected that by 2020, 5.5 billion people will possess smartphones, far more than those who have access to basic necessities such as water, electricity, food and so on. In Race Against the Machine, co-authors Erik Brynjolfsson and Andrew McAfee argue that organizations and institutions are not catching up with advanced technologies, which constitutes a great challenge. This highlights the need to adapt our society and economy to keep up with technology. The people, companies, and countries who will lead the fourth industrial revolution are those who are not afraid of moving forward through trial-and- error. One of the biggest examples of technological disruption is the iPhone, which had a major impact on sectors such as health, education, and banking, thus changing our lifestyles and the trend of digital devices. With the upcoming 5G network, new service platforms will be created. There will be sensors in all objects, and devices will communicate between themselves without human intervention.
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