Editorial comment
In the wake of the third and final US presidential debate (Boca Raton, Florida), which focused on foreign policy, my thoughts are on the global economy and our attitudes to the economic pros and cons that foreign investment brings.聽
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A big chunk of the debate naturally centred on the various foreign territories where the USA (along with its allies) is at war, but a significant portion of the dialogue was dedicated to issues of domestic security and, of a sort, economic protectionism.
President Obama spoke about 海角吃瓜网淢aking sure that we海角吃瓜网檙e bringing manufacturing back to [America海角吃瓜网檚] shores so that we海角吃瓜网檙e creating jobs here, as we海角吃瓜网檝e done with the auto industry, not rewarding companies that are shipping jobs overseas.海角吃瓜网�
Apart from being a little dig at Gov. Romney, who Obama accuses of shipping jobs overseas whilst at Bain Capital, this comment shows that, even in a discussion of foreign policy, domestic economic issues were constantly coming to the fore.聽
There was much talk of China. Mitt Romney worried aloud about a silent trade war with China: 海角吃瓜网淲e have enormous trade imbalance with China海角吃瓜网� We have to say to our friend in China, look, you guys are playing aggressively海角吃瓜网ou can海角吃瓜网檛 keep on holding down the value of your currency, stealing our intellectual property, counterfeiting our products, selling them around the world海角吃瓜网� I want a great relationship with China. China can be our partner, but that doesn海角吃瓜网檛 mean they can just roll all over us and steal our jobs on an unfair basis.海角吃瓜网�
For his part, President Obama opined: 海角吃瓜网淲ith respect to China, China is both an adversary, but also a potential partner in the international community if it海角吃瓜网檚 following the rules. So my attitude coming into office was that we are going to insist that China plays by the same rules as everybody else.海角吃瓜网�
There was very much a sense that both candidates used China as an opportunity to 海角吃瓜网榯alk tough海角吃瓜网�: positing the growing nation as perhaps a reason for the USA海角吃瓜网檚 economic failures and both vowing to make things more 海角吃瓜网榝air海角吃瓜网� in the future, if elected.
Now, presidential debates, and election times in general, may not be the most likely time to exercise restraint or judiciousness in matters of foreign policy: the benefits of both talking tough and conjuring up a scary foreign enemy are worth too many votes. However, it is interesting to think about how we balance a country海角吃瓜网檚 fierce desire to remain independent, self-sufficient and economically strong, with the need to do business with other countries, be a player on the global stage and increase international commerce and connectivity.
An example recently presented itself in Canada, where matters of foreign investment and ownership in the oil industry have been much debated in recent years.
In mid October, it seemed certain that Petronas, the Malaysian state-owned oil company, was going to purchase the Canadian company Progress Energy Resources Corp. for Cdn$ 5.2 billion. However, after a late call for more time from Ottawa, and a subsequent rejection of this extension request from a perplexed Petronas (which had already given an earlier extension and had raised its bid), the deal was vetoed three minutes before the midnight deadline. Industry Minister Christian Paradis put out a press release stating that he was rejecting the deal because it did not offer 海角吃瓜网渘et benefit海角吃瓜网� to Canada.
With no major issues apparent that would prevent the deal from going ahead, some see the move as part of a bigger game that Canada is playing with China. Just after Petronas launched its bid for Progress in June, CNOOC ventured to buy Nexen, Canada海角吃瓜网檚 sixth largest independent energy firm, which has assets in the oilsands, the GoM, the North Sea and offshore Nigeria. Did Ottawa kill the Petronas deal so as not to tie its hands when reviewing the much more controversial Cdn$ 15.1 billion CNOOC bid? How does this sit with Prime Minister Harper海角吃瓜网檚 statements that Canada is an open door to foreign investment? Canada has been pushing closer ties with China but, as one Conservative is reported to have said in Ottowa, 海角吃瓜网淲e expected them to buy our oil, not our oil companies海角吃瓜网�.
