Critics feared the bank would set much lower standards for projects and undermine principles of social, environmental and economic sustainability adhered to by the World Bank and other multilateral development finance institutions. It could undercut the World Bank, where the USA has the most clout, and the Asian Development Bank, where the Americans are the second-largest shareholder after Japan.
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On Wednesday in Beijing, Finance Minister Bill Morneau will meet with the investment bank’s president Jin Liqun.
Canadian firms can benefit, too, he added.
Canada was nearly a decade ahead of the U.S.in recognizing the People’s Republic of China – Pierre Trudeau was quoted in the Ottawa Citizen as early as December 1968 saying he wanted “a new China policy” and years of alienation “should not bind us forever”. They aren’t buying, so we aren’t selling and we’re not creating the kind of “good jobs” in Canada that politicians all lust after. That means Canada imports far more from China than it sells there.
“Should we become the first North American member of the AIIB, I have every confidence that we bring constructive and balanced views to the table”.
The US$100 billion AIIB counts several major European countries among its shareholders after they joined up despite the objections of the United States.
In order to join, countries agree to contribute funds in the form of shares.
China founded the US$100 billion Asian Infrastructure Investment Bank late previous year to provide other countries in the region access to cash for such areas as transportation, power and telecommunications. Garratt’s case was also raised by the former Conservative government.
Justin Trudeau wants to remake Canada into a bridge between China and the world, a bid to take back the role fashioned by his father more than four decades ago.
While only temporary, the exemption for Canada will be seen as a small victory for Trudeau.
“While Canada won’t be willing to drop political prejudices against China, including human rights issues, it won’t affect the general positive trend between the two countries”, Li Haidong noted.
“China is a country under the rule of law, and judicial authorities in China will handle judicial cases in strict accordance with the law”, Li said, adding that Garratt would be treated “in a humanitarian way” and allowed consular visits from Canadian diplomats.
Ottawa insists investing in the infrastructure bank will provide a boost to global and Canadian growth.
China is Canada’s second largest trade partner after the US.
On other fronts, the Trudeau team hopes to profit from the sour taste left by the Harper government’s unsteady relationship with China.
But Evans said most officials feel Canada made a mistake by not joining the bank previous year.
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Canada is also among the seven countries that came together to express concern over China’s claims in the South China Sea, which further upset Beijing.
