Prime Minister Stephen Harper is in Asia this week on an odyssey to sell Canada, with six days in India, a day in the Philippines and a day in Hong Kong.

And everywhere he goes, the key question will revolve around Canada’s stance on foreign acquisition of its natural resources.

The trip comes as Ottawa delayed until Dec. 10 a decision on an application by China's state-owned oil company, CNOOC, to buy Calgary oil and gas producer Nexen for $15 billion.

That followed Ottawa delaying Petronas' $4 billion bid for Calgary's Progress Energy.

Jeff Broom, a Hong Kong-based Asian analyst said investors everywhere want to know what Canada’s ground rules are.

“This is very confusing…Ottawa has given the okay to many Chinese deals before and now they are saying no…it hurts Canada’s international image as a place to do business,” he said.

According to him Sinopec, another Chinese State Owned Enterprise, commonly known as SOEs, offered $2.2 billion for Canada's Daylight Energy Ltd. last year, the government said yes.

“Many of the Asian giants, financed and run by governments want a stake in Canada’s natural resources…but right now they need the ground rules,” he said.

In India, Ottawa and New Delhi are poised to take forward their civil nuclear deal and expand their trade and agricultural ties.

Canada and India have longstanding bilateral relations supported by a wide range of agreements in agriculture, energy, mutual legal assistance and air services. Indian investment in Canada stands at $14 billion, while Canadian investment in India stands at $5 billion.

Accompanied by a large business delegation, Harper will begin his six-day visit to the sub-continent. that will also take him to Bangalore, Agra and Chandigarh.

He will hold talks with Prime Minister Manmohan Singh focusing on fast-tracking the 2010 India-Canada nuclear deal and ramping up cooperation in diverse areas, ranging from counter-terrorism to trade, agriculture, energy and natural resources.

“The visit is part of our strong efforts to re-engage more closely with Canada,” Vikram Doraiswamy, joint secretary in charge of Americas in the external affairs ministry, told reporters in New Delhi.

“We hope to have forward movement on implementing the nuclear deal during the visit,” he said in response to queries about the status of the India-specific safeguards agreement that is required to implement the nuclear deal.

The specifics and modalities of the agreement are being worked out, he said.

It will be within the framework of the India-specific safeguards agreement, the International Atomic Energy Agency, the Indian law and the Canadian national law, Doraiswamy added.

During his visit to India in September, Canadian Foreign Minister John Baird had lauded India’s non-proliferation credentials and stressed that Canada, a member of the Nuclear Suppliers Group, was not insisting on any “additional conditionalities” for supplying uranium to India and will follow the same pattern as it has with the US and the European Union.

Intensifying energy tie-ups and trade and investment will be high on the agenda.

India and Canada are negotiating a Comprehensive Economic Partnership Agreement to take their economic ties to next level. The next round of negotiations will be held in Canada mid-November.

Bilateral trade is currently estimated to be $5 billion. Indian investments in Canada are steadily growing and are estimated to be over $10 billion.

With Canada emerging as an agricultural superpower, India is also looking to scale up agricultural trade between the two countries. In the realm of energy, India’s OVL is hoping to acquire oil blocks in Canada.

The Hindustan Times in an editorial also pointed out that Harper may have to deal with the sensitive issues revolving around Canada’s Sikh population.

“The second visit to India by Harper happens at a tumultuous time in Indian politics when the Indian government's image is being marred by massive scams. Manmohan Singh is presiding over a stalled economy, a paralysed Parliament and a restive population. Sonia Gandhi, president of the ruling party, is preoccupied with the declining electoral fortunes of the Congress,” the paper said.

But there are still other possible sources of tension. One is the climate policy on which both nations would find it a Herculean task to come to a common point. Besides, Harper's visit to Punjab also needs extreme caution, as every word uttered by him and related to Sikhs would be minutely observed.

There are many issues in Punjab that need to be carefully avoided. As the anniversary of the 1984 anti-Sikh riots is being observed, Hindu radicals are trying to exert pressure on Indian politicians to raise the issue of separatism among a section of Sikhs in Canada, while Sikh radicals want Harper to raise the 1984 issue as Sikh genocide and a probe in the matter.

"Sikhs are a significant portion of the Canadian mosaic, and one of our issues of concern is that leaders of various political parties in Canada visit India but don't raise the issue of human rights and the challenges the community faces," Japinder Singh, director of Sikhs for Justice, said in an interview with CBC.

The issue is sensitive and will put political skills of Harper to test, the Hindustan Times reported.

Harper also announced that he will travel to the Philippines and Hong Kong from November 10-11, 2012.  The visits will take place immediately following the Prime Minister’s six-day visit in India from November 3-9. He will be accompanied by Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, Joe Oliver, Minister of Natural Resources, and Senator Tobias Enverga.

“Canada’s relations with the Philippines continue to grow and diversify, aided by an increasingly important Canada-Filipino community,” said Harper.  “On this trip, I look forward to exploring ways of further strengthening ties between both countries.”

While in Manila on November 10, the Prime Minister will meet with Benigno Simeon Aquino III, President of the Philippines, to discuss bilateral trade and investment, security cooperation and regional issues. He will also partake in local cultural and community events.

On November 11, the Prime Minister will travel to Hong Kong where he will meet with Chun-ying Leung, Chief Executive of the Special Administrative Region, with a view to further strengthening an already deep and historical relationship.  

He will also participate in a Remembrance Day ceremony and pay special tribute to Canadians who died defending Hong Kong during the Second World War.

“Canada and Hong Kong enjoy a rich, multifaceted relationship, strengthened by strong people to people ties,” said Prime Minister Harper. “This visit will serve to advance bilateral commercial ties and reaffirm Canada’s support for democratic development in the Special Administrative Region.”

Canada is greatly enriched by citizens with ties to the countries being visited. The Philippines is now the top source of immigrants to Canada, with nearly 500,000 people of Filipino origin now residing in the country. Canada is also home to 500,000 individuals of Hong Kong descent.  Hong Kong has the largest concentration of Canadians abroad next to the United States.

 

Harper’s agenda in Asia

 

SATURDAY, NOV. 3

— Travel day

 

SUNDAY, NOV. 4

— Arrives in Agra, India

 

MONDAY, NOV. 5

— Tours the Taj Mahal

— Travels to New Delhi, India

 

TUESDAY, NOV. 6

— Meets Indian Prime Minister Manmohan Singh

 

WEDNESDAY, NOV. 7

— Speaks to World Economic Forum

— Travels to Chandigarh, India

 

THURSDAY, NOV. 8

— Participates in cultural events in Chandigarh, India

— Travels to Bangalore, India

— Tours local businesses

 

FRIDAY, NOV. 9

— Travels to Manila, Philippines

 

SATURDAY, NOV. 10

— Meets Filipino President Benito Aquino

 

SUNDAY, NOV. 11

— Travels to Hong Kong

— Marks Rememberance Day at Sai Wan Cemetery

— Travels to Ottawa