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Indo-Pacific: A Nexus of Global Trade

International trade is crucial for fostering economic opportunities, driving innovation, and alleviating poverty worldwide. The Indo-Pacific, with its rapidly growing economies, has become a critical hub for global trade. This region is marked by dynamic economic growth, strategic maritime routes, and expanding markets. However, the full potential of trade in the Indo-Pacific is often hindered by varied challenges, such as developmental and economic disparities, complex regulatory and policy environments, and limited institutional capacities to fully engage in global trade systems. These barriers can restrict access to international markets and diminish the benefits of economic integration.

Recognizing the potential for trade to drive economic growth and development, Cowater International in partnership with the Institute of Public Administration of Canada (IPAC), has been leading two critical Canadian-funded initiatives: EDM (Expert Deployment Mechanism for Trade and Development) and CTIF (Canadian Trade and Investment Facility for Development), which aim to enhance trade facilitation, support policy and institutional development, and foster inclusive growth across the region.

EDM and CTIF: Pillars of Trade Development

EDM is a demand-driven mechanism that engages directly with countries and regional organizations to provide technical expertise across a broad spectrum of trade-related issues. Its primary goal is to support Canada’s developing country partners in negotiating, implementing, and benefiting from – and adapting to – trade agreements with Canada.  EDM technical assistance strengthens institutional capacities and policy frameworks, enabling countries to capitalize more effectively on trade opportunities.

CTIF complements the efforts of EDM by fostering new trade and investment opportunities, not just with Canada but globally. It supports access to markets, intricate trade negotiations, and enhances private sector growth, with a particular emphasis on inclusive economic development.

In Vietnam, EDM has collaborated with the Intellectual Property Office to enhance the regulatory environment, helping Vietnamese businesses leverage opportunities under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These enhancements have not only strengthened protections for trademarks and geographic indications but have also provided an immediate boost to sectors such as lychee farming. Eventually, this initiative will contribute to enhancing the global competitiveness of Vietnamese products, fostering economic growth and improving the livelihoods of local communities.

In Malaysia, EDM is building the capacity of technical officials at the Ministry of Agriculture and Food Security to strengthen the regulation of antimicrobial resistance in the animal health sector. This targeted assistance in aligning product standards with international norms is enabling Malaysia to meet stringent global requirements, particularly in food safety standards for meat exports. Enhanced compliance with international standards not only facilitates greater market access but also stimulates job creation within the agricultural and export-oriented sectors, as businesses expand to meet increased demand.

Both EDM and CTIF have supported the ASEAN Secretariat in strengthening institutional support for free trade agreement negotiations, showcasing the multilateral benefits of these initiatives, and paving the way for more favorable trade terms and the potential of increased exports across member states.

Championing Gender Equality, Inclusive Growth and Environmental Sustainability

EDM and CTIF prioritize creating enabling environments for women to participate actively in global trade. This includes advocating for women-centered provisions in international trade agreements and providing targeted support to women entrepreneurs across the region. These efforts align with broader global commitments on gender equality and social inclusion in trade.

In the Pacific region, CTIF’s work has focused on the implications of the WTO Agreement on Fisheries Subsidies (FSA) on six Pacific Island States. The result was an enhanced ability of Pacific Island countries to plan the implementation of the Agreement in a way that supports their long-term economic and social goals related to fisheries, which is critical to the Pacific region’s sustainable development and the protection of marine resources.

In the ASEAN region, CTIF is supporting the development and use of Sustainable Aviation Fuels (SAFs) derived from agricultural, forestry, and municipal solid waste. SAF has become a priority given the agriculture’s significant role in the region’s GDP and employment, alongside its environmental role in reducing pollution and greenhouse gas emissions. CTIF will conduct technical and economic assessments in five ASEAN Member States to explore the potential of these wastes for SAF production. This initiative supports the ASEAN Circular Economy Framework and renewable energy goals. It aims to reduce  the environmental footprint of the aviation sector, promoting sustainable practices, and stimulating the creation of new supply chain roles and high-skilled jobs, and aligning with global climate initiatives.

“At Cowater, we believe that trade and investment are not just economic activities, but powerful catalysts for development, poverty alleviation, and inclusive growth, shaping a more equitable world.”, said Nadia Guerch, Head of Programs (Global Affairs Canada), Cowater International.

By fostering partnerships and encouraging dialogue among various stakeholders, EDM and CTIF contribute to a more inclusive and sustainable landscape in the Indo-Pacific region, promoting equitable trade and enhanced development across diverse communities.

About Cowater International

Founded in 1985, Cowater International is a leading global development consulting company. Headquartered in Ottawa and with corporate hubs in Auckland, Berlin, Brussels, Helsinki, London, Madrid, Manila, Nairobi, Singapore and Stockholm. Over the years, Cowater International has executed over 2500 projects in more than 95 countries, collaborating with governments, private sector actors and communities to foster socio-economic development, institutional strengthening, environmental improvements and the advancement of equal opportunities. Cowater’s adaptive management approach has consistently earned us recognition as one of Canada’s Best Managed Companies since 2017.

EDM – Impact and Reach

CTIF – Impact and Reach