The Race to Secure Sustainable Supply Chains: Why Canada and South Korea Ought to be ‘Best Friends’

Table of Contents Introduction Supply Chain Fragility Why South Korea? The China Factor Canada’s Position in the Race Why Canada and South Korea Ought to be Best Friends Securing our Friendships and Supply Chains About the Author Canadian Global Affairs Institute Introduction Canada and South Korea recently celebrated their 60-year diplomatic anniversary, with the Trudeau government focused on deepening their ties. Prime Minister Justin Trudeau recently travelled to South Korea, marking the first visit in nine years by a Canadian leader. It came on the heels of President Yoon Suk Yeol’s fall tour of Canada, when he made a commitment to enhance the bilateral relationship. This momentum saw both Trudeau and Foreign Affairs Minister Mélanie Joly express a dire need for Canada to become best friends with South Korea. The increased engagements between the two coincided with the release of the Indo-Pacific Strategy (IPS) – signalling a massive shift in Canadian foreign policy. A key focus of the IPS is ensuring supply chain resilience, and for that reason, Canada cannot afford to be anything less than best friends with South Korea. The COVID-19 pandemic, the war in Ukraine and other geopolitical shifts have revealed significant cracks in global supply chains and a need to deepen ties with other like-minded democracies in the Indo-Pacific. With climate change presenting profound challenges and opportunities worldwide, countries are racing to secure supply chains and position themselves as leaders in the clean energy transition. The electric vehicle (EV) supply chain in particular presents a once-in-a-generation opportunity for Canada as a producer of critical minerals. It also presents economic, environmental and security risks due to China’s domination of the entire electric vehicle value chain. While the federal government has awakened to the reality that it needs new friends (and fast), South Korea is critical to reducing dependence on China and positioning Canada as a strategic investment partner. While Canada could be a global investment destination and supplier for its many sought after critical minerals in the EV supply chain, we lag behind South Korea’s strengths in innovation and manufacturing. We must speed up getting product from the ground to market to secure that coveted best-friend status with the Korean government