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13 8.0 Strategic Cooperation Canada has a long-term interest in an international system based on multilateral rules and institutions, and in a peaceful, prosperous and inclusive Asia-Pacific region of which it is part. It is in Canada's interest to ensure that, while building on traditionally strong relations with the U.S. and Europe, it also develops broader and deeper political, economic and other ties with Asia. Asia Over the past ten years, Canadian exports to Asia have skyrocketed, due in part to an emerging middle class and increased purchasing power. The region is a massive importer of goods and services, and is the destination for the majority of global Foreign Direct Investment (FDI). 12 Asia is expected to be responsible for 90 percent of growth in the life and health insurance industry in the next ten years. 13 Canada's interest in the region should focus on markets with high-growth potential such as Indonesia, Thailand and the Philippines and countries with which it does not yet have bilateral trade agreements. Active participation in forums such as the Asia-Pacific Economic Cooperation (APEC) and efforts to promote bilateral relationships with these countries are two ways in which the Canadian government can be helpful. China The rapid expansion of the Chinese market ensures that China will be a commercial hub for the foreseeable future. To build on Canada's already successful, constructive and long-term relationship with China, leaders from both sides need to establish an ongoing, strategic economic dialogue. The Canada-China Foreign Investment Promotion and Protection Agreement (FIPA) was a step in the right direction for deepening Canada-China relations, as was the establishment of Toronto as a renminbi trading hub. Despite this progress, these initiatives are still in the initial phases and more can be done to promote this long-term bilateral relationship. The Canadian life and health insurance industry welcomes the launch of consultations on a possible Canada-China FTA and believes that these talks represent a significant opportunity to deepen the bilateral relationship. There are numerous barriers to trade and investment with China including the protection of indigenous firms, the strong presence of SOEs and the lack of transparency and predictability for regulatory processes. China is also undergoing numerous domestic reforms which could result in further market liberalization. Such reforms are of significant interest to the life and health insurance sector. Canada is well-positioned to work with Chinese counterparts to ensure a cooperative and transparent dialogue throughout this process. In order to further its long-term relationship with China, constructive, bilateral engagement should be institutionalized and viewed as a long-term objective of the Canadian 12 World Investment Report 2015. United National Conference on Trade and Development. 2015. 13 Sunlife Financial. Sunlife Financial in Asia. Web. https://cdn.sunlife.com/static/global/global/files/media/Company%20fact%20sheets/Country%20fact%20sheets/pa_e_Asia_fact_sheet.pdf Accessed Online, February 2016.