CANZUK: Modern Alliance or Rebirth of an Old Empire?

 

In an article by Adam Steiner, CANZUK was described as a modern alliance or the old empire.  This blog posting is based on his article published in The McGill International Review on Sept 9, 2020.

The past few years have marked the beginning of a dramatic rebalancing of global power. American global influence is being questioned and under Trump it was welcomed. Once-stable international alliances, like NATO was no longer the same. Meanwhile, countries like China and Russia have been exhibiting increasing influence on large swaths of the globe. Authoritarianism is on the rise. The world seems to be without an undisputed champion of democratic values. A power vacuum has developed in which aggressive, dictatorial regimes may exert power with limited consequences. A number of politicians and academics have proposed a new economic, political, and defence alliance between Canada, Australia, New Zealand, and the United Kingdom (CANZUK).   

First proposed in the 1960s, CANZUK has gained popularity following the UK’s exit from the European Union. It is currently being championed by CANZUK International, a non-profit advocacy organization - led by a number of economists, lawyers, and political analysts. Their political advisory board is headlined by Erin O’Toole, the newly elected leader of the Conservative Party of Canada. Over the past five years, the organization has been meeting with politicians and media members in all four countries in an effort to promote CANZUK.

According to CANZUK International, the framework would guarantee free trade and freedom of movement, and encourage foreign policy coordination between the four-member countries. CANZUK cooperation would hypothetically increase the political and economic influence of its members in an increasingly fractious global order. All four countries have Westminster parliamentary systems, Queen Elizabeth II as head of state, and share similar democratic values, such as free speech and freedom of religion, similarities that would make the union viable.

All four countries now find themselves in relatively weak positions on the global stage due to Canada’s recent loss of a United Nations Security Council seat, Britain’s exit from the EU, and Chinese encroachment in the South Pacific which affects Australia and New Zealand. While CANZUK countries have limited influence individually, a coordinated foreign policy could put substantial economic and political pressure on authoritarian regimes while promoting democracy across the globe.

Moreover, a CANZUK alliance would allow its members to further their interests by strengthening their own national security and projecting increased military influence in Europe and the Pacific. Since the Second World War, many western nations, including those in CANZUK, have been partially reliant on the United States for military protection. However, the US is now less and less committed to the protection of its allies.

Economically, a CANZUK agreement would assure free trade and movement between the four member countries. The CANZUK countries have a combined GDP of approximately $6.5 trillion US, which would make it the world’s fourth-largest economy, trailing the US, China, and the EU. Such a large economic bloc would undoubtedly wield substantial influence on the global stage — an influence that countries like Canada and Australia could not realistically wield individually. However, deepening trade relations between these four countries may be overly ambitious and largely fruitless. The UK is much more integrated within the European economy than it is with Canada, Australia, and New Zealand. Its annual trade with the Netherlands alone tops £70 billion, while its trade with the three other CANZUK countries combined is valued at a mere £30 billion. Moreover, Canada, Australia, and New Zealand have recently signed on to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

 

A CANZUK union would have monumental impacts on all four member countries, as well as on the global political power structure. In the near future, the need for and viability of CANZUK will likely be dictated by events such as the fallout of the COVID-19 pandemic, the impacts of the American presidential election, and continuing shifts in global power. As a united entity, the four countries would wield substantial political sway on the world stage and be able to better promote their democratic values abroad. Yet, the economic benefits of CANZUK may be overstated given the presence of pre-existing trade deals, and freedom of movement could cause bureaucratic nightmares and face significant opposition. Before CANZUK is seriously considered, it must be determined whether the union is necessary and beneficial for its member countries, or if it is a relatively meaningless revival of the old British Empire. 

 

References:

1. CANZUK: Modern Alliance or Old Empire? Adam Steiner, The McGill International Review, Sept 9, 2020

2. CANZUK – could it be Britain’s new EU? Deutsche Welle (https://www.dw.com), Dec 5, 2020