An Interview with Khawar Nasim - Acting Consul General of Canada in New York

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MAPLE New York Executive Director John T. Costanzo interviews Consul General Nasim.

My first question is how has the COVID-19 pandemic impacted trade between Canada and the New York region and the activity of your team over the past several months?
 
Let me begin by giving you some background on the Consulate General and what we do. Our Consulate General in NYC is now 101 years old.  Since 1919, we have been helping Canadian companies expand and do business in our territory and engaging NY’s excellent business community. 
 
Our primary office is located in midtown, New York City and covers New Jersey, Pennsylvania, Delaware, Connecticut, and New York as well as Bermuda. We also have teams in Buffalo, Pittsburgh, and Philadelphia, and our mission performs a variety of functions for the Government of Canada including immigration and consular services, and advocacy work in the areas of international business development, trade and investment, cultural promotion, and political outreach. We look forward to the next 100 years!
 
Throughout this pandemic, we at the Consulate General of Canada in NY have been actively assessing the situation on the ground across our five-state territory, to ensure the safety and well-being of our employees, their families, and Canadian citizens in need of assistance. Our Consular Team and Border Services colleagues have been extraordinary in responding to the needs of Canadians throughout this crisis.
 
Over the past several months, we have also been working to shore up and strengthen the critical business relationships that exist between Canada and our territory. We have engaged in multiple webinars, like this one today, with business organizations such as the NYS District Export Council, the World Trade Center Buffalo Niagara, and the New Jersey Economic Development Authority, among others, to promote the Canada – U.S. relationship and provide a resource to businesses during these uncertain times. 
 
I personally have been talking to federal, state, and local elected officials, such as Lieutenant Governor Kathy Hochul, many members of Congress across NY State, chambers of commerce, trade organizations, labour leaders and others to learn how their communities have been impacted, to hear how they see the road ahead, and to tell them about the Canadian experience and our priorities.
 
What we have learned from these conversations, particularly with border operators, is that while cross-border trade flows have decreased somewhat, overall the trade between Canada and the U.S., and New York State, has remained relatively stable and secure throughout this pandemic. I think that speaks not only to the high degree of integration between our two economies - we make things together - but also to the strength of our security partnership.
 
Even during this time of isolation, our shared border has remained open to commerce, preserving the vast network of supply chains that has been around for centuries, and ensuring that families and communities in both countries benefit from a predictable supply of food and consumer goods. Essential goods and business activities are still permitted to move across the border during this time. 
 
The flow of medical personnel and other essential workers continues uninterrupted. It has been amazing to hear the stories of Canadian nurses and doctors working on the frontlines in American hospitals along the border—they are a great demonstration of the profound friendship between our countries. And more recently, are the stories of Canadian transmission line workers who came to assist with the restoration of power following Tropical Storm Isaias.
 

What Consulate General activities and initiatives are you most looking forward to renewing as our region comes out of the lockdown?
 
I can easily say that I am most looking forward to reconnecting with my team in person. Seeing everyone day to day, and creating and strengthening those interpersonal relationships with my coworkers, is the highlight of my work in New York City. That said, I am also excited to watch New York City recover and rebound, there is really no place like it in the world and, as cliché as it may sound, I do love New York.
 
The Consulate General engages in so many different activities that it is hard to isolate one or two that I am looking forward to the most. I am a sports guy, so our developing sports diplomacy program is one in which I take great pride, like raising awareness in our territory of the pioneering efforts of folks like Canadian Willie O’Ree, the first Black player in the NHL.  I am also proud of our diversity, equity, and inclusion mandate that represents Canada’s commitment to creating opportunity for all. Among other things, we will continue to highlight Canada`s diversity, including the voices of our indigenous artists, at various cultural institutions around New York. We have long championed the importance of diversity in the corporate arena at our annual Women in Business conference, I look forward to continuing those discussions with corporate leaders.  
 
We also organize and host hundreds of events throughout the year, whether roundtables, receptions, panel discussions, art exhibits, and even music concerts. Like many other organizations, we are slowly getting used to doing events online, and have held virtual discussions on issues ranging from USMCA to energy issues, from technology accelerators to media freedom. Of course we miss being able to host guests and friends of the Consulate General in our wonderful new space in midtown. For now, we will continue in the virtual realm, with some exciting upcoming discussions on the “future of work”, diversity in media, and the promotion of Canadian film at NYCDocs.
 
The path forward lies in strengthening and expanding the integrated trading relationship between Canada and NY State. As New York seeks to build back better, Canada can play an outsized role in ensuring the integrity of our supply chains, especially in areas such as medical supplies and PPE, since we are your closest friend, ally and partner. Canada is also New York’s number one customer, and with a trading relationship that measures over $30 billion in two-way trade every year, we will seek to encourage those investment flows and keep building cross-border relationships to strengthen and expand this successful partnership.
 
I would be remiss if I did not mention the great relationships we have with our provincial partners. Specific to NY, we work closely with Ontario and Quebec on a number of initiatives to promote, advance, and strengthen Canada’s ties to this region. 
 

Even though we’re still in a virtual world, our work hasn’t stopped. If anything, it has given us more impetus to do even more. Examples of upcoming business development events include:

  • Delivering three of our flagship Canadian Technology Accelerator programs in the fall – in cleantech, digital health, and cybersecurity;

  • Speaking about Canada’s important talent advantage and liberal immigration policies to an investor audience on September 3;

  • Recruiting the best Canadian fin-tech companies for the industry-leading Finovate conference September 14-18;

  • Promoting Canada’s educational strengths at all levels at our digital education fair, called “EduCanada”, October 5-6;

  • Promoting 10 Canadian music publishers directly to US music supervisors through virtual pitch sessions on September 25 and October 2;

  • Hosting a “Spotlight on Canada” to showcase Canadian documentary film producers and distributors at DOCNYC, America’s largest annual documentary festival based in NYC starting September 15.


 
Having lived and worked as a leader of the NY Consulate General since 2017 how would you compare this assignment to your previous assignments in Rome, the Netherlands, Minneapolis, and Ottawa?
 
I have been honoured to represent Canada in many different facets throughout my career, and each posting brings with it unique opportunities and connections to be made with Canada. What stands out for me now is just how deep and connected our communities are between Canada and New York State. This is obvious especially along the Canada – NY border, but it’s also apparent downstate, in places like New York City, Westchester County or Long Island given the degree to which our people and economies are integrated.
 
I can’t tell you how many New Yorkers I have met over the last three years who have told me something along the lines of “oh, my wife is from Canada!” or “we summer in Canada” or “my daughter studies in Canada”!  This to me is what our relationship is really all about. Beyond the big trade agreements, the business partnerships, the security cooperation—this is a relationship that is defined by bonds of friendship and kinship that span generations and have united our people through the ages.  We see ourselves in each other. We share fundamental values of democracy, justice and freedom. The fates of our people are linked. And that’s why our partnership is so critical—families and communities on both sides of the border depend on it every day.
 
And the truth is, there is no city in the world quite like New York. It's the epicentre of the cultural world and affords an enormous stage for Canada. With the expansion of the Consulate’s cultural industries program, it has been inspiring to see Canadian artists shine in New York, whether at the Metropolitan Museum of Art, Lincoln Center, or on Broadway.
 

Your experience in Gold Mining industry is quite interesting & unique… how has this prepared you for your work as Deputy Consul General and now Acting Consul General here in the New York market?

My time spent at Yamana Gold provided me with the opportunity to see the overlap between the public and private sectors and to gain a deeper understanding of the cross section between the two. I was able to gain insight into how missions abroad can contribute to creating and fostering favorable prospects for Canadian businesses in multiple industries and through many different means. Primarily, I relied upon Canada’s Trade Commissioner Service to enhance these connections and build more opportunities for Canadian industry.


I noted that you earned your MBA at McGill University in Montreal… I understand that there are thousands of graduates of Canadian Universities living in the New York metropolitan area. How has this shaped the economic and cultural relationship between the New York & Canada?
 
The Canadian alumni community in NYC is extremely active and its members are very effective ambassadors for Canada. We estimate that there are between 400-500 thousand Canadians living in New York City. It is truly wonderful to be surrounded by so many ambassadors who project a strong, positive image of Canada, its people, and its education system.
 
The Consulate General hosts an event in partnership with CANY, the Canadian Association of NY, every fall that attracts alumni from universities across Canada. This event, which is sold out every year, is one of my favorites because it really highlights the extremely strong alumni connection and networks that exist between Canada and New York.
 
Canadian universities and their alumni networks help illuminate our past, but also the many opportunities that await us in the future.  Just look at how Canada is blazing new trails in virtual reality, fintech, engineering and artificial intelligence.
 
This is also due to the success of Canadian universities in attracting top talent, investing in world-class research, and cementing Canada’s position as a world leader in the industries of the future.  And much of this top-talent comes from right here in the United States. A growing number of American students are heading North to pursue their studies, and I strongly believe that this is one of the best ways to strengthen the people-to-people ties that ultimately serve as the foundation of the special friendship between our two countries.
 

With the recent coming-into-force of the USMCA trade agreement, there are many benefits for businesses in both Canada and the US to compete more effectively in cross-border trade… what business opportunities do you see having the most potential as a result of the revised NAFTA agreement?
 
Canada is a committed free-trading country, and recent successes with the CETA and CPTPP illustrate the benefits trade agreements can have for Canadians’ prosperity. The pinnacle of our achievements on trade, however, is the new NAFTA, CUSMA, or USMCA, which reinforces our most important trading relationship.
 
The USMCA is a modernized and progressive trade agreement of which we can all be proud. Over a two and a half year period, we worked tirelessly to get this agreement done. The coming into force of the USMCA was a significant moment in the Canada – U.S. trade relationship, which is truly a model for the rest of the world. The USMCA will help all three of our countries to compete globally and to achieve prosperity through an integrated North American economy.
 
The USMCA is the “gold standard” of agreements, and we are working overtime to help our Canadian firms, both large and small, succeed. USMCA provides the path to further integrate our supply chains, which in turn will only strengthen North America as an economic unit and position its businesses to compete globally. 
 
The USMCA gives us a framework that provides barrier-free access across our shared border, a feature that has become increasingly important in the new COVID reality. The pandemic has exposed our vulnerabilities in goods such as PPE, pharmaceuticals, and medical supplies, and as governments begin to seek a more domesticated and secure supply chain in these areas, the USMCA will provide further certainty and stability for our businesses.
 
The USMCA broadens the opportunity for North America to compete globally through twelve new chapters that modernize the 1990s-era NAFTA to include digital trade and e-commerce, and by leveling the playing field in terms of covering SMEs, customs & trade facilitation, North American competitiveness, labor, and the environment.
 
One outcome from the USMCA in particular that will significantly benefit SME’s is the raising of the de minimis level, which will encourage greater cross-border trade. SME’s often engage in lower value shipments across the border and the raising of this level will make it easier for small businesses to export and grow their business. 
 
Additionally, no tariffs are imposed on digital products, which includes e-books, video, music, software, and games. USMCA documentation has also been streamlined and can be submitted electronically, greatly improving the ease of doing business.
 
When looking at the Canada – NY relationship specifically, our two regions are perfectly aligned when it comes to priority sectors for investment. Both Canada and NY have a mutual focus on innovation, which is the foundation of our commercial relationship. 
 
But it is not only a commitment to innovation that Canada and NY, and the United States, share. We share a common language, similar environmental and labour standards, and many unions such as the steelworkers who boast membership on both sides of the border. Our common values, our shared history and culture, and familial connections, are what make our relationship so rich and inform the unprecedented nature of the USMCA.  
 

Canada is not only the largest source of imports and foreign direct investment for New York, it is also the largest market for NY exports. But could you tell us more about why Canada is an attractive investment opportunity for NY companies looking to expand globally?

Investment is a two-way street. Canadian successes in NY include Lion Electric, a Quebec-based all-electric truck and bus manufacturer with a recently launched Experience Centre in Albany, FlyBits, a leading Toronto-based AI/fintech company the develops contextual customer experiences for the financial sector that opened an office in NYC, and some of our biggest banks like TD (Toronto Dominion, not Touch Down), National Bank of Canada and RBC Capital Markets. 

To give you an idea of Canada’s value proposition for investment, just look to Corning and its Montreal Technology Centre of over 100, NYC’s Collective[i], which last year created 30 AI-driven jobs in Montreal to expand its predictive technology footprint for the sales sector. Another great example is Mastercard’s decision to build a $500 million cybersecurity and tech innovation centre in Vancouver, creating over 250 jobs. There are many more.

Promoting Canada’s significant value proposition for investment to American and multinational companies is another pillar of our work at the Consulate General; I will try to summarize them all for your audience today. To begin, Canada’s global market access is unparalleled. Canada gives investors preferential market access through 14 trade agreements to 51 countries, with nearly 1.5 billion consumers and a combined GDP of US$49.3 trillion.
 
In addition to the USMCA, Canada has preferential access in two of the most important trading blocs that the U.S. does not, the CETA and the CPTPP.
 
Canada’s talent pool is unmatched. Canada is the OECD’s most highly educated workforce, with nearly 58 percent of Canadians aged 25-64 having graduated from post-secondary institutions, and our successful Global Skills Strategy brings in top international talent quickly.
 
Canada’s tax rate on new business investment is the lowest in the G7, and Canada is only second to Japan among G7 countries in terms of political stability. Investment in Canada costs less and is less risky than in other countries. Our marginal effective tax rate is 13.7 percent, the lowest in the G7 and below the OECD average. Additionally, Canada’s banking system is sound, ranking sixth in the world and the strongest amongst the G7 countries, due to extremely low levels of corruption.
 
Canada is a leader in innovation and technology, with an ecosystyem that connects investors with initiatives, incentives, and programs across the board. This is done through several programs including the Scientific Research and Experimental Development Program (SR&ED), the Strategic Innovation Fund, the Innovation Superclusters Initiative, and the Pan-Canadian Artificial Intelligence Strategy.
 
Finally, the quality of life in Canada is unmatched. Canada offers some of the world’s most impressive scenery as well as vibrant cities, making it the perfect space to live, work, and play.
 
 
What should NY area executives know about doing business with Canada that they might not already be aware of?
 
Thank you for this opportunity to extoll the virtues of my country, one of my favorite things to do. First, Canada is incredibly diverse. Toronto, our largest city, is the world’s most multicultural. This enriches all aspects of our society and is an incredible advantage for business.
 
We are a bilingual country. It’s not just the province of Quebec where French is spoken. This will have business implications you need to be aware of in terms of translation and labelling.
 
The World Bank ranked us #3 (out of 190) for ease of starting a business, and the Canadian government’s response to COVID-19 has had a positive effect in terms of supporting businesses and buttressing our economy from the worst.
 
We are a tech-forward nation. Last year, more tech jobs were created in the Toronto region than in Silicon Valley and NYC combined. The global Collision tech conference moved from Las Vegas and New Orleans to Toronto last year for a four-year stint. 
 
We have seen important year-on-year increases in venture capital funding, which fuels innovation, job creation and our pipeline of talent available for investors. On talent, in addition to what I mentioned previously, Canada is home to many internationally renowned academic institutions and our liberal immigration policy allows many international graduates to stay in Canada in the long-term.
 
The pipeline between Canada and NY is strong, and we at the Consulate General are here to encourage and promote these relationships. Canada’s diaspora in the NY region is widespread and has a vast reach, which helps to amplify our work in many ways. I like to say that Canadians add a shine to the Big Apple. We are always discovering amazing Canadians, and uncovering truly commendable work they are doing, as lawyers, teachers, doctors, entrepreneurs, activists, artists and volunteers.
 
I have a team of 17 who work tirelessly to deepen our trade and investment relationship across our territory. In addition to our NYC-based team, we have officers in Buffalo, Philadelphia and Buffalo. 

With a mandate to help Canadian companies grow in our territory, all of us prioritize relationship building across the spectrum, from the CEOs of the most influential Fortune 500s in the area, to the most innovative tech startups and everyone in between, including incubators, accelerators, financial sector leaders, Chambers, trade associations, thought leaders, City and State officials and the like.  

Check out our LinkedIn page: https://www.linkedin.com/company/canada-s-trade-commissioner-service-new-york/ 
 

As one of NY’s closest neighbors and largest customer, what message would you like to share with greater NY community?
 
The relationship between Canada and NY, and the United States, is the closest in the world. Our defence partnership is unmatched globally, Canadians work side by side with Americans on a daily basis to keep our borders and our skies safe. Just look at the joint Canada-US command operating out of the Eastern Air Defence Sector in Rome, NY.

Canada is also a stable and secure supplier of energy to NY and will be a strong partner as both NY State and NYC seek to achieve their ambitious climate goals. The Champlain Hudson Power Express, which would carry Canadian hydropower to New York City, has the support of both Governor Cuomo and Mayor de Blasio, and is a prime example of the bilateral energy relationship between NY and Canada.

Our economic partnership is truly profound, and we make things together. That is why the recent announcement that the U.S. will impose section 232 tariffs on aluminum imports from Canada into the U.S. is so nonsensical to us. These tariffs are nothing but a tax that harm workers, industry and manufacturers on both sides of the border.
 
These tariffs will have a particular impact in New York State; the top export for both Canada and NY State to each other is in aluminum and aluminum products. Canada is forced to respond with dollar for dollar countermeasures, which will stay in effect until the United States eliminates its tariffs against Canada. This is a time when we should be working together toward revitalizing our economies, not erecting further barriers that will only raise costs for consumers and impede cross-border trade.
 
Canada will continue to make the case for removing these tariffs, and I hope you will all make your voices heard on the matter as well.
 
Our shared future will inevitably bring new and more complex challenges. It will only become more important for Canada and the United States to work together in close cooperation to ensure that our North American neighborhood stays safe and secure. And we can do better than having unnecessary tensions cloud our relationship.
 
 
On a personal level, what do you enjoy most about living and working in NY?
 
There are countless reasons to love New York, but for me the number one reason is its incredible diversity, which contributes so much to its buzzing energy and endless parade of unique experiences.
 
Having witnessed New York go from one of the worst hit places in the world to a shining example of how COVID-19 can be curbed and controlled, I am also in awe of New Yorkers incredible determination, solidarity and unity. These are the qualities that New Yorkers are famous for—and which have pulled them through crises time and time again. It will be no different this time.
 
Thank you, Acting Consul General. The MAPLE Business Council’s New York Chapter looks forward to working together with you and your team in advancing the interests of both Canada and the greater metropolitan area of NY, LI, NJ and Connecticut.