Canada to apply to join China-backed bank
Canada will also apply to join the China-backed Asian Infrastructure Investment Bank (AIIB), the bank's president Jin Liqun said on Wednesday, making it the latest ally of the United States to join the new international development bank.
The $100-billion US multilateral institution, seen as a rival to the Western-dominated World Bank and Asian Development Bank, was initially opposed by the United States but attracted many U.S. allies including Britain, Germany, Australia and South Korea as founding members.
"This is really for us, as a new government, the earliest possibility at which we could indicate our interest," Canadian finance minister Bill Morneau said in response to a question asking why Canada was only applying to join the bank now.
"We believe the bank is clearly showing that it's going to be a highly effective multilateral institution," he added.
Morneau, who is travelling with Trudeau in China, did not specify how much money Canada would put into the new bank.
"The Canadians' decision to join this bank will greatly strengthen the management of this institution," Jin told reporters. "We can see that the U.S.'s attitude towards AIIB is showing signs of changing, as it's encouraging the World Bank to cooperate more with the AIIB," Jin added.
Canada's application must be in by the end of September 2016. The government then has until the end of the year to ratify a deal and hammer out how much it will invest.
The bank's governors could decide on new members early in 2017, according to Canadian government documents, which also indicated that the size of Canada's share would be decided at that time.
Japan and the United States are the most prominent nations not represented in the bank.
The United States said in April it is not presently considering an investment in the AIIB.