Will Brexit, the decay of the United States, and the COVID-19 crisis lead to the birth of a powerful new union, ideally suited to the digital age?

Imagine if four of the world’s wealthiest countries established a new union, that acted with unified global economic, political, and military plans. Imagine if the countries constituting this union were already bound by deep social and historical ties, shared a common language, and were even willing to share citizenship rights. 

With Brexit distancing the UK from Europe, the US tearing itself apart, and the COVID-19 pandemic speeding the transition to a digital world, is a powerful new union between Canada, Australia, New Zealand, and the United Kingdom (CANZUK), on the cards?

As fanciful as it might sound, momentum for such a union is gaining traction in both hemispheres, and as I’ll explain, it could be the perfect fit for a brave new digital future, with the video game, esports, and wider digital entertainment industries benefiting enormously.

London, UK

A true global family

To fully understand why CANZAK is not as far-fetched as it may at first seem, we have to go back and look at the historical ties between the four countries. 

In the early 1800’s, New Zealand was a largely unpopulated series of islands, except for the native Maori (though, we now know the Maori themselves were not truly native, and had in fact invaded the islands previously, wiping out the previous natives). Meanwhile, Australia had just a few thousand British settlers, almost half of whom were convicts, and its scattered native aboriginal population. And, in North America, Canada was home to a few hundred thousand British and French loyalists who weren’t so keen on participating in the post-revolutionary shenanigans going on in America. 

But, over the course of the 1800’s, as Britain herself was busy being the industrial workshop of the world and expanding her empire far and wide, the three sparsely populated countries began to go through dramatic changes. Within decades their populations exploded, infrastructure developed, and wealth steadily accumulated.

Despite this, through the 1800’s, Australia, New Zealand, and Canada weren’t viewed as particularly valuable possessions in the British Empire, when compared to places like India (the so-called ‘Jewel in the Crown’), Egypt, Singapore, the Persian Gulf territories, or Malaya – which had a huge population in India’s case, prime strategic locations in Egypt and Singapore’s, and key natural resources like oil and rubber in the case of the Persian Gulf and Malaya. 

However, during the twentieth century, despite the entire British Empire rallying to the mother country’s side in both World War 1 and World War 2, it started to dissolve in the 50’s and 60’s, with most countries being granted independence. But, the attitudes towards independence were very different throughout the empire. 

While in many colonies there was a widespread desire to distance themselves from British culture and influence, in Canada, Australia, and New Zealand, there was a wish for independence, but a strong desire to retain close cultural, social, economic, political, and military ties to the United Kingdom (we should also mention tiny little Malta, which actually voted to be annexed by the UK in 1956 – something the UK refused to do).

This is easily explained when you consider that virtually every Canadian, Aussie, Kiwi, and Brit has family in each others’ countries. In fact, even though each of the countries have their own distinct traditions and cultures, they are still extremely similar in many ways. This extends to the point where, if you were to take someone from a city like Sydney, Australia, and drop them into a city like Toronto, Canada, their daily life, the laws they live under, and their social norms wouldn’t be very different. 

And, it is this familiarity and deep level of understanding of each other’s’ ‘ways’ that is critical, and will be key to remember as we continue. 

Vancouver, Canada

The Brexit and China factors

On January 31, 2020, the United Kingdom formally left the European Union (EU). Prior to Brexit, the EU was the second most powerful economic force in the world, behind the United States, and ahead of China. However, with the UK being the EU’s second largest economy, after Germany, its loss has seen the EU lose a significant amount of economic influence and fall behind China. And, with the UK looking to make new trade deals and strengthen its position outside of Europe, and Canada, Australia, and New Zealand keen to counter China’s power in the Pacific, powerful political figures in all four countries have suggested a new union, CANZUK. 

Indeed, CANZUK is supported by the UK’s Prime Minister, Boris Johnson, the leader of the Conservative Party of Canada, Erin O’Toole, and a significant number of senators and MPs in both Australia and New Zealand. Plans call for a union that would increase trade, foreign policy and military cooperation, and give the citizens of all four countries the right to freely move between them to live and work. 

Out of the CANZUK nations, the UK has the biggest economy, the 6th largest in the world, while Canada is next with the 10th largest economy in the world, Australia is not far behind with the 14th largest, and New Zealand brings up the rear at 51st due to its small population. However, when you combine the economies, along with general political and economic influence, of all four countries, the resulting union would likely become the second most powerful in the world, after the EU, and the fourth largest economic power in the world, closely trailing China. Additionally, the CANZUK union would boast the world’s fifth most powerful military, and would control the largest amount of territory and natural resources on the planet. 

Sydney, Australia

The CANZUK secret to success

Of course, there’s nothing new in the idea of unions or federations of states, and all four CANZUK countries are already members of the Commonwealth of Nations (which evolved from the British Commonwealth, which itself grew from the British Empire), the ultra-exclusive ‘Five Eyes’ intelligence organisation (along with the United States), and all have extensive military agreements in place. 

But, the reason why CANZUK could stand out as a success story in today’s digital world, when compared to others, like the EU or even the USA, is the fact that all four countries share such similarities in terms of governments, culture, quality of life, education, healthcare, wealth, and language (and, let’s not forget, the same royal family). These largely ‘soft’ connections are extremely deep rooted and would make a union much more cohesive that, say the EU, where there 27 different countries, with very different cultures, attitudes, and outlooks, and 24 different official languages. 

And, just as in the world of business, or when assessing military power, cohesiveness and understanding are ‘force multipliers’ – making the whole organisation more efficient, effective and resilient. 

Auckland, New Zealand

Why CANZUK is the perfect 21st century union

Now we come to the crux of the matter, and why CANZUK is the perfect union for the digital COVID age we are entering. You see, although all four countries have always enjoyed strong ties, there’s been an undeniable obstacle to closer integration – distance. Look at Google Earth and you’ll see it’s a long way from London to Vancouver or Sydney! 

However, in the 2020’s, the exploding digital, information-based economy, means distance isn’t such a big issue. What is a big issue is attracting creative talent, technical expertise, and being able to market products effectively and efficiently. And, this is where CANZUK would excel. All four counties are known for their creative and technical excellence, have a completely interchangeable workforce, and most products and services can be easily marketed to them as one block. 

In terms of taste and content requirements, Canada, Australia, New Zealand, and the UK have long represented essentially one market in terms of entertainment products. This has been obvious for decades in terms of television content, but now, in the video game and digital streaming era it is even more noticeable. 

Given this, if all trade barriers and tariffs were removed, and regulators covering the various industries were to harmonise, digital product and service providers would gain access to a single market of 135 million people. Furthermore, it wouldn’t just be one of the biggest markets, but also one of the wealthiest and most educated – perfect digital territory. 

When it comes to the online gambling industry, the prospect of a single market encompassing the CANZUK countries would be a dream come true for operators. The UK alone is still the biggest single regulated gambling market in the world (even most US state regulate, it won’t be one cohesive market), and Canadians, Australians, and New Zealanders are known to be keen gamblers. Imagine if all four countries put a single regulated market into place?

Finally, let’s also consider the people factor. A CANZUK union, allowing true freedom of movement, abode, and work, would be a force to be reckoned with in terms of talent and skills, and make life much easier for companies looking to establish world-class teams with the minimum amount of cost, red tape and hassle. 

How likely is CANZUK?

In addition to the growing political support already mentioned, some recent opinion polls have put support for CANZUK among the public at 76% in Canada, 73% in Australia, 82% in New Zealand, and 68% in the United Kingdom. In fact, even politicians who were against the proposal just a couple of years ago, like Australian Prime Minister Scott Morrison, have warmed to the idea recently. Of course, if the post-Brexit deal between the UK and EU falters, it could add further fuel calls for a CANZUK union. 

Then there is the COVID factor. As we’ve noted here at AYO.NEWS several times, the crisis is likely to drag on for much longer than many people realise. With several very different strains of the constantly mutating virus now widely circulating around the world, the chances of an effective vaccine being developed, produced and distributed are slim. Likewise, with experts saying herd immunity is likely going to be impossible to achieve due to the traits of the virus, many of the restrictions and changes we’ve seen implemented over the past eight months may end up becoming permanent. 

If the so-called “new normal” is here to stay, with its shift to digital and greatly reduced need for physical travel, the sheer distance separating the CANZUK countries may become less of an economic issue, and the need to bolster security and cooperation with like-minded countries in an increasingly chaotic world could well see the CANZUK idea attract much more support. 

So, are the seeds for a cohesive and optimistic new global anglo-centric economic, political, and military union being sown among the chaos and crises of 2020? Only time will tell, but it’s definitely an intriguing prospect. 

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