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China, Canada Forge New Trade Pact
16 Jan
Summary
- China and Canada announced a new strategic partnership.
- Tariffs will be lowered on Chinese electric vehicles and Canadian canola.
- The partnership aims to boost bilateral trade by nearly $3 billion.
China and Canada have formally initiated a "new strategic partnership" focused on reducing trade barriers for key commodities. This agreement includes significantly lower tariffs on Chinese electric vehicles entering Canada and on Canadian canola exports to China, aiming to boost bilateral trade by approximately $3 billion.
Canadian Prime Minister Mark Carney highlighted the need for pragmatism in a changing global trade landscape, suggesting that the relationship with China has become more predictable than with the United States. This move represents a shift from previous strained ties following the 2018 Huawei executive arrest.
The partnership allows up to 49,000 Chinese electric vehicles into Canada at a reduced tariff rate, with expectations of substantial Chinese investment in Canada's auto sector. Concurrently, China is set to reduce tariffs on Canadian canola seed, a move projected to benefit Canadian farmers and businesses.
