Beijing has witnessed a significant diplomatic move as Canadian Prime Minister Mark Carney forged a new “strategic partnership” with China during his meeting with President Xi Jinping on Friday. This collaborative effort aims to mend ties that suffered greatly during previous years, particularly under the administration of former U.S. President Donald Trump, who exacerbated trade tensions between the nations.
As part of this newly-oriented relationship, Canada announced plans to ease tariffs on Chinese electric vehicles while anticipating a substantial reduction in Chinese tariffs on Canadian canola seed later this year. The announcement from Ottawa marks a major step toward resolving long-standing trade disputes that have plagued the two countries.
Carney, who is the first Canadian prime minister to visit China since 2017, underscored the importance of this partnership, particularly in light of the historical contexts that strained relations between Canada and China. Tensions peaked following Canada’s arrest of Huawei executive Meng Wanzhou at the request of the U.S., which led to China’s imprisonment of two Canadians. Carney’s visit aims to shift focus towards economic collaboration instead of conflict, highlighting the necessity of adapting to current global realities.
During their meeting at the Great Hall of the People, Carney expressed optimism, suggesting that the two countries could harness the strengths of their historically positive relationship to foster a new dynamic. He indicated that the partnership could contribute to improving a previously stressed international system by focusing on mutual interests in sectors such as agriculture and energy.
The joint statement following their discussions indicated a sense of progress made in resolving trade issues, welcomed by both sides. A notable aspect of the agreement allows for up to 49,000 Chinese electric vehicles to enter the Canadian market at a revised tariff rate of 6.1%, compared to a previous blanket 100% tariff. This development is expected to prompt significant Chinese investment in the Canadian automotive sector.
Moreover, Canada anticipates a reduction in tariffs on its canola seed exports to China, expected to drop from around 85% to approximately 15% by March 1, further demonstrating a commitment to improving trade relations. Other agricultural products like lobsters and peas are also set for tariff reductions as part of this burgeoning partnership.
Carney’s foreign policy strategy reveals an effort to pivot towards strengthening ties with various global partners, including Europe, India, and now China, in light of deteriorating relations with the United States. With the intent to increase bilateral investments in clean energy, technology, and agri-food sectors, both nations aim to elevate exports to China by 50% by 2030.
The recent rapprochement comes despite prior tensions, presenting a hopeful outlook for future collaboration. As both countries navigate this new chapter, the strategic partnership may serve to not only benefit their economies but also contribute positively to the multilateral trade environment amid global challenges.