Beijing and Ottawa Open a New Trade Chapter Beyond Washington’s Shadow
Economic relations between China and Canada have entered a new phase after the announcement of a broad agreement to lower trade barriers and expand the flow of goods and investment, a move widely seen as an effort to diversify commerce away from traditional reliance on the U.S.
market.
Under the new arrangements, Beijing is expected to cut tariffs on Canadian canola to around 15 percent by March, while Ottawa will allow 49,000 Chinese electric vehicles to enter its market with duties of about 6 percent instead of the current 100 percent, in addition to granting visa-free access for Canadian citizens to China.
Observers describe the step as a notable shift from years of stagnation following the 2018 dispute that triggered mutual retaliatory measures.
Prime Minister Mark Carney said the deal seeks to build a more balanced strategic partnership amid a changing global order and stressed that Canada would pursue an independent trade course.
Markets reacted quickly as canola futures jumped to their highest level since December on expectations of stronger Chinese demand.
Experts, however, caution that the rapprochement could irritate Washington ahead of upcoming North American negotiations, though Ottawa views diversification as essential to shield its economy from U.S.
policy swings.
market.
Under the new arrangements, Beijing is expected to cut tariffs on Canadian canola to around 15 percent by March, while Ottawa will allow 49,000 Chinese electric vehicles to enter its market with duties of about 6 percent instead of the current 100 percent, in addition to granting visa-free access for Canadian citizens to China.
Observers describe the step as a notable shift from years of stagnation following the 2018 dispute that triggered mutual retaliatory measures.
Prime Minister Mark Carney said the deal seeks to build a more balanced strategic partnership amid a changing global order and stressed that Canada would pursue an independent trade course.
Markets reacted quickly as canola futures jumped to their highest level since December on expectations of stronger Chinese demand.
Experts, however, caution that the rapprochement could irritate Washington ahead of upcoming North American negotiations, though Ottawa views diversification as essential to shield its economy from U.S.
policy swings.
