In a bid to dismantle the United States’ trade hegemony, China and Canada have announced a new trade deal, which Canadian Prime Minister Mark Carney said would open markets for Canadian businesses and workers.
In a post on social media platform X, Carney said China is “a more predictable partner” than the US, and wrote: “We’ve secured a new trade agreement with China – unlocking more than $7 billion in export markets for Canadian workers and businesses.”
Carney was in Beijing this week to foster economic ties and a renewed Canada-China partnership. He met China’s President, Xi Jinping, the Premier of China, Li Qiang, and the Chairman of the Standing Committee of the National People’s Congress of China, Zhao Leji. This was the first visit of a Canadian Prime Minister to China since 2017.
A joint statement issued by Carney and Jinping outlined the pillars of Canada and China’s new strategic partnership, which includes Canada agreeing to cut its 100 per cent tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, a US news channel reported.
Carney said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports to Canada, which will grow to about 70,000 over five years.
Meanwhile, China will reduce its total tariff on canola seeds, a major Canadian export, from 84 per cent to about 15 per cent, the channel said.
Also Read: Canadian PM Carney arrives in China to strengthen trade ties
The Canadian Prime Minister’s Office said in a statement that Canada’s new government is working with urgency and determination to diversify trade partnerships and catalyse massive new levels of investment, especially in a “more divided and uncertain world”.
“Canada is building a stronger, more independent, and more resilient economy… As the world’s second-largest economy, China presents enormous opportunities for Canada in this mission,” it said.
On Canada’s relationship with China, Carney said: “Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that.”
Canada faces 35 per cent levy on its goods in its trade with the US. It is also affected by the blanket 50 per cent levy on imported metals and 25 per cent on non-US automobiles.
Meanwhile, China and US arm-twisted each other with threats of 100 per cent tariffs but after US President Donald Trump and Xi Jinping’s meeting, the tariffs were exempted on a portion of Chinese products until November 10, 2026.
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