Canada and China agree on new trade deals for electric vehicles and canola

Canadian Prime Minister Mark Carney has visited China for the first time since 2017, marking a significant step towards rebuilding ties between the two nations. During his trip, Carney announced an initial trade deal with China aimed at slashing tariffs on electric vehicles and canola.

The agreement, which was reached during talks with Chinese leaders including President Xi Jinping, will allow up to 49,000 Chinese electric vehicles into Canada at a tariff of 6.1 percent. This compares to the 100 percent tariff imposed by former Prime Minister Justin Trudeau in 2024.

As part of the deal, China has committed to reducing tariffs on Canadian canola seed and other agricultural products. The agreement is expected to unlock nearly $3 billion in export orders for Canadian farmers, fish harvesters, and processors.

Carney also discussed plans with Xi to strengthen cooperation in clean energy storage and production, driving new investments. He noted that the EV pact would drive “considerable” Chinese investment into Canada’s auto sector, create good careers, and speed up the country towards a net-zero future.

The deal marks a significant shift for Canada, which has been seeking to rebuild ties with China after months of diplomatic efforts. The agreement promises much more for Canadians than previous trade agreements.

Separately, Premier Doug Ford of Ontario expressed concerns that China would take full advantage of its new foothold in the Canadian market without providing equal investments in the country’s economy and auto sector.

Source: Al Jazeera