Canada and China have agreed to lower trade tariffs, marking an important step toward improving relations after talks between Chinese President Xi Jinping and Canadian Prime Minister Mark Carney in Beijing.
Under the agreement, China will reduce taxes on Canadian canola oil from 85% to 15% by early March. In return, Canada will lower tariffs on Chinese electric vehicles to 6.1%, the standard rate given to most trading partners.
The deal comes after several years of tense relations and trade disputes between the two countries. President Xi described the agreement as a positive change, while Prime Minister Carney said the talks were practical and respectful.
Carney’s visit is the first by a Canadian prime minister to China in nearly 10 years. It comes at a time when Canada is trying to depend less on the United States for trade, especially as US trade policies have become unpredictable.
The agreement includes limits to protect Canadian industries. Canada will allow only a set number of Chinese electric vehicles to enter the market at the lower tariff rate, easing concerns from local carmakers. China will also cut tariffs on other Canadian products such as seafood and farm goods.
During his three-day visit, Carney met Chinese business leaders and signed agreements on energy and trade cooperation.
Carney said Canada will work with China where possible but will also be clear about its concerns, including human rights and national security issues. He stressed that cooperation will be focused and carefully managed.
While the deal does not solve all problems, it is seen as a positive move toward more stable and predictable relations between Canada and China.
