Canada announces USD 7 billion trade deal with China

Canadian Prime Minister Mark Carney has announced a new trade agreement with China.Carney said that the deal would open markets for Canadian businesses and workers.

In a post on social media platform X, Carney said, “We’ve secured a new trade agreement with China — unlocking more than $7 billion in export markets for Canadian workers and businesses.“In a statement by the Canadian Prime Minister’s Office said, “In a more divided and uncertain world, Canada is building a stronger, more independent, and more resilient economy. To that end, Canada’s new government is working with urgency and determination to diversify trade partnerships and catalyse massive new levels of investment. As the world’s second-largest economy, China presents enormous opportunities for Canada in this mission.“To forge a new Canada-China partnership, Carney, visited Beijing this week. This marked the first visit to China by a Canadian Prime Minister since 2017. In Beijing, Prime Minister Carney met with the President of China, 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. After their meeting, Prime Minister Carney and President Xi released a joint statement outlining the pillars of Canada and China’s new strategic partnership.Canada has agreed to cut its 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, CBS News reported.Carney said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports to Canada, growing to about 70,000 over five years. China will reduce its total tariff on canola seeds, a major Canadian export, from 84% to about 15%, as per CBS News.Carney said China has become a more predictable partner to deal with than the US.“Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” Carney said, as quoted by CBS News.Canada faces 35% levy on its goods. Canada is affected by the blanket 50% levy on imported metals and 25% on non-US automobiles. Meanwhile, China and US arm-twisted each other with threats of 100% 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.