(NAFB) Just two days after President Donald Trump described the USMCA as ‘irrelevant’, Canada has forged a framework for a new strategic partnership with China, its second-largest trading partner — albeit only a small fraction of its first-place Trading partner, the US.
Canadian Prime Minister Mark Carney said the preliminary deal with China is structured to remove trade barriers and reduce tariffs. He went on to say that President Xi told him that China is also willing to strengthen its coordination with Canada to address global political challenges.
Under the goods portion of the deal, China is expected to lower tariffs on Canadian canola seed and meal from 84 percent to an average of 15 percent tariff by March 1.
Saskatchewan is the single largest producer of canola products and a major pulse grower. That province’s premier, Scott Moe, was part of the Canadian trade delegation to China. Premier Moe was highly pleased with the outcome of the trip.
Conversely, Ottawa has agreed to accept Chinese electric vehicles in the first year, with a market cap equal to 3% of Canada’s new-car market, at a 6% tariff rate.
It’s now been reported that the Canadian government notified U.S. trade officials that it planned to offer lower tariffs on a limited number of Chinese vehicles during its negotiations.
U.S. Trade Representative Jamieson Greer’s reaction to the Canada-China deal was only to say that such low numbers of Chinese vehicles would not adversely impact American companies’ exports to Canada. And PreTrump’sTrump’s response, when hearing of the deal, was almost one of approval.
Mark Carney said that Canada’s historic relationship with the U.S. is much deeper, and Canada’s current relationship with Beijing seems more predictable than its relationship with Washington right now. Taking the long view, Mark Carney stated that Ottawa hopes to increase Canada’s non-U.S. trade by at least 50 percent over the next decade.
Audio provided by NAFB News Service
Audio with Canadian Prime Minister Mark Carney, Saskatchewan Premier Scott Moe, and U.S. President Donald Trump.
