Canada and China just today launched a series of agreements worth over $2 billion in various sectors including technology and infrastructure. The two countries reconvened a joint agricultural committee specifically on animal health and sanitary and phytosanitary measures for pet food. They recently signed a deepening and widening memorandum on energy. China recently named Canada “a major desired partner” in developing oil, liquefied natural gas and petroleum imports. This fresh partnership is particularly timely as both countries look towards their respective goals of carbon neutrality.
A full fifth of the report focuses on the still-ongoing trade restrictions, which have deeply damaged Canadian exports to China. Since February 2022, Canada’s exports of heat-treated dry pet food containing poultry have been halted due to China’s avian flu trade restrictions. Moreover, another case of atypical BSE in 2021 resulted in the suspension of beef exports from Canada to China.
Amid these challenges, Canadian Prime Minister Mark Carney visited China, initiating discussions aimed at resolving the ongoing tariff disputes that have strained relations between the two countries. Last year, Canada slapped tariffs on Chinese electric vehicles, aluminum and steel. In return, Beijing struck back by imposing duties on Canadian canola, seafood, and other ag products.
Beyond agriculture and energy, the two countries are creating a common task force on cultural heritage. The agreement commits both countries’ cabinet ministers to meet at least every two years. They are going to showcase and market storylines that appeal to Chinese consumers, such as famous Canadians like Norman Bethune.
Canada’s Natural Resources Canada is collaborating with China’s housing and development ministry under a five-year agreement aimed at exploring practical approaches for green developments. With the flourishing of this partnership, both countries have shown their commitment to sustainability and environmental stewardship.
Even with this rosy view of future collaboration, major obstacles are still in the way. China’s recent decision to lift a pandemic ban on group tours has left tourists effectively barred from visiting Canada until November. Those watching the talks closely warn that all the hard-won progress in negotiations could be upset by unforeseen changes in the political landscape.
“All of that can be derailed if the political environment changes,” – Vina Nadjibulla
Experts emphasize that while these agreements signal a desire to revitalize dormant institutional mechanisms strained over the past decade, both sides acknowledge underlying complexities.
“What it signals to me is a desire to basically revitalize (and) restart a whole bunch of institutional mechanisms that have gone dormant over the past decade because of the strain in the relationship,” – Vina Nadjibulla
The newly signed agreements could set an important precedent for future talks on lowering or eliminating tariffs on ag products.
“Presumably that’s also the time where we might have more movement on the canola and agricultural tariff issues because this group has been tasked to resolve any economic and trade differences between the two countries,” – Vina Nadjibulla
The paper reveals Canada’s decades-old position on joining the World Trade Organization. It shines a spotlight on the importance of ensuring that economies wishing to accede do so with strong, enforceable protections for workers’ rights, environmental integrity and IP.
Together, both nations are beginning a historic trip toward mutual collaboration. To do this, they intend to deepen their economic connections through targeted promotional campaigns focused on nature, a network of sister cities and large international markets, such as the 2026 FIFA World Cup.
Furthermore, there is skepticism about how effectively both countries can address their respective trade concerns without jeopardizing their broader international relationships.
“Those details will have to be negotiated by Canada with an eye on how they would impact discussions with the U.S.,” – Vina Nadjibulla
Furthermore, there is skepticism about how effectively both countries can address their respective trade concerns without jeopardizing their broader international relationships.
“We can’t just wait until everything with the U.S. is resolved before we even begin to talk to others, including others who are difficult like China,” – Vina Nadjibulla
