Canadian Prime Minister Mark Carney’s trip to China has resulted in a deal on tariff quotas being reached between Ottawa and Beijing.
The deal will allow tens of thousands of Chinese electric vehicles into Canada in exchange for Beijing dropping import duties on shipments of Canadian canola products.
The agreement is Carney’s first trade deal and marks a de-escalation of tensions between Canada and China.
Carney said the agreement is part of a broader strategic reset and partnership with China, and “reflects the world as it is today.”
Carney said Ottawa expects Beijing to lower canola seed duties to 15% by March of this year.
In return, Canada will allow up to 49,000 Chinese electric vehicles into the domestic market each year at a 6.1% tariff.
Carney said the Chinese electric vehicles will comprise only 3% of the Canadian market.
The new trade deal was announced hours after Carney met with Chinese President Xi Jinping, ending a multi-year trade and political dispute.
The China trade deal also comes as the Liberal government seeks to double non-U.S. exports by 2030 and prepares for a contentious review of the current North American trade deal.
Related Stories
