Prime Minister Mark Carney is set to visit China in an attempt to mend strained diplomatic relations and address a significant trade issue involving Canada’s high tariffs on Chinese electric vehicles and the subsequent agricultural tariffs imposed by China. China’s ambassador to Canada has indicated that if Canada removes its electric vehicle tariffs, China would reciprocate by dropping its retaliatory tariffs.
A Canadian official, speaking on the condition of anonymity, mentioned that while the government anticipates progress during the Beijing visit, a complete elimination of China’s perceived unfair tariffs may not be immediately achieved. Vina Nadjibulla, the vice-president of research and strategy at the Asia Pacific Foundation of Canada, noted that the visit by Carney represents a pivotal moment in Canada-China relations and poses a significant test for the prime minister in navigating potential trade agreements and associated risks.
Carney’s upcoming four-day trip to Beijing marks the first visit by a Canadian prime minister since 2017. The visit is part of Canada’s broader strategy to diversify trade beyond its reliance on the U.S., including re-engaging with China after a period of strained relations that saw the detention of two Canadians by Beijing. Additionally, a recent public inquiry identified China as the most active foreign interference actor in Canada.
Regarding the trade tariffs on electric vehicles, Nadjibulla pointed out that Canada could consider alternative approaches, such as following the European model of imposing specific tariffs based on factors like subsidies received by Chinese manufacturers. She also mentioned the possibility of allowing Chinese EV production in Canada, although this could face opposition from the domestic auto industry.
The Canadian official did not disclose specific negotiation options but highlighted ongoing efforts to address trade issues collaboratively with China. Saskatchewan Premier Scott Moe is expected to accompany Carney during parts of the trip, which aims to secure new agreements and explore opportunities in the petroleum and liquefied natural gas markets in China.
Nadjibulla emphasized the potential for Canada to tap into China’s growing demand for Canadian crude oil, particularly in light of disruptions in traditional supply chains. However, Dennis Molinaro, a former national security analyst, cautioned against overlooking the need for robust safeguards against foreign interference before deepening ties with China.
Following his visit to China, Carney plans to head to Qatar to attract investment from the Middle East before attending the World Economic Forum in Switzerland.