Canada, China launch new partnership on trade and energy

Prime Minister Mark Carney announced a new strategic partnership with the People’s Republic of China on Friday, marking a major shift in Canada–China relations after years of strained ties.

Carney made the announcement following meetings with Chinese President Xi Jinping and Premier Li Qiang during his first official visit to China.

The agreement focuses on expanding trade, energy cooperation and agricultural exports. Ottawa says the partnership is aimed at diversifying Canada’s economy and stabilizing relations with one of its largest trading partners.

As part of the deal, Canada will allow up to 49,000 Chinese electric vehicles into the Canadian market at a reduced tariff rate of 6.1 per cent. The federal government says the move is intended to encourage investment in Canada’s electric-vehicle supply chain.

In return, China has agreed to lower tariffs on several Canadian agricultural products. Tariffs on canola seed are expected to drop to about 15 per cent by March 1, 2026, while tariffs on canola meal, lobster, crab and peas will be suspended through the end of the year. Ottawa estimates the changes could result in nearly $3 billion in new export orders.

The two countries also committed to working toward a 50 per cent increase in bilateral trade by 2030 and expanding cooperation in clean energy, forestry products and technology.

The partnership includes cooperation between law-enforcement agencies on issues such as drug trafficking, cybercrime and money laundering. Both sides also signalled interest in expanding tourism and people-to-people exchanges.