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Canada and China Announce Preliminary Trade Accord in Beijing as Leaders Hail 'New Partnership'

Ottawa seeks to diversify trade away from the U.S. through this diplomatic thaw.

Overview

  • Prime Minister Mark Carney unveiled a preliminary commercial agreement aimed at reducing trade barriers and reciprocal tariffs following talks with President Xi Jinping.
  • Canada will permit the import of 49,000 Chinese-made electric vehicles at a preferential 6.1% tariff, described as a return to pre-dispute levels.
  • Carney said Xi committed to visa-free entry for Canadians traveling to China, with scope and timing still to be clarified.
  • Ottawa expects Beijing to cut tariffs on Canadian canola by March 1, offering relief to a sector hit by recent trade frictions.
  • The visit is the first by a Canadian head of government to China since 2017 and sets priorities in agriculture, energy and finance, with Ottawa anticipating new Chinese investment in Canada’s auto industry.