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Canada and China Launch 'New Partnership' With Preliminary Trade Deal

The move reflects Ottawa's push to lessen reliance on the U.S. through calibrated trade openings.

Overview

  • Prime Minister Mark Carney and President Xi Jinping announced the reset in Beijing during the first visit by a Canadian head of government since 2017.
  • Canada will allow up to 49,000 China-made electric vehicles at a 6.1% tariff, rolling back part of the recent reciprocal trade measures.
  • Carney said Xi committed to visa-free entry for Canadians traveling to China, with the scope of the waiver still to be clarified.
  • Canada expects China to reduce duties on Canadian canola by March 1, with implementation details yet to be confirmed.
  • The arrangements are initial steps, with further timelines and specifics to be worked out as both sides focus cooperation on agriculture, energy, and finance.