Breaking with the United States,Canadahas agreed to cut its 100% tariff on Chineseelectric carsin return for lowertariffson Canadian farm products, Prime MinisterMark Carneysaid Friday.
Carney made the announcement after two days of meetings with Chinese leaders. He said there would be an initial cap of 49,000 vehicles on Chinese EVexportsto Canada, growing to 70,000 over five years.Chinawill reduce its tariff on canola seeds, a major Canadian export, from about 84% to about 15%, he told reporters.
It has been a historic and productive two days, Carney said, speaking outside against the backdrop of a traditional pavilion and a frozen pond at a Beijing park. We have to understand the differences between Canada and other countries, and focus our efforts to work together where were aligned.
Earlier Friday, he and Chinese leaderXi Jinpingpledged to improve relations between their two nations after years of acrimony.
Xi told Carney in a meeting at the Great Hall of the People that he is willing to continue working to improve ties, noting that talks have been underway on restoring and restarting cooperation since the two held an initial meeting in October on the sidelines of a regional economic conference in South Korea.
It can be said that our meeting last year opened a new chapter in turning ChinaCanada relations toward improvement, China's top leader said.
Carney, the first Canadian prime minister to visit China in eight years, said better relations would help improve a global governance system that he described as under great strain.
He called for a new relationship adapted to new global realities and cooperation in agriculture, energy and finance.
Those new realities reflect in large part the so-called America-first approach of US PresidentDonald Trump. The tariffs he has imposed have hit both the Canadian and Chinese economies. Carney, who has met with several leading Chinese companies in Beijing, said ahead of his trip that his government is focused on building an economy less reliant on the U.S. at what he called a time of global trade disruption.
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A Canadian business owner in China called Carney's visit game-changing, saying it re-establishes dialogue, respect and a framework between the two nations.
These three things we didnt have, said Jacob Cooke, the CEO of WPIC Marketing + Technologies, which helps exporters navigate the Chinese market. The parties were not talking for years.
Canada had followed the U.S. in putting tariffs of 100% on EVs from China and 25% on steel and aluminum under former Prime MinisterJustin Trudeau, Carneys predecessor.
China responded by imposing duties of 100% on Canadian canola oil and meal and 25% on pork and seafood. It added a 75.8% tariff on canola seeds last August. Collectively, the import taxes effectively closed the Chinese market to Canadian canola, an industry group has said. Overall, China's imports from Canada fell 10.4% last year to $41.7 billion, according to Chinese trade data.
China is hoping Trumps pressure tactics on allies such as Canada will drive them to pursue a foreign policy that is less aligned with the United States. The U.S. president has suggested Canada could become America's 51st state.
Carney departs China on Saturday and visits Qatar on Sunday before attending the annual gathering of the World Economic Forum in Switzerland next week. He will meet business leaders and investors in Qatar to promote trade and investment, his office said.
(FRANCE 24 with AP)
Originally published on France24
