Canada and China have struck an initial trade deal that will slash tariffs on electric vehicles and canola, Prime Minister Mark Carney said on Friday, as both nations promised to tear down trade barriers while forging new strategic ties.
Prime Minister Mark Carney hailed on Thursday Canada’s improving ties with China as well as the leadership of President Xi Jinping. In a ‘roadmap’ agreement signed on Thursday, Canada and China committed to “maintaining open channels of communication” to resolve issues on trade in agricultural products like canola.
Jamie Wilton, trader for RJ O’Brien in Winnipeg, said he and the canola trade is watching and waiting while Prime Minister Mark Carney visits China this week.
China bought fewer goods from Canada last year for the first time since 2020, according to Chinese data released on the same day as Prime Minister Mark Carney starts his China visit.
Prime Minister Mark Carney departs for China on Tuesday, where he will discuss trade and international security at a time when Canada faces uncertain relations with the U.S. due to a trade war and annexation threats from President Donald Trump.
China’s most active Zhengzhou rapeseed (canola) meal futures fell on Monday, hovering near their lowest point in more than two weeks, as news of Prime Minister Mark Carney’s visit to China this week boosted sentiment around a potential canola-related deal.
Prime Minister Mark Carney will visit China January 13-17, his office said on Wednesday, in what will be the first visit by a Canadian prime minister since 2017.
China’s state stockpiler Sinograin bought 10 U.S. soybean cargoes this week, three traders told Reuters on Tuesday, as the world’s top buyer continues purchasing from the United States following a late-October trade truce.