Carney announced a major trade deal after meeting Chinese President Xi Jinping in Beijing, bringing an end to a multi-year trade dispute that began when the previous Liberal government imposed steep tariffs on Chinese EVs to protect Canada’s auto industry. China retaliated with heavy duties on Canadian agricultural exports, including canola, peas and seafood.
Canada is the world’s leading exporter of canola, with China its second-largest market after the United States. Industry representatives welcomed the breakthrough, noting that tariffs had effectively halted Canadian pea exports to China and displaced them with Russian products. The agreement also aligns with Ottawa’s broader goal of doubling non-U.S. exports by 2030 and boosting shipments to China by 50 per cent. While Carney acknowledged ongoing security concerns, he said Canada would manage risks through engagement, describing Ottawa’s approach as one of “value-based realism.”
Xi characterized the renewed engagement as a “turnaround” in bilateral relations, following the leaders’ first formal meeting in years at the APEC summit last fall, after which both sides directed officials to resolve long-standing trade disputes.
