header logo
Vallibel FD
vallible LE
Latest
China and Canada announce tariffs relief after a high-stakes meeting between Carney and Xi
Jan 16, 202608:46 PM
China and Canada announce tariffs relief after a high-stakes meeting between Carney and Xi
Mobitel inner 1278

Chinese leader Xi Jinping and Canadian PM Mark Carney have announced lower tariffs, signalling a reset in their countries’ relationship after a key meeting in Beijing.

 

China is expected to lower levies on Canadian canola oil from 85% to 15% by 1 March, while Ottawa has agreed to tax Chinese electric vehicles at the most-favoured-nation rate, 6.1%, Carney told reporters.

 

The deal is a breakthrough after years of strained ties and tit-for-tat levies. Xi hailed the “turnaround” in their relationship but it is also a win for Carney, the first Canadian leader to visit China in nearly a decade.

 

He has been trying to diversify Canadian trade away from the US, his country’s biggest trading partner, following the uncertainty caused by Trump’s on-again-off-again tariffs.

 

The deal could also see more Chinese investments in Canada, right on America’s doorstep.

 

Carney himself seemed to allude to the fact that this was a result of Trump’s tariffs, which have now pushed one of the US’s key allies towards its biggest rival.

 

He told reporters that Canada’s relationship with China had been more “predictable” in recent months and that he found talks with Beijing “realistic and respectful”.

 

He also made clear Ottawa does not agree with Beijing on everything, adding that in his discussions with Xi he made clear Canada’s “red lines”, including human rights, concerns over election interference and the need for “guardrails”.

 

“We take the world as it is - not as we wish it to be,” he said when asked about China’s human rights record.

 

Observers believe Carney’s visit could set an example for other countries across the world who are also feeling the pain from Washington’s tariffs.

 

In contrast, Xi has been trying to show that China is a stable global partner and has been urging more pragmatic ties - in the words of Beijing, “a win-win” for all.

 

And it seems to be working. The South Korean president and the Irish prime minister have both visited Beijing in recent weeks. The UK prime minister is expected to visit soon and so is the German Chancellor.

 

Carney said the “world has changed dramatically” and how Canada positions itself “will shape our future for decades to come,” he added.

 

Earlier in his three-day visit, he had said that the Canada-China partnership sets the two countries up for a “new world order”. He later added that the multilateral system had been “eroded, to use a polite term, or undercut”.

 

As the Chinese and Canadian delegations sat down in the Great Hall of the People on Friday, Xi said: “The healthy and stable development of China-Canada relations is conducive to world peace, stability, development, and prosperity.”

 

A trade reset

 

Tariffs have been a key sticking point between the two sides.

 

In 2024, Canada imposed 100% tariffs on Chinese electric vehicles, following similar US curbs.

 

Last year, Beijing retaliated with tariffs on more than $2bn (£1.5bn) of Canadian farm and food products like canola seed and oil. As a result Chinese imports of Canadian goods fell by 10% in 2025.

 

In the deal struck on Friday, Canada will allow only 49,000 Chinese electric vehicles into the Canadian market at the 6.1% tariff rate.

 

The cap is in response to Canadian automakers’ fears of an influx of affordable Chinese EVs.

 

As well as relief for canola producers, there will also be reduced tariffs on Canadian lobsters, crabs, and peas.

 

China is Canada’s second-largest trading partner but it’s still a long way behind the US in volume.

 

Economic ties with China are increasingly important for Carney. On arrival in Beijing on Wednesday, he met senior executives from prominent Chinese businesses, including an electric vehicle battery maker and an energy giant.

 

On Thursday the two countries signed several agreements on energy and trade cooperation.

 

The visit is a “reset of a relationship” that may be “modest in ambition” but “much more realistic about what we can reasonably obtain”, said Colin Robertson, a former Canadian diplomat and vice-president at the Canadian Global Affairs Institute.

 

A frosty history

 

The last Canadian PM to visit China was Justin Trudeau, who met Xi in Beijing in 2017.

 

That visit took place before the relationship soured in 2018, following Canada’s arrest of Meng Wanzhou, the chief financial officer at the Chinese tech giant Huawai, at the request of the US.

 

Days later, China detained Canadian citizens Michael Kovrig and Michael Spavor on espionage charges - a move critics saw as retaliation for Meng’s arrest, which China denied.

 

Meng and both Michaels were released in 2021.

 

Ahead of the Carney-Xi meeting, Michael Kovrig wrote on X that the visit should not just be about warming ties but also “managing leverage”.

 

Kovrig described Chinese negotiators as “extremely adroit, calculating, and always looking for leverage”.

 

“That’s why engagement has to be handled with discipline,” he wrote, adding that Carney should also advocate for Canadians imprisoned in China. There are about 100 of them, according to Canadian media.

 

Speaking to reporters, Carney was clear that with countries that do not share the same values, Ottawa will engage on a “narrower, more specific” manner.

 

“We’re very clear about where we cooperate, where we differ,” he said, adding that Chinese claims over self-governed Taiwan and Hong Kong’s jailed pro-democracy figure Jimmy Lai came up in “broad discussions”.

 

Canada and China have “different systems”, he said, which limits the breadth of their cooperation.

 

“But to have an effective relationship, we have direct conversations. We don’t grab a megaphone and have the conversations that way.”

 

Source: Reuters
--Agencies

 

 

 

Disclaimer: All the comments will be moderated by the AD editorial. Abstain from posting comments that are obscene, defamatory or slanderous. Please avoid outside hyperlinks inside the comment and avoid typing all capitalized comments. Help us delete comments that do not follow these guidelines by flagging them (mouse over a comment and click the flag icon on the right side). Do use these forums to voice your opinions and create healthy discourse.

Comments

0
Comments are disabled

Note: Due to legal constraints, the Ada Derana Editorial team has taken a decision to disable comments on all articles concerning ongoing court procedures.

MostRead
Mobitel 1278
VideoStories
 Detention period in Organised Crime Prevention Bill to be reduced from 72 to 48 hours – President

Detention period in Organised Crime Prevention Bill to be reduced from 72 to 48 hours – President

Government has not taken decisions harmful to public -- Dy Minister Mahinda Jayasinghe

Government has not taken decisions harmful to public -- Dy Minister Mahinda Jayasinghe

 Court orders freezing of bank accounts and vehicles belonging to Rakitha Rajapakshe for 3 months

Court orders freezing of bank accounts and vehicles belonging to Rakitha Rajapakshe for 3 months

Heroin and 'Ice' haul weighing over 150kg seized from vessel intercepted in southern seas

Heroin and 'Ice' haul weighing over 150kg seized from vessel intercepted in southern seas

 Protest against proposed PSTA and Organised Crime Prevention Bill marches towards Parliament

Protest against proposed PSTA and Organised Crime Prevention Bill marches towards Parliament

 The 3rd International Broadcaster’s Symposium to be held on Nov. 11 & 12 in Colombo

The 3rd International Broadcaster’s Symposium to be held on Nov. 11 & 12 in Colombo

 PUCSL recommends 1.46% electricity tariff hike for October–December 2026

PUCSL recommends 1.46% electricity tariff hike for October–December 2026

 Court to deliver decision on Gotabaya Rajapaksa's foreign travel ban on Nov. 25

Court to deliver decision on Gotabaya Rajapaksa's foreign travel ban on Nov. 25

PSTA draws widespread opposition from civil groups; Several protests planned against the Bill

PSTA draws widespread opposition from civil groups; Several protests planned against the Bill

Parliament heated over no-confidence motion against Speaker; SJB stages protest within the chamber

Parliament heated over no-confidence motion against Speaker; SJB stages protest within the chamber

 Namal Rajapaksa granted bail in Krrish bribery case based on exceptional circumstances by court

Namal Rajapaksa granted bail in Krrish bribery case based on exceptional circumstances by court

 "PSTA will cause serious damage to the country" Opposition says PSTA an attempt to suppress dissent

"PSTA will cause serious damage to the country" Opposition says PSTA an attempt to suppress dissent

 Crowds flock to IRD offices amid new TIN requirement; IRD urges public to avoid unnecessary visits

Crowds flock to IRD offices amid new TIN requirement; IRD urges public to avoid unnecessary visits

More opposition against new security bills Govt too incompetent to govern the country – Sajith

More opposition against new security bills Govt too incompetent to govern the country – Sajith

 Prices of petrol and diesel increased; Bus, three-wheeler and other TUs dismayed by fuel price hike

Prices of petrol and diesel increased; Bus, three-wheeler and other TUs dismayed by fuel price hike

Lassana Flora