BEIJING: Chinese President Xi Jinping and Canadian Prime Minister Mark Carney announced a landmark agreement to reduce tariffs, marking a significant reset in relations between the two countries after a key meeting in Beijing.
Under the deal, China will cut levies on Canadian canola oil from 85% to 15% by March 1, while Canada will impose its most-favoured-nation rate of 6.1% on Chinese electric vehicles, Carney told reporters.
The agreement ends years of strained ties and retaliatory tariffs, and represents a major breakthrough for both sides.
Xi hailed the development as a “turnaround” in bilateral relations, while Carney, the first Canadian leader to visit China in nearly a decade, viewed it as a strategic win.
He emphasized that Canada is seeking to diversify trade away from the United States, following the uncertainty caused by former President Trump’s fluctuating tariffs.
Observers note that the deal could pave the way for increased Chinese investments in Canada, positioning the country as a more attractive partner in North America.
Carney stressed that discussions were “realistic and respectful”, though he reiterated Canada’s red lines on issues such as human rights, election interference, and the need for governance “guardrails.”
“We take the world as it is – not as we wish it to be,” Carney said when asked about China’s human rights record.
The visit also signals a broader trend as other countries facing the fallout from US tariffs look for pragmatic partnerships with China.
In recent weeks, South Korea and Ireland sent delegations to Beijing, and visits from the UK and Germany are expected soon.
Xi, addressing the Great Hall of the People on Friday, said: “The healthy and stable development of China-Canada relations is conducive to world peace, stability, development, and prosperity.”
Carney added that the deal reflects a dramatic shift in global dynamics, noting that how Canada positions itself now will shape its future for decades to come and sets the stage for a “new world order” amid changes to the multilateral system.
