Kathrine Frich
China has emerged more confident and influential on the world stage since Donald Trump returned to the White House.
At the same time, U.S. power appears to be waning as trade disputes and diplomatic rifts deepen.
Canada is now the clearest example of that shift, after Ottawa moved to formalise a new trade partnership with Beijing in a deal that marks a sharp break from its traditional alignment with the United States.
A deal after years
Canada and China have signed a trade agreement ending nearly a decade of diplomatic chill, according to Reuters.
The pact reduces tariffs on selected goods and expands cooperation in sectors ranging from energy to tourism.
Canadian Prime Minister Mark Carney said the agreement marked a turning point, describing China as a “more predictable partner” than the United States.
The deal follows years of limited engagement after relations deteriorated in 2018.
Under the agreement, Canada will allow annual imports of 49,000 Chinese electric vehicles at a tariff of 6 percent, down from 100 percent. In return,
China will cut tariffs on Canadian rapeseed oil from 85 percent to 15 percent.
Trade and travel
The agreement also includes measures aimed at boosting travel and regional trade.
China will allow Canadian citizens to enter the country without a visa, a move expected to support tourism and business links.
In western Canada, the province of British Columbia signed a memorandum to expand timber exports to China.
The broader deal also seeks to deepen diplomatic ties after years of cautious engagement.
Energy cooperation is another pillar of the agreement. Canada and China signed a framework that could increase Canadian oil exports while encouraging Chinese investment in renewable energy projects in Canada.
Breaking US dependence
Carney pledged last October to double Canadian exports to markets beyond the United States.
Official data show that in 2024, about 75 percent of Canadian exports went south of the border, compared with just 4 percent to China.
The push comes as tariffs on aluminium, lumber and automobiles have weighed on Canada’s economy, despite much of the North American trade agreement remaining in force.
Reuters notes that Donald Trump’s return to the White House has sharpened tensions, with tariffs and repeated comments about Canada’s status fuelling unease.
Ottawa has promoted “Buy Canadian” policies while pursuing new partnerships with the European Union and Saudi Arabia.
Sources: Reuters, El Economista.
