Anna Hartz
Trade relationships often reflect deeper political shifts.
When countries change who they trade with, it usually signals changing trust, pressure, or priorities. Canada’s new agreement with China fits that pattern and marks a clear break from years of strained relations.
A More Predictable Partner
Canada and China have signed a trade deal that brings an end to more than ten years of diplomatic tension, reports El Economista. The agreement lowers tariffs on several key products and opens new areas of cooperation. Canadian Prime Minister Mark Carney described China as a more predictable partner than the United States, a remark that shows how much Ottawa’s outlook has changed.
Under the deal, Canada will allow the yearly import of 49,000 Chinese electric vehicles. These vehicles will face a 6 percent tariff instead of the previous rate of 100 percent. In return, China will sharply reduce tariffs on Canadian rapeseed oil. The rate will fall from 85 percent to 15 percent. This change is expected to help Canadian farmers who have struggled to access the Chinese market in recent years.
The agreement also goes beyond goods. British Columbia has signed a separate memorandum to increase timber exports to China. Beijing will allow Canadian citizens to enter China without a visa, which should encourage tourism and business travel. Both sides say they want to rebuild trust after years of silence.
Canadian Oil and Renewable Energy
Energy is another key part of the deal. Canada and China have signed a cooperation agreement that allows more Canadian oil to reach Chinese buyers. The deal also encourages Chinese investment in renewable energy projects inside Canada. This move could weaken efforts by the United States to limit China’s access to foreign energy supplies.
Carney has promised to reduce Canada’s dependence on the U.S. market. In 2024, about 75 percent of Canadian exports went south of the border, while only 4 percent went to China. At the same time, tariffs on aluminum, lumber, and cars have hurt Canadian industries. Many Canadians now see diversification as a necessity rather than a choice.
Relations between Canada and China collapsed in 2018 after the arrest of Huawei executive Meng Wanzhou in Vancouver. China responded by detaining two Canadian citizens. That standoff froze ties for years.
This new agreement signals a reset. It also sends a message to Washington. Canada is willing to look elsewhere when its economic interests are at risk.
Sources: El Economista
