Canadian Prime Minister Mark Carney said on Wednesday that he held “constructive” trade discussions with Chinese Premier Li Qiang, focusing on electric vehicles, canola, steel, and other trade issues, as both countries work to navigate a path out of a tariff conflict.
Ties between Ottawa and Beijing deteriorated last year after Canada imposed tariffs on Chinese-made electric vehicles, steel, and aluminium. China responded with taxes on Canadian canola imports but kept the door open for dialogue.
“There is some alignment of tariffs with the United States, and I will highlight particularly in the steel sector, where we’ve been very clear in the approach that we have taken, and we had an open discussion with the Premier and our Chinese colleagues about that and the reasons for that,” Carney told reporters after meeting Li on the sidelines of a U.N. assembly in New York.
The discussion also covered agriculture and agri-food products, including canola and seafood, as well as electric vehicles, according to a readout from Carney’s office. Following the announcement, China’s Zhengzhou rapeseed meal futures fell 3.1% on expectations that the talks could help restore Canada-China canola trade. “Rapeseed meal prices fell today following the China-Canada talks, with the market expecting positive signals to help restore China-Canada canola trade and thereby boost future supply,” said Zhang Deqiang, an analyst at Sublime China Information.
Carney described the discussions as “a very constructive set of discussions. Those discussions will deepen. I will expect, at the appropriate time, to be meeting with President Xi Jinping but continuing this dialogue with the premier.”
China’s Xinhua news agency reported that Li emphasized the importance of Canada establishing a “correct” understanding of China, respecting each other’s core interests, and laying a solid political foundation for bilateral cooperation. Li added that trade with Canada has grown rapidly this year and that Beijing is willing to maintain and develop this “positive” momentum.
Source: Reuters