Afraid to anger Trump, Canada stays fickle about China trade
A promised golden decade appears to be on hold as Trudeau weighs up the costs of cosying up to Beijing
The “golden decade” Premier Li Keqiang said China and Canada were building in September 2016, as the two countries launched exploratory talks for a free-trade agreement (FTA), appears some way off yet. That FTA now seems dead in the water, collateral damage in a trade dispute between Canada and its largest trading partner, the United States.
Canada had shown signs of wanting to reduce its reliance on the US by reaching out to China, its third-largest trading partner, but analysts now say it must tread carefully or risk further damage to its already strained relations with the US. Given Washington is on the brink of a full-blown trade war with Beijing, it might not take well to seeing its neighbour cosy up to its opponent.
Chinese investment in Canadian oil shows bigger isn’t always better
“If there was free trade between Canada and China, the US would see this as being at cross purposes to its crackdown on China’s unfair trade practises,” said Charles Burton, formerly a diplomat at Canada’s embassy in Beijing.
“Canada would be perceived as a back door by which China could evade tariffs and other sanctions imposed by the US. So free trade with China could further damage Canada-US trade relations which would be disastrous for Canada.”
