Canada Prime Minister Carney: No Trade Agreement with China

Prime Minister Carney Rejects Trade Agreements with China

Canadian Prime Minister Mark Carney emphasized that his country would proceed within the framework of the Canada-U.S.-Mexico Trade Agreement (CUSMA), rejecting the notion of pursuing a free trade agreement with China.

Emphasis on Coordination with the U.S. and Mexico

In a statement made on Sunday, Carney underscored that such an agreement would not occur without prior notification to the U.S. and Mexico. These remarks came in the wake of U.S. President Donald Trump's threat of imposing a 100% tariff on Canadian exports in the event Canada were to make a deal with China.

Tension at the World Economic Forum

The tension between the U.S. and Canada increased following Carney's warning at the World Economic Forum in Davos about the economic pressures from major powers. Following these statements, Trump announced that he had removed Canada from his Peace Council initiative.

Preliminary Agreement Between Ottawa and Beijing

Meanwhile, under a preliminary agreement reached between Ottawa and Beijing on January 16, mutual tariffs on certain products were reduced. Canada allowed a greater number of Chinese-manufactured electric vehicles to enter the country at lower tariffs, while China agreed to reduce tariffs on some agricultural products imported from Canada.

Regulations in Line with CUSMA

Carney stated that the new regulations were in line with CUSMA, saying, “This step is aimed at addressing some of the trade issues faced in recent years.”