Canadian Prime Minister Hopes for Deeper ‘Constructive’ Trade Talks with China

Canadian Prime Minister Mark Carney said he held “constructive” trade discussions with Chinese Premier Li Qiang and expressed hope that talks would deepen over time as both countries look for a way out of their tariff dispute.

Relations soured last year after Canada imposed tariffs on Chinese-made electric vehicles, as well as steel and aluminum imports from China. Beijing retaliated with heavy duties on Canadian canola imports, though it described the measures as preliminary, leaving room for further talks.

Since U.S. President Donald Trump’s return to the Oval Office in January and renewed tariff measures on both sides, Ottawa and Beijing have sought to repair ties.

In June, Li told Carney during a phone call that there were no fundamental conflicts of interest between the two nations.

“There are some similarities with the U.S. tariffs, particularly in the steel sector, where we’ve been very clear about our position. We had open discussions with the Premier and our Chinese counterparts about this and the reasons behind it,” Carney told reporters after meeting Li on Tuesday at a United Nations gathering in New York.

According to details released by the Prime Minister’s Office, Carney and Li also discussed “agriculture and agri-food products, including canola, as well as seafood and electric vehicles.”

Following the announcement, the most active Zhengzhou rapeseed meal futures in China fell 3.1% by 0346 GMT on Wednesday.

“The decline in rapeseed meal prices today came after the China-Canada talks,” said Zhang Deqiang, an analyst with Shandong-based Sublime China Information. “The market expects positive signals that will help restore canola trade between China and Canada and boost future supply.”

Carney described the talks with Chinese officials as “highly constructive” and added, “These discussions will deepen. I expect to meet President Xi Jinping at the appropriate time, but the dialogue with the Premier will continue.”

According to China’s state news agency Xinhua, Li told Carney he hoped Canada would develop a “correct” understanding of China, respect each other’s core interests and major concerns, and lay a solid political foundation for stronger bilateral relations and cooperation.

Li noted that trade between the two countries has grown rapidly since the beginning of the year and said Beijing is ready to work with Ottawa to sustain and build on this “positive momentum,” address mutual economic and trade concerns, and deepen collaboration.