Prime Minister Justin Trudeau is visiting China in an effort to boost Canadian trade ties, opening a door his predecessor largely kept shut as a…
Prime Minister Justin Trudeau is visiting China in an effort to boost Canadian trade ties, opening a door his predecessor largely kept shut as a standoff festers with Japan over a rival pact.
Trudeau arrived Sunday for a five-day tour during which he’s expected to launch talks toward a free trade agreement despite unease among Canadian business. He’ll be joined by four cabinet ministers for his second trip in as many years but has stopped short of confirming Canada will begin FTA negotiations.
While a move to deepen ties is an attempt to jump-start the economic relationship between the two countries, it’s also a high-risk strategy for Trudeau that could potentially alienate historical Canadian partners like Japan, open up strategic industries to Chinese ownership and cement a trading relationship that is currently lopsided in the Asian nation’s favor.
China has long pressed Canada for free-trade talks but was rebuffed by former Prime Minister Stephen Harper, whose Conservative government was ousted in 2015. “Our view was that China does not — and will not — play by the same rules as everyone else and so free or fair trade is essentially impossible,” Rachel Curran, a former Harper policy director, said by email. “China is not interested in a level playing field.” Untapped Potential
Canadian government officials briefing journalists ahead of the trip wouldn’t confirm or rule out launching free trade talks, instead referring to comments made earlier by Trade Minister Francois-Philippe Champagne.
“With so much untapped potential — for both sides — still remaining, we are looking at whether a framework where issues can be addressed and where the rule of law is paramount is better than the ad hoc approach employed by the previous government,” Champagne said in a Nov. 30 speech. “Should we move forward, this will take time.”
The Liberal prime minister’s visit comes as Canada overhauls the North American Free Trade Agreement with U. S. President Donald Trump and after Trudeau angered Japan’s Shinzo Abe and other Trans Pacific Partnership supporters by balking at a deal. Canada is already moving to mend ties with Japan. ‘Training Wheels’
Free trade talks with Canada would be a test-case and beachhead for China in North America. Observers say Canada would be lured by the opportunity for exports of foods, such as canola and pork, and other products and services to a country whose gross domestic product is more than seven times its own.
China has FTAs with Australia and New Zealand, among other countries. Canada offers a chance to take a crack at a potentially a wider-ranging pact that again tests the ability to weave largely-Western multilateral trade practices with Chinese interests.
