Prime Minister Carney Says Canada Isn't Pursuing Free Trade With China

(MENAFN- Baystreet)
Prime Minister Mark Carney says that Canada has“no intention” of pursuing a free trade deal with China.
The remarks were made after U.S. President Donald Trump threatened to slap punitive tariffs of up to 100% on Canada if the country sought a free trade deal with China.
Speaking to reporters, Carney said that his government respects its obligations under the Canada-U.S.-Mexico trade agreement and would not pursue a free trade agreement with China without notifying the governments of America and Mexico.
Over the weekend, Trump posted on social media:“If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken.”
Trump's latest threats come amid rising tensions between the U.S. and Canada after Carney garnered global attention for a speech he gave at the World Economic Forum where he warned against economic coercion by the world's superpowers.
Last week, Trump withdrew an invitation for Carney to join his“Board of Peace.” Carney had not yet accepted the invitation to join the board when it was withdrawn.
On Jan. 16 of this year, Canada and China concluded a“preliminary agreement” on trade, with both sides lowering tariffs on select goods such as electric vehicles and agricultural crops.
Under the agreement, Canada will import 49,000 Chinese electric vehicles at a lowered tariff rate of 6.1%.
In return, Beijing will cut duties on Canadian agricultural exports, including on canola seed oil, which will see tariffs drop to 15% from the current rate of 85%.
Other exports, such as Canadian canola, lobsters, crabs, and peas will not be subject to Chinese anti-discrimination tariffs until at least the end of 2026.
Talking to the media, Carney said:“What we have done with China is to rectify some issues that have developed in the last couple of years.”
Last August, Trump raised tariffs on Canadian goods to 35% from 25%. Duties aren't imposed on most Canadian exports under the current trade deal with the U.S.
However, some goods, including steel and copper, are subject to the higher U.S. duties. The Canada-U.S.-Mexico trade agreement is scheduled for a review by all parties later this year.

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