By John Q. Hosedrinker 
Prime Minister Mark Carney has stated Canada has no intention of pursuing a free trade agreement with China. This response came after former U.S. President Donald Trump threatened to impose tariffs on Canadian goods if a deal was made with China. Trump’s stance shifted from previous comments, and he criticized Carney’s Davos speech where the Prime Minister discussed global economic issues. Foreign Affairs Minister Anita Anand stated Canada is pursuing trade diversification, including deals with China, and plans to address the situation further.
Read the original article here
Canada has no intent of pursuing a free trade deal with China, a statement that seems to have been prompted by some rather noisy posturing from the former US president, Donald Trump. The whole situation is a bit of a political dance, and the media, as is their wont, has taken some liberties with the truth for the sake of grabbing attention. Let’s break down what’s really happening.
Firstly, the initial reporting painted a picture of a massive new trade alliance between Canada and China, suggesting sweeping deals that included electric vehicles. The reality, however, is far more nuanced. What we’re actually seeing is a small thawing of tariffs that had been in place during a sort of trade war between the two nations. Significant tariffs still exist on various resources, but this move was more of a signal that both countries were willing to talk and de-escalate rather than a full-blown free trade agreement.
Now, why was this “deal” portrayed the way it was? Well, it’s pretty simple. Trump is a divisive figure, and news outlets know that framing a situation as a major victory against him gets more clicks. That’s just the way the media landscape works these days.
So, when the current Canadian PM, Carney, makes a statement, he’s not “backing down” due to any pressure from Trump. He’s simply clarifying the facts, pointing out that there wasn’t a major deal in the first place. He is basically saying that “Oh, you’re upset about a deal? Relax, it’s not a major deal.” He’s not an idiot. Free trade with China would be a disaster for Canada. This was never on the table. China’s manufacturing capabilities mean that they could produce many items cheaper than Canada can domestically.
The reality is, free trade was never in the cards. It wasn’t suggested, and it wasn’t desired by anyone. Trump’s threats have had a net-zero effect. He’s going to declare victory for something that never happened, and wasn’t ever going to happen. This is exactly what’s expected from someone who thrives on manufactured outrage and misinformation. This is a common tactic for him – create a false narrative, and then take credit for “fixing” it.
What we’re looking at is a regular trade agreement, like the US already has with China, not a sweeping free trade deal. Canada is trying to protect its trade while avoiding a fight. The USMCA (the trade agreement that replaced NAFTA) requires consent from the other members (US and Mexico) before a free trade agreement with China can be enacted. Canada never had any intention of setting up a free-trade arrangement.
It seems Canada is adopting a strategy of navigating the situation with the United States. You can’t make deals with someone who is unpredictable and who oscillates between contradictory statements. This situation gives Carney an easy opportunity to de-escalate a non-existent issue.
Essentially, there were specific agreements for trade, not a full-blown free trade deal. The EV rule, which has been in place for a while, is not a huge shift in the market. In exchange, China will reduce or lift tariffs on Canadian canola and seafood. The deal is really quite small, and does not pave the way for a free trade agreement. Trump seems to be unable to understand the scale or nuance and is completely missing the point.
The bottom line is: Canada is restoring trade levels to where they were before the whole Huawei extradition case, which involved the US. It’s really that simple.