Richard Lee, executive director of Ontario Greenhouse Vegetable Growers (OGVG), said the organization is taking a strategic, multi-level approach to prepare for the upcoming CUSMA negotiations. This includes co-ordinated government relations at the provincial and federal levels to reinforce the importance of stable trade frameworks for greenhouse vegetable producers.

Lee said OGVG is also actively engaging with U.S. partners to ensure the industry’s priorities are well understood and aligned across the border.

WHY IT MATTERS: Diversifying Ontario’s ag export markets is one thing, but its fresh perishables can only be exported so far.

He noted that, with a population one-10th the size of the U.S., Canada cannot consume the volume grown in Ontario alone.

“This partnership is integral, and uninterrupted access to the U.S. market remains essential for Canada,” he said.

Lee said this was evident in March 2025, when blanket tariffs were applied to all U.S.-bound imports.

“During that period, Ontario growers paid more than $7 million in tariffs to ensure our produce continued reaching consumers,” he said. “As importers of record, our members are fully responsible for tariff remission and the required bonding, which adds further financial strain on the integrated North American trading bloc and ultimately leads to further trade disruptions.”

Despite these pressures, Lee said OGVG members responded proactively. Through early discussions with retail partners, many agreed to absorb most, if not all, of the tariff costs to maintain stable food supplies for U.S. consumers.

To manage the risk around the agreement, Lee said OGVG has participated in federally sponsored trade missions to explore potential markets in the Indo-Pacific region.

“While these opportunities hold promise, expanding beyond North America remains challenging due to the perishability of our products and the high transportation costs required to maintain freshness, integrity and quality during long-distance transit,” he said.

In the past, a pilot project to ship a pallet of long English cucumbers to Hong Kong, conducted 10 years ago, cost approximately $10,000. Lee said this demonstrated that the logistics required to reach markets such as China remain prohibitively expensive, making large-scale expansion into these regions unfeasible.

Currently, Ontario’s greenhouse sector benefits from access to 58 per cent of the U.S. population within a one-day drive. Lee said this proximity enables producers to maintain product quality far more reliably than longer-haul transportation options such as air or rail, each of which presents operational challenges.

He said investments in agriculture and food production, combined with fair and free trade, offer significant economic opportunities for Canadian businesses.

As a safeguard should negotiations stall, Lee said OGVG will continue to evaluate alternative support mechanisms that could help offset volatility or disruptions.

He said business risk management programs require modernization to reflect today’s greenhouse production realities and to scale appropriately with the significant investments made by growers.

Lee is also calling for the removal of phytosanitary restrictions and regulatory barriers that currently limit diversification opportunities. Addressing these long-standing impediments, he said, could help identify additional markets that may become economically viable, particularly if transportation and compliance costs decline.

U.S. buyers continue to move Canadian produce

Marcus Janzen, president of Fruit and Vegetable Growers of Canada (FVGC), is a fourth-generation greenhouse pepper farmer. His family’s Calis Arms Ltd. farm is located in Abbotsford, B.C.

Janzen said the impact of last year’s tariff announcements did not have the effect some experts predicted.

As potential changes to CUSMA loom, he said diversification may be impractical due to perishability and freight costs.

Unlike many Ontario growers, Janzen noted about half of his produce is exported to the U.S. while the remainder is sold in Canada.

“Last year, we really didn’t feel the border thicken in any meaningful way, and the U.S. customers we have long-standing relationships with continue to want Canadian production,” he said.

He noted the U.S. administration is keenly aware of the impact of high grocery prices linked to tariffs, adding he would be surprised if policies were introduced that further increased costs, particularly for perishable food.

Janzen also pushed back against claims that the U.S. does not need Canada.

“I guess it depends on how well you want the American citizen to be able to eat,” he said.

Janzen noted Canada has strengthened its relationship with Mexico on potato exports. Canada accounted for 34 per cent of Mexico’s frozen potato imports in 2024, ranking second only to the United States, according to Province of Manitoba data. Manitoba is a leading Canadian exporter of potatoes to Mexico, accounting for 82 per cent of Western Canada’s prepared potato exports to the country in 2024.

These are the kinds of relationships that must continue to be nurtured, Janzen said. He recommended farmers focus on what they can control, including production costs.

He added it’s also important to set aside political differences to move forward.

“It’s important to differentiate between your views on the U.S. administration and the mainstream American citizen,” he said.

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With agriculture and intellectual property both on the agenda at the WTO’s 14th ministerial conference (MC14), running March 26 to 29 at Yaoundé in Cameroon, CropLife International on March 25 called on WTO member governments to “uphold agricultural resilience and productivity and prevent unnecessary trade barriers.”

That said, reform of the WTO itself, particularly its dispute settlement system is a priority on the MC14 agenda, the WTO said in a separate release earlier this month.

“The WTO has long spoken of unfinished negotiations and long-overdue reform, yet too often our promises have outpaced our results,” WTO director-general Ngozi Okonjo-Iweala said. “This conference must demonstrate that this time is different.”

The multilateral, rules-based trading system the WTO represents “plays a critical role in advancing global food security,” said CropLife International CEO Emily Rees said in a release. The conference “provides an opportunity to reaffirm the core principles on which the WTO was built.”

Brussels-based CropLife, in a brief filed with the WTO, laid out recommendations for the ministerial conference in areas where it says WTO members “can act to promote fair, sustainable and innovative agricultural trade,” including:

• sanitary and phytosanitary complaint approaches that support food security through supply chain resilience;
• protections under the WTO agreement on trade-related aspects of intellectual property rights (TRIPS), and
• sustainable agricultural development.

Concerns around sanitary, phytosanitary issues

CropLife called on the WTO to “uphold risk-based approaches” as the foundation for sanitary and phytosanitary measures keeping with the WTO’s agreement. It also would see reinforcement of the Codex Alimentarius — the standards for international food safety — together with the International Plant Protection Convention and World Organization for Animal Health, as “the reference international standard-setting bodies for food safety, plant health, and animal health.”

It called on WTO members to work to resolve outstanding trade concerns around sanitary and phytosanitary issues — especially those related to pesticide maximum residue levels and to avoid such problems at the outset.

CropLife also asked member countries to safeguard the WTO’s TRIPS agreement to drive “agricultural innovation and sustainable growth” and see that patent protection, plant variety rights, regulatory data protection and other IP mechanisms are maintained and strengthened.

As for sustainable development, CropLife called on member countries to seek “inclusive, outcome-focused, and science-based approaches that balance economic, social and environmental objectives, while avoiding unnecessary barriers to trade or innovation.”

It also urged members to avoid “one-size-fits-all or prescriptive requirements” so there’s flexibility for regional approaches that fit local conditions. Member countries’ governments should also not impose sustainability policies on other jurisdictions.

Ag trade

According to WTO briefing notes prepared for MC14, since member countries began negotiations on agriculture in 2000, the value of ag trade has grown to US$1.494 trillion in 2024, from about US$300 billion.

The average applied tariff on agricultural goods, including trade preferences, dropped from 13 per cent in 2005 to 5.7 per cent in 2023, the WTO said, but added that ag and food markets “remain highly distorted,” with support to individual producers estimated at about US$624 billion per year on average in the 2022-24 period.

Recently, “new tensions related to trade and other issues have complicated the challenge of making progress,” the WTO said.

Leading up to MC14, member countries have tabled several submissions on agriculture, trade and food security. These aim to provide guidance on “how to revitalize the agriculture negotiations and overcome (a) persisting stalemate.”

Earlier this month the chair of the agriculture negotiating body, Pakistan’s Ali Sarfraz Hussain, tabled a draft text reflecting members’ submissions.

Most members indicate the text could serve as a basis for further discussion, the WTO said, but “a small number of members stated that they were unable to support it in its current form.”

A call to overhaul trade

On the opening day of meetings, WTO chief Ngozi Okonjo-Iweala called on countries to overhaul global trade rules, telling them the old world order had gone for good, following a year of turmoil sparked by U.S. tariffs and wider geopolitical tensions.

Okonjo-Iweala set out a list of problems facing the World Trade Organization – including the paralysis of its dispute-settlement mechanism.

“The world order and multilateral system we used to know has irrevocably changed. We will not get it back … We must look to the future,” the WTO Director-General said.

Ahead of the session, some diplomats and trade officials warned that without an agreement on reforms, countries could start abandoning the ideal of a rules-based global trade system, and set their own regulations.

Okonjo-Iweala said the body’s problems over decision-making needed to be tackled. Its current consensus-based model has been regularly stalled by objections from some countries. Some delegates are pushing for the organization to let groups of members form agreements.

She also said there was a lack of transparency over which countries were using subsidies.

“Lack of transparency leads to lack of trust, and that breeds suspicions of unfairness and anti-competitive behaviours,” Okonjo-Iweala told delegates.

This contributed to a “vicious cycle” of mistrust which was holding back members from agreeing new rules and reforms, she added.

The U.S. supports reforms but is resisting a detailed work plan, while the EU, Britain, and China back one, internal reform documents seen by Reuters show.

—with files from Reuters

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“They have a few ideas on how they might want to have a deal with us. We’re obviously open to that,” Greer said in an interview on Fox Business Network.

WHY IT MATTERS: Canada and U.S. agricultural supply chains are heavily integrated and could face disruption, depending on the outcome of the CUSMA review.

Greer said he spoke with his trade counterpart earlier on Wednesday and that they would meet in Washington “in a couple weeks.”

“We’re open to talk, and we’ll see what they have to say,” Greer told FBN’s “Mornings with Maria” program.

Representatives for Canada-U.S. Trade Minister Dominic LeBlanc did not immediately respond to a request for comment.

U.S.-Canada tensions have grown in recent months over trade and other issues as Trump has targeted Washington’s northern neighbor.

The Trump administration is reviewing the Canada-United States-Mexico trade pact enacted during Trump’s first term in the White House term and faces a July 1 deadline to notify Congress whether it plans to change the agreement.

‘Reshoring’ not moving fast enough: Greer

Greer said U.S. officials are focused on moving production of cars and other goods back to the U.S. But the reshoring of critical supply chains is not happening fast enough under the current pact, he said in a separate interview with CBC News, expressing concern that China will funnel goods through Canada to avoid certain tariffs as Beijing and Ottawa seek to develop closer ties.

“We don’t want a situation where Canada’s being used as a back door for Chinese goods,” he told CBC reporter Katie Simpson late on Tuesday in a video posted on X.

“If Canada wants to agree that we can have some level of higher tariff on them while they open their markets to us on things like dairy and other things, then that’s a helpful conversation,” Greer added.

Trump has said Washington could leave CUSMA and strike separate deals with Canada and Mexico as his administration pursues separate talks with each bordering country.

Greer told Bloomberg Television on Wednesday that he would continue separate negotiations with representatives of Canada and Mexico over the coming year “because our relationships with those countries are so different.”

One solution could be to “tack on” separate protocols for each nation onto CUSMA “to fix some of the gaps,” he said.

— Additional reporting by Promit Mukherjee

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In early 2025, Trump invoked the act to impose tariffs on Canada, along with Mexico and China, claiming the countries failed to stop illicit drug trafficking into the United States.

WHY IT MATTERS: Following a U.S. Supreme Court decision striking down some of Donald Trump’s tariffs, the U.S. President swiftly enacted new, 15 per cent global tariffs. While agricultural goods are largely exempt under CUSMA, on-again, off-again tariffs have created a lot of economic uncertainty.

The ruling is the latest episode in a political dust-up between Canada and its neighbour to the south which recently involved the Gordie Howe International Bridge linking Ontario and Michigan.

More than steel or stone, the bridge is a symbol of a shared destiny that both respects and transcends differences. Despite their historical, institutional and political differences, Canada and the United States have bonded economically as neighbours, generating shared prosperity over the past two centuries.

In 2023, I wrote a book chapter Canada and the United States: A Symbiotic Relationship or Complex Entanglement? In that chapter, I posed a question: What if the United States becomes more aggressive and even less open to working co-operatively with Canada? To answer that question, Canada can draw lessons from its centuries-long coexistence with an often-erratic neighbour to successfully navigate the economic volatility of the present era.

While the recent Supreme Court ruling presents a setback for Trump, it is unlikely to stop him from using U.S. economic and military might as leverage against Canada and other countries. Trump swiftly signed a new executive order imposing 10 per cent global tariffs under different regulations — which were then bumped up to 15 per cent.

As Canada navigates this belligerent U.S. government, a lingering question is whether this history of interwoven reciprocity is deteriorating into a complex entanglement of vulnerability.

Two neighbours, different worlds

In the book chapter, I describe the Canada-U.S. relationship as a complex picture of deep interdependence, marked by significant power imbalances, and the creative ways Canada has learned to adapt and prosper.

The economic and political interests of the two countries have diverged and converged in undulating waves over the past 200 years. The two economies are inextricably intertwined across a range of sectors, from natural resources and agriculture to advanced manufacturing. Around 70 per cent of Canadian exports go to the U.S., and the share of Canada’s merchandise imports from south of the border was around 59 per cent in 2025.

But for Canada, the relationship is more than just economic interdependence. The U.S. has a population of about 342 million and a gross domestic product about 10 times larger than Canada’s. That sets the stage for an asymmetrical relationship whose threads are woven into the fabric of trade and geopolitics.

For Canada, this can sometimes feel like vulnerability. And that vulnerability is increasingly being exploited by the U.S., creating a general feeling of existential crisis and entrapment.

Nevertheless, Canada can draw from its centuries-long experience to navigate the current headwinds. While the smaller of the two neighbours, it is not entirely dependent on the U.S. for influencing global events or harnessing international opportunities.

Canada has been, and still is, an influential power on the international stage. As a G7 nation, Canada is one of the key pillars in the scaffolding of the global economy. This global standing and international influence give it some room to maneuver.

Navigating an existential crossroads

First, in the international arena, Canada must diversify economically and geopolitically to build strategic resilience. Prime Minister Mark Carney is already moving on this front by agreeing to ease mutual tariffs with China. With negotiations to renew the Canada-U.S.-Mexico Agreement (CUSMA) slated for this year, a diversified trading economy will give Canada much greater leverage to navigate the vulnerabilities of asymmetry.

Second, Canada should draw from its record of championing a rules-based order. In recent years, the country has had to skillfully navigate the crossroads of projecting and defending its global and liberal-democratic values during periods of U.S. flirtations with populism, isolationism and anti-international rhetoric. As a middle power, it derives its strength from the rule of law and by presenting a united front with like-minded nations. A wider set of partners means more buffers against trade policy whiplashes and geopolitical shocks from the U.S.

Third, domestically, loosening inter-provincial trade flows, updating anachronistic regulatory frameworks and pursuing digital data sovereignty strategies should be high priorities to fire the full engine of the economy.

Similarly, as I’ve previously argued, Canada should use its comparative advantages in natural resources to create a strong, well-connected critical minerals supply chain. This would give it significant strategic leverage in the global economy as the world shifts to electrification and renewable energy.

Over the past two centuries, Canada has mastered the complex dance of asymmetry. However, the current crisis takes on an existential proportion that will require new agility, courage and decisiveness. It is an inflection point that will mark a consequential shift for the next generation.

Canada’s nimbleness and agility in navigating this political moment could be an model for other countries that must manoeuvre a world where the old rules no longer apply. It can serve as an example for small and middle powers who must navigate a world where great powers are increasingly belligerent.

—Charles Conteh is professor of public policy and administration at Brock University

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“As Canada looks to diversify trade and strengthen economic resilience, agriculture must be part of the solution,” said Erin Gowriluk, Canada Grains Council president in a Jan. 26 news release.

“Science-based, risk-based regulation is essential to maintaining market access and ensuring Canadian farmers can continue to innovate.”

WHY IT MATTERS: As Canada looks to diversify agricultural trade away from the United States, non-tariff barriers may hamper progress the Canada Grains Council says.

The council also recommended the Government of Canada use bilateral trade mechanisms to oppose the European Union’s strict pesticide regulations.

In the report, the council said Canada’s trading situation is shifting drastically since the United States is no longer a reliable trading partner. However, regulatory differences could make it harder for Canada to build its trading relationships.

This include trades rules from other countries that are not based on objective science, and do not follow internationally accepted risk assessments, the council said.

Non-tariff trade barriers are some of the most restrictive barriers for agricultural innovation, and they are increasing according to the report. Standards related to the regulation of agricultural innovations, e.g. crop protection products, put Canadian trade at risk.

For example, under the Canadian-European Union Comprehensive Trade Agreement (CETA), most tariffs were removed from Canadian agricultural imports. However, many countries in the EU have non-tariff trade barriers, which made trading more difficult for Canada.

The EU has taken a precautionary approach to agriculture innovations like crop protection products. Over the past 10 years, the EU has removed about half of the crop protection tools available to its own farmers. Because of this, the EU is under pressure to block farming imports using farming tools that are no longer allowed in Europe, even when those products have been proven safe.

Depending on how the EU implements so-called “reciprocity” rules, Canadian grain exports could be restricted or halted. Canadian trade could also be negatively affected as many countries around the world are influenced by EU trade policies.

The council said Canada should lead a coalition of like-minded countries to aim for systemic improvements in setting maximum residue levels. It should also work to prevent regulatory overreach for agricultural innovation in other countries.

Since Canada is engaged with trade at multiple levels, the country will be able to make the most of bilateral mechanisms within CETA to address the EU’s inclination to turn away from agricultural innovations.

Canada and its other trading partners can take on a strong objective to prevent non-tariff trade barriers, using diplomacy and scientific information, the council added.

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The culprits behind the outlook include the ongoing trade war with the U.S., underused trade deals with other trade partners, and high-rate mortgage renewals.

WHY IT MATTERS: Canada’s economy, agriculture included, is till trying to navigate volatile seas when it comes to trade and geopolitics, impacting projected farmer profit margins, investment and gr0wth prospects in the agriculture sector and more.

Krishen Rangasamy, principal economist with FCC, spoke at the farm lending company’s 2026 Economic Outlook Jan. 22.

“I understand that what we’re saying here is quite different from consensus on interest rates, because most forecasters are predicting either no change to the overnight rate or even an increase later this year,” said Rangasamy.

“That may well be the right forecast if the economy picks up materially. But … we think economic growth will weaken this year and and, if we’re correct about that, additional stimulus by the central bank should not be ruled out.”

Uncertain economics reign

Uncertainty over the future of the Canada-United States-Mexico Agreement (CUSMA) will continue to be a limiting factor, he said. Rangasamy also doesn’t see the threat of U.S. tariffs going away anytime soon.

He suspects Canadian exporters in CUSMA’s tariff-free categories such as farm, fishing and intermediate food products have felt above-expected tariff impacts due to confusion over rules of origin requirements, losing their CUSMA compliance in the process.

“Remember that the majority of our exports to the U.S. is tariff-free thanks to CUSMA, and yet, outside of the energy sector, our exporters have really struggled since the U.S. tariffs were imposed,” he noted.

Tariffs that have been placed on Canadian goods have caused U.S. importers to look elsewhere. This has caused Canada’s share of the U.S. market to drop to 11 per cent — its lowest ever — in 2025.

Although Rangasamy considers Canada’s attempts to diversify trade partners commendable, he’s disappointed in the country’s apparent inability to “materially reduce” dependence on the U.S., in light of its 15 free trade agreements with 51 countries.

“We’re not capitalizing on opportunities presented by those trade deals,” he said, citing ignored opportunities presented by the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

That agreement was designed to offer Canadian businesses preferential access to the EU market. But some expected big winners when the deal was first inked have failed to see major gains, particularly meat sectors who say regulation conflicts continue to keep them out.

“Over the last eight years (EU) exports grew by 40 per cent to Canada. Our exports to the European Union have barely budged over that eight-year period,” he said. “So we’re struggling to even take advantage of the trade deals we’ve got already.”

Leveraging the house

This year will also see a large share of Canadian households renewing mortgages at higher interest rates than their origination. According to Bank of Canada estimates, mortgage payments will increase by an average six per cent this year.

“Those households that are renewing their fixed-year, five-year mortgage — which, by the way, is the most popular mortgage product in the country. For those folks, payments will increase by about 20 per cent,” outlook listeners heard.

If there’s a bright spot for Canada, Rangasamy said it’s the federal government’s new focus on ambitious public projects that could rekindle business investment. But don’t expect big results too soon.

“It’s probably not a 2026 story. It’s probably something more like next year or even 2028.”

Note: An earlier version of this article reported that FCC had forecast GDP to fall, rather than for expected growth to slow. We further put Canada’s free trade deal numbers at 51. Canada has 15 trade deals with 51 countries. Glacier FarmMedia regrets the error.

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The cargoes, totalling around 600,000 metric tons, are for shipment between March and May, with overall U.S. soybean purchases now approaching 10 million tons, the traders said.

That represents over 80 per cent of the 12 million metric tons that U.S. Treasury Secretary Scott Bessent said China pledged to buy by the end of February.

“There were more U.S. cargoes bought by Sinograin and total purchases are very close to 10 million tons,” said one of the traders with direct knowledge of the deals. “We think China will buy couple of million tons more to meet the target.”

Market ended 2025 on positive note

China’s buying has underpinned Chicago soybean futures in recent weeks, helping the market end 2025 on a positive note, as the resumption of imports from the United States following a thaw in Beijing–Washington relations has erased most of the losses incurred during the trade war.

Chicago soybeans were trading up 0.1 per cent at $10.62 a bushel as of 11:40 GMT on Tuesday.

Beijing has stepped up U.S. soybean purchases despite a domestic supply glut driven by record South American arrivals and weak demand.

In December, Sinograin held three public auctions to make room for U.S. shipments amid ample domestic supplies.

However, average prices and clearance rates fell in successive rounds, with only one-third of soybeans sold in the final auction, Reuters previously reported.

Traders had expected Sinograin to sell around 4 million metric tons in the auctions.

— Reporting by Ella Cao in Beijing, Naveen Thukral in Singapore and Gus Trompiz in Paris

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The leaders of India and Canada have agreed to restart negotiations for a comprehensive trade deal as diplomatic relations thaw under Canada’s Prime Minister Mark Carney.

WHY IT MATTERS: Canada is a major global supplier of lentils to India, vying with Australia to be the top source. It is also a top supplier of peas, along with Russia.

India imposed a 30 per cent import duty on all yellow peas, effective November 1, after pressure from local farmers.

The Canadian and Indian governments are discussing “whether we can have a quota, whether we can have a lesser tariff, whether we can have a different system of how we can make sure that in the long run pulses from Canada go regularly to India,” said Patnaik after a tour of the Agribition farm show on Thursday.

Farmers at the show have said they might not grow peas in 2026 due to China’s 100 per cent duties on Canadian peas and India’s recently imposed duties. Those are two of Canada’s three biggest pea markets, with the U.S. the third, and many farmers say these tariff rates will make the crop unprofitable for them, so they are likely to plant other crops instead.

Patnaik said India would always need to have foreign sources of pulse crops for the long run, even if it has years of domestic surplus. India does not want to see Canadian farmers permanently back away from growing the crop, he said. Import restrictions are used to raise domestic prices to help Indian farmers, he said.

Canada’s agriculture and international affairs ministries did not immediately respond to a request for comment.

India has a long term strategy of becoming self-sufficient in pulse crop production, but many analysts are skeptical it can achieve that goal.

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Xi and Carney met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Gyeongju, South Korea, which was part of Carney’s tour of Asia aimed at deepening trade and security ties in the region as Canada strives to reduce its dependence on the U.S.

Why it matters: Canadian farmers currently face steep Chinese tariffs on canola, peas and pork.

The last formal meeting between the leaders of Canada and China happened in 2017 when then-Prime Minister Justin Trudeau had a brief exchange with Xi at a meeting in San Francisco.

Canada remains embroiled in a trade dispute with the United States, its biggest trading partner.

China is Canada’s second-biggest trading partner, but recent disputes have complicated relations.

“The meeting signals a change in tone and an openness to relations at the highest levels, but this is not a return to strategic partnership,” said Vina Nadjibulla, vice president of the Asia Pacific Foundation of Canada. “Canada needs to proceed with caution because there’s nothing to suggest the Chinese Communist Party’s actions have changed since the prime minister named China as a foreign security threat.”

She said Carney should keep talking with Chinese leaders but stay mindful of China’s threats to Canada’s security interests, including its efforts to play a greater role in Arctic affairs.

Carney has previously stressed the need to restart broad engagement with China after years of worsening ties.

In recent years, Canadian citizens were detained and executed in China, and Canada’s security authorities concluded that China interfered in at least two federal elections.

Carney and Xi discussed trade issues including agriculture and agri-food products, such as canola, as well as seafood and electric vehicles, Carney’s office said.

“Prime Minister Carney accepted President Xi’s invitation to visit China at a mutually convenient time,” it said in a statement.

China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would levy a 100 per cent tariff on imports of Chinese electric vehicles.

Xi says China is willing to work with Canada

Xi told Carney that China values Canada’s stated readiness to improve bilateral relations, according to state broadcaster CCTV, adding that China was willing to work with Canada to put ties back on track.

Earlier on Friday, Carney told a business event that the world of rules-based liberalised trade and investment had passed, adding that Canada aimed to double its non-U.S. exports over the next decade.

Nadjibulla said China should not be viewed as the solution to Canada’s issues with the U.S., however.

“We should not diversify away from the U.S. and go deeper into China,” she said. “Canada’s overdependence on both the U.S. and China has been shown to be a vulnerability we cannot afford.”

— Reporting by Joyce Lee in Seoul and Ethan Wang in Beijing; Additional reporting by Maria Cheng in Ottawa.

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Xi and Carney met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Gyeongju, South Korea, which was part of Carney’s tour of Asia aimed at deepening trade and security ties in the region as Canada strives to reduce its dependence on the U.S.

Why it matters: Canadian farmers currently face steep Chinese tariffs on canola, peas and pork.

The last formal meeting between the leaders of Canada and China happened in 2017 when then-Prime Minister Justin Trudeau had a brief exchange with Xi at a meeting in San Francisco.

Canada remains embroiled in a trade dispute with the United States, its biggest trading partner.

China is Canada’s second-biggest trading partner, but recent disputes have complicated relations.

“The meeting signals a change in tone and an openness to relations at the highest levels, but this is not a return to strategic partnership,” said Vina Nadjibulla, vice president of the Asia Pacific Foundation of Canada. “Canada needs to proceed with caution because there’s nothing to suggest the Chinese Communist Party’s actions have changed since the prime minister named China as a foreign security threat.”

She said Carney should keep talking with Chinese leaders but stay mindful of China’s threats to Canada’s security interests, including its efforts to play a greater role in Arctic affairs.

Carney has previously stressed the need to restart broad engagement with China after years of worsening ties.

In recent years, Canadian citizens were detained and executed in China, and Canada’s security authorities concluded that China interfered in at least two federal elections.

Carney and Xi discussed trade issues including agriculture and agri-food products, such as canola, as well as seafood and electric vehicles, Carney’s office said.

“Prime Minister Carney accepted President Xi’s invitation to visit China at a mutually convenient time,” it said in a statement.

China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would levy a 100 per cent tariff on imports of Chinese electric vehicles.

Xi says China is willing to work with Canada

Xi told Carney that China values Canada’s stated readiness to improve bilateral relations, according to state broadcaster CCTV, adding that China was willing to work with Canada to put ties back on track.

Earlier on Friday, Carney told a business event that the world of rules-based liberalised trade and investment had passed, adding that Canada aimed to double its non-U.S. exports over the next decade.

Nadjibulla said China should not be viewed as the solution to Canada’s issues with the U.S., however.

“We should not diversify away from the U.S. and go deeper into China,” she said. “Canada’s overdependence on both the U.S. and China has been shown to be a vulnerability we cannot afford.”

— Reporting by Joyce Lee in Seoul and Ethan Wang in Beijing; Additional reporting by Maria Cheng in Ottawa.

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