Does Canada Have a Trade Agreement with China
As two of the world`s largest economies, Canada and China have had a long-standing trade relationship. However, the question of whether the two countries have a trade agreement has been a topic of debate and confusion in recent years.
To answer this question, we must first understand the basics of trade agreements. A trade agreement is a set of rules and regulations that govern the flow of goods and services between two or more countries. These agreements typically aim to lower tariffs, increase market access, and create a more stable trading environment for businesses.
Canada and China do not have a comprehensive trade agreement in place. While negotiations for a bilateral trade agreement have been ongoing since 2016, progress has been slow, and no formal agreement has been signed to date.
Despite the lack of a comprehensive trade agreement, Canada and China have a significant trade relationship. In 2019, Canada`s exports to China totaled CAD 24.2 billion, while imports from China reached CAD 75.7 billion.
However, this trade relationship has not been without its challenges. In 2018, tensions between the two countries escalated after Canada arrested Huawei executive Meng Wanzhou at the request of the United States. In retaliation, China detained two Canadian citizens, leading to a diplomatic rift that has yet to be fully resolved.
The lack of a comprehensive trade agreement between Canada and China has also contributed to uncertainties for Canadian businesses operating in China. Without clear rules and regulations, Canadian companies are often at a disadvantage compared to businesses from countries with established trade agreements with China.
In conclusion, Canada and China do not have a comprehensive trade agreement in place. While negotiations have been ongoing, the relationship between the two countries has been complicated by geopolitical tensions and uncertainties for Canadian businesses. However, the significant trade relationship between Canada and China continues to present opportunities for growth and cooperation.
