Keep an Eye on This – Canada Working Diligently on New Era Trade Partnership with China, ASEAN Summit Looming
Having provided deliberate advice and counsel quietly on these matters, it is important to continue watching the developments as they unfold. There are trillions at stake.
President Trump’s global trade and economic reset is well underway. It is not an overstatement to say the western world economic structures within trade, banking and finance are in opposition to his efforts. Alas, as we have outlined extensively, part of the larger phase of this reset will come in the likely dissolution of the U.S. Mexico, Canada trade agreement (USMCA).
Canada is taking actions to replace their U.S. trade relationship by aligning more with the EU and China. This is a very dangerous approach for the Canadian people, because in the short-term there may be benefits; however, in the longer term the downsides are quite severe. Remember, Xi Jinping wanted Mark Carney to win the parliamentary election.
[SOURCE] – Canadian Foreign Minister’s visit to China promotes the warming of relations and new opportunities for educational cooperation! This is the most high-level contact between the two countries since 2018.
Canadian Foreign Minister Anita Anand paid an official visit to Beijing and held important talks with Chinese Foreign Minister Wang Yi.
The visit not only commemorates the 55th anniversary of the establishment of diplomatic relations between Canada and China, but also marks the 20th anniversary of the establishment of the strategic partnership between the two countries. During the meeting, the two sides discussed issues such as trade, energy, environment and public health, laying the foundation for the “normalization” of Canada-China relations.
It is worth noting that the talks took place after Canadian Prime Minister Mark Carney and Chinese Premier Li Qiang contacted during a UN meeting.
According to multiple sources, a formal meeting between Carney and Chinese leaders is being prepared, possibly as early as the APEC summit in South Korea this month.
Anand’s meeting with Wang Yi is the first official visit by the Canadian government to China since 2020. During the talks, the two sides reached a number of consensus and clarified the direction of re-establishing bilateral communication mechanisms. (read more)
What Canada is doing is the same thing as the EU. Canada is walking a precarious tightwire and hugging the Beijing Panda in an effort to replace economic dependence on the USA.
Choosing to embrace China in lieu of modifying bilateral trade agreements with the USA is a short-sighted fool’s errand. But with political calculations each entity, Canada and/or the EU collective, are pandering to their base out of an unwillingness to change trade behavior as demanded by Trump.
Yes, Canada may end up exporting more goods to China to replace the USA losses, but at what cost long-term.
Think about the EU auto-sector as an example.
To avoid paying their own climate change fines, the EU automakers are purchasing carbon credits from Chinese EV automakers. In the short term, that trick may diminish the auto company fines to Brussels but think about the longer-term problem.
China takes the revenue from the EU companies and uses it to subsidize their EV exports making their EVs cost substantially less than EU electric vehicles in the EU.
Geely, BYD, etc. can lower the price of an EV in Europe because EU car companies are giving them money. The EU is paying China to destroy the EU auto industry. You cannot make this stuff up.
In the Canadian model, Mark Carney may end up selling more stuff to China but he’s going to end up selling less to the USA because Chinese components are subject to larger USA trade tariffs.
Canada is betting they can export more $$ to Beijing than they will lose in diminished export $$ to the USA. Fine, that’s the bet (political calculation). However, the reality of the end result is increased dependency on China. That never ends well.
Beijing keeps the panda mask on while the dependency is created, see belt and road; however, as soon as it is in Beijing’s interest to drop the panda mask, ¹Canada will see the dragon face behind it.
¹Perhaps not all of Canada.
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