Canada Rules Out Free Trade Deal With China
Canadian Prime Minister Mark Carney has ruled out pursuing a free trade agreement with China, saying such a move is not under consideration by his government. His remarks come amid renewed trade tensions after U.S. President Donald Trump warned of imposing steep tariffs on Canadian exports if Ottawa moved closer to a trade pact with Beijing.
Carney said Canada’s recent interactions with China were limited to resolving specific trade frictions and should not be interpreted as steps towards a broader free trade agreement. He stressed that Canada’s priority remains protecting its economic interests and maintaining stability in North American trade.
USMCA Commitments and Trade Context
The Prime Minister also referred to Canada’s obligations under the United States–Mexico–Canada Agreement, which requires members to consult each other before entering trade agreements with non-market economies. He made it clear that Canada would act within the framework of its existing trade commitments.
Earlier discussions between Canada and China have focused on selective tariff adjustments on certain goods rather than comprehensive trade liberalisation. Carney said these engagements were aimed at easing tensions and ensuring predictable trade flows, not reshaping Canada’s overall trade policy.
The episode highlights the growing pressure on Canada to balance its trade relations with China while avoiding punitive action from the United States.
