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Marketplace All-in-One

Can Canada and China repair their relationship?

16 Jan 2026

Transcription

Chapter 1: What new strategic partnership has Canada and China announced?

0.031 - 20.485 Guy Kilty

Canada and China repair their relationship with a new trade deal. Live from the UK, this is the Marketplace Morning Report from the BBC World Service. I'm Guy Kilty. Good morning. Canadian Prime Minister Mark Carney and Chinese leader Xi Jinping have announced a new strategic partnership between the two countries in Beijing.

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21.006 - 37.252 Guy Kilty

The two sides have signed an agreement to cooperate on clean energy and fossil fuels and lower import tariffs on a range of products. James Griffith is Asia correspondent for the Canadian newspaper The Globe and Mail and has been following this story closely. James, thanks very much for joining us on Marketplace.

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37.593 - 38.374 James Griffith

Thanks for having me.

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38.354 - 44.962 Guy Kilty

So we now know that Canada and China have agreed a new strategic partnership. Just run us through some of the details.

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45.523 - 57.718 James Griffith

Yes, so we just heard from Prime Minister Mark Carney at a press conference in Beijing where he outlined parts of this partnership, which includes allowing 49,000 Chinese electric vehicles into Canada.

Chapter 2: What are the details of the Canada-China trade agreement?

58.6 - 77.33 James Griffith

On the Chinese side, dropping a large number, a large amount of tariffs on Canadian canola seed and some other agricultural products. And then also smaller deals on Chinese investment, which hasn't been completely outlined yet, but probably investment targeting the energy sector. Deals on tourism, including visa-free access for Canadians to travel to China.

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77.951 - 80.275 Guy Kilty

And how significant a deal is it for both sides?

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80.643 - 98.736 James Griffith

It seems fairly significant, especially from the Canadian perspective. Mr. Carney's made a relatively small concession, which is Canada previously had a 100% tariff on Chinese EVs, which was copying a similar measure in the US that was adopted by the Trudeau government.

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98.716 - 119.484 James Griffith

And Mr. Carney has reached an agreement where Canada will accept 49,000 Chinese EVs, which was the same as they were accepting in 2023 before those tariffs came into force. And in return, China is dropping a lot of its tariffs on Canadian canals, which is a far more significant tax. aspect or segment of Canada's economy.

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120.285 - 140.738 James Griffith

So Canada is accepting a relatively small amount of Chinese cars in return for China accepting a huge amount of Canadian canola seed. Mr. Carney estimated probably $7 billion worth of Canadian canola seed. So as far as we can tell, in the very early digestion of this deal, Mr. Carney seems to have got a pretty good deal for Canada.

141.157 - 150.475 Guy Kilty

And it's a fairly big change for both sides, isn't it, too? Because I think I'm right in saying that relations between the two countries haven't exactly been brilliant for the last few years.

150.64 - 172.581 James Griffith

No, speaking this afternoon, Mr. Carney said that the relationship has been distant and uncertain for nearly a decade. And, you know, it really reached an incredible low point during the Trudeau administration, where obviously there was the saga of the two Michaels when China imprisoned two Canadians in an apparent retaliation for Canada arresting the Huawei executive Meng Wanzhou.

172.561 - 186.684 James Griffith

And that dragged on for several years and, you know, really strained ties between the two countries. Then there was this trade war that broke out just towards the end of the Trudeau administration. And, you know, long running tensions over alleged foreign interference by China in Canada.

186.705 - 203.554 James Griffith

So this has been a really, really tense relationship, which has really hurt the economic relationship between the two countries. And, you know, Mr. Carney said, you know, new strategic partnership is the language he's used, he's talking about. you know, not even a reset, but a completely kind of new pathway for Canada-China ties.

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