Canada pours cold water on free trade with China

Published: January 19, 2019
Exploratory talks on free trade are dead, unlikely to be revived, says envoy. PHOTO: REUTERS

Exploratory talks on free trade are dead, unlikely to be revived, says envoy. PHOTO: REUTERS

OTTAWA: Canada’s envoy to Beijing on Thursday threw cold water on long-sought free trade between the two nations as an ugly diplomatic spat over Canada’s detention of a top Chinese tech executive drags into second month.

Ambassador John McCallum, who returned to Canada to brief lawmakers on the row, told reporters that Canadian businesses want to press on with growing the trade relationship. But, he added, exploratory talks on free trade that started in September 2016 are now dead and unlikely to be revived in the forseeable future.

“We are certainly not negotiating free trade with China either before or after this. So it’s not on the table right now,” McCallum told reporters.

Meeting in PSX: Canada seeks partnership with Pakistani businessmen

“Canada has invested a lot in China,” he said. “Our tourist industry, our universities, our farmers are all highly dependent on China and I think China will still play a very important part in Canada’s future.”

Canadian businesses “want to continue moving forward in China,” McCallum said.

But right now Ottawa is preoccupied with securing the release of two Canadians detained in China and obtaining clemency for a third on death row.

“Our top priority by a longshot is to get our two Canadians back and to save the life of the third. That is top of the list,” the ambassador said.

Canada and China became embroiled in a tit-for-tat diplomatic row following the arrest in Vancouver of Huawei executive Meng Wanzhou on a US warrant.

Canadian geologist kidnapped in Burkina Faso found dead

Meng faces extradition on fraud charges for alleged Iran sanctions-busting and lying to US banks about it.

In a move widely seen as a counterstroke, Chinese authorities arrested two Canadians — former diplomat Michael Kovrig and businessman Michael Spavor — accusing them of espionage.

Ottawa insisted they had been “arbitrarily” detained and that interrogations of Kovrig breached the Vienna Convention on diplomatic relations — allegations Beijing flatly rejected.

Canada and China have flirted with the idea of deepening trade ties since the 1990s.

During tense negotiations with the United States and Mexico to revamp a continental free trade agreement last year, growing trade with China was touted as a means of reducing Canada’s heavy trade reliance on the US.

According to the latest government data, Canada exported C$2.1 billion ($1.6 billion) in goods to China in November while importing C$3.9 billion ($3 billion) in goods from China.

Facebook Conversations

More in Business