Canada and China Sign New Economic Agreements Amid Ongoing U.S. Trade Talks

Canada and China concluded three new agreements in Vancouver that expand financial cooperation, extend an existing trade deal until the end of 2028 and maintain lower tariffs on Canadian agricultural and seafood products. Finance Minister François-Philippe Champagne said the talks aimed to "expand two-way trade and investment and deepen financial cooperation" and to create new opportunities for Canadian businesses. The accords also allow certain Chinese steel and aluminium products to enter Canada without additional duties, supporting Canadian manufacturers.

The agreements include closer dialogue between finance ministries, financial regulators and central banks, as well as progress on a bilateral currency-swap arrangement and broader market access for financial services. They build on a strategic partnership announced earlier in the year and are part of Ottawa’s effort to diversify trade away from the United States.

Canada’s trade with China, its second-largest single-country merchandise partner, has risen sharply, with exports of canola meal, peas and lobster more than doubling since tariff reductions were introduced. Ottawa estimates the broader arrangement supports over 600,000 jobs and aims to increase exports to China by 50 % by 2030.

Negotiations with the United States continue, with Washington having withdrawn a proposal that would have given it final approval over Canadian trade agreements. President Donald Trump has said a deal with Canada is close, but significant differences remain. Canadian officials acknowledge progress is slow and that sectors such as lumber, steel, aluminium and automobiles are still affected by U.S. tariffs.

At a G7 foreign ministers meeting, Foreign Minister Anita Anand said Canada hopes to see progress on the trade front following recent U.S. elections and reiterated the goal of doubling non-U.S. trade over the next decade. The government also extended tariff relief for certain U.S. imports until mid-2028 while preparing to reimpose duties on goods that can be sourced domestically.