Canada Misses Out on Immediate Tariff Relief After Xi Jinping Meeting

Mark Carney's Meeting with Xi Jinping Fails to Yield Immediate Tariff Relief for Canada Canadian Prime Minister Mark Carney's meeting with Chinese President Xi Jinping on the sidelines of the Asia Pacific Economic Cooperation summit in South Korea failed to yield immediate action to reduce Chinese tariffs on Canadian goods, including canola. The meeting, the first official bilateral meeting between leaders of Canada and China since 2017, was seen as an opportunity for Carney to push for relief from the tariffs, which have been in place since 2019. According to data from the Canadian government, the tariffs have cost Canadian farmers and exporters over $5 billion in lost sales and revenue. The tariffs, which range from 35% to 90% on various Canadian goods, have had a significant impact on the country's agricultural sector, with canola exports to China plummeting by over 90% since the tariffs were imposed. The market impact of the tariffs has been significant, with the Canadian dollar weakening against the US dollar and the price of canola futures on the Chicago Mercantile Exchange rising to record highs. The tariffs have also had a ripple effect on other Canadian industries, including the manufacturing and forestry sectors, which rely on canola and other agricultural products as inputs. The Canadian government has been pushing for relief from the tariffs for several years, but China has been resistant to making concessions. The meeting between Carney and Xi Jinping was seen as a key opportunity for Canada to make progress on the issue, but it appears that no immediate action was taken. The failure to secure immediate tariff relief is a setback for Canadian farmers and exporters, who have been struggling to adapt to the new trade environment. However, some analysts see the meeting as a positive step towards improving relations between Canada and China, which have been strained since the arrest of Huawei executive Meng Wanzhou in 2018. Looking ahead, it remains to be seen whether Canada will be able to secure relief from the tariffs in the near future. The Canadian government has said that it will continue to push for a resolution to the issue, but it is unclear what steps will be taken next. In the meantime, Canadian farmers and exporters will continue to face significant challenges in the Chinese market.