The agreement includes reciprocal steps to ease trade barriers that had weighed heavily on key sectors in both countries. Canada will allow a limited number of Chinese electric vehicles to enter its market at preferential tariff rates, softening restrictions that had been imposed to protect domestic manufacturers. In return, China agreed to sharply reduce tariffs on major Canadian agricultural exports, particularly canola, a cornerstone of Canada’s farm economy.
Speaking after the talks, Carney described the meeting as constructive and forward-looking, stressing the importance of stabilising economic relations with China while safeguarding Canada’s strategic interests. He said the deal would help Canadian exporters regain access to one of the world’s largest markets and provide relief to producers hit hard by punitive duties over the past two years.
Chinese officials framed the agreement as a step toward pragmatic cooperation, emphasising the need to manage differences through dialogue and to strengthen economic ties in areas of mutual benefit, including agriculture, clean technology and finance.
The meeting marked the first visit by a Canadian prime minister to China in several years and was closely watched by global markets. Analysts say the tariff relief could revive bilateral trade flows and ease tensions at a time of broader uncertainty in the global economy, though they caution that deeper structural issues between the two countries remain unresolved.
Both governments indicated that further negotiations are expected in the coming months, raising the prospect of additional measures aimed at rebuilding trust and expanding trade cooperation.
