Carney walks fine line between Washington, Beijing as Ottawa weighs EV tariffs

Canadian Prime Minister Mark Carney on Thursday said he expects to meet senior Chinese leaders in the “coming month or so” as part of a broad re-engagement with Beijing, but declined to say whether Ottawa will lift tariffs on Chinese electric vehicles.

“We are in the process of having those discussions on a much broader range of issues than single sectors and single trades,” Carney said at a press conference. “And when we look at the auto sector, we take into account the dynamics with the United States, the ongoing negotiations there, and what the potential impact is,” he added.

Relations between Beijing and Ottawa have been tense in recent years, with the two sides struggling to get on a stable footing following a 2018 episode that saw two Canadians detained in China after Ottawa arrested Huawei Technologies executive Meng Wanzhou at Washington’s request.

China announced preliminary anti-dumping duties on Canadian canola imports in August, a year after Canada said it would – mirroring the United States – impose a 100 per cent tariff on imports of Chinese EVs.

The issue came into the spotlight again in recent days after China’s ambassador to Canada, Wang Di, said that Beijing would drop the canola duties if Ottawa lifted its EVs tariffs. Leaders of multiple western Canadian provinces where canola production is centred have in recent weeks implored Carney to strike a deal, while Ontario Premier Doug Ford – whose province anchors Canada’s auto sector – has flatly rejected the idea.

Carney, who discussed trade issues with Chinese Premier Li Qiang in New York last month, is expected to travel to the Asia-Pacific Economic Cooperation summit in South Korea later this month, which Chinese President Xi Jinping is also expected to attend.

South China Morning Post