OTTAWA: Canada has ruled out any plans to sign a free trade agreement with China following a warning from US President Donald Trump, who threatened heavy tariffs on Canadian goods.
Canadian Prime Minister Mark Carney said his country has no intention of entering into a free trade deal with China. His statement came after Trump claimed on social media that China was increasing its influence over Canada.
Trump warned that if Canada signed a free trade agreement with China, the United States would impose 100% tariffs on Canadian products.
Clarifying the situation, Prime Minister Carney said that Canada’s recent understanding with China does not amount to a free trade agreement. He explained that it only involves limited tariff reductions in specific sectors, where duties had been increased in recent years.
He further said that under the trade agreement between the United States, Mexico and Canada (USMCA), member countries are required to notify partners before signing any free trade deal with non-market economies. Carney stressed that Canada is not pursuing any such agreement with China.
