Carney's 1st day in China secures agreement on energy — but no tariff breakthrough yet
Beijing does not commit to buying more Canadian petroleum and liquified natural gas
On Prime Minister Mark Carney's first day of talks in Beijing, the government agreed to co-operate with China more on clean and conventional energy after years of difficult relations between the two countries.
But so far, the two sides have not resolved an ongoing tariff dispute.
The non-binding energy agreement marks the start of ministerial-level talks, which a senior Canadian official said hasn't happened for nearly a decade.
Beijing also did not commit to buying more Canadian petroleum and liquefied natural gas (LNG) in a memorandum of understanding signed by Energy and Natural Resources Minister Tim Hodgson.
"They are very clear, they would like more Canadian products," Hodgson told journalists.
The memorandum of understanding, which builds on a previous agreement, says both countries will talk about oil and gas resource development, LNG along with liquified petroleum gas, and emission reductions.
Carney is in China as part of his effort to move past years of diplomatic tension with Beijing and double non-U.S. exports over the next decade. He's expected to meet with China's President Xi Jinping on Friday.
At this point, there is no sign of a breakthrough to drop or limit Beijing's retaliatory tariffs on Canada's agriculture industry, including canola, and Canadian officials won't say what they're willing to do to reach a resolution.
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Instead on Thursday, Canada and China signed an economic and trade co-operation "road map" laying out a plan to boost trade after years of diplomatic difficulties.
Both countries also agreed to increase exports of Canadian pet food to China, improve tourism and re-upped previous agreements, including to combat crime.
"We're now in a new era of partnership with China," Industry Minister Mélanie Joly told journalists.
Carney told China's Premier Li Qiang at a meeting that teams in both countries have been working in recent months "to address some specific issues that have built up over time" and to "put in place the foundation for the new strategic partnership between" Canada and China.
The progress made in recent months, Carney said, will help set Canada and China up "for the new world order."
The prime minister went on to say that in working together, the two countries will be able "to create greater stability, security, sustainability and prosperity for all of our peoples."
Earlier in the day, Li told Foreign Affairs Minister Anita Anand that Carney's visit is a turning point in relations and Beijing is willing to remove obstacles and improve communication and trust.
But as relations appear to get better, Carney is under immense pressure to get Canada's agriculture sector relief from Beijing's retaliatory tariffs.
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China imposed the levies last year after Canada matched American tariffs on Chinese electric vehicles, steel and aluminum.
Saskatchewan Premier Scott Moe joined Carney in Beijing for talks, raising expectations some sort of deal could be reached.
But Joly said "there's still negotiations happening."
Anand also said on Wednesday that talks were continuing and "productive" in trying to persuade China to lower its tariffs on the agricultural sector.
Years of diplomatic tension
Ahead of the visit, a Canadian official, who spoke on the condition they not be named, said the government expects to make progress, but may not secure a "definitive elimination" of China's "unfair" tariffs.
Carney is in China as part of his effort to move past years of diplomatic tension with Beijing and double non-U.S. exports over the next decade.
The prime minister held a flurry of meetings with business leaders on Thursday morning, including with Contemporary Amperex Technology, a major Chinese multinational company that makes batteries for electric vehicles.
Officials won't say if welcoming more Chinese EV production in Ontario is on the table during negotiations to lower tariffs.
Carney also met with Zhao Leji, chairman of the standing committee of the National People's Congress. Through a translator, Zhao said Xi will have an in-depth discussion with Carney on Friday. He said China is ready to move forward on their strategic partnership.
Carney said he was "heartened by the leadership" of Xi, and the speed at which the relationship has progressed in recent months.
The prime minister said it sets the stage for Canada and China to be strategic partners on areas including energy and people-to-people ties.
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with files from The Canadian Press