Carney signs China energy deal as trade tariffs remain unresolved

Prime Minister Carney looking to China as alternative customer for Canadian oil following plans to diversify trade away from United States
Prime Minister Carney looking to China as alternative customer for Canadian oil following plans to diversify trade away from United StatesImage generated by ChatGPT AI
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Prime Minister Mark Carney oversaw the signing of a new Canada–China energy co-operation agreement in Beijing on Thursday, marking the start of ministerial-level talks after nearly a decade of strained relations, but without any resolution to ongoing trade tariffs.

The memorandum of understanding, signed by Energy and Natural Resources Minister Tim Hodgson, commits Canada and China to expanded dialogue on clean and conventional energy, including oil and gas development, liquefied natural gas, liquefied petroleum gas, and emissions reduction.

The agreement does not include commitments for China to purchase additional Canadian petroleum or LNG.

Nor did it address Chinese tariffs on Canadian pork, canola, and seafood, which remain a key pressure point for Ottawa during Carney’s first official visit to China since becoming prime minister.

“This marks the beginning of renewed ministerial engagement,” a senior Canadian official said, noting such talks have not taken place at this level for close to 10 years. “But there are no new export commitments at this stage.”

Hodgson told reporters Chinese officials have expressed interest in Canadian energy products but stopped short of offering firm guarantees.

“They are very clear they would like more Canadian products,” Hodgson said. “They want reliable partners who don’t use energy for coercion.”

The energy agreement builds on earlier bilateral frameworks and comes as Ottawa looks to diversify exports away from the United States. A government official said expanding energy exports to Asia, including China, remains a long-term objective.

Carney’s delegation also signed agreements aimed at boosting Canadian pet food exports, increasing tourism, and renewing co-operation on combating crime, including child sexual exploitation, organized crime, and money laundering.

In a meeting with Chinese Premier Li Qiang, Carney said both governments have spent recent months working to address longstanding disputes and lay the groundwork for what he described as a new “strategic partnership.”

“The progress we’ve made will help prepare both our countries for the new world order,” Carney said, adding that closer co-operation could deliver “greater stability, security, sustainability, and prosperity.”

Foreign Affairs Minister Anita Anand said talks on reducing Chinese tariffs have been “productive,” though negotiations are ongoing.

“The conversation has been productive,” Anand said Wednesday. “The negotiations are still continuing.”

China imposed the tariffs last year in retaliation for Canada’s duties on Chinese electric vehicles, steel, and aluminum. Carney faces mounting pressure from agricultural producers and provincial governments to secure relief.

Saskatchewan Premier Scott Moe joined part of the Beijing visit, raising expectations that progress could be made for canola exporters. Ahead of the trip, a senior Canadian official cautioned the government may not achieve a “definitive elimination” of what Ottawa calls China’s “unfair” tariffs.

Carney held meetings Thursday with Chinese business leaders, including executives from Contemporary Amperex Technology Co., a major electric-vehicle battery manufacturer, and with state-owned China National Petroleum Corporation.

Chinese Foreign Minister Wang Yi described the visit as a turning point in bilateral relations, saying Beijing is willing to strengthen communication, build trust, and remove obstacles to smoother ties.

Carney is scheduled to meet President Xi Jinping on Friday. Chinese officials said the talks will focus on advancing the strategic partnership, including energy co-operation and people-to-people exchanges.

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