(Yicai) Jan. 21 -- China and Canada reached broad consensus on deepening economic and trade cooperation during a visit by Canadian Prime Minister Mark Carney to China earlier this month. The two countries made significant progress in areas such as bilateral relations, food security as well as green trade. This visit ushers in a new era in China-Canada relations and carries far-reaching implications for global economic stability and prosperity.

The leaders of both countries signed several cooperation agreements, including the Canada-China Economic and Trade Cooperation Roadmap, during Carney’s visit from Jan. 14 to Jan. 17, which was the first official trip by a Canadian prime minister to China in eight years.

Huge Potential

The Chinese and Canadian economies are highly complementary. China, as the world's second-largest economy, boasts a vast market and well-developed industrial chains, while Canada is known for its rich natural resources, advanced technology and high-quality education system.

The newly signed Roadmap lays out 28 specific cooperation measures across eight key areas, including bilateral economic relations, agriculture and food security as well as green and sustainable trade. These initiatives aim to fully unlock the potential of China-Canada economic and trade cooperation, optimize resource allocation and provide more market opportunities and growth space for businesses on both sides.

Upgraded Trade Commission

The China-Canada Joint Economic and Trade Commission is the main platform for promoting economic cooperation and resolving trade disputes between the two countries. According to the Roadmap, the commission will be elevated to a ministerial-level mechanism from a vice-ministerial one. There will also be enhanced dialogue on intellectual property, trade remedies and other areas.

This upgrade will allow China and Canada to communicate more effectively on trade, jointly find solutions and provide a solid foundation for the healthy, stable development of their economic relationship.

Major EV Breakthrough

Under the new arrangement, Canada will allow 49,000 electric cars from China to enter its market each year at most-favored-nation tariff rates. This means that, within the quota, the tariffs on Chinese EVs will drop to 6.1 percent from 100 percent.

This change not only reflects Canada's recognition of Chinese electric car technology but also demonstrates the strong demand in North America for high-quality green products. Chinese automakers are encouraged to seize this opportunity, strengthen ties with the Canadian market and advance deeper cooperation in the EV sector.

Expanded Agricultural Imports

Canada, as an agricultural powerhouse, is renowned for the high quality of its agricultural products. China's vast consumer market offers huge potential for these exports. During this visit, China agreed to adjust trade restrictions on certain Canadian agricultural and seafood products, including canola oil. This not only addresses Canada's desire to expand exports but also aligns with the growing demand among Chinese consumers for high-quality food.

Model for Bilateral Cooperation

Against the backdrop of rising global trade protectionism, China and Canada remain committed to multilateralism and free trade, to resolving economic and trade differences through amicable negotiation and to jointly promoting the multilateral trade system. This cooperative approach not only lays a solid foundation for long-term China-Canada relations but also offers a useful model for bilateral cooperation for other countries around the world.

The author of this article, Peng Bo, is a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.

Editors: Dou Shicong, Kim Taylor