Canada will continue to do more business with China despite doubts sparked by a controversial section of the revised NAFTA deal or what is otherwise known today as the United States Mexico Canada Agreement or USCMA.
Speaking during a keynote interview at the Fortune Global Forum in Toronto on Oct. 16, Trudeau stressed that his country recognized China as one of the world's largest economy. China, he said, is still growing and Canada is smart enough to know that Beijing is an important place to do business to look for opportunity. He added that even before the revised NAFTA deal, Canadian officials have been working tirelessly to improve its trade relations with the Asian superpower.
The prime minister was giving his reaction regarding the controversial Section 32.10 of the USMCA. The clause states that the United States, Mexico, and Canada need to notify their trading partners if they will enter into a trade agreement with any "non-market economies" under the revised pact. China was not named in the legislation but the country is obviously one among the "non-market economies" under the USCMA.
Trudeau explained that the clause is "reciprocal" and thereby does not stop Canada from doing business with any other country it pleases.
Ahead of Trudeau's speech at the forum, a report based on collective outputs of more than 70 Canadian market experts advised his administration to choose a sector-by-sector approach to sustain its burgeoning trade relations with China.
The report, titled Public Policy Forum paper, asserted that Canada cannot afford to disregard China's economic power especially that it continues to grow at present.
The report noted that in the year 2000, China had only accounted for merely 4 percent of the global economy while the United States accounted for 31 percent.
From 2000 to 2018, however, the Asian superpower was able to expand that 4 percent to 15 percent with Washington now only accounting for 24 percent of the global economy.
Public Policy Forum President Edward Greenspon also highlighted that 4.3 percent of Canada's goods go to China while 8.4 percent of American goods go to China. This would mean that without the United States, Canada could now double its export to China.
The report stated that Canada could do business with China across different sectors like agriculture, natural resources, and education. Instead of one sweeping trade deal with Beijing that might offend the United States, Canada could do many independent trade agreements.
For instance, the two countries could partners in projects aimed at environmental protection or mitigating the effects of climate change. They could also invest together in building transport and port infrastructure on the Pacific coast and could also explore more ventures in the forestry and energy sectors.
