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Chrystia Freeland hints at broader trade action against China

Chrystia Freeland hints at broader trade action against China

By Mohamed nasar

Published: July 14, 2024


Canadian Finance Minister Chrystia Freeland said that she will hold discussions next week with business and labor groups regarding establishing trade barriers against Chinese-made cars, and suggested that the government might go further than just cars.

Last month, the government announced a public consultation on how to respond to “unfair Chinese trade practices” concerning electric vehicles.

Freeland also stated during media remarks that the consultations could actually be broader than that.

Canada, which heavily relies on inter-trade with the United States, is closely monitoring the Biden administration's moves to impose higher tariffs on electric vehicles, solar cells, batteries, steel, and other Chinese products.

Freeland, who also serves as Deputy Prime Minister, said that Canada has no choice but to view its trade relationships through the lens of national security.

Freeland, of Ukrainian descent, referred to the statement issued this week by NATO that China is the key enabling factor in Russia's war against Ukraine, and the minister said: "What NATO said this week about China is important, and I would urge people to pay attention to this matter."

The Biden administration has revealed plans to raise tariffs on Chinese goods, and the European Union has announced new tariffs of up to 48% on Chinese cars, while Canada currently imposes a 6% tax on Chinese cars.

Bloomberg News was the first to report last month that Canada is paving the way for potential tariff increases on Chinese-made electric vehicles, following moves by the United States and the European Union. China, which has denied allegations from Western countries that it is flooding the market with cheap goods, stated that tariffs could undermine trade and economic cooperation between Beijing and Ottawa.

The Trudeau government has engaged in a number of diplomatic and trade battles with China - its second-largest trading partner after the United States, with the most notable being Canada’s arrest of Huawei's Chief Financial Officer Meng Wanzhou under a U.S. extradition warrant, to which China responded by detaining Canadian citizens for nearly three years.

However, Freeland did not resort to any criticism when speaking about China.

She noted that there is a prevailing view that China’s accession to the World Trade Organization over two decades ago was a mistake.

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