Is There a Free Trade Agreement between Canada and China

As a professional, we often get asked questions like “is there a free trade agreement between Canada and China?” The answer is no, there is currently no free trade agreement between Canada and China.

Canada has been actively pursuing free trade agreements with countries around the world in an effort to diversify its trade partners and reduce its reliance on the United States. Canada currently has free trade agreements in place with over a dozen countries, including the United States, Mexico, and the European Union.

China is Canada`s second-largest trading partner, behind only the United States. In 2019, bilateral trade between Canada and China totaled over $75 billion Canadian dollars. Despite the large volume of trade between the two countries, there has been no free trade agreement negotiated between Canada and China.

There have been attempts to start negotiations for a free trade agreement between Canada and China in the past, but these efforts have been largely unsuccessful. One of the major stumbling blocks to a free trade agreement has been disagreements over human rights and other issues.

Canada has been vocal in its criticisms of China`s human rights record, particularly in regards to the treatment of ethnic minorities in the Xinjiang region and the pro-democracy protests in Hong Kong. China, in turn, has been critical of Canada`s detention of Huawei executive Meng Wanzhou, who is currently fighting extradition to the United States on charges of fraud.

In addition to human rights issues, there are also significant economic barriers to a free trade agreement between Canada and China. For example, Canada has expressed concerns over China`s state-owned enterprises and the lack of transparency in its trade policies.

Despite the lack of a free trade agreement, Canada and China continue to engage in trade and investment. There are opportunities for Canadian businesses to export to China, particularly in the areas of agriculture, forestry, and natural resources. However, doing business in China can be challenging due to cultural differences, language barriers, and regulatory requirements.

In conclusion, while there is no free trade agreement between Canada and China, there are still opportunities for trade and investment between the two countries. As always, Canadian businesses looking to do business in China should carefully research the market and seek out expert advice to navigate the unique challenges and opportunities.