China and Canada have agreed to lower taxes on important goods. This shows they want to improve their relationship. They also want to work together more for trade. This deal happened after a meeting in Beijing. It is a change from past problems with trade and diplomacy.
The agreement makes it easier to import and export certain products. China will lower its taxes on Canadian canola oil. The tax will go down from 85% to 15% soon. Canada will also lower taxes on Chinese electric cars. The tax will be much lower, from 100% to 6.1%. Canada will allow 49,000 Chinese electric cars each year.
This agreement is important because of a meeting between leaders. It was the first visit by a Canadian leader to Beijing in ten years. This shows both countries want to move past old trade disputes.
Canada wants to find new markets for its exports. The US has placed tariffs on some Canadian goods. Canada wants to rely less on the US economy. Prime Minister Carney said Canada must accept the world as it is. The goal is to increase exports to countries other than the US.
However, the US does not agree with Canada's decision on electric cars. The US Transportation Secretary warned Canada they might regret it. He said bringing Chinese cars into Canada is a problem. He worries it will hurt American car companies. Canada says US car exports will not be affected. But the US administration thinks it is still a problem.
The deal also includes working together on clean energy. Canada and China will also talk about fossil fuels. This could lead to more Canadian fossil fuel exports to China. Canada also buys clean energy technology from China.
This new trade deal is a big step. It could lead to more Chinese investment in Canada. It might also encourage other countries to make new trade deals. Canada is making smart choices in a changing world. They are looking for new trade partners.