It’s being called a ‘landmark’ trade deal.
Canada and China have a strategic partnership in place, that will see up to 49,000 Chinese electric vehicles enter the country.
The tariff rate on the EVs will be lowered to 6.1 percent, down from 100 percent.
Half of those vehicles are expected to cost less than $35,000 by 2030, according to a release from the federal government.
In return, China will slash tariffs on canola seeds and get rid of tariffs on lobsters, crabs and peas.
Prime Minister Mark Carney says he’s extremely pleased.
“This will not only deepen our bilateral ties to the benefit of our peoples, but in my judgement, this will help improve the multilateral system,” said the Prime Minister at a meeting with Chinese president Xi Jinping.
Carney announced the deal during the first visit to China by a Canadian Prime Minister in nine years.
The tariff changes will take effect on March 1 and last until the end of the year, and will unlock nearly $3 billion in export orders, according to Carney.
The PM adds, they’re building on the best of their relationship.
“To create a new one, adapted to new global realities, that will deliver stability, security and prosperity to people on both sides of the Pacific.”
The Canola seed tariff is expected to be lowered to 15 percent, well below the current 85 percent mark.
China is Canada’s second-largest export market.
Poilievre says agreement threatens auto sector
Meanwhile, Conservative leader Pierre Poilievre says Carney has to explain how China went from being Canada’s ‘biggest security threat’ to this strategic partnership.
He says the agreement jeopardizes security and auto jobs.
Poilievre says there’s no guarantee that tariffs on canola and other good will be permanently eliminated, while farmers still have a 25 percent tariff on pork.
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