Saskatchewan Premier urges Ottawa to Navigate China trade Carefully Amid US Concerns
REGINA, SK – Saskatchewan Premier Scott moe is calling on the federal government to carefully balance economic opportunities with geopolitical sensitivities as it considers lifting tariffs on chinese electric vehicles (EVs). Moe recently extended an invitation to Prime Minister Justin Trudeau and his government to join him on an upcoming trip to China, but has yet to receive a response.
The push comes as both Saskatchewan and Alberta are advocating for Ottawa to remove the tariffs, recognizing the potential benefits for Canadian exports, particularly canola. Moe emphasized the importance of maintaining strong trade relations with the United States, which remains Canada’s largest market for canola, even as it seeks to expand trade with China.in 2024, nearly $5 billion in canola seeds, oils, and canola cake were exported to China, making it the second largest export destination for the crop.
“We must make sure that we will balance all direct and indirect costs [of removing the tariffs on Chinese electric vehicles] because our largest market for canola remains the united States of America,” Moe stated. He acknowledged the delicate position Canada finds itself in, given the existing tensions between the US and China.Alberta Premier Danielle Smith echoed Moe’s sentiments, advocating for a way to “normalize the relationship” and negotiate separately with both the US and China. “We must find a way to normalize the relationship, find another way for us to be able to negotiate with our American counterparts and keep these two separate relationships,” Smith said on Saturday.
Even the Saskatchewan New Democratic Party (NDP) is open to considering the removal of tariffs on chinese EVs as a potential bargaining chip to eliminate tariffs on canola. “If this means proposing the removal of prices on electric vehicles [chinois] so this is an option that we should consider,” said NDP leader Carla Beck.Moe underscored the complexity of the situation, stating, “this is the challenge to be met, and it is indeed not easy.”
Context: Canada’s Evolving Trade Landscape
This debate highlights a growing tension within Canada’s trade policy. For decades,Canada has relied heavily on the US as its primary trading partner.However, increasing geopolitical instability and a desire for economic diversification are prompting a re-evaluation of this reliance. China represents a notable and growing market, particularly for agricultural products like canola.
Canola exports to China have faced disruptions in the past, most notably in 2019 when China imposed restrictions following diplomatic disputes. These restrictions significantly impacted canadian farmers and underscored the vulnerability of relying on a single market.
The current discussion around EV tariffs is part of a broader conversation about Canada’s role in a changing global trade order.Balancing economic interests with political considerations, and navigating the complex relationship between the US and China, will be crucial for Canada’s future economic prosperity. The federal government faces a tough task in determining a path forward that benefits canadian businesses while safeguarding its strategic alliances.
Image: A Canadian Press photo by Liam Richards accompanies the story, showing Scott Moe.
