From January 14 to January 17, during a formal visit to China by Canada's Prime Minister Mark Carney, China and Canada held high-level talks on economic and trade relations.
What Was Agreed
o The two sides reached broad consensus on deepening bilateral economic and trade cooperation.
o They signed the “China–Canada Economic and Trade Cooperation Roadmap”, establishing preliminary joint arrangements for handling bilateral trade and economic issues.
Key Outcome on Electric Vehicles (EVs)
o As part of the agreed arrangements, Canada will make positive adjustments to its measures affecting Chinese electric vehicle exports to Canada.
Background Context
o In 2024, Canada imposed a 100% additional tariff on Chinese electric vehicles.
o This measure significantly affected China's EV exports to Canada.
Specific Policy Adjustments
o Under the latest arrangement, Canada will grant an annual quota of 49,000 Chinese electric vehicles.
o EVs within the quota will be subject to a 6.1% Most-Favored-Nation (MFN) tariff.
o The 100% additional tariff will no longer apply to vehicles exported within this quota.
Future Mechanism
o The annual quota will increase year by year according to a specified proportion, as agreed by both sides.
