Canada and China in Trade Deal before APEC Summit in Shenzhen

Canada has signed new economic agreements with China as Ottawa seeks to ease trade tensions with Washington.

Announced late on Monday following talks in Vancouver, the agreements deepen financial cooperation between Canada and China as Prime Minister Mark Carney prepares to head to Shenzhen for the Asia-Pacific Economic Cooperation (APEC) summit.

Canada's Finance Minister François-Philippe Champagne and International Trade Minister Maninder Sidhu hosted He Lifeng, vice-premier of China, in Vancouver for negotiations. Champagne said: “As two major economies with significant commercial ties, Canada and China share an interest in maintaining an open dialogue and advancing economic cooperation. Our discussions in Vancouver focused on opportunities to expand two-way trade and investment and deepen financial cooperation.”

Both countries have also agreed to extend an existing trade deal until the end of 2028. China will continue charging lower tariffs on Canadian products, including canola meal, peas, lobster and crab. In return, Canada will continue allowing certain Chinese steel and aluminum products into the country without additional tariffs.

The deal is designed to help Canadian farmers and seafood businesses sell more products to China while giving Canadian companies access to Chinese metals they cannot easily buy at home.

The agreement also comes as Canada seeks to diversify its trade relationships amid continuing tariff disputes with the United States. Carney said Washington had withdrawn a proposal that would have given the United States final approval over Canadian trade agreements with other countries.

That helped lift China's trade surplus to $1.04 trillion in the first 10 months, topping $1 trillion for a second consecutive year and reaching the milestone a month earlier than in 2025. The swelling surplus could fuel further tensions with the European Union, where leaders have called for more trade curbs with China after reaching an agreement with Beijing to limit Chinese exports of hybrid vehicles to the bloc over the next few years. Because the measures have yet to take effect, factories are expected to bring forward shipments, bolstering exports in the near term.

China's trade surplus with the US narrowed slightly to $32.71 billion in October from $34.01 billion the previous month, though the broader imbalance remains a source of friction between the world's two largest economies.