Canada's Carney Eyes Expanding Breadth of Trade With China

By Paul Vieira

OTTAWA--Canadian and Chinese officials are a mulling a further deepening of trade ties after striking a deal focused on agriculture and electric vehicles earlier this year, Prime Minister Mark Carney said.

"We are in discussions with the Chinese about where to next on trade," Carney said at a press conference in Winnipeg, Manitoba, to promote measures unveiled in the government's annual budget plan. He added Beijing agreed this week to extend trade relief for Canadian agricultural products, most notably canola, until the end of 2028.

The Carney-led Liberal government has worked to reset relations with China following years of tumult under former Prime Minister Justin Trudeau. Early in 2026, Carney met Chinese leader Xi Jinping in Beijing, and in exchange for removing tariffs on Canadian agrifood goods, Ottawa agreed to allow the importation of up to 49,000 electric vehicles - a move that angered some Trump administration officials.

Carney added he's scheduled to meet with Xi at the upcoming Asia-Pacific Economic Cooperation leaders summit in Shenzen. "We have more opportunities to provide greater stability to that relationship ... but also to expand the breadth of the trading relationship." Prior to that, Chinese Vice Premier He Lifeng is arriving in Canada next week for a meeting with Canadian officials.

Resetting trade ties with China is part of the Carney government's policy goal to diversify its exports and reduce the country's reliance on the U.S. to drive growth. Up until President Trump's second term, roughly three-quarters of all Canadian exports were U.S.-bound. Trade data covering the first three quarters of 2026 indicate that the U.S. accounted for 68% of all Canadian sales abroad.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

November 06, 2026 14:02 ET (19:02 GMT)