Friendly relations foundation for healthy bilateral trade
Canada’s largest agribusiness Richardson International has had its license to ship canola to China revoked, after imports from Canada were found to be contaminated with hazardous pests.
Canada exported more than $3.75 billion worth of canola last year, with China receiving almost half the shipments. The revocation of the company’s permit hurts not only Richardson but also the entire value chain of industries involved in the market.
China has explained that the move is to protect the health and safety of Chinese citizens. However, the action has been interpreted by some as a retaliatory move against the Canadian authorities announcing last week that extradition proceedings would proceed against Meng Wanzhou, chief financial officer of Chinese telecommunications company Huawei.
Relations between China and Canada have become increasingly fraught since Meng was arrested at Vancouver International Airport on Dec 1 at the request of the United States. And China’s holding of the former Canadian diplomat Michael Kovrig and Canadian businessman Michael Spavo on spying charges has already been viewed in the West as a retaliatory move by China. It is no surprise therefore that China’s latest move is being perceived in the same light.
However one chooses to interpret it, there should be no denying that Ottawa’s attempt to ingratiate itself with Washington is out of order.
Although the Canadian government claims it has no choice in the matter, the current scandal it is embroiled in shows it is not averse to meddling in legal matters if it believes there is political capital to be made. Canada’s former attorney general says Prime Minister Justin Trudeau and senior members of his government inappropriately tried to pressure her to avoid prosecution of a major Canadian engineering company that is a big employer in the country.
Even after Meng was detained and was out on bail, Canada could still have chosen not to proceed with the extradition process. The fact that the US president said that he could intervene if it helped secure a beneficial trade deal with China exposes the true nature of the case.
Clearly the Canadian government has judged the benefits of doffing its cap to Washington weigh more in the balance than apt behavior. It is ridiculous for it to claim judicial independence as an excuse for a politically motivated prosecution of Meng.
If Ottawa chooses not to reflect on its behavior, its relations with China will continue to deteriorate without need of further cause. China will naturally choose to do business with those who demonstrate they want friendly relations.