Trudeau’s China trip hasn’t paved way to trade deal
Visit spurs side agreements on environment and tourism, but no free trade framework
GUANGZHOU, CHINA— As Justin Trudeau woke up on his last day in China, there was no outward sign his delegation was any closer to sparking trade negotiations with the economic powerhouse than before they came.
Canada’s halting effort to become the first Group of Seven country to pursue a trade deal with China has been the overarching theme of the prime minister’s four-day trip here.
But despite landing a smattering of side agreements to combat climate change, discuss deeper access to the Chinese market for Canadian grain producers and promote two-way tourism, Trudeau’s voyage across the Pacific has so far failed to produce the agreement to launch the trade talks that both countries count high on their bilateral wish list.
On Wednesday, Trudeau told an elite business audience at the Fortune Global Forum that the “only way” for China to continue its decades of rapid economic growth is to open up to the rest of the world, a line of thinking that diverged with the protectionist mood in the U.S. and gelled with the stated intentions of Beijing’s authoritarian government.
Speaking onstage at a Guangzhou hotel, Trudeau made a pitch that Canada’s vision of progressive trade — with an emphasis on labour standards, environmental regulations and gender rights — can help keep the forces of protectionism at bay while promoting inclusive prosperity.
It was an apparent snipe at the ideology of U.S. President Donald Trump, who has slammed China for its trade practices and threatened to tear up the North American Free Trade Agreement, arguing that both have led to job losses in his country.
“We understand that in order for our country to succeed and prosper, we have to diversify our markets,” Trudeau said.
“Here in China, the middle class has grown at an unprecedented rate over the past few decades. And the only way to maintain that growth is to ensure that ordinary people see direct benefits,” he went on.
“When it comes to trade and international co-operation, China and Canada share the belief that more openness and more collaboration is the right way forward — indeed, the only way forward.”
While it is unclear how Beijing is reacting to Canada’s progressive agenda for trade talks, at least one of China’s state-run newspapers appeared to endorse the anti-protectionist thrust of Trudeau’s speech. China Daily, an English-language newspaper published by the government-run Xinhua News Agency, ran a front-page story Thursday underscoring President Xi Jinping’s decree that China will “become increasingly open” in its business environment.
Trudeau’s image also landed on the paper’s front page for the second straight day, after a photo Wednesday showing him smiling and shaking hands with Xi beneath a headline extolling Canada and China’s “cooperation and collaboration.”
In his speech before Trudeau’s at the Fortune summit, Vice-Premier Wang Yang said globalization and international commerce are key to China’s plan for growth. He said China “unequivocally rejects protectionism” and wants closer ties with the rest of the world.
“China’s development cannot be achieved in isolation from the world,” Wang said. “China will not close its door to the world, and we will only be more open.” But the converging message seemed to obscure whatever obstacles remain in the path of the push to establish a launching pad for trade negotiations. Trudeau said earlier this week that there’s no “single issue” keeping the two sides apart, and cautioned that Canada shouldn’t rush into talks without a responsible framework for negotiations.
Officials travelling with Trudeau said Wednesday that International Trade Minister François-Philippe Champagne remains in Beijing to press on with “exploratory” discussions on the framework for potential trade talks.
Trudeau also used Wednesday’s conference speech to paint Canada as an ideal place for business investment, with special permits for specialized workers and a highly educated population.
After his speech Wednesday, Trudeau spent the much of the afternoon meeting business executives attending the Fortune summit, including Tim Cook, chief executive of Apple, and Jack Ma, founder of the Chinese e-commerce firm Alibaba.
Later Wednesday, Trudeau and his entourage of ministers and staff held a sombre ceremony to mark the anniversary of the École Polytéchnique massacre in Montreal.
Trudeau is scheduled to return to Canada from Guangzhou Thursday night.