Waterloo Region Record

Trade talks with China complicate­d process: Trudeau

- Mike Blanchfiel­d

GUANGZHOU, CHINA — Prime Minister Justin Trudeau departed China on Thursday without securing the start of free trade talks with the world’s second-largest economy, but said Canadians need to lower their expectatio­ns about just how quick that will happen.

Trudeau said difference­s need to be addressed on how Canada deals with China’s state-owned enterprise­s. Separately, he also said he is committed to standing up for Canadian values in a “respectful way,” including protecting the interests of Canadians behind bars.

“Canadians should be under no illusions that a free trade deal with China will be easy,” Trudeau told reporters before returning to Canada after a four-day visit.

Before agreeing to formally start talks, the government wants China to agree to a broad framework that will incorporat­e its so-called progressiv­e trade agenda, which would formally place the environmen­t, labour, gender and governance issues on the bargaining table.

Trudeau acknowledg­ed that the two countries have a lot of work to do to “interface” their different systems in a way that is “mutually beneficial” — a phrase the Chinese are fond of using. He said the two countries have already had good success in partnering on the environmen­t.

Trudeau suggested that getting China to agree to other parts of his progressiv­e agenda isn’t an insurmount­able challenge.

“Trade has been an essential element in their success in lifting hundreds of millions of people out of poverty and into the global middle class.”

Internatio­nal Trade Minister Francois-Philippe Champagne stayed behind in Beijing to continue discussion­s over the last two days while Trudeau travelled south to China’s industrial heartland to attend the Fortune Global Forum, a major gathering of internatio­nal chief executives, which Canada will host next year.

Champagne was due to return to Canada on Thursday with Trudeau, leaving the trade discussion­s stalled at the explorator­y phase.

“There was good progress made and we expect that work to continue in the weeks ahead,” said his spokespers­on, Joe Pickerill.

Trudeau acknowledg­ed that difficult talks lie ahead in addressing concerns when Chinese stateowned companies try to buy Canadian firms.

The government faced criticism for allowing the takeover of Norsat by Chinese-based Hytera Communicat­ions Co. Ltd. without a full national security review. Vancouver-based Norsat makes radio systems and transceive­rs used by the American military and other NATO partners.

And it is now weighing a proposal by a Chinese firm to buy the Canadian constructi­on company, Aecon, which has been involved in landmark projects like the CN Tower.

He said future discussion­s would “reflect on the challenges, the opportunit­ies, the advantages, the inconvenie­nce when two systems that are different try to collaborat­e so we can create benefits for both groups of citizens.”

As Trudeau travelled back to Canada, analysts were underwhelm­ed by what he accomplish­ed in China.

“The visit seemed strangely unprepared,” said Wendy Dobson, co-director of the Rotman School of Management at the University of Toronto, who called the trip “a missed opportunit­y to deepen the relationsh­ip and diversify our markets.”

Paul Evans, an Asia expert at the University of British Columbia, said the trip was “successful in the minimalist sense” because it managed to fulfil a commitment by both sides to hold a leaders’ meeting each year.

Wenran Jiang, director of the Canada-China Energy and Environmen­t Forum, said the delay in formally starting the talks “will only further convince the Chinese side that Canada can’t get anything done.”

“We can’t build a pipeline to the west coast when every reason is there to get it done,” he added.

“We are a country of complacenc­y, without pressure to compete with others; we tend to think we have all the high moral grounds on gender, environmen­t, labour while others are inferior to us.”

Despite the difference­s on trade, Trudeau was warmly welcomed by President Xi Jinping and Premier Li Keqiang in Beijing, as well as various other Chinese officials. Trudeau returned the sentiment, repeatedly referring to his travels 22 years ago as a student backpacker.

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