Canada's Ex-Minister Urges Better China Ties to Hedge US Risks

Mint

a day ago

Canada should bolster ties with China to hedge against uncertainty from US President Donald Trump's approach to bilateral relations, according to a former top Canadian official.
'Who are the other reliable partners we have in the world?' said Bill Morneau, who served as finance minister under former Canadian Prime Minister Justin Trudeau through 2020. Noting that China is Canada's second-largest trading partner, after the US, he said it's no surprise that Prime Minister Mark Carney is looking to build 'a more stable and expansive trading relationship with China and other countries.'
Morneau's comments come as Canada seeks to diversify its economic partnerships while talks with the US drag on. Earlier this month, Carney spoke with Chinese Premier Li Qiang about trade and tackling the fentanyl crisis in a sign of warming ties.
Carney's government also invited Saudi Crown Prince Mohammed bin Salman to the Group of Seven leaders' summit in Alberta this weekend.
Morneau, speaking Wednesday at the Bloomberg Invest conference in Hong Kong, said that while Ottawa should look to reach a trade deal with Washington and maintain strong ties, officials also need to protect the economy and Canada's own interests from the currently 'very volatile' relationship with its southern neighbor.
Canadian and US officials have been holding trade talks for months, with Trump and Carney in direct contact ahead of the G-7 meeting beginning June 15. The two sides are looking to negotiate a deal to ease tariffs on each other's goods.
Meanwhile, many of the issues Trump has raised, including undocumented migration into the US, don't relate to Canada, Morneau said.
'My expectation is that much of this is obviously posturing,' said Morneau, who was also previously governor of the International Monetary Fund and World Bank.
The renegotiation of the trade agreement between the nations will likely include greater access into Canada's protected dairy market and an increased Canadian role in NATO, Morneau said, while any major change to natural-resource sharing — such as Canadian fresh water — is off the table.
Carney this week announced a boost to defense spending to meet NATO's target this year, saying it's needed in a 'darker, more competitive world.' Trump has called for all countries to increase their share of global military spending in order to rely less on the US.
'You want to get to as best you can with as many partners as you can, whether its with China or with other parts of the world,' Morneau said.
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