What does the US-Canada trade dispute mean for China?
After Canada stood firm in negotiations, analysts say that Washington failed to gain ‘veto’ on Ottawa’s trade with other countries
As tensions between the United States and Canada escalate, analysts say that Ottawa’s refusal to cede trade sovereignty to Washington over issues, including its economic ties to Beijing, has exposed the limits of American tariff pressure.
Negotiations between the US and Canada broke down late Friday, with both sides accusing each other of adding unreasonable last-minute demands. Walking away from the negotiating table, Canada said that the US had introduced, among other measures, efforts to restrict its authority to make independent trade agreements.
“This is clearly a reference to China,” said John Gong, a professor at the University of International Business and Economics in Beijing.
He noted that Canada had “stood firm” on the position that its relations with third countries were a matter of national sovereignty.
“This is certainly beneficial for China-Canada trade,” Gong added, noting that China could, for example, purchase more oil from Canada.
When asked by reporters why the United States might have made such a demand regarding Canada’s trading partners over the weekend, Canadian Prime Minister Mark Carney replied: “It’s a power play and becomes a question of sovereignty.”