Canada-China trade reaches record high in third quarter

Canada-China trade reached a record high in the third quarter as Prime Minister Mark Carney prepares for a trip to China and a bilateral meeting with Chinese President Xi Jinping next week.

Trade figures

Total two-way trade reached $36.78 billion in the third quarter, the highest quarterly level on record, driven largely by energy exports, according to third-quarter figures compiled by the China Institute at the University of Alberta.

Crude oil exports to China jumped 159 per cent, averaging 327,000 barrels per day. Much of the increase is attributed to additional capacity provided by the Trans Mountain pipeline.

Agriculture exports also increased. Canola meal exports rose to $360.3 million from $12.9 million a year earlier. Pea exports increased to $147.6 million from $9.2 million, while beef exports reached $181.4 million after being virtually non-existent a year ago.

Alberta and Saskatchewan accounted for nearly 78 per cent of the overall increase. National domestic exports to China increased by roughly $4.32 billion year-over-year, with Alberta’s surge driven mainly by crude oil exports and Saskatchewan’s by canola meal, canola seed, potash and peas.

Expert views

Philippe Rheault, director of the China Institute, said: "Our exports are going to hit record highs this year, and the numbers are accelerating."

Vina Nadjibulla, CEO of the Centre for Strategic Statecraft, said: "In 2024, nearly 70 per cent of our canola seed exports went to China, giving Beijing significant leverage that it has used during political disputes." She added: "We should expand trade with China while continuing to develop other markets. The goal should be to reduce strategic dependence, not simply shift it from one major power to another."

Context

Trade between the two countries increased after an agreement last January that saw Ottawa secure lower Chinese tariffs on Canadian goods in exchange for allowing Chinese electric vehicles into the Canadian market.

Even with higher exports to China, Canada still exports about ten times as much product to the United States. Carney’s goal is to double exports of Canadian goods and services to non-U.S. markets by 2035.

Carney leaves Wednesday for a whirlwind tour of Asia that includes stops at the ASEAN summit in the Philippines, the APEC summit in China – where he is expected to meet Xi – and the Francophonie summit in Cambodia. The trip will mark Carney’s second visit to China as prime minister.

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Sources

• ctvnews.ca: Mark Carney: Canada-China trade surges ahead of PM trip
• bnnbloomberg.ca: Mark Carney: Canada-China trade surges ahead of PM trip

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.