Saskatchewan Premier Scott Moe is set to lead a trade mission to China this weekend, marking the first visit by a Canadian premier in six years. The mission aims to enhance market access for Saskatchewan's significant canola crop amid ongoing trade tensions with China and the United States.
Moe's trip comes at a challenging time for Canadian canola, which has faced retaliatory tariffs from China. The premier is not attempting to replace the federal government's role in addressing these trade issues but recognizes that any resolution will ultimately require the involvement of the Prime Minister. Moe had invited Prime Minister Mark Carney to join him, but Carney announced that parliamentary secretary Kody Blois would represent the federal government instead.
As Moe prepares for the mission, experts suggest that his team should consider insights from a recent report titled "Between the Eagle and the Dragon: Managing Canada-China Relations in a Shifting Geopolitical Reality." This report highlights the complexities of the current trade environment, particularly the impact of U.S.-China tensions on Canadian exports.
The report's authors emphasize that the ongoing rivalry between the U.S. and China has significantly altered the landscape for Canadian trade. Canada has responded to U.S. pressures by imposing tariffs on Chinese goods, which in turn led to China imposing tariffs on Canadian canola, pork, and seafood. In August, China imposed a 75.8% duty on Canadian canola seed, compounding the existing tariffs on canola oil and meal.
Perrin Beatty, co-chair of the report and a former politician, noted that while trade with China is primarily a federal issue, Moe has a responsibility to advocate for Saskatchewan's interests as a major canola producer. Beatty pointed out that Canada has historically engaged in trade with China, even during periods of global reluctance.
Beatty also criticized Canada's approach to international relations, suggesting that the country has often viewed itself as a moral authority rather than a pragmatic player in global trade. He recounted the failed negotiations of the Trans-Pacific Partnership under Prime Minister Justin Trudeau, which he believes exemplified a misguided approach to trade.
"We need to be a bit more worldly in how we manage our international relations," Beatty stated. He emphasized the importance of recognizing the realities of the current geopolitical climate and focusing on shared interests with China.
As Moe embarks on this mission, he faces the challenge of navigating a complex trade landscape while advocating for Saskatchewan's agricultural sector. Beatty advised that while it may be tempting to dial back tariffs on Chinese electric vehicles, the focus should remain on protecting the Canadian automotive sector, which is vital to the economy.
"What we do have to dial back on is the preachiness," Beatty concluded, highlighting the need for a more pragmatic approach to international trade.