The canola dispute was expected to dominate the trade agenda during Trudeau’s high-level meetings during his first official visit to China.
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The decision was announced on the second day of Canadian Prime Minister Justin Trudeau’s visit to Beijing aimed at rebuilding ties with China. “If there’s been difficulty deploying capital in the oilsands, it isn’t because the Chinese aren’t welcome, but because governments in Canada have driven off investment by Canadians and reputable worldwide investors [because of restrictive regulations]”.
Morneau said the bank has shown Canada that it will be a highly effective institution.
Canada will submit its application to join the AIIB by the end of 2016, said David Lauzon, a Canadian finance ministry official.
For its part, China has been urging Canada to negotiate a free trade agreement.
“China itself is a large producer of canola, but China has no intention of keeping its doors closed to other exporters”, Li told a joint news conference with Trudeau at his side.
The US has disappointed Canada and its allies by failing to advance the Trans-Pacific Partnership (TPP), an American-led free-trade agreement, and the Canadian government is now eyeing China to join and share in the rising Asian market, Li said.
The AIIB was officially established last December and started operating in January. We have many problems of our own.
“We believe that both sides will be able to make some mutual adjustments with the larger picture of China-Canadian trade and ties in mind”, he said.
“This year marks 45 years of diplomatic relations between Canada and China”, Trudeau said as he stood beside Li in Beijing’s Great Hall of the People, which overlooks Tiananmen Square.
Trudeau said they will work together to discuss issues of common concern, including climate change, judicial training, gender equality and empowerment of women and children.
China is the biggest foreign consumer of Canadian canola, which is usually refined into an edible oil, but Li said Chinese canola producers and consumers were anxious about imported canola carrying disease.
Existing dockage rules that were set to change drastically as of September 1st have been extended as Canada and China try to reach a long-term solution.
Li insisted through a translator that China is a country of the rule of law.
Li also said the case of a Canadian citizen detained in China on suspicion of spying was being handled according to law.
Those cases include Kevin Garratt, a Canadian imprisoned for more than two years in China on espionage charges. Garratt was arrested in August 2014.
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“By supporting this institution that’s primarily initiated by China indicates that we’re trying to build trust that China will use this institution for the greater good in a liberal, internationalist way and not simply as a device to expand its geopolitical reach, ” said Burton, a political scientist at Brock University.
