Trudeau and Chinese Premier Li Keqiang agreed Wednesday to annual meetings and the eventual establishment of a mechanism to discuss national security and the rule of law.
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The multilateral institution, seen as a rival to the Western-dominated World Bank and Asian Development Bank, was initially opposed by the United States but attracted many USA allies including Britain, Germany, Australia and South Korea as founding members.
Prime Minister Justin Trudeau said Wednesday that existing dockage rules with China on canola exports have been extended beyond a September 1 deadline as the two countries continue to negotiate a long-term solution.
“We believe Canada’s membership will generate commercial opportunities for Canadian companies create good jobs and contribute to global economic growth”, said Bill Morneau, Canadian Finance Minister.
Trudeau benefits from the association with his father, former Canadian Prime Minister Pierre Trudeau, who in 1970 became one of the first Western leaders to establish diplomatic relations with Communist China.
By submitting its application to join the Asian Infrastructure Investment Bank, key USA ally, Canada could become the first North American AIIB member.
China is Canada’s second-largest trading partner after the United States, with exchanges topping Can$85 billion ($66.5 billion) a year ago.
“We believe the bank is clearly showing that it’s going to be a highly effective multilateral institution”, he added.
President Jin said the bank looks forward to welcoming its first of these new members early in 2017.
American officials warned that the new bank would provide loans to developing countries without requiring any caveats about the environment, labour rights or anti-corruption reforms, as are typically included in loans from the World Bank and International Monetary Fund. Trudeau said Canada is willing to cooperate with China to strengthen economic and financial ties. Chinese officials have said it plans to loan out US$10-15 billion over the next five years.
“The foundation of a strong relationship is being able to be frank and open about concerns, questions and issues to work on together”, he said.
Canada will apply to join the China-backed Asian Infrastructure Investment Bank (AIIB), Ottawa’s finance department said Wednesday, in a coup for Beijing after Washington had tried to dissuade United States allies from signing up.
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The four projects approved earlier this year addressed numerous concerns western countries had about the new bank, he said, including that China would use it to advance its own strategic and commercial interests.
