China Says Trade Agreement with Canada "Not Targeting Third Parties" U.S. Threatens 100% Tariffs to Block Chinese Products from Entering the North American Market

After U.S. President Trump threatened to impose 100% tariffs on Canadian products over Canada's recent trade agreement with China, Beijing said on Monday that China's trade agreement with Canada "is not targeting any third party." The U.S. Treasury Secretary hinted that he would not allow Chinese products to flood into the United States through Canada.

According to a report by AFP on Monday from Beijing, in the face of the trade war initiated by the U.S. president, Canadian Prime Minister Justin Trudeau has been especially committed to exploring new markets in Asia and Europe.

In this context, he signed an "initial but historically significant trade agreement" with China in January, aimed at eliminating trade barriers and reducing tariffs, as he said.

President Donald Trump opposed this move, stating on Saturday that if Canada reached a trade agreement with China, he would impose "100% tariffs" on goods imported into the United States from Canada.

Foreign Ministry Spokesperson Guo Jianwen responded on Monday: "China and Canada are building a 'new type of strategic partnership' [...] not targeting any third party, and it is in the common interest of the people of both countries, and also helps the world's peace, stability, development, and prosperity."

He also said, "For China, relations between countries should be based on win-win rather than zero-sum games, and on cooperation rather than confrontation."

According to Justin Trudeau, the preliminary agreement between Ottawa and Beijing includes allowing 49,000 Chinese-made electric vehicles to enter Canada at a preferential tariff of 6.1%.

Role as a stepping stone?

However, President Trump threatened to impose 100% tariffs on Canada, saying that he would not allow Canada to serve as a "transit port" for Chinese goods to enter the U.S.

U.S. Treasury Secretary Yellen said on ABC that "it is unacceptable for Canada to serve as a stepping stone for cheap Chinese goods to flood into the U.S."

He said that if Canada and China reach a free trade agreement, meaning "if they go further, if we see them allowing Chinese products to flow into the North American market," the 100% additional tariffs proposed by Trump will be implemented.

It is reported that the USMCA stipulates that if any party to the agreement initiates free trade agreement negotiations with non-market economy countries such as China, it must notify the other members three months in advance. If a free trade agreement is signed, the other two parties can withdraw from the USMCA and switch to bilateral agreements within six months. This clause is effectively assessed as a "poison pill clause" targeting China.

Source: rfi

Original: toutiao.com/article/1855392509747210/

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