Canadian federation at an impasse re: China trade relations

[ionelv]

Given the opposing China trade priorities between (Ontario) steel/aluminum/EVs and (Western) agricultural exports, it is obvious that the Western provinces (e.g. Alberta, Saskatchewan, Manitoba) and Ontario can't really cohabitate within the federation if they want to both export to China and protect local industry. From FinPost/Bloomberg (with my [] clarifications around "Canada" when it is certain provinces that are favored over others):

Some senior officials in Canada say it’s time to repair trade relations with China, arguing US tariff policy is pushing them to deal with Asia’s largest economy.

Last year, the Canadian government put tariffs of 100% on Chinese-made electric vehicles and 25% on steel and aluminum products, aligning with what the Biden administration had done. The move also protected [Ontario] Canada’s auto industry.

China struck back with retaliatory 100% tariffs on Canadian [Western provinces] canola oil and pea products, and a 25% levy on pork and seafood — a move that underscored the sharp deterioration in ties between Beijing and Ottawa in recent years.

Comments

[ioplokon]

Bit risky but I know some people have floated the possibility of letting China open X number of EV factories in Canada as a compromise. Not like the Canadian automakers are really stepping up here... (I think we've already lost the EV race, so it is only a matter of time before some come in, right?)

Selfishly, though, I hope they go do a car deal for European EV factories instead. I support the government policy that lets me afford a Citroen Ami (the cutest car).

[ionelv]

Local factories might work as a compromise if it leads to stopping the silly trade tariff war. If it does not, Canadians lose twice: those who want to buy EVs will pay higher prices and those who want to export to China will have to eat ridiculous losses and chuck their produce to mollify the Ontario manufacturing lobby. Lose-lose.

[ioplokon]

Yeah. I get that you want to keep domestic manufacturing+R&D running (this is something the French are very good with. Also: industrial espionage lol), but the north American car companies have squandered the past 20 years to the point where it's hard to feel bad for them. Tho would like to carve out a massive chunk of Carney's military spending to do r&d. You can do some of that out west, too.