Prime Minister Carney plans to meet with Chinese leader at APEC

Prime Minister Mark Carney plans to meet

with Chinese President Xi Jinping while

the pair are at the Asia-Pacific

Economic Corporation Forum later this

week in South Korea. We're going to get

some further insight on this from

Jacques Shore, a government affairs and

trade partner at Gowing WLG. Good to

have you. Thanks for taking the time.

>> Thank you very much. Good to speak with

you Lindsay.

>> Yeah, this is going to be interesting.

It's been years since the two countries

have really talked. Uh how significant

is this upcoming meeting between China

and Canada?

Well, look, I mean, there have been some

significant uh ups and downs in that

relationship. Uh it seems that every

five years uh we need to really look at

ourselves in the mirror and say, how do

we actually figure in with uh with China

and we have to figure that out. Um,

obviously these are sensitive moments as

we really reflect on how best to

continue the incredibly important trade

relationship that we have with the

United States, which is really the envy

of the world in so many ways while at

the same time recognizing that there are

challenges in dealing with China. Not

simply because of the way in which the

United States might be watching us as to

how we deal with China but because of

the kind of things that for us is

important in terms of our own national

interests. So these are serious

discussions which will take place and um

and I do think that if we move the

needle it'll probably be done cautiously

and slowly uh in a way that serves our

interests but at the same time you know

carefully reflects on what we do with

the United States. You talk about our

own national interests like right now

there's 100% tariffs uh from China on

Canadian seafood, canola products,

agricultural products. Are those some of

the sectors I guess that maybe Canada

will be looking to discuss with China in

terms of maybe lowering those 100%

tariffs?

>> I think so th those are extremely

important but then again they will be

looking to us in terms of how we look at

you know electronic vehicles, EVs. I

mean clearly the Chinese have vehicles

to sell and at cost significantly less

than than others. So um yes those will

be among them. I mean when we look at

pork, we look at some of the other

fields which have really affected our

agricultural sector. Um we would love to

see some wins. We're we're in that

moment right now where you know we are

very interested in trade

diversification. It's in our interest to

do that. while 80% of our trade is with

the United States and again I repeat the

envy of the world because we have kousma

and 93% of the goods that that basically

trade are are are essentially

tariff-free um you know we do know that

we need to work more closely with Europe

we have to actually build stronger trade

ties and bridges there I see that

actually going on right now in my

practice quite actively we're looking at

Japan Japan is another country that

wants to work with us. You look at the

success of being able to look to that

country in terms of our LNG exports. So,

um I I think that we are open to doing

business with the world. But at the same

time, I I reiterate that look, there's a

disappointment of the last few days

where we look at the president who's

decided he would like us to now have

another 10% tariffs imposed on us, which

is a real significant penalty. maybe not

so much even on us, but obviously I

think to to those in the United States

that recognize the strength of this of

this very very special partnership that

we do enjoy.

>> Yeah, that additional 10% I should say

uh not in effect yet. It hasn't been on

paper. It's just something Donald Trump

said. So, we'll have to wait and see uh

where that goes. But he has ended talks

in the meantime. So, these conversations

between Canada and China, how do you

think that could affect Canada's

relationship with the US?

>> Well, you know what? I think we're going

to be very careful. I think we have a

prime minister that is measured in terms

of how he addresses issues. You can see

that he's taking I think what is a a

long game approach. We're not really

look what we would not want to have is

any additional retaliation or or thought

of a negative uh approach by the

Americans in terms of what we do with

the Americans. And I think with with the

Chinese I think we have to be we have to

be careful. Um I think that you know

with respect to you know canola with

respect to some of the other fields

where we you know

I have to say fields of of agriculture

technology elsewhere mining those are

all areas which would certainly be of

interest to to China but at the same

time I think it's all reviewed very

carefully against the backdrop of where

we sit with the United States and our

other you know our other allies because

they're in the same situation I think as

well. Um, you know, we're I think we're

all very carefully treading water at the

moment, looking at how we move forward

um in terms of how we how we build uh a

new set of trading relationships while

also doing everything we can to protect

and preserve the relationship that we

have with the United States on trade.

>> Right. Because I know you talked about

how Canada needs to diversify when it

comes to trade. Mark Carney was talking

about that a lot last week as well. He's

been talking about that for months

actually. Uh, but how much how much can

Canada actually diversify away from the

US when it comes to trade? Obviously,

we're never going to have no trade with

the US.

>> Well, okay, if I had my wish list, uh,

Lindsay, I would probably say I'd want

to continue having 80% of trade with the

United States and then add another 60%

trade elsewhere. I want to grow the pie.

I think that's where our interests

really lie. And I think that at the end

of the day, we have many friends in the

United States that would want to see us

actually at least get back to where we

are at in a more, how can I say,

collegial, friendly, allied approach. I

I have to add that I did look over very

carefully some of the quotes of uh

President Reagan from way back in 1987

when he spoke to our uh joint uh um

session of of our parliament when he

spoke in Quebec City at one point either

he was certainly uh of the view that the

trading relationship between Canada and

the United States was extremely

important. He was very very open-minded

in terms of recognizing the value of

that and spoke extremely warmly of what

we've achieved together. I I I want to

say that I'm going to be confident that

that is something that ultimately the

White House will recognize that others

other friends of ours the United States

will emphasize those points. You know,

we're right now in the middle of a

significant um how can I say uh baseball

series with the World Series. I would

like to say if we're looking at this,

let's look at this in the context of at

least nine innings. You might sometimes

have extra innings in that, but we're

just moving along pretty carefully in

terms of each of those innings and where

we sit. And I don't think we should be

over ambitious in terms of where we are

terms of pushing timelines. I think

these are the things that we need to

deal with carefully. These are also not

regular trade relation a trade

negotiation. Trade negotiations are

usually very detailed, very very

specific. We're also involved in a

political negotiation where the United

States is, I think, being careful in

terms of how they are moving forward,

whether they want to take these steps

that are more protectionist. But and and

in the long run, I think that is going

to be very much of where we, you know,

fit into that. But there are Americans

that we should be talking to also

talking about the strength of how we

benefit on both sides of the border by

making things together by strengthening

our opportunities together and uh and I

think that's that is that is in the the

long game of what we're looking to do.

>> Okay, Jacques Shore, government affairs

and trade partner at Gowing WLG. Great

to have you. Thanks for taking the time.