A Canada-China free-trade deal could bring ābillions and billions of dollarsā to the sagging Canadian economy each year, according to an expert on the subject matter.
Laura Dawson, director of the Canada Institute at the in Washington, recently co-authored a study on a Canada-China free-trade agreement. The study will be released next week. Canada is not currently engaged in free-trade negotiations with China, according to . However, , which is aimed at protecting and promoting foreign investment through legally-binding rights and obligations.
Speaking to CTVās Question Period, Dawson said her research shows that Canada stands to benefit greatly if the two countries were to reach a deal.
āI am astonished by the benefits that Canada could derive from this kind of agreement. Billions and billions of dollars every year."
According to Dawson and Canadian Global Affairs Institute Vice-President Colin Robertson, many sectors of the Canadian economy would profit from the diversification that would come with a Canada-China free-trade deal, including:
ā¢ Agri-food, such as pork and canola
ā¢ Lumber
ā¢ Insurance: āThere are a number of Canadian insurance companies over there. We sell an awful lot," Robertson told Question Period.
Dawson also said there is no need to worry about the effects of a free-trade deal with China on Canada's relationship with its closest partner -- the U.S.
āThe United States already has a high level economic dialogue and framework with China. Itās working quite well, ā said Dawson. āItās way ahead of the level of cooperation that Canada and China have so I donāt think that we would put ourselves in an antagonistic position vis-à-vis the United States.ā
The Liberal government has emphasized the need for Canada to connect with growing markets in the global economy, especially amidst a bleak economy at home. More specifically, International Trade Minister this week that China and India are priorities for her file.
āThese are two huge, growing markets, areas, where at a time the global economy is not growing as quickly as we would like, weāre still seeing tremendous economic growth.ā
Freelandās comments come as Prime Minister Justin Trudeauās Liberal government prepares for a major trade mission to China and India. Trudeau is likely to travel to the two countries in March after bilateral meetings with U.S. President Barack Obama in Washington, according to a report by last week. The trip is part of a longer-term goal of reaching a free-trade deal with China, said the report.
