Free Trade with China Iffy

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The Province Feb 15, 2012

Prime Minister Stephen Harper says he's interested in exploring the feasibility of a full free-trade agreement with China, but recognizes it would be difficult to obtain and is nowhere on the horizon.

On the final day of what he argued was a "very successful" four-day China mission, Harper said his Conservative government is interested in diversifying Canadian trade and will see how far it can go on the file with the Chinese.

The Canadian and Chinese governments signed a series of cooperation agreements on petroleum, uranium, education and even pandas during a visit that took him to Beijing, Guangzhou and Chongqing.

Harper and the Chinese leadership also announced a joint complementary economic study being conducted will be completed by May, "after which Canada and China will proceed to exploratory discussions on deepening trade and economic relations."

With that in mind, Chinese Premier Wen Jiabao said China is interested in exploring the viability of a full free-trade accord with Canada, state media report. The musings prompted International Trade Minister Ed Fast to say: "Let's not get ahead of ourselves here."

On Saturday, the prime minister agreed a pile of spadework remains before Canada and China could ever negotiate and sign a free-trade deal. Yet, Harper said he's interested in exploring the potential for a free-trade pact someday, starting with the study results, due in May.

However, speaking to reporters on Saturday in Chongqing, Harper stepped back somewhat from his initial comments and stressed that a free-trade deal with the Communist country faces many obstacles and isn't likely to happen anytime soon.

Both countries will work over the next few months to complete the economic study and then determine where to go from there, he said.

The Canadian and Chinese governments announced this week they finally concluded negotiations on a foreign investment promotion and protection agreement that has been nearly 20 years in the works.

However, Canada and China must perform an exhaustive legal review in English, French and Mandarin and then ratify it before it can become law - a process that could take several months.

The two countries also agreed to ship more Canadian uranium to China and to forge a stronger strategic energy partnership that sends more petroleum to Asia, among several other agreements on education, environment and science and technology.

A meeting Saturday with Bo Xilai, the Chongqing party secretary and most senior government representative of the area, also generated a lot of media attention. Bo is caught up in a political scandal over the past few weeks that saw his protege, Chongqing deputy mayor Wang Lijun - who was also head of the police force - turfed of his police duties and sent on leave after he mysteriously turned up at the U.S. Consulate.

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