Rather than cozying up to non-market economies, Canada should support Taiwan’s inclusion in the Comprehensive and Progressive Trans-Pacific Partnership.
Trade diversification seems increasingly important to Canada, especially after US President Donald Trump’s heavy-handed negotiations on the new US–Mexico–Canada Agreement (USMCA). In what some observers called a “poison pill,” Article 32.10 requires any party to consult with the others prior to negotiating a Free Trade Agreement (FTA) with a “non-market economy.” It also permits termination of the USMCA or replacement with a bilateral agreement if needed in such cases.
Concerned that they may be the targeted non-market economy, Chinese diplomats immediately expressed concern. The Chinese Embassy condemned the veto clause while Foreign Minister Wang Yi requested that the Canadian Foreign Minister Chrystia Freeland push for “a China–Canada free trade zone.” Inevitably, there will be Canadian voices clamouring for an agreement with China as an alternative to dependence on US markets.
The full article was published on 23 November 2018 by Macdonald-Laurier Institute. To read the rest of this article, click here.