A Canada-China free-trade deal could bring 鈥渂illions and billions of dollars鈥� 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 CTV鈥檚 Question Period, Dawson said her research shows that Canada stands to benefit greatly if the two countries were to reach a deal.
鈥淚 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:
鈥� Agri-food, such as pork and canola
鈥� Lumber
鈥� Insurance: 鈥淭here 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.
鈥淭he United States already has a high level economic dialogue and framework with China. It鈥檚 working quite well, 鈥� said Dawson. 鈥淚t鈥檚 way ahead of the level of cooperation that Canada and China have so I don鈥檛 think that we would put ourselves in an antagonistic position vis-à-vis the United States.鈥�
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.
鈥淭hese are two huge, growing markets, areas, where at a time the global economy is not growing as quickly as we would like, we鈥檙e still seeing tremendous economic growth.鈥�
Freeland鈥檚 comments come as Prime Minister Justin Trudeau鈥檚 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.
