Carney's first day in China secures energy agreements but no tariff breakthrough yet

Prime Minister Mark Carney witnessed a memorandum of understanding in Beijing to deepen cooperation on oil, gas, LNG and emission reductions, while separate agreements were signed on pet food, tourism and transnational crime. Talks aimed at persuading China to lift tariffs on pork, canola and seafood remain ongoing and have not been resolved.

Prime Minister Mark Carney began an official visit to Beijing with several signed agreements on energy cooperation and other areas. The visit follows years of strained relations and is aimed at improving ties and diversifying Canada's trade away from the U.S. A memorandum of understanding signed by Energy and Natural Resources Minister Tim Hodgson covers cooperation on oil and gas resource development, liquified natural gas and liquified petroleum gas, and emission reductions. Discussions to persuade China to lower tariffs on pork, canola and seafood are continuing and were not resolved on the first day. Key facts: - The MOU signed in Beijing states both countries will strengthen ministerial talks on oil and gas development, liquified natural gas and liquified petroleum gas, and emission reductions. - The MOU did not include a commitment from Beijing to purchase additional Canadian petroleum or liquified natural gas. - Delegation agreements were also signed to boost exports of Canadian pet food to China, increase tourism, and renew cooperation on transnational crime including child sexual exploitation and money laundering. - Foreign Affairs Minister Anita Anand described talks aimed at persuading China to lower tariffs on pork, canola and seafood as "productive," and said negotiations are continuing. - Prime Minister Carney met business leaders including Contemporary Amperex Technology and officials from China National Petroleum Corporation; Zhao Leji said President Xi Jinping will have an in-depth discussion with Carney on Friday. - Saskatchewan Premier Scott Moe joined part of the visit, and officials signaled progress may be possible without a definitive elimination of the tariffs. Summary: The first day produced concrete agreements on energy cooperation and several sectoral deals while key trade tariffs remain unresolved. Negotiations are ongoing and an in-depth discussion between Carney and President Xi Jinping is scheduled for Friday, so further developments are possible in the near term.