Canada and EU strengthen trade ties in face of US tariff pressure

(CLO) Canada wants to expand economic relations with the European Union (EU) and protect global trade rules against the risk of US tariffs, Canadian Trade Minister Mary Ng said on Saturday (February 8).

The EU and Canada have benefited from a free trade agreement that came into force in 2017, increasing bilateral trade by 65%, and are set to establish a raw materials partnership by 2021.

Canadian Trade Minister Mary Ng (left) in Ukraine in June 2024. Photo: Kmu.gov.ua, CC BY 4.0

Ms Mary Ng met EU Trade Commissioner Maros Sefcovic on Saturday, following a meeting with World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala in Geneva on Friday.

She said critical minerals and small businesses would be among the areas of focus for the EU. The EU in particular wants to build partnerships to secure supplies of metals essential for the energy transition such as cobalt, lithium and nickel to reduce its dependence on China.

Canada is also pushing to diversify its exports and has set a target of increasing exports outside the US to 50% by 2025. Ms. Ng said the country is on track to meet or exceed that target.

Canada signed trade deals with Indonesia in December and Ecuador last week and is stepping up efforts in the Indo- Pacific region. Mary Ng will lead a delegation of more than 200 businesses to Australia, Singapore and Brunei next week.

“We are in talks with Southeast Asian countries, specifically the Association of Southeast Asian Nations (ASEAN). I led a Canadian business delegation to the Philippines in December, as well as Indonesia, Vietnam, Malaysia, Japan and South Korea,” Ms. Ng added.

The Canadian government has threatened retaliatory tariffs and legal action against the United States after President Donald Trump announced tariffs on Canada and Mexico last week, before delaying them for 30 days.

Mary Ng said Canada could take the case to the WTO if the US formally imposes tariffs. "We will look at all the options available to Canada because Canada is a country that believes in the rules-based trading system," Ng said.

Some EU officials worry that if Canada fails to secure solid trade deals, Europe’s raw materials supply chain could be affected. Canada’s efforts to strengthen trade ties with Southeast Asia could open up major opportunities, particularly in the areas of technology and strategic minerals.

Cao Phong (according to CNN, CNBC, The Guardian)

Source: https://www.congluan.vn/canada-va-eu-tang-cuong-quan-he-thuong-mai-truoc-ap-luc-thue-quan-cua-my-post333672.html