The Chinese government urged more caution from its Canadian counterpart regarding Canada‘s national security measures against China under the World Trade Organization (WTO).

While appreciating Canada’s constructive role in the WTO and the multilateral trading system in general, China expressed concern over certain Canadian policies and practices related to trade and investment, which appear to run counter to its priority pursuit of free trade, according to a trade official in Geneva, Switzerland.

Canada’s national security

China argued that restrictions on foreign investment have persisted and tightened further, particularly with regard to the number of cases deemed potentially harmful to national security, which more than tripled in the past five years. 

While respecting the legitimate right of members to safeguard their national security, China noted that the concept of «national security» should have limits on the economic and trade front. 

According to the same official, China asked Canada to be more prudent in this area.

Foreign trade

China said Canada continues to be an active user of trade remedy measures and the past five years have seen a steady increase in antidumping and countervailing measures taken. 

By the end of 2022, 115 anti-dumping measures were in force on 41 of Canada’s trading partners, up from 29 in 2018. 

At the same time, the number of countervailing duties in force was 34 in 2022, compared to 28 in 2018. 

The Chinese government hopes that Canada can exercise restraint. and caution in adopting trade remedial measures and seek to further address its concerns through constructive dialogues and negotiations.

In addition, China encouraged Canada to review the Most Favored Nation (MFN) rates applied to eight tariff lines related to agricultural products that may exceed their corresponding bound rates.