Trade with China amid NAFTA friction

Canadian Prime Minister Justin Trudeau will start a trade and tourism dialogue with Chinese officials during his ongoing visit to China. Canada and China began to discuss a free trade agreement more than a year ago, following back-to-back meetings between Trudeau and Chinese Premier Li Keqiang in Beijing and Ottawa. And from February to August, three rounds of exploratory talks were held between the two sides.

Trudeau's visit to China takes place after the fifth round of talks on the North American Free Trade Agreement ended in Mexico City amid simmering tensions.

Last year, the United States accounted for about three-fourths of Canada's exports, while Canada sourced almost two-thirds of its imports from the US. And while US direct investment in Canada amounts to some $306 billion, Canada's investment in the US is almost $370 billion. But US direct investment in Canada represents almost 20 percent of the latter's GDP, while Canada's direct investment in the US adds up to only 2 percent of the US' GDP. The outcome of the NAFTA talks is thus far more important to Canada than to the US.