Last week’s Canada-China trade deal reflects a world where power and leverage matter more than efficiency or principles.

Bloomberg asked me about Prime Minister Carney’s deal with China to swap tariffs on EVs for a quota and price floor in exchange for restored market access for Canadian canola—and the idea that Beijing is now a more “predictable” partner. The reality is more constrained. The Canadian government was in the land of bad options. China is not an avoidable country, especially while Canadian farmers are absorbing tariffs on canola and peas. But the pressure is explicit: "Open your markets to our massively subsidized overproduction of electric vehicles and other goods, or we will hurt you." 

That’s why the agreement left a bad feeling in the pit of my stomach.

Link to Thomas Seal’s story here: