Carney Says Canada has ‘no intention’ of pursuing free trade deal with China

Prime Minister Mark Carney says Canada is not pursuing a free trade agreement with China and has no plans to do so. Speaking to reporters in Ottawa on Sunday, Carney emphasized that Canada has “no intention” of entering a free trade pact with China or with any other economy that is not considered market-driven.

He noted that the government has focused instead on addressing and “rectifying” issues that have emerged in the bilateral relationship over the past few years, describing recent efforts as aimed at stabilizing and managing existing ties rather than expanding them through a comprehensive trade deal.

Constraints under CUSMA

Carney pointed to provisions in the Canada-United States-Mexico Agreement (CUSMA) that place conditions on entering free trade agreements with non-market economies—jurisdictions where government direction plays a dominant role in economic activity. Under the pact, any move toward such an agreement requires prior notification and can trigger consequences within the continental trade framework. Canada, he said, is respecting those obligations and will not pursue a path that would conflict with CUSMA.

Context and timing

Carney’s comments came a day after U.S. President Donald Trump threatened to impose tariffs of 100 percent on Canada if Ottawa proceeded with a trade deal with China. The remarks underscore heightened scrutiny around North American trade alignment and the expectation among CUSMA partners that major trade steps be coordinated within the agreement’s rules.

What Ottawa is signaling

• Canada is not negotiating a free trade agreement with China and does not plan to initiate one.
• Any engagement with non-market economies will remain bounded by CUSMA’s notification and transparency requirements.
• The current focus is on managing existing trade relationships and resolving recent irritants rather than launching new, far-reaching accords.

By signaling a firm stance on CUSMA compliance and distancing itself from any free trade talks with China, Ottawa is aiming to maintain predictability within North American supply chains and avoid actions that could unsettle cross-border commerce. Carney’s message suggests the government intends to keep trade policy aligned with continental commitments while continuing targeted efforts to stabilize specific issues in Canada–China relations.

In short, there is no free trade agreement with China on the table, and Canada’s approach will continue to be guided by the obligations and guardrails embedded in CUSMA.