Chasing China: Why an Economic Agreement with China Is Necessary for Canada's Continued Prosperity

Abstract

Although Canada has been building its economic relationship with China, its approach has been inconsistent, even as China is aggressively securing partnerships with other western countries. Canada risks being left out of China’s economic growth plans, to the detriment of Canadian manufacturers and exporters. The analysis in this study suggests that a free trade agreement between Canada and China would generate significant economic gains for Canada, help diversify its export markets, and make it a more attractive location in North America for globally oriented investment.

Keywords: Canada, China, FTA, trade liberalization, computable general equilibrium modelling, CGE

JEL Classification: F14