Prospects for and Obstacles to a Canada-China Free Trade Agreement

Abstract

The possibility of a Canada-China free trade agreement (CCFTA) has been in the air for some time. Various overtures have been made and studies have demonstrated that there would be significant economic value to both countries from taking that step. This note elaborates on the value-added of a CCFTA against the background of an already-rich set of bilateral commercial agreements between Canada and China. Since Canada has been the hesitant party, the note focuses on the case for Canada committing to negotiations, and also the obstacles that Canada would have to overcome to make that possible.

Keywords: Canada, China, free trade agreement

JEL Classification: F13