Joint Outcomes of the First Canada-China Economic and Financial Strategic Dialogue
November 12, 2018
1) China’s State Councillor, Wang Yong, and Canada’s Minister of Finance, William Morneau, and Minister of International Trade Diversification, James Carr, concluded the first Canada-China Economic and Financial Strategic Dialogue (EFSD) in Beijing. Senior officials in charge of economic and financial affairs from both countries attended.
2) The two sides reaffirmed their commitment to deepening and expanding the Canada-China economic and trade relationship. They agreed to deepen engagement through bilateral and multilateral fora and pledged to reinforce their commitment to the rules-based international order, jointly support multilateralism, and build an open world economy. The ministers and the state councillor agreed to the following outcomes:
I. Enhancing Improvement of Global Economic Governance
3) Canada and China agree to enhance cooperation on global economic governance, including efforts to improve international financial architecture and advance reforms at major international institutions, with the aim of boosting confidence and achieving strong, sustainable, balanced and inclusive growth.
4) We reaffirm our commitment to uphold the G20 as the premier forum for international economic cooperation. We support the G20 in promoting dialogue and cooperation in the areas of structural reform, sustainable development, infrastructure investment, international financial architecture, financial sector reform, sustainable finance and financial inclusion, helping to safeguard the multilateral trading system, and strengthen collaboration on technological and digital transformation to tackle associated challenges. We will strengthen our communication and coordination under the G20 framework.
5) Canada and China reaffirm their support for the rules-based, open, inclusive, transparent and non-discriminatory multilateral trading system with the WTO at its core. We are deeply concerned by recent developments in international trade, particularly the rise of protectionism. Both sides will work with other members to further strengthen and improve the WTO to help it meet current and new challenges. Both countries agree that transparency on efforts to achieve this objective will be important.
6) Both sides agree to strengthen bilateral cooperation in the International Monetary Fund (IMF) and other multilateral fora. China and Canada commit to further strengthening the global financial safety net with a strong, quota-based and adequately resourced IMF at its centre, and support the realignment of quota shares to result in increased shares for dynamic economies in line with their relative positions in the world economy and hence likely in the share of emerging markets and developing countries as a whole and complete the 15th General Review of Quotas by the Spring Meetings of 2019 and no later than the Annual Meetings of 2019.
7) We welcome the adoption of the International Bank for Reconstruction and Development (IBRD) capital increase resolutions, which is a critical first step towards effective implementation of the World Bank’s shareholding realignment. We look forward to the ongoing efforts by shareholders to secure outstanding adoptions of the International Finance Corporation (IFC) capital increase resolutions.
8) Both sides agree to strengthen partnerships in multilateral development banks, including the Asian Infrastructure Investment Bank (AIIB), in support of sustainable green infrastructure projects and the mobilizing of private capital.
9) Canada welcomes China’s continued participation in Paris Club meetings and discussions on potential membership and support on both sides for the Paris Club as the principal international forum for restructuring official bilateral debt.
10) Canada and China agree to actively support the work of the International Working Group on Export Credits.
11) We call on members of the Global Forum on Steel Excess Capacity to enhance cooperation under the principle of global challenge collective responses so as to promote the healthy development of the global steel industry.
12) We support the development of environmentally and financially responsible projects around the world and the implementation of the 2016 Joint Statement between the Government of Canada and the Government of China to Develop Cooperation in Third-Party Markets to facilitate business engagement in areas of common interest, including nuclear technology.
13) Canada agrees to send a high-level delegation to attend the second Belt and Road Forum for International Cooperation in 2019.
14) Both sides agree to enhance practical cooperation on investment and financing, to promote collaboration among financial institutions, to encourage private sector participation, and to explore financing cooperation opportunities in third markets, including those participating in the Belt and Road Initiative.
II. Deepening Two-way Trade and Investment Cooperation
15) Canada and China will deepen bilateral trade and investment ties by exploring new opportunities in sectors of mutual interest and foster a fair and transparent business environment for their companies.
16) In order to deliver the goal of doubling two-way trade by 2025 based on 2015 statistics, as affirmed by the Prime Minister of Canada and Premier of China in their back-to-back visits in 2016, the two countries will build on the success of Canada’s participation in the China International Import Expo 2018 and the Atlantic Canada Growth Strategy mission to China to support increased trade and business missions.
17) We welcome companies from both countries to undertake two-way investment. In recognition of the launch of Chinese reforms and and China’s opening-up policy, both initiated 40 years ago, Canada looks forward to the timely implementation of announcements by China on further market opening. The two sides reaffirm their commitment to protecting and promoting investment in accordance with the Foreign Investment Protection and Promotion Agreement (FIPA). Canada and China agree to foster an open, fair, transparent and non-discriminatory investment environment.
18) Canada and China will establish a bilateral investment council convening business executives annually to exchange views on investment and deliver recommendations to the EFSD.
19) The Standards Council of Canada (SCC) and the Certification and Accreditation Administration of the People’s Republic of China (CNCA) aim to finalize an agreement to establish a process for the mutual recognition of conformity assessment results to facilitate bilateral trade in 2019.
20) Both sides agree to deepen cooperation on trade-related IP issues under the Intellectual Property Working Group that reports to the Canada-China Joint Economic and Trade Committee.
21) Both sides agree to strengthen cooperation on patents, trademarks and geographical indications between the National Intellectual Property Administration of China and the Canadian Intellectual Property Office.
III. Enhancing Cooperation in Priority Sectors
22) Canada and China agree to deepen their strategic relationship in priority sectors, making further use of bilateral mechanisms and platforms to enhance cooperation.
23) Both sides agree to provide a favourable environment and strive to achieve the goal of doubling agricultural trade by 2025.
24) Both sides agree to enhance existing engagement mechanisms, including the Canada-China Joint Economic and Trade Committee and the Canada-China Joint Agriculture Committee, to facilitate information sharing and resolve trade irritants in order to enhance Canada-China agricultural relations.
25) Canada and China agree to strengthen the longstanding exchanges and cooperation in two-way trade of meat, grains, oilseeds, pulses, vegetables, fruits, dairy, fish and seafood, livestock and other products.
26) Both sides agree to encourage businesses from the two countries to explore the possibility of long-term commercial supply arrangements in key agricultural commodities.
27) Canada and China agree to carry out approval processes for biotechnology products that are of significant interest for bilateral trade, based on laws and regulations in a scientific and timely manner while enhancing information exchanges.
28) Canada and China agree that it is necessary to have further discussions on an agreement on animal health and animal quarantine.
29) Both sides agree to strengthen science and technology cooperation in beef cattle, dairy, fisheries, pulses, oat, oilseeds and other areas, and make further use of platforms and mechanisms including the Canada-China Joint Agriculture Committee, Canada-China Agricultural Innovation Roundtable, the Canadian Food Inspection Agency–Ministry of Agriculture of China Working Group on Agricultural Biotechnology, and other mechanisms to enhance Canada-China cooperation in agriculture.
30) Canada and China commit to continued cooperation in the energy and other natural resource sectors to lead the global transition to a lower-carbon economy.
31) Canada welcomes Chinese investment in LNG Canada, the first large-scale LNG export facility in Canada and the single largest private sector investment project in Canadian history. Both sides recognize the potential of Canadian clean energy to contribute to China’s efforts to further optimize its energy mix and provide a clean low-carbon and sustainable energy system.
32) The two sides agree to hold the first round of the Canada-China Clean Energy Ministerial Dialogue and to consider the recommendations of the Track Two Energy Dialogue report.
33) Both countries commit to working together to increase trade and cooperation in green mining, geosciences, renewable energy, energy efficiency, oil and gas (including LNG), and nuclear power through commercial cooperation, as well as trade and development of uranium resources.
34) Both countries agree to continue the application of sustainable technologies and products that will reduce carbon emissions to achieve sustainable development and to address climate change for cities and buildings in the development of the Sino-Canadian eco-district in Tianjin or within other demonstration projects in eco-cities (districts) of China.
35) Both countries agree to enhance commercial and safety cooperation in aviation, including working towards a Bilateral Aviation Safety Agreement (BASA), as well as cooperation in regional aircraft equipment and related training, technical support and Maintenance, Repair and Overhaul (MRO).
36) Canada and China commit to appropriately managing air traffic rights to ensure effective support of the two countries’ goal of doubling two-way visits by 2025, based on 2015 statistics.
37) Recognizing the importance of global value chains and new emerging technologies impacting industry, Canada and China are open to policy discussions on advanced manufacturing.
38) Both sides will maintain communication on the designation of Canada as Country of Honour for the China Annual Conference for International Education & Expo 2020.
39) We agree to work together on supporting a successful Beijing 2022 Olympic Winter Games by actively promoting the popularity and development of winter sports in China, including the sharing of expertise for the development of winter sports infrastructure, training, and winter tourism to Canada.
40) Building on the success of the 2018 Canada-China Year of Tourism, China and Canada will continue to host culture and tourism promotional events, especially winter tour events, in both countries to further promote two-way visits and mutual understanding between the Chinese and Canadian people.
IV. Deepening Financial Cooperation
41) The two sides commit to deepening partnerships in the area of financial services and financial sector regulation in order to enhance opportunities for financial institutions and regulatory cooperation. These include:
42) Canada and China welcome efforts to increase foreign financial institutions participating in the further opening up of both financial sectors, in accordance with respective laws and rules.
43) Both sides agree to enhance cooperation in financial supervision by signing a Memorandum of Understanding on Cross-border Supervisory Cooperation between the China Banking and Insurance Regulatory Commission (CBIRC) and Canada’s Office of the Superintendent of Financial Institutions (OSFI).
44) China and Canada welcome efforts by the Shenzhen Stock Exchange (SZSE) and the Toronto Stock Exchange (TSX) to establish a cross-border financing mechanism for innovation enterprises, which will facilitate cross-border capital formation, and encourage SZSE and TSX to explore and conduct cooperation in product innovation, among other areas, in order to provide comprehensive service for cross-border investment and financing activities.
45) China welcomes the issuance of Panda Bonds and Green Panda Bonds by qualified Canadian financial institutions and enterprises, and welcomes the participation of Canadian investment in the Chinese bond trading market.
46) Canada and China agree to convene a Financial Sector Policy Dialogue in 2019 to deepen regulatory cooperation.
47) Canadian and Chinese authorities will continue to explore opportunities for cooperation, mutual assistance, and information sharing in respect of audit inspection and supervision. In addition, both sides will continue to discuss cooperative arrangements that will facilitate the sharing of auditing information and cross-border bond issuances by financial institutions and enterprises.
48) Canada’s Office of the Superintendent of Financial Institutions (OSFI) is reviewing the application of the Industrial and Commercial Bank of China and the Bank of Communications to open branches in Toronto and the application of the Agricultural Bank of China to open a branch in Vancouver, and will provide a recommendation to the Ministry of Finance at the earliest opportunity at the conclusion of the review.
49) Both sides agree to strengthen cooperation and communication in green finance and digital currency. China and Canada will jointly study the ways to enable better cooperation on green finance in light of the economic and industrial development in both countries, and engage in exchanges on issues related to digital currency.
50) Both sides agree to promote information sharing on regulatory frameworks regarding payment service and financial service innovation, with the aim to increase regulatory efficiency and fend off regulatory arbitrage.
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