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Free trade deal with China could raise billions for Canada annually: expert

A FREE trade agreement between Canada and China could potentially pump "billions and billions of dollars" into the sagging Canadian economy annually, according to director of the Canada Institute at the Wilson Centre in Washington, Laura Dawson, who has co-authored a study on the benefits of a such an FTA.

Canada is not currently engaged in free-trade negotiations with China. However, a Foreign Investment Promotion and Protection Agreement (FIPA) is in place between the two nations, which is aimed at protecting and promoting foreign investment through legally-binding rights and obligations.

Speaking to Canada's CTV News, Ms Dawson pointed out that many sectors of the Canadian economy would profit from the diversification that would come with a Canada-China free-trade deal, including agri-food, such as pork, canola, lumber and insurance.

Ms Dawson also said there is no need to worry about the effects of a free-trade deal with China on Canada's relationship with its closest partner - the US.

"The United States already has a high level economic dialogue and framework with China. It's working quite well," said Ms Dawson. "It's way ahead of the level of cooperation that Canada and China have so I don't think that we would put ourselves in an antagonistic position vis-a-vis the United States."

The comments come as Canadian Prime Minister Justin Trudeau's government is preparing for a major trade mission to China and India that is expected to take place in March.