Beyond China, Canadian foreign policy snags beckon

Significance

Canada detained Meng in December at US officials’ request, in connection with inquiries about possible efforts to circumvent US sanctions on Iran. Meng, who denies any wrongdoing, is Chinese tech giant Huawei’s chief financial officer. Her arrest and subsequent arrests of Canadians in China have sparked fears over the China-Canada relationship. More broadly, this is another instance of a pushback against Canada’s commitment to the rule of law in foreign policy.

Impacts

• Canada’s pro-human rights stance could see spats with other countries.
• Canada could face economic-related pushback from China (or other countries).
• Canada will ban Huawei from partaking in Canadian 5G mobile networks.
• Prospects for a Canada-China free trade deal are poor, absent improved relations.
• Ottawa-Washington ties are warmer now after some upset under Trump but could worsen over the USMCA.