OTTAWA - Prime Minister Stephen Harper and Chinese President Hu Jintao committed to forging even deeper economic ties between their two countries Thursday and trade relations took a significant step forward with the announcement that China will resume importing Canadian beef.
The agreement that allows Canada to regain access to the Chinese market was among several accords signed by the two leaders during the first full day of the Chinese president's visit to Canada.
China closed off its market to Canadian beef in 2003 following Canada's first case of Bovine Spongiform Encephalopathy (BSE), or mad cow disease. Canada's beef exports to China will resume in a staged approach and once full market access is achieved, the trade will be worth an estimated $110 million.
"This welcome announcement is extremely important to our industry," Harper said during a speech at a dinner hosted by the Canada-China Business Council to mark 40 years of diplomatic relations.
Hu and Harper held a bilateral meeting earlier in the day but there was no joint news conference afterwards as is normally custom when a foreign leader visits.
Some of Harper's remarks to the business-focused audience, which also included dignitaries such as former prime minister Jean Chretien, resembled a sales pitch with Harper touting the strengths of Canada's industries and all they have to offer to China's increasingly open market.
"China's economic engine needs fuel - resources to power and supply its factories and food to feed its workers. Canada has an abundance of natural and agricultural resources to share with China," Harper said.
The Chinese president agreed with Harper during his own speech, acknowledging that Canada has rich resources and noting that China has a "stable, reliable and most promising consumer market."
Hu said his country's economy is shifting to a more environmentally friendly one and that China can draw on Canada's leadership in the green technologies sector.
He also outlined how countries should co-operate to achieve the full recovery of the world's economy.
"China and Canada must take concrete actions to resist protectionism and uphold an open, fair and just economic and trade system in the world," he said through a translator.
Global economic recovery and trade relations will be on the agenda this Saturday when Hu participates in the G20 summit in Toronto.
At the meeting, Hu is expected to come under renewed pressure to take actions to address China's huge trade imbalance with the rest of the world by shrinking its exports and growing its imports.
The Chinese leader said that 40 years of diplomatic relations with Canada have brought tangible benefits to both countries and while he noted there are many differences between the two countries, "our common interests far outweigh our differences."
Harper noted that Canada and China, a frequent target of criticism for its human-rights record, have begun a "frank" dialogue about democracy, human rights and the rule of law.
While in Ottawa, Hu and Harper oversaw the signing of a handful of Canada-China agreements to co-operate on food protection and fighting crime, promote Chinese tourism to Canada and set up a working group on environmental protection and energy development.
Hu began the day Thursday with a red-carpet welcome from Gov. Gen. Michaelle Jean at Rideau Hall.
Hu's entourage was met at most stops by crowds of cheering supporters, many of whom were students who had been bused to Ottawa at Chinese government expense from universities in Montreal and Toronto.
"I want to see my president, I am proud of him," said Chen Yunlv, a business student at Concordia University in Montreal.
"We hope for a better relationship with Canada."
A smaller group of protesters connected to the Falun Gong spiritual movement - which is banned in China - held banners denouncing the Chinese government's human-rights record.
On Parliament Hill, the competing groups endured a major downpour waiting for Hu to arrive for a private meeting with Harper.
On the downside, Hu's visit coincides with swirling controversy over public comments by Richard Fadden, Canada's top spy, that overly close relations with foreign governments had compromised two provincial cabinet ministers and many municipal politicians. Fadden didn't name the politicians or the country, but it is widely believed he was talking about China.
Accused of smearing all politicians, the head of the Canadian Security and Intelligence Service tried to back off from those comments Wednesday. He issued a statement saying the cases were not seen as serious enough yet to report to the federal government or to the other governments affected.
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