China says Canadian trade deal not aimed at US; India fetes EU ahead of trade deal

by AFP Staff Writers
Beijing (AFP) Jan 26, 2026

China said on Monday that a preliminary trade deal with Canada "does not target any third parties" after the United States threatened to impose 100-percent tariffs on Canadian products if the agreement were finalised.

Under the deal, announced this month, Beijing is expected to reduce tariffs on Canadian canola imports and grant Canadians visa-free travel to China.

But over the weekend, the United States -- Canada's traditional ally -- threatened to impose 100-percent tariffs on Canadian products if the deal were to go ahead, saying it would allow China to "dump goods".

China's foreign ministry spokesman Guo Jiakun said on Monday that the trade deal was not aimed at Washington.

"China and Canada have established a new type of strategic partnership... it does not target any third party," China's foreign ministry spokesman Guo Jiakun told a regular press conference.

"China advocates that nations should approach state-to-state relations with a win-win rather than zero-sum mindset, and through cooperation rather than confrontation," he added.

The deal was announced during Canadian Prime Minister Mark Carney's visit to Beijing this month, as he seeks to distance himself from a volatile United States under President Donald Trump.

Canada and the United States have been caught in a trade war since the Trump administration imposed import duties on its northern neighbour.

On Sunday, Trump wrote on social media that negotiations between Ottawa and Beijing amounted to China "successfully and completely taking over the once Great Country of Canada".

Following the president's comments, US Treasury Secretary Scott Bessent told US media that "we can't let Canada become an opening that the Chinese pour their cheap goods into the US".

India fetes EU at Republic Day parade ahead of trade deal
New Delhi (AFP) Jan 26, 2026 - European Union leaders joined India's Republic Day parade as the guests of honour on Monday, a day before New Delhi and Brussels are expected to seal a long-awaited free trade agreement.

Military bands and horse and camel cavalry units paraded through capital New Delhi, while fighter jets buzzed overhead and India's latest military hardware was put on display.

"The occasion inspires us in our collective resolve to build a developed India," Prime Minister Narendra Modi said before the parade.

The fanfare also featured Indian air defence systems -- including missiles and drones -- that were deployed in the four-day conflict with arch-enemy Pakistan last year.

European Council President Antonio Costa and European Commission President Ursula von der Leyen are both in attendance, before an EU-India summit Tuesday, when the two sides are widely expected to announce a landmark free trade deal and security partnership.

They had been working on a trade agreement for over a decade before US President Donald Trump's trade tariffs pushed India and the 27-nation EU to expedite their efforts last year.

Republic Day marks the adoption of India's post-independence constitution in 1950 with the parade staged along a colonial-era boulevard that also hosts important government buildings.

The annual show is a colourful and tightly choreographed spectacle that also features floats from different Indian states to highlight the diversity of the country's 1.4 billion people.

India is on track to become the world's fourth-largest economy this year, according to International Monetary Fund projections.

Bilateral India-EU trade in goods reached 120 billion euros ($139 billion) in 2024, an increase of nearly 90 percent over the past decade, according to EU figures, with a further 60 billion euros ($69 billion) in trade in services.

The pact would be a major win for Brussels and New Delhi as both seek to open up new markets to counter US tariffs and Chinese export controls.

While the EU sees India as an important market, New Delhi sees Brussels as an important source of much-needed technology and investments to rapidly upscale its infrastructure and create millions of new jobs for its people.