Canadians are exporting more to China, probably because of the tariffs between the United States and China.
Chinese tariffs on U.S. soybeans are, for example, probably driving the increase in Canadian exports of canola. Wool is another commodity showing a big increase.
Statistics Canada reports that exports to China surged by 23 per cent in the period from April to August and were worth almost $2 billion.
Since then the two countries have imposed more tariffs on each other.
Canadians are also negotiating sales of potash and uranium to China and the Chinese have signalled they are interested in free trade negotiations.
However, the U.S. is trying to keep other countries from increasing trade with China. As part of that effort, it included a restraint on exports of skim milk powder in the new trade deal among Canada, the U.S. and Mexico. That will hit at plans to soon open a big plant in Kingston to export infant formula to China.
