Podcast Summary: Marketplace Morning Report

Episode: Can Canada and China repair their relationship?

Date: January 16, 2026

Host: Guy Kilty (BBC World Service)
Guests: James Griffith (Asia correspondent, Globe and Mail), Sonja Mitchell (Jumpship Brewery), Martin Lodewijks (IWSR), Jonny Forsyth (Mintel)

Main Theme

This episode centers on the newly announced strategic partnership between Canada and China, exploring its economic significance, political context, and the broader implications for both countries. The episode also briefly covers global oil market developments, a US-Taiwan trade deal, and the rising popularity of non-alcoholic drinks.

Key Discussion Points & Insights

1. Canada-China Strategic Partnership Announcement

[00:32 – 04:00]

Overview:

• Canadian Prime Minister Mark Carney and Chinese leader Xi Jinping unveil a new trade and cooperation agreement in Beijing.
• The deal includes cooperation on clean energy and fossil fuels, lower import tariffs, energy investment, and tourism initiatives (visa-free access).

Key Details:

• Electric Vehicles: Canada will allow 49,000 Chinese electric vehicles (EVs) to be imported annually (similar quota as in 2023 before tariffs).
• Canola Seed: China will drop significant tariffs on Canadian canola and other agricultural products, expected to open a $7 billion market for Canadian producers.
• Investment: Initial mention of increased Chinese investment in Canada, likely targeting energy but specifics are not fully disclosed.
• Tourism: Visa-free access for Canadians traveling to China.

Impact & Significance:

• The agreement is seen as “fairly significant, especially from the Canadian perspective” (James Griffith, 01:50).
• Canada makes a “relatively small concession” (EV imports) in exchange for major market access for its canola exports.
• Represents a major thaw after nearly a decade of strained relations, especially in the aftermath of:
  • The “two Michaels” incident (detained Canadians in China in retaliation for the arrest of Huawei’s Meng Wanzhou).
  • Tit-for-tat tariffs and allegations of foreign interference during the Trudeau era.

Notable Quotes:

• James Griffith (01:50):
  “Mr. Carney has reached an agreement where Canada will accept 49,000 Chinese EVs, which was the same as they were accepting in 2023 before those tariffs came into force. And in return, China is dropping a lot of its tariffs on Canadian canola, which is a far more significant aspect or segment of Canada's economy.”
• James Griffith (03:01):
  “Mr. Carney said that the relationship has been distant and uncertain for nearly a decade. It really reached an incredible low point during the Trudeau administration ... So this has been a really, really tense relationship which has really hurt the economic relationship between the two countries.”

2. Quick Global Markets and Trade Update

[04:01 – 05:06]

• Oil Prices:
  Oil prices dropped over 4% as tension eased regarding a possible U.S. attack on Iran. (Iran mainly exports oil to China.)
• U.S.-Taiwan Trade Deal:
  • New agreement will reduce import taxes on Taiwanese goods to the U.S. (from 20% to 15%).
  • In return, Taiwan commits $250 billion in investment in the U.S., mainly in technology.

3. Trends in Non-Alcoholic Drinks & Dry January

[05:06 – 08:26]

On the Ground:

• Sonja Mitchell (Jumpship Brewery, Scotland) describes innovation in craft-brewing non-alcoholic beers.
• Growth in the alcohol-free sector, pioneered by craft producers, now includes major brands (e.g., AB InBev, Diageo, Pernod Ricard).

Market Trends:

• The rise in non-alcoholic beverages is due less to fad challenges like “Dry January” and more to:
  • Increased health consciousness among consumers.
  • Government campaigns against alcohol aiding this trend.

Industry Insights:

• Martin Lodewijks (IWSR):
  “The trend for non alk grew initially more in your developed markets... But over the last five years what's really changed is that you're now seeing really strong non alk growth coming out of emerging markets as well.” (06:00)

• Currently, non-alcoholic products make up about 1% of global drinks sales but are growing, with larger adoption in markets like Germany (~8.5% of beer sales).

• Jonny Forsyth (Mintel):

  • Campaigns like Dry January are less important than macro-trends toward health.
  • “Primarily those are consumers being much more conscious about their health and also governments realizing that drinking alcohol is problematic and puts a lot of pressure on their health systems and investing a lot of money in anti-drinks advertising.” (07:43)

Notable Quotes & Memorable Moments

• James Griffith (Canada-China deal, 01:50):
  “Canada is accepting a relatively small amount of Chinese cars in return for China accepting a huge amount of Canadian canola seed.”

• James Griffith (on diplomatic relations, 03:01):
  “Mr. Carney said new strategic partnership is the language he's used. He's talking about not even a reset, but a completely kind of new pathway for Canada, China ties.”

• Sonja Mitchell (Jumpship Brewery, 06:46):
  “We brewed a few different versions. One was terrible, one was okay and one was brilliant. So everyone I shared this beer with loved it.”

• Jonny Forsyth (future of non-alcoholic drinks market, 08:06):
  “If we take a market like Germany, our figures show that it accounts for 8.5% of all alcoholic beer sales... what it does show is that this has got significantly more runway to go.”

Timestamps for Important Segments

• 00:32 – 04:00: Canada-China partnership breakdown, historical tensions, and deal significance
• 04:01 – 05:06: Oil market movements, US-Taiwan trade deal overview
• 05:06 – 08:26: Non-alcoholic drinks innovation, market growth, and industry expert commentary

Tone & Style

The episode features Marketplace’s trademark concise, fact-based reporting infused with insightful commentary. Guests and hosts provide candid and clear analysis, often using plain language and direct attribution to sources or official statements.

Conclusion

This episode delivers a brisk but comprehensive update on a major turnaround in Canada-China trade relations, addresses shifting dynamics in global markets, and highlights broader consumer trends in health-conscious sectors. The information is accessible and engaging, making it a useful overview for listeners interested in global economics and business news.