China no Panacea for Canada's U.S.-Dependent Economy

TORONTO -- Wrapping up a trip to China last week, Canadian Prime Minister Stephen Harper described the visit as “very successful.” The trip saw the signing of a number of trade deals worth an estimated $3 billion in oil, natural gas, minerals and other products. But though it also ended with the commissioning of a feasibility study into the possibility of a free trade agreement between the two countries, Harper was quick to advise caution on what remains a long-term goal.

That the two economies need each other is not in question. With bilateral trade valued at $50 billion in 2011, China is Canada’s second-biggest trade partner, after the U.S., and the country’s third-largest export market, after the U.S. and Mexico. ...