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Canada signs deal to re-engage China

(Reuters)
Updated: 2007-01-16 14:51

Canadian Trade Minister David Emerson signed a science and technology deal with China on Tuesday at the opening of a trip aimed at reinvigorating trade and investment with the Asian superpower.

The agreement, signed with Chinese Science and Technology Minister Xu Guanhua, is to boost collaborative research and development, particularly in the areas of energy, the environment and green technologies.

"We are looking forward to using this as a powerful vehicle for broadening our relationship with China on science, on technology and on the commercialization of science and technology," Emerson told a news conference.

Emerson will be joined by Canadian Finance Minister Jim Flaherty on Wednesday in the highest-level mission to China since the Conservatives under Prime Minister Stephen Harper took office a year ago.

Critics blame Harper for a lapse in relations between Canada and China after his blunt criticism of Beijing's record on human rights, which nearly scuttled his meeting with Chinese President Hu Jintao on the sidelines of the APEC forum in November.

Analysts said talking about human rights and trade deals did not have to be mutually exclusive.

"I don't think a discussion of human rights has had a lot of impact on Canadian business," said Howard Balloch, head of The Balloch Group investment advisory firm and a former Canadian ambassador to Beijing.

"I think the 'illogic' is to suggest that we are in an either or situation," he said.

But he added that the lack of high-level delegations from Canada in the past year had dented ties.

"I think the fact that it took a long time sends a message of a lack of enthusiasm about seriously engaging on matters of bilateral interest," Balloch said.

Emerson shrugged off suggestions the trip was about making up with China, saying the two countries had a "close and quite deep relationship" that Canada needed to better leverage into trade and investment opportunities.

"To me, it's more about moving from a plateau, where we seem to have leveled out, to putting it on a whole new trajectory," he said.



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