Canada and South Korea have agreed to cooperate on supply chains of critical minerals needed for electric vehicles as the two countries work to strengthen their economic ties and reduce their dependence on China.
“China remains a big player in the global economy,” Prime Minister Justin Trudeau said Wednesday in Seoul during a joint press conference with South Korean President Yoon Suk Yeol.
“There are places, such as on climate change, where we will work with China as we did at COP15 in Montreal, there are issues on which we will compete with China for market share, on international trade,” he continued.
But at the same time, he warned that Canada “will challenge China”, particularly on human rights and the international order.
Prime Minister Trudeau, on his first official visit to South Korea, signed a memorandum of understanding on critical minerals, clean energy transition and energy security, which he says will mean more investment and trade for Canada.
The Prime Minister’s Office says the two countries can play a “leading role” as “reliable partners” when it comes to the electric vehicle supply chain and the critical minerals needed to manufacture their batteries.
Both countries have released Indo-Pacific strategies over the past year, which provide roadmaps for strengthening military and economic relations in the region to counterbalance Beijing’s influence.
Negotiations with Stellantis
The announcement comes as Canada’s federal government clashes with automaker Stellantis, which has halted construction of an electric vehicle battery plant in Windsor, Ontario, in partnership with the South Korean battery maker. LG Energy Solutions.
The companies jointly wrote to Mr. Trudeau last month, when Volkswagen announced it had reached an agreement to set up a battery plant in St. Thomas, Ont.
Under the deal, Canada offered a capital contribution of $700 million and $8 billion to $13 billion in production subsidies to match what Volkswagen would get in production tax credits under U.S. law. on reducing inflation.
The federal government has said it is negotiating with Stellantis, but wants Ontario to contribute more than the $500 million in capital costs the government has put on the table.
Mr. Trudeau had little to add when questioned on the subject in Seoul.
“Canada has succeeded in creating great middle-class jobs across the country thanks to investments from partners around the world. We will continue to do so,” he said.
Mobility and North Korea
Mr. Trudeau also concluded a new agreement on youth mobility, with an annual quota of 12,000 people, which he said will provide new opportunities for young people to work in both countries.
“We welcome thousands of Korean students to our universities every year and now we want to do even more,” the premier said.
Canada and South Korea are also committed to working together to advance human rights in North Korea. Trudeau said the government would continue to support human rights organizations across the country.
“We continue to deplore regular military activities, including nuclear missile testing by North Korea, which not only destabilizes the region, but threatens the security of the entire world,” he said.
He recalled what Canada is doing to enforce the maritime sanctions against North Korea within the framework of Operation NEON.
Trudeau’s warnings
Earlier Wednesday, Trudeau delivered a speech to South Korea’s National Assembly, where he warned that authoritarianism was gaining ground around the world.
In his 23-minute speech delivered almost entirely in English, the head of the Canadian government added that antagonistic countries take advantage of economic interdependence to their own geopolitical advantage.
Trudeau told parliamentarians the world faces uncertainty as countries recover from the COVID-19 pandemic, while economic anxiety and climate change add stress to people’s lives.
He argued that Canada and South Korea can be partners in the fight against climate change, which he says is also a way to guard against geopolitical instability and build more resilient economies.