After the recent Canadian election, Canada's national and provincial leaders have focused on plans to increase inter-provincial trade and deal with economic threats from the United States, but improving trade relations with China and dealing with trade irritants have also been important issues.

At a meeting of the WTO's Dispute Settlement Body on Friday, a panel requested by China against Canadian import taxes was blocked, and a panel requested by Canada against Chinese tariffs was removed from the agenda. These moves constitute brief delays and both panels will still be established

In a WTO complaint brought by Canada, China has contested Canada's declaration of the complaint as an "urgent" one meriting shorter timeframes.

This week, Canada and China both filed requests for WTO panels in complaints against each other, setting the stage for the WTO's Dispute Settlement Body to establish panels to hear the complaints.

China has filed a request for consultations with Canada at the WTO related to Canada's potential tariffs on batteries and battery parts, semiconductors, solar products, and critical minerals, adding to its existing WTO dispute on Canadian tariffs on Chinese imports.

Over the weekend, Beijing concluded its first anti-discrimination investigation, related to Canada's tariffs on Chinese EVs, steel and aluminum, and other products, and announced retaliatory tariffs on Canadian agricultural goods and seafood.

Last week, the Canadian government sanctioned eight Chinese officials and former officials. This could trigger another round of retaliatory sanctions, as past experience shows that China has responded to foreign sanctions with its own countermeasures, especially since the enactment of its Anti-Foreign Sanctions Law.