2016年CRI Chinese Premier Li Keqiang officially welcomes his visiting Canadian counterpart

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Wednesday's talks started following a welcome ceremony outside The Great Hall of the People at the center of Beijing.

After the meeting, Prime Minister Trudeau says the dialogue was very productive.

"We discussed how we can work together to create jobs, strengthen both of our economies, help our growing middle classes, and the growth in economies in general."

As one highlight from the meeting, China and Canada agreed to establish a mechanism¹ whereby the heads of the two countries' governments will continue bilateral² dialogues on a yearly basis going forward.

The two sides have also agreed to explore the possibility of set up a regular dialogue mechanism on rule-of-law and national security in the next few years.

China and Canada have already established more than 40 cooperation mechanisms³ at the governmental level.

But Premier⁴ Li Keqiang says there is still much more potential, when it comes to promoting cooperation between the two countries.

"We have much more room for cooperation in the high-tech⁵ sector⁶, in the agricultural sector. In the financial sector, our cooperation could be more comprehensive. That's why we both agree to launch a feasibility study on a China-Canada free trade agreement."

Amid a sluggish⁷ global economy, a free trade agreement is exactly what is needed between Canada and its second largest trading partner, China.

Official data from Canada show its bilateral trade volume with China saw a year-on-year contraction⁸ of 5 percent in 2015.

Before starting serious talks on a free trade agreement, the two sides have one trade dispute to deal with.

China is planning to impose tougher quality regulations on canola imported from Canada, in efforts to prevent the transmittance of a specific disease via the Canadian culture.

The move is not what Canada would like to see, as it is expected to affect a large proportion of Canadian canola famers, who rely on the Chinese market for 40 percent of their export.

According to the original plan, the new regulations were to take effect on September 1st.

China has agreed to postpone⁹ them after Wednesday's meeting between Li Keqiang and Justin Trudeau.

Premier Li says China has no intention of closing its doors on canola trade with Canada.

"We hope producers and dealers¹⁰ in Canada will ensure the quality of the products for import to China. Ultimately, we should let the market decide whether a product is welcome or not. It is the same when it comes to Chinese exports."

It's expected the two sides will work hard to hammer out a solution to the dispute in the weeks ahead.

Prime Minister Trudeau embarked¹¹ on his week-long official visit to China on Tuesday, alongside attending the G20 leaders' meeting in eastern China's Hangzhou.

He will also travel to Shanghai and Hong Kong as part of his first China tour as prime minister.

For CRI, this is Ding Heng.