China and Canada are expected to initiate talks for a possible free-trade agreement. Canadian Prime Minister Justin Trudeau made this announcement on Thursday. Chinese Premier Li Keqiang is currently on a four-day visit to Canada.

At a joint press conference in Ottawa, the two leaders said that they are looking forward to doubling the volume of trade between the countries by 2025. According to Reuters, both the countries have settled their trade dispute. They also agreed to solve a dispute related to exports of Canadian canola to China.

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A trade deal between China and Canada is likely to provide a fillip to the Canadian economy, which is suffering from declining oil prices and slow growth rate. China is Canada's second-largest trade partner, after the United States.

According to the Financial Post, the bilateral trade between the countries grew by more than 10 percent on a year-over-year basis in 2015 to $85.8 billion.

During Canadian Prime Minster Trudeau's visit to China in August, both the countries signed more than 60 commercial deals. Trudeau also announced four business deals including a joint venture to develop, build, and market nuclear reactors. The deal involves China National Nuclear Corp, Shanghai Electric Group Co Ltd., and SNC-Lavalin Inc.

China has also agreed to continue to import Canadian canola. China accounts for about 40 percent of Canadian canola exports. However, authorities in Beijing are looking to place tough restrictions on canola imports from Canada. Canada's total canola imports to China was valued at $2 billion last year.

TagsJustin Trudeau, Li Keqiang, china, Canada, Canadian canola