“By March 1, 2026, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15%. China is a $4 billion canola seed market for Canadian producers, and this change represents a significant drop from current combined tariff levels of approximately 85%.”
It goes on to say, “Canada expects that Canadian canola meal, lobsters, crabs, and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of this year.”
These changes could unlock billions of dollars in new export opportunities for Canadian producers and workers.
However, no specific mention of canola oil or pork in the official media release.
A central focus of the partnership is cooperation in energy, clean technology, and climate competitiveness. Both countries say they aim to reduce emissions while increasing investment in batteries, solar, wind, and energy storage. Meetings with business leaders highlighted opportunities to attract Chinese investment into Canada’s clean energy sector.
The agreement also includes changes affecting electric vehicles. Canada will allow a defined number of Chinese electric vehicles (6.1%) to enter the Canadian market at a lower tariff rate. According to the media release, the rate of 6.1% “corresponds to volumes in the year prior to recent trade frictions on these imports (2023-2024), representing less than 3% of the Canadian market for new vehicles sold in Canada.”
This move is expected to support new joint ventures in Canada, strengthen the domestic EV supply chain, create manufacturing jobs, and provide more affordable electric vehicle options for Canadian consumers.
Canada had 100% tariff on EVs, which is what sparked the tariffs on canola.
Looking ahead, Canada has set a goal to increase exports to China by 50 percent by 2030.
The partnership includes plans to expand cultural exchanges and tourism. An agreement between Destination Canada and China Media Group aims to promote travel, alongside new visa-free access for Canadians visiting China.
The Canadian Federation of Agriculture (CFA) issued a statement saying it welcomed the announcement. “These advancements are promising, demonstrating significant progress.This sets the foundation for continued dialogue to resolve outstanding trade barriers and foster a more predictable trade environment for Canadian farmers,” said Keith Currie, CFA President.
Grain Growers of Canada (GGC) also issued a statement in support. The GGC media release concluded with the following statement.
"Grain Growers of Canada urges the federal government to keep agriculture front and centre, work closely with producers and exporters, and ensure that progress translates into reliable market access at the farm gate."
"Canadian grain farmers are ready to supply global markets. What they need from government is consistency, certainty, and a clear commitment to keeping trade working."
Alberta Pork echoed that sentiment in a statement, "While we continue to work on barriers facing the pork sector, what we’re really seeking is consistency in our trading relationships, and we think this reset is a positive move in that direction."
"The hard work is just beginning, but we look forward to working with our partners in Canada and in China to find new ways of working together that will benefit both our countries."
Photo Credit: PMO’s Office