On Wednesday, the federal government revealed that China is set to prolong its tariff-free treatment for select Canadian agricultural and seafood items for an additional two years.
Following Prime Minister Mark Carney’s visit to Beijing in January, an agreement was reached between China and Ottawa, resulting in a suspension of the 100 percent tariffs on Canadian canola meal and peas, as well as a 25 percent tariff on lobster and crab.
This agreement, which commenced in March, was initially intended to maintain the absence of tariffs on these products only until the conclusion of 2026.
“This extension provides farmers, producers, and harvesters with reliable access to the Chinese market, and it’s part of our strategy to increase our exports to China by 50 percent by 2030,” stated International Trade Minister Maninder Sidhu.
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Canada reaches tariff-quota deal with China on EVs, canola
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During Carney’s January visit, he also succeeded in negotiating a reduction of tariffs on canola seed imports from 100 percent to approximately 15 percent for a duration of five years.
As the leading global exporter of canola, Canada views China as its second-largest market, following the United States.
At the time of signing the original agreement, Carney made his own concessions, permitting up to 49,000 Chinese electric vehicles per year into the Canadian market at a tariff rate of 6.1 percent.
Fisheries Minister Joanne Thompson announced on Wednesday that China’s tariffs on Canadian lobster and crab will be lifted for an additional two years. ‘I’m pleased the [fishing] industry gets this support and we’ve got certainty going forward,’ Thompson noted.
This reduced the tariff on Chinese-made electric vehicles from the 100 percent rate established by the Trudeau administration in 2024. In response, China had increased its tariffs on Canadian exports.
The agreement made in January also allowed Canada to enhance market access for specific Chinese steel and aluminum products that are scarce domestically and cannot be produced by Canadian manufacturers.
Furthermore, the federal government announced on Wednesday that it will prolong access to these steel and aluminum products until the end of 2028.