Canada’s canola industry poised for recovery under renewed China trade partnership
Canada has secured a significant agricultural trade breakthrough with China, headlined by a dramatic reduction in tariffs on Canadian canola seed, as part of a newly announced strategic partnership between the two countries.
The agreement follows Prime Minister Mark Carney’s visit to Beijing this week — the first by a Canadian prime minister since 2017 — where he met with Chinese President Xi Jinping and senior Chinese leadership. The two leaders released a joint statement outlining a renewed Canada-China partnership, with agriculture positioned as a central pillar.
China to Slash Canola Seed Tariffs in 2026
At the core of the agreement is a preliminary deal to sharply reduce Chinese tariffs on Canadian canola seed, one of Canada’s most valuable agricultural exports.
By March 1, 2026, China is expected to lower combined tariffs on Canadian canola seed to approximately 15%, down from current levels near 85%. China represents a $4-billion market for Canadian canola producers, making the tariff reduction one of the most consequential agricultural trade developments for Canada in recent years.
The move is expected to restore competitiveness for Canadian farmers and exporters while stabilizing a sector that has faced prolonged trade barriers in recent years.
Broader Relief for Canadian Agri-Food Exports
In addition to canola seed, Canada expects that canola meal, lobsters, crabs, and peas will be exempt from relevant anti-discrimination tariffs beginning March 1, 2026, until at least the end of the year. The government also anticipates progress on resolving long-standing trade obstacles affecting other agricultural sectors, including beef and pet food.
Together, the agricultural measures are projected to unlock nearly $3 billion in new export orders, benefiting Canadian farmers, processors, and rural communities across the country.
China is Canada’s second-largest export market overall and the country’s second-largest customer for agriculture, forest products, and seafood, with agricultural sales totalling approximately $13.4 billion in 2024.
Agriculture at the Centre of Renewed Engagement
Prime Minister Carney described the agreement as a turning point in the Canada-China relationship, emphasizing agriculture and agri-food as foundational to renewed cooperation.
“At its best, the Canada-China relationship has created massive opportunities for both our peoples. By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations,” Carney said.
During the visit, Canada and China also signed new memorandums of understanding to strengthen cooperation on food safety, animal and plant health, and agricultural trade — measures designed to provide greater certainty for exporters and regulators in both countries.
Building on the agricultural gains, Canada has set a goal of increasing total exports to China by 50% by 2030, with agri-food expected to play a central role. Leaders discussed expanding two-way investment in agri-food processing, supply-chain resilience, and value-added agricultural products.
The agreement also aligns with Canada’s broader effort to diversify trade partnerships while reinforcing its position as a reliable global supplier of high-quality agricultural commodities.
Prime Minister Carney said he looks forward to returning to China for the 2026 APEC Leaders’ Summit, underscoring continued engagement aimed at translating tariff reductions into long-term market access for Canadian farmers.
