Canada and China have agreed to extend tariff relief on Canadian canola meal, peas, and other agricultural products through the end of 2028, providing greater certainty for exporters following a prolonged trade dispute between the two countries.
International Trade Minister Maninder Sidhu announced the two-year extension Wednesday following meetings in Beijing.
The agreement maintains the suspension of China's 100% retaliatory tariff on Canadian canola meal, which was originally scheduled to return at the end of December. The extension also covers field peas, lobster, and crab.
The latest development builds on a preliminary trade agreement reached during Prime Minister Mark Carney's visit to China in January, which resulted in significant tariff reductions taking effect March 1.
The dispute began after Canada imposed a 100% tariff on Chinese electric vehicles and 25% duties on Chinese steel and aluminum in October 2024. China responded in March 2025 with 100% retaliatory tariffs on Canadian canola meal, canola oil, and peas.
Beijing also launched an anti-dumping investigation into Canadian canola seed, eventually imposing a provisional 75.8% duty in August 2025, on top of an existing 9% import tariff. China maintained that Canadian canola was being sold at unfairly low prices, damaging its domestic industry. Canada disputed the allegations.
Following the January agreement, China lowered its anti-dumping duty on Canadian canola seed to 5.9%, effective March 1, bringing the combined tariff to 14.9%, down from almost 85%.
That reduced duty was established for five years, separately from Wednesday's extension covering canola meal and other products. Meanwhile, China's 100% tariff on Canadian canola oil remains in place. Following Carney’s visit in January, China also restored market access for Canadian beef.
Sidhu said the extension provides Canadian farmers and exporters with more predictable access to the Chinese market.
In exchange, Canada will extend existing tariff remission measures for certain Chinese steel and aluminum products not manufactured domestically.
China remains a major destination for Canadian agricultural exports, particularly canola.
