Prime Minister Mark Carney and Chinese President Xi Jinping met in China on Friday, and, by all accounts, had a productive meeting that included reaching a preliminary agreement-in-principle on several agricultural commodities.
The Prime Minister's Office reports that by March 1, 2026, Canada expects China will lower tariffs on Canadian canola seed to a combined rate of approximately 15 per cent, down from the current 85 per cent rate, which includes a 75.8 per cent "anti-dumping" tariff that was levied in August 2025.
China's canola seed market is worth about $4 billion for Canadian producers, the second largest buyer of Canadian canola after the U.S.
Canada also 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.
Nearby canola futures rose more than $10/tonne in early trade on Friday.
"Together, these results will help unlock nearly $3 billion in export orders for Canadian workers and businesses as they realize the full potential of the massive Chinese market of 1.4 billion people," the PMO says in a statement.
In return, Canada is breaking with the U.S. position and lowering its tariff rate on Chinese-made electric vehicles to the "most favoured nation" rate of 6.1 per cent on the first 49,000 vehicles imported each year, in line with import volumes from 2023-2024. The number of vehicles allowed into Canada each year will then increase annually over the next five years.
There was no mention of China easing tariffs or restrictions on Canadian beef or pork following the Carney-Xi meeting.
As of early Friday, it remains to be seen how the White House and U.S. administration will respond to Canada's new friendliness with China, and how it will affect the upcoming review of the Canada-U.S.-Mexico trade deal.
Canada and China also signed six MOUs covering a range of industries and areas of jurisdiction, including natural resources, food safety, public safety, and culture. They also signed the Canada-China Economic and Trade Cooperation Roadmap. The food safety MOU involving the Canadian Food Inspection Agency was a renewal and was first announced during Agriculture Minister Heath MacDonald's trip to China in October 2025.
Carney has also extended an invitation to President Xi to visit Canada at a "mutually convenient time."
Read the full statement from the PMO here.
More coverage to come.
