Canada and China Extend Tarutiff Cuts on Canola Meal, Peas Through 2028

Canada and China will keep lower Chinese agricultural tariffs on Canadian canola meal, peas, lobsters and crab in place through the end of 2028, under an extension announced in Beijing on Wednesday.

International Trade Minister Maninder Sidhu said in a news release that the two countries agreed to the extension at a meeting co-led by China's Commerce Minister Wang Wentao. The original arrangement dates to January, struck during Prime Minister Mark Carney's visit to China — the first by a Canadian leader since 2017. That visit also restored Chinese market access for Canadian beef.

"Canada will continue discussions with China to identify opportunities to deliver on the government's target of increasing Canadian exports by 50% to China," the government said in the release. The figure is a target, not a result; the release set no timeline and named no specific commodity volumes to back it.

What does the extension change for Canadian exporters?

The direct effect is a two-year runway of tariff relief on four Canadian export lines: canola meal, peas, lobsters and crab. For canola crushers and pulse growers, the extension preserves the pricing terms secured in January rather than opening new ones.

The deal runs in both directions. Canada will extend to the end of 2028 certain remission measures — effectively tariff waivers for importers — covering Chinese steel and aluminum products not made in Canada. In January, Canada also agreed to import a quota of Chinese electric vehicles at a reduced tariff rate.

No new tariff lines were announced in Wednesday's release beyond the extension itself.

Why is the deal landing now?

The announcement came a day after US President Donald Trump's Republican Party suffered heavy losses in the US midterm elections. Canada and China have strengthened ties following years of diplomatic strain, amid Trump's tariff measures against both trading partners.

Carney's office said he will travel to China for the APEC meeting in the southern city of Shenzhen, set for Nov. 18–19. His trip will also include stops in Ireland, the Philippines and Cambodia.

The timing also reflects a divergence with Europe. On Tuesday, Bloomberg News reported that the European Union was considering changes to rules as part of a strategy to manage economic security risks and tighten loopholes to better protect the bloc's single market. Canada is expanding trade ties with China as the EU takes a tougher line with Beijing on commerce.

What is not in the deal?

The release pledges continued discussions but commits to no new access for Canadian wheat, pork or other commodities beyond the beef restoration agreed in January. The 50% export-growth target remains a stated goal without published baselines or milestones in the announcement.

The energy file moves separately. Earlier this year, the Carney government committed to jointly back, with the province of Alberta, a new oil pipeline to the west coast that would feed Asian markets — infrastructure that would deepen the same westward trade orientation, though it is not part of the tariff agreement.

The takeaway

Canadian canola, pulse and seafood exporters now have tariff certainty in China through 2028; whether the 50% export-growth target turns into volumes will depend on talks that have only just been pledged.