China announced on Friday its decision to temporarily lift tariffs on certain Canadian agricultural products that were imposed during a trade dispute between Beijing and Ottawa. The move comes after Canadian Prime Minister Mark Carney reached an initial agreement with China during a visit in January.
Under the new arrangement, China will eliminate 100% tariffs on Canadian canola meal and pea imports, as well as suspend 25% tariffs on lobster and crab imports from March 1 until the end of 2026, according to the statement released by the finance ministry. However, there was no mention of reducing tariffs on canola seed, which Carney had anticipated would be lowered by March 1.
Canada had been expecting China to decrease canola seed tariffs to around 15% from the current 84%. A probe into Canadian canola is scheduled to conclude on March 9, as confirmed by the Chinese commerce ministry.
Experts like Evan Rogers Pay, director at the consultancy Trivium China in Beijing, expressed confidence in China’s commitment to lowering tariff rates based on recent Canadian canola cargo bookings by Chinese buyers for March shipments.
Although canola oil and pork were not specifically addressed in the announcement, there is a possibility of further adjustments by China before the March 1 deadline mentioned by Carney. China stood as Canada’s second-largest market for canola in 2024.
These tariff suspensions coincide with visits to Beijing by Western leaders seeking stable economic partnerships amidst the strained trade relations caused by U.S. President Donald Trump’s policies. Carney’s proactive engagement with China signifies Canada’s aspirations to take a prominent role in shaping a new global trade dynamic that reduces reliance on the United States.
During his visit to China, Carney committed to permitting the entry of up to 49,000 Chinese electric vehicles into Canada at a tariff rate of 6.1% under most-favored-nation terms.