China Extends Tariff Waivers for Canadian Canola and Seafood Through 2028

The federal government announced on Wednesday that China has agreed to prolong its tariff relief for Canadian agricultural and seafood products. The extension keeps duty-free treatment for these goods in place until the end of 2028, preventing the expiration of the current arrangement scheduled for late 2026.

The policy shift originates from a trade deal reached during Prime Minister Mark Carney's visit to Beijing in January. That agreement paused steep Chinese tariffs on Canadian exports. Specifically, the 100 per cent duties on canola meal and peas, as well as the 25 per cent rates on lobster and crab, were suspended in March. The original terms only guaranteed this pause until the close of this year.

International Trade Minister Maninder Sidhu described the extension as a basis for increasing export volumes. He stated that the measure provides predictable market access for farmers and harvesters. "This extension gives farmers, producers and harvesters predictable access to the Chinese market, and it's how we will grow our exports to China by 50 per cent by 2030," Sidhu said in a statement.

The January negotiations also secured a permanent reduction in the tariff on Canadian canola seed. Beijing lowered the duty from 100 per cent to approximately 15 per cent. This lower rate is fixed for a five-year period. China remains the second-largest market for Canadian canola, following the United States, while Canada holds the position of the world's largest exporter of the crop.

In exchange for the tariff pauses, Canada accepted terms allowing up to 49,000 Chinese electric vehicles into the domestic market annually. These imports will enter at a tariff rate of 6.1 per cent. This figure represents a substantial decrease from the 100 per cent tariff imposed on Chinese-made electric vehicles in 2024 under the previous administration. China had raised duties on Canadian goods in response to that earlier policy.

The government confirmed on Wednesday that an additional component of the January deal will also last until the end of 2028. This part of the agreement grants improved access to the Canadian market for specific Chinese steel and aluminum products. These are materials that are in short supply domestically and cannot be produced by Canadian manufacturers.