Canadian canola farmers express ‘cautious optimism’ over trade agreement with China

Canadian farmers are hailing news that China has agreed to slash duties on imports of Canadian canola products as 'an important milestone' in the countries' trading relationship.

“It’s a huge step forward, but a little disappointing at the same time.”

That’s how Stephen Vandervalk, who grows canola near Fort McLeod, Alta. and is also vice-president of the Wheat Growers Association, reacted to news of the preliminary trade deal between Canada and China.

The agreement, announced Friday, following a meeting between Prime Minister Mark Carney and Chinese President Xi Jinping, in Beijing, is expected to slash punishing tariffs on the sale of Canadian agriculture and seafood products to China, part of a tit-for-tat tariff war between the two countries.

It started in the summer of 2024, when Canada announced a 100 per cent tariff on Chinese electric automobiles that Ottawa claimed were being dumped on global markets.

China responded in 2025 with tariffs of up to 100 per cent on some Canadian canola products, along with a 25 per cent levy on Canadian pork and seafood products.

The deal announced Friday is expected to result in Beijing slashing duties on canola seed to 15 per cent by March 1, 2026, in return for Canada allowing 49,000 Chinese electric vehicles to be sold in Canada at a tariff of just 6.1 per cent. That number will increase to about 70,000 vehicles within five years.

Ottawa also expects to have tariffs on Canadian canola meal, lobsters, crabs and peas reduced or removed from March 1 until at least the end of the year.

While Vandervalk called the agreement “a huge step forward,” he also expressed “cautious optimism,” saying a 15 per cent tariff on canola meal means Canada could still struggle to be competitive with other countries, like Australia, that can sell the same products to the Chinese market.