Trade Extension: China keeps Canadian canola and seafood tariff-free until 2028

The Canadian federal government announced on Wednesday that China will maintain its reduced tariff rates on specific Canadian agricultural and seafood exports through the end of 2028.

This decision extends a trade agreement reached during Prime Minister Mark Carney's visit to Beijing in January of this year. The original deal took effect in March but was set to expire at the end of 2026. Under the new terms, China will continue to pause its 100 percent tariffs on Canadian canola meal and peas. It will also keep the 25 percent tariffs on lobster and crab on hold for the next two years.

International Trade Minister Maninder Sidhu stated that the extension provides predictable market access for farmers and harvesters. She noted that this stability is essential for growing exports to China by 50 percent by 2030. The move supports a sector that has faced significant pricing pressure in recent years.

The January negotiations also resulted in a reduction of tariffs on canola seed imports. China lowered the duty on these seeds from 100 percent to approximately 15 percent for a five-year period. Canada is the leading global exporter of canola, and China serves as the second-largest market for the crop after the United States.

To secure these agricultural concessions, Carney offered reciprocal benefits to Beijing. Canada agreed to allow up to 49,000 Chinese electric vehicles into the market annually at a tariff rate of 6.1 percent. This rate reduced the previous 100 percent duty established by the Trudeau government in 2024. China had previously raised tariffs on Canadian goods in response to that 2024 policy shift.

The original agreement also granted better market access for certain Chinese steel and aluminum products that are scarce in Canada. The federal government confirmed on Wednesday that it will extend this market access arrangement until the end of 2028 as well.