The extension means continued tariff-free access for canola meal
An extension of an agreement between Canada and China will support Canadian agriculture.
On Nov. 4, the two countries announced an extension of the Preliminary Joint Agreement until the end of 2028.
The agreement, originally signed in January, would’ve expired at the end of 2026.
“This extension is good news for Canadian farmers, ranchers, and workers across the full agriculture and agri-food value chain,” Agriculture Minister Heath MacDonald said in a statement.
As part of the deal, some Canadian ag products will continue to receive favourable market access to China.
Canola meal as well as peas, lobsters and crabs, will continue to enter China tariff-free.
Imports of canola seed will continue to have tariffs of 14.9 per cent, down from 84 per cent. China will keep its 100 per cent tariff on canola oil.
The extension provides farmers with some predictability as they look to the 2027 season.
“We’ve just wrapped up the 2026 harvest and are making marketing decisions for this year’s canola crop,” Andre Harpe, chair of the Canadian Canola Growers Association, said in a statement. “At the same time, we’re planning for 2027, with many of our input costs at record highs. Extending tariff-free trade for Canadian canola meal to China is welcome news. It removes one source of uncertainty as canola farmers make decisions that affect their bottom line.”
“Predictable access gives farmers the certainty they need to plan, invest, and market their crops. China is one of the largest markets for Canadian peas and during temporary tariff relief from March – September, Canada was able to export 975,000 MT of peas to China, worth $421 million, signaling strong demand,” said Stuart Lawrence, chair of Saskatchewan Pulse Growers.
As part of its expectations of the agreement, Canada will allow China to import 49,000 electric vehicles per year.