Canada–China trade reset could boost canola prices and restore export demand starting in 2026.
Canadian farmers are set to gain major new market access after Canada and China announced a renewed trade partnership that includes a sharp cut to Chinese tariffs on Canadian canola seed — a move that could significantly improve prices and export opportunities starting in 2026.
The agreement follows Prime Minister Mark Carney’s visit to Beijing this week, where agriculture was placed front and centre in talks with Chinese President Xi Jinping. It marks the first visit by a Canadian prime minister since 2017 and signals a reset in Canada-China agricultural trade relations.
China to Cut Canola Seed Tariffs Starting March 2026
For canola farmers, the biggest takeaway is a preliminary deal to reduce Chinese tariffs on Canadian canola seed from roughly 85% to about 15% by March 1, 2026.
China has historically been one of Canada’s most important canola markets, worth an estimated $4 billion annually before trade disruptions. The steep tariff reduction is expected to restore competitiveness for Canadian canola on the global market and help stabilize farm revenues after years of uncertainty.
Industry analysts say the move could improve basis levels, strengthen export demand, and support canola prices as exporters regain access to one of the world’s largest oilseed markets.
Relief Expected for Other Farm and Agri-Food Exports
Beyond canola seed, the agreement is expected to provide temporary tariff relief on several other Canadian agricultural products. Beginning March 1, 2026, canola meal, peas, lobster, and crab are expected to be exempt from certain anti-discrimination tariffs through at least the end of the year.
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