In response to the announcement of a strategic partnership between Canada and China focused on energy, agri-food and trade, the Canadian Chamber has published the following statement:

"This agreement is a cautious first move by both Canada and China to step back from the tariffs and trade friction that have weighed on the relationship for almost a decade. Extending reduced tariffs on Canadian canola seed, canola meal, lobsters, crabs, and peas through 2026 is significant and provides needed certainty for farmers, processors, and the agri-food supply chain. It has taken a considerable amount of effort over months to get us here, and we commend the Prime Minister, Ministers, Premiers and other members of the delegation in getting us to this place.

Canada’s agriculture and agri-food sector supports one in nine Canadian jobs. It’s a monumental 7% of our of GDP annually. It’s simply fundamental to Canada’s economy and trade, with food, fuel, and fertilizer at its core. While renewed engagement with China is welcome, other parts of the agriculture sector have been shut out of the Chinese market for years and will see no relief today.

Canada is right to re-engage with the world’s second-largest market, but expanded access — particularly around EVs and advanced technology — raises real implications for Canadian manufacturers, cyber security, and our USMCA commitments. Any renewed partnership must be built on clear, enforceable rules that both sides are prepared to follow."

• Matthew Holmes, Executive Vice-President and Chief of Public Policy, Canadian Chamber of Commerce

This statement is also available on their website.

Key facts in the announcement for Canadian agri-food:

• By March 1, 2026, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15%. China is a $4 billion canola seed market for Canadian producers, and this change represents a significant drop from current combined tariff levels of approximately 85%.
• Canada expects that Canadian canola meal, lobsters, crabs, and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of this year.
• With this new trade agreement, Canada also expects to see a resolution of many long-term trade obstacles for a range of important agricultural sectors, from beef to pet food.
• In exchange for tariff reductions on Canadian agri-food, Canada will allow 49,000 Chinese EVs into the Canadian market at the most-favoured-nation tariff rate of 6.1%. This quota is expected to rise by about six percent annually, reaching 70,000 in half a decade.