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Canada expects China to cut tariffs on its canola (rapeseed) seed imports by 1 March, according to a report by Bloomberg.
Canadian Prime Minister Mark Carney announced the move during his visit to China on Friday, explaining that Beijing will reduce tariffs on the product to around 15%, down from the previous rate of more than 80%. The deal also includes the suspension of "anti-discrimination duties" on imports of several other agricultural products, including canola meal and lobster.
In return, Canada will allow 49,000 Chinese electric vehicles into its market at a tariff rate of about 6%, down from the current rate of 100%. Canola futures in New York extended their gains to 2.6% following the announcement, reaching their highest level since early December.
The discussions follow a long period of tension after Canada imposed tariffs on Chinese electric vehicles, steel and aluminium in 2024. That move prompted Beijing to impose 100% duties on Canadian canola oil and meal early last year, later launching an anti-dumping investigation into Canadian canola seed. The deadline for a decision on the tariffs following that investigation has been extended to 9 March.
Those tariffs effectively shut the Chinese market to Canadian canola and its products, freezing trade valued at around 4.9 billion Canadian dollars (3.5 billion US dollars) in 2024.
Prime Minister Carney said the suspension of tariffs on canola meal and lobster is expected to remain in place from March until at least the end of this year. Carney is seeking to rebuild relations with Beijing and reduce Canada's reliance on the United States after President Donald Trump imposed sweeping tariffs.
Source: Bloomberg