The Canadian government is still in discussions with Beijing regarding the removal of tariffs on Canadian products like canola. Agriculture Minister Heath MacDonald mentioned that one of the reasons for China’s temporary relaxation of tariffs on certain Canadian agricultural goods is the ongoing negotiations related to Chinese steel and aluminum.
Canada imposes tariffs on Chinese steel and aluminum due to concerns about unfair trade practices by the Chinese government, which allegedly subsidizes its metal industries to keep prices low and distort global trade.
Following a recent visit to China, MacDonald stated that both Ottawa and Beijing are working on addressing issues concerning steel. The Canadian government provides relief from tariffs on specific Chinese steel and aluminum products that are scarce in Canada. The government has decided to extend these relief measures until the end of 2026.
MacDonald emphasized the need to further clarify the situation with China and address mutual demands regarding steel and aluminum. A statement from MacDonald’s office highlighted that apart from steel and aluminum, there are additional unresolved issues on both sides that require further discussion.
In a recent development, the Liberal government reached an agreement with Beijing to allow a significant number of Chinese electric vehicles into the Canadian market in exchange for reduced duties on Canadian canola products. Prime Minister Mark Carney described this agreement as a significant milestone. The deal includes a reduction in canola seed duties from 84 to 15 per cent by March 1, with tariffs on canola meal, lobsters, peas, and crabs set to be lifted until the end of the year.
The agreement signifies a positive step forward, with potential for further progress in the future. MacDonald expressed optimism about future trade opportunities in China, particularly in sectors such as energy and minerals.
MacDonald also revealed that China has swiftly moved to import Canadian canola seed and beef. A Chinese importer has placed an order for 60,000 tonnes of canola seed, and Canadian beef shipments to China are set to commence soon. This marks the first time China will be purchasing Canadian canola seed and beef since restrictions were imposed.
Notably, China recently lifted its ban on Canadian beef imports, following the tariff reduction agreement on Canadian canola and Chinese electric vehicles. Discussions regarding tariffs on Canadian pork are ongoing, with MacDonald noting that despite China’s significant domestic pork production, there is still a viable market for Canadian pork exports.
