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Prime Minister Mark Carney concluded a high-level diplomatic mission to Beijing last week, meeting with President Xi Jinping, Premier Li Qiang, and Chairman Zhao Leji.
The visit resulted in a significant agreement-in-principle aimed at resolving long-standing trade barriers and fostering a new era of investment in energy, agri-food, and manufacturing.
The partnership establishes a framework to settle economic irritants and sets an ambitious target to increase Canadian exports to China by 50% by 2030.
Key Outcomes of the Trade Negotiations
Agricultural and Food Exports
· Canola Seeds: China is expected to reduce tariffs on Canadian canola seed to approximately 15%, a substantial decrease from the previous 84% rate.
- Tariff Relief: Effective March 1, 2026, anti-discrimination tariffs are expected to be lifted on Canadian canola meal, lobsters, peas, and crabs through the end of the year.
- Market Access: Progress is being made to accelerate the resumption of Canadian beef, pet food, and animal genetics exports to the Chinese market.
Automotive and Manufacturing
- Electric Vehicles (EVs): Canada will introduce a country-specific quota of 49,000 EVs at a Most-Favoured-Nation (MFN) duty rate of 6.10%.
- Steel and Aluminum: To support domestic industries facing supply shortages, Canada will extend remission measures for specific Chinese steel and aluminum products through late 2026.
- Regulatory Expansion: Effective March 1, 2026 (retroactive to January 1), Canada will expand remission coverage to include 13 additional steel, aluminum, and derivative products not currently produced in sufficient volumes by Canadian manufacturers.
Looking Forward
This strategic partnership marks a shift toward trade diversification and economic stability. Both nations have committed to ongoing technical discussions over the coming months to finalize the implementation of these measures, ensuring a predictable environment for Canadian workers and businesses. Stakeholders must await the formal issuance of Department of Finance and other agency regulations to align with these strategic outlines; until that time, the precise mechanisms for the administration of trade flows are subject to future legislative and agency publication.
For further details, please consult the official technical backgrounders:
Backgrounder – Preliminary Agreement-In-Principle to Address Economic and Trade Issues between Canada and the People’s Republic of China
Prime Minister Carney forges new strategic partnership with the People’s Republic of China focused on energy, agri-food, and trade
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