Canada and China have agreed preliminarily to eliminate tariffs on canola meal and peas. Premier Scott Moe disclosed the details of the deal during a press conference in Saskatoon. The tariffs on canola seed are projected to be reduced to 15 percent, with the changes set to come into effect by March 1.
In March last year, China imposed a 100 percent tariff on Canadian canola oil, meal, seeds, and peas. In return for China’s reduction of these tariffs, Canada will decrease tariffs on Chinese electric vehicles. The agreement was reached on Friday.
Premier Moe, accompanied by provincial ministers of agriculture, trade, and export development from across Canada, as well as industry stakeholders, made the announcement at a news conference at the University of Saskatchewan.
Moe emphasized the significance of the agreement for the Saskatchewan agriculture industry, highlighting that the province accounts for around 55 percent of national canola production. He stressed the positive impact on Saskatchewan farmers, exporters, and the local processing industry, as well as the broader Canadian agricultural sector and economy.
The canola industry alone supports over 200,000 jobs in Canada and represents a $44-billion industry. Moe hailed the preliminary agreement as a crucial decision.
Saskatchewan agriculture stakeholders noted the adverse effects of the 2025 tariffs on farmers. Dean Roberts, the chair of the SaskOilseeds board of directors, mentioned that the value of canola trade with China dropped significantly in 2025 due to the hefty duties, impacting farm profitability and leaving considerable amounts of canola unsold in farmers’ bins.
Stuart Lawrence, chair of the Saskatchewan Pulse Growers board of directors, welcomed the removal of the 100 percent tariffs on Canadian peas, describing it as positive news for pea growers in the province and nationwide. He highlighted the importance of reestablishing trade relations with China following the tariff removal to benefit Canadian pea exports.
Regarding leadership in trade negotiations, Moe praised Prime Minister Mark Carney for elevating Canada’s international credibility and trade focus, particularly with countries like China. He emphasized the role of sub-national entities, like Saskatchewan, in advocating for strong international relationships. Moe also emphasized the positive impact of the preliminary agriculture tariff agreement on future trade negotiations, including discussions on electric vehicles and the broader automotive sector.
The Government of Saskatchewan affirmed its commitment to collaborating with federal counterparts to enhance relations with all trading partners, including further engagement with China to facilitate market access for additional sectors such as canola oil and pork.