Canada and China have agreed to eliminate tariffs on canola meal and peas as part of a preliminary deal. Premier Scott Moe disclosed the specifics of the agreement during a press conference in Saskatoon. The agreement is set to reduce tariffs on canola seed to 15 percent and is anticipated to be implemented by March 1.
In March of the previous year, China imposed a 100 percent tariff on Canadian canola oil, meal, seeds, and peas. In return for China’s tariff reduction, Canada will reciprocate by reducing tariffs on Chinese electric vehicles. The agreement was finalized on Friday.
Premier Moe, accompanied by provincial ministers of agriculture, trade, and export development from across Canada, as well as representatives from industry stakeholder groups, made the announcement at a news conference held at the University of Saskatchewan.
Highlighting the significance of the deal, Moe emphasized its positive impact on Saskatchewan’s agriculture industry, which accounts for approximately 55 percent of the nation’s canola production. He stressed the importance of the agreement for Saskatchewan farmers, exporters, and the processing industry, as well as its broader implications for the Canadian economy.
The canola sector alone employs over 200,000 individuals nationwide and contributes significantly to the economy, with a total value of $44 billion. Describing the preliminary agreement as a momentous decision, Moe hailed its potential benefits for both the province and the country.
Affecting canola and pea growers, the 2025 tariffs had a severe impact on farmers, with trade values plummeting due to the imposed duties. Dean Roberts, chair of the SaskOilseeds board of directors, highlighted the adverse effects of the tariffs on the canola trade with China, resulting in decreased profitability for farmers.
Stuart Lawrence, chair of the Saskatchewan Pulse Growers board of directors, welcomed the removal of 100 percent tariffs on Canadian peas, citing the positive implications for pea growers in the region and nationwide. Lawrence emphasized the importance of restoring trade access for Canadian peas following the challenges posed by the tariffs.
Regarding trade negotiations, Moe praised Prime Minister Mark Carney for his leadership in advancing Canada’s international trade relations. He emphasized the role of federal and sub-national levels in advocating for strong international relationships and highlighted the positive impact of the agriculture tariff agreement on future trade discussions.
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 other sectors like canola oil and pork.