Prime Minister, Mark Carney, visited Beijing, China, last week. In Beijing the Prime Minister met with the President of China, Xi Jinping, the Premier of China, Li Qiang, and the Chairman of the Standing Committee of the National People’s Congress of China, Zhao Leji.
The two countries came to a Preliminary Agreement-In-Principle on some key trade issues. Within this agreement:
• Canada will allow up to 49,000 Chinese electric vehicles (EV) into the Canadian market, with the most-favoured-nation tariff rate of 6.1%. This amount corresponds to volumes in the year prior to recent trade frictions on these imports.
• By March 1, 2026, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15%. China is a $4 billion canola seed market for Canadian producers, and this change represents a significant drop from current combined tariff levels of approximately 85%.
• Canada expects that Canadian canola meal, lobsters, crabs, and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of this year.
• Canada will extend to the end of 2026 previous remission measures for certain Chinese steel and aluminium products that are in short supply in Canada. Canada will also expand remissions coverage to certain steel, aluminum, and steel derivative products.
During the Prime Minister’s visit, Canada and China also secured new memorandums of understanding (MOUs) to reinforce cooperation on energy, combatting crime, cultural exchanges, wood products, and food safety and animal and plant health.