Canada, China Ink Preliminary Deal on Canola and Pea Tariffs

Canada and China have reached a preliminary agreement to remove tariffs on canola meal and peas, Saskatchewan Premier Scott Moe announced details of the deal at a recent news conference in Saskatoon, CBC reported.

Canada's canola industry alone employs more than 200,000 people across Canada and is worth $44 billion.

Tariffs on canola seed are expected to be reduced to 15%, with the changes taking effect by March 1. Last March, China imposed 100% tariffs on Canadian canola oil, meal, and seeds, as well as peas.

In exchange for China’s tariff reductions, Canada will slash tariffs on Chinese electric vehicles. The agreement was reached Friday.

Moe said the canola industry alone employs more than 200,000 people across Canada and is worth $44 billion. He called the preliminary agreement a “very, very significant decision.”

Moe spoke alongside provincial ministers of agriculture and trade and export development, as well as industry stakeholders, at the University of Saskatchewan. “Make no mistake—it is really positive for the Saskatchewan agriculture industry, as we produce about 55% of the nation’s canola,” Moe said.

“This is very, very significant for our farmers, exporters, and the processing industry here in the province.”