Saskatchewan Premier Scott Moe says Canada’s new trade agreement with China is “very good news” and a potential economic boost, especially for Prairie farmers, after months of damaging tariffs that choked key export markets.
The deal was struck this week during Prime Minister Mark Carney’s trade mission to Beijing, where Canada and China agreed to reset tariffs on key goods in exchange for greater market access in each other’s economies. The deal represents a major pivot in Ottawa’s trade strategy as it seeks to diversify beyond its traditional reliance on the United States.
What the Deal Means
Under the agreement:
- China will cut tariffs on Canadian canola seed to about 15 percent by March 1, 2026, down from roughly 84 percent, and has signaled reductions or removals of “anti-discrimination” tariffs on products like canola meal, peas, lobsters and crab at least through the end of the year.
- In return, Canada will allow up to 49,000 Chinese-made electric vehicles (EVs) into the Canadian market each year at a lower 6.1 percent tariff rate, far below the previous 100 percent duty.
The agreement is expected to unlock billions in Canadian export sales and help reopen markets that had slowed or closed after China imposed steep duties in retaliation for Canada’s earlier tariffs on Chinese EVs.
Saskatchewan’s Gain
Moe, whose province produces more than half of Canada’s canola, celebrated the breakthrough as a major relief for farmers and the agricultural sector. He said the agreement should restore canola and other agri-food exports to China, one of Canada’s largest overseas buyers, and demonstrate the value of coordinated federal and provincial trade efforts.
“This is very significant,” Moe said in Regina, noting that the deal could help billions of dollars in Canadian agricultural products flow again to China.
Saskatchewan farmers have faced uncertainty since China’s 2024 tariffs sharply reduced exports, with canola deliveries plummeting and prices under pressure. The new agreement raises hopes of a market rebound ahead of the next growing season.
Mixed Reactions Outside the Prairies
Not everyone agrees with the strategy. Ontario Premier Doug Ford blasted the deal as poorly thought out, warning that allowing Chinese EVs into Canada could hurt the auto industry and complicate trade with the United States.
Despite conflicting opinions, Moe’s endorsement underscores how Canada’s trade diplomacy, including stronger ties with China, is reshaping economic opportunities across regions as Ottawa balances complex global pressures and domestic interests.
