Canadian canola farmers express ‘great optimism’ about a trade deal with China

“It’s a big step forward, but it’s a little disappointing at the same time.”

So is Stephen Vandervalk, who grows canola near Fort McLeod, Alta. and he is also the vice president of the Wheat Growers Association, he responded to the issues of the first trade agreement between Canada and China.

The agreement, announced on Friday, following a meeting between Prime Minister Mark Carney and Chinese President Xi Jinping, in Beijing, is expected to reduce punitive tariffs on the sale of Canadian agricultural and seafood products to China, which is part of the tariff war between the two countries.

It started in the summer of 2024, when Canada announced a 100 percent tariff on Chinese electric cars that Ottawa said were being dumped on the world market.

China responded in 2025 with tariffs of up to 100 percent on some Canadian canola products, and 25 percent tariffs on Canadian pork and seafood products.

The deal announced Friday is expected to result in Beijing cutting canola seed duties to 15 percent by March 1, 2026, so that Canada will allow 49,000 Chinese electric vehicles to be sold in Canada at a tariff of just 6.1 percent. This number will increase to 70,000 vehicles within five years.

Ottawa also expects Canadian food taxes on canola, lobsters, crabs and peas to be reduced or eliminated from March 1 until at least the end of the year.

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While Vandervalk called the deal “a big step forward,” he also expressed “cautiously optimistic,” saying the 15 percent tax on canola meal means Canada can still compete with other countries, such as Australia, that can sell similar products to the Chinese market.

He is also worried about how Americans will react to the deal because 100 percent tariffs on Chinese EVs were imposed by both Canada and the US to help protect the North American auto industry.

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“They are our biggest trading partners for sure, they take almost all of our canola meal. When you crush canola seed, you get oil, and you get meal. So the biggest market for our canola meal and oil and seed is everything in the US, so it’s much, much bigger than China,” said Vandervalk.

“So if we somehow get less access to China at the cost of not having access to our biggest trading partner, we have serious concerns about that,” Vandervalk added.

In an emailed statement, the Canola Council of Canada and the Canadian Canola Growers Association called the news of the tariff agreement, “a milestone in Canada’s trade relationship with China.”

“The Canadian canola industry has been clear from the beginning that these tariffs are a political issue that requires a political solution. We are pleased to see significant progress in restoring access to the seed and feed market and will continue to build on this progress by working to achieve full and complete tax relief, including on canola oil, going forward,” read the statement.

Andre Harpe, Chairman of Alberta Canola Producers, which farms near Grand Prairie, Alta., called the deal “great news.”

“I was up at three in the morning looking at the announcement and I saw the prices at that time and they were a little bit higher. So it was a good reaction to see in the market,” said Harpe.

“Really, I’m hoping things get a little bit better, but it’s been a roller-coaster ride. It’s been awful. Uncertainty, you know,” Harpe added.

Saskatchewan Premier Scott Moe, who accompanied the Prime Minister on his trip to China and spoke to Global News from there, was almost happy with the reaction to the deal, calling it “a great day for Canadians.”

“This is very important. It will really allow billions of dollars of agricultural products of all kinds, whether it’s canola, pulse crops, seafood, to flow again, which was not moving in any way to our second largest partner in the world,” said Moe. “So this is very important not only for the Canadian agricultural industry, but for the Canadian economy.”

“This not only restores the existing trade, but certainly gives us a great foundation to create more trade opportunities not only with a country like China, but also with many Asian countries in the region,” added Moe.

Federal Conservative Labor critic Kyle Seeback, who represents the southern Ontario riding of Dufferin-Caledon, the center of Canada’s auto manufacturing industry, characterized the trade deal as a double-edged sword.

“I think if you’re a canola farmer, you’re very optimistic. I think if you’re an auto worker in Canada, you’re very concerned about what this is going to mean for the Canadian auto sector,” Seeback said.

He is also concerned that, so far, China has only agreed to reduce tariffs until the end of 2026.

“We’re dealing with China and China has a history of not being a reliable trading partner,” Seeback said. “So it’s always dangerous when you make these kinds of deals with China.”

“I think this will come back and be seen as a very bad decision to try to form a strategic alliance with China,” Seeback added. “Time will tell, but I think the liberals are going to be very sorry one day that they made this decision.”

With files from The Canadian Press.

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