Question Period Note: BILATERAL AGRICULTURAL TRADE WITH CHINA

Q1 - Will all Chinese tariffs stemming from their anti-discrimination measures be removed?
Q2 – What is the Government doing to resolve other outstanding non-tariff related trade issues impacting agricultural exports to China?
Q3 – What is the Government doing to financially assist the sector?
Q4 – How will China’s recent suspension of two soybean exporters impact the bilateral relationship with Canada?

R1 - Effective March 1, 2026, China suspended anti-discrimination tariffs on canola meal, lobsters, peas, and crabs to the end of 2026.
While these updates mark positive steps, the Government of Canada will continue to engage with China regarding the removal of anti-discrimination tariffs on other impacted Canadian agricultural and seafood products not covered under the preliminary joint arrangement, including canola oil, pork and other fish and seafood products.
R2 - Canada continues to pursue every available opportunity, both at the bilateral and multilateral level, to press China to resolve current trade issues, respect international trade rules, and base its regulatory decisions on scientific principles.

As such, the Government continues to allocate significant resources, both in Canada and across China, to support Canada’s engagement efforts with China to address trade irritants, promote Canadian products in-market, and advocate for rules-based trade, including science-based regulatory decisions, to advance Canada’s agricultural interests.

The Government also continues to encourage Canadian exporters to adopt appropriate risk mitigation and diversification plans in the face of uncertainty and challenges when doing business abroad.
R3 - The Government of Canada continues to assist the agriculture sector amid uncertainty and other risks like animal disease.

In July 2025, federal-provincial-territorial ministers of agriculture reiterated their commitment to enhance the effectiveness of business risk management programs, which included increasing the AgriStability compensation rate from 80% to 90% and doubled the current payment cap to $6 million for the 2025 program year.

On September 5, 2025, the Prime Minister announced a series of new, strategic measures to assist those sectors most impacted by tariffs and trade disruption, including the canola sector. These measures include:

Investment in Agriculture and Agri-Food Canada’s AgriMarketing Program and trade diversification measures: The AgriMarketing Program supports targeted activities to promote Canadian agri-food products as safe, sustainable, and high quality, building Canada’s reputation abroad. The Government is investing an additional $75 million over five years, starting in 2026-27 to expand the program into high-growth areas such as Africa, the Middle East, and the Indo-Pacific. This expansion will support sectors most affected by trade barriers, like canola, and aligns with Canada’s Indo-Pacific Strategy, shifting focus beyond traditional trade partners like the U.S. and China.

Changes to the Advance Payments Program (APP): The Advance Payments Program (APP), delivered by Agriculture and Agri-Food Canada provides Canadian farmers, including canola producers, with low-interest cash advances of up to 50% of the expected market value of eligible products. It helps farmers manage cash flow, avoid high-interest debt, and market strategically. Producers can access up to $1 million per year, with a portion interest-free, typically $100,000, which was increased to $250,000 in March 2025. To respond to ongoing trade uncertainty, especially affecting canola producers, who represent 41% of APP users, the Government is temporarily doubling the interest-free portion for canola advances. For the remainder of the 2025 program year and the 2026 program year, the interest-free limit will rise to $500,000.

New biofuel production incentives, providing more than $370 million over 2 years to assist domestic producers and restructure their value chains: To level the playing field and support Canada’s biofuels sector, the Government intends to make targeted amendments to the Clean Fuel Regulations, introducing a time-limited production incentive for renewable diesel and biodiesel producers and work with provinces and territories to explore complementary measures.

The Government is also providing $1 billion in new financing through Farm Credit Canada (FCC) to reduce financial barriers for the Canadian agriculture and food industry. This lending offer will help address cash-flow challenges so that businesses can adjust to a new operating environment and continue to supply the high-quality agricultural and food products that Canadians rely on. On August 19, 2025, the FCC reiterated its support to the canola sector through this program.
R4 - The Government is aware that two Canadian exporters of soybeans have been suspended by China as of Feb 27, 2026.
This development is a technical issue related to plant health and is not a reflection of the broader bilateral relationship between Canada and China. Canada and China remain committed to maintaining a stable and reliable trading relationship and implementing the joint arrangement agreed to in January.
CFIA is actively working to resolve the situation and facilitate trade.
Other soybean exporters continue to be able to ship to China without interruption.

Canada-China Agricultural Bilateral Trade
China is a priority market for Canadian exports of agricultural, agri-food, and fish and seafood products. China remains Canada’s second largest export market for the sector, behind the United States. Prior to the introduction of retaliatory tariffs on select Canadian agri-food products to China, Canadian exports of agricultural, agri-food, and fish and seafood products to China were valued at $11.5 billion in 2023, representing 11.6% of Canada’s global exports in this sector, and $9.6 billion in 2024 (representing 9.74%). Key exports to China are grains and oilseeds (e.g., canola seed, barley, wheat, soya beans), fish and seafood, dried peas, pork products, and by-products for animal feed (e.g. canola meal). Following the introduction of Chinese tariffs on certain Canadian products in March 2025, Canadian exports of these products to China declined from 2024 levels (including canola seed and meal, pork, and fish and seafood). This decline also coincided with a broader contraction in China’s global imports of agricultural and food products.

Canada’s market share of China’s global imports of agriculture, agri-food, and fish and seafood products (by value) has been declining since 2018: 5.8% in 2018 to 2.6% in 2025 as China continues to diversify and increase imports from other countries.

In 2025 China remained Canada’s largest market for canola seed and a key market for several agrifood and seafood products:

• Canada exported $1.5B of canola seed to China, representing 28% of Canada’s global canola seed exports. China was followed by:

o Japan (24%)
o The EU-27 (20%)
o Mexico (13%)
o the UAE (5%)

• In 2025, Canada’s exports of canola meal to China totaled $288 million, while canola oil exports reached $165 million.

• In 2024, Canadian exports to China were $918 million in canola meal and $21 million in canola oil.

• In 2025, Canada exported $240 million in dried peas to China. Over the same period, Canadian exports of fish and seafood totaled $877 million, and pork exports were valued at CAD $354 million.

• In 2024, Canada exported $303 million in dried peas to China, along with $1.3 billion in fish and seafood and $469 million in pork products.

In 2025, Canada held a number of engagements with China, both at the official and political level to improve overall bilateral relations and create a favorable dynamic to discuss and resolve bilateral irritants, including:

• In-person senior official meetings of the Canada-China Economic Partnership Working Group; and the Canada-China Joint Economic and Trade Commission took place last August in Beijing and Ottawa, respectively.
• From September 6 to 9, Premier Moe and Parliamentary Secretary Blois, accompanied by a delegation of Saskatchewan officials, visited China.
• On September 23, 2025, the Prime Minister met with the Premier of China, Li Qiang, at the 80th Session of the United Nations General Assembly.
• Foreign Affairs Minister Anand’s meeting with her counterpart, Minister Wang Yi in China on October 17.
• From October 27 to November 3, Agriculture Minister MacDonald was in China to engage with senior Chinese government officials, as well as Canadian and Chinese business leaders to promote Canadian agricultural and agri-food products and explore new opportunities for collaboration. In his engagement with Chinese officials, Minister MacDonald also noted the importance of restoring market access for Canadian agricultural products in China.
• On October 31, Prime Minister Carney held a bilateral meeting with President Xi on the margins of the Asia-Pacific Economic Cooperation Economic Leaders’ Meeting in South Korea. This was the first leader-to-leader meeting since 2017. Both Leaders have directed officials to resolve outstanding trade issues and irritants, including agriculture and agri-food products.

These efforts culminated in the Prime Minister’s visit to Beijing from January 14-17, 2026, to meet with President Xi and other Chinese officials. The Prime Minister was accompanied by the Saskatchewan Premier Scott Moe, the Federal Agriculture Minister and other federal ministers. Among the key outcomes of the mission, the Prime Minister and President Xi secured a preliminary joint arrangement with measures to remove trade barriers and reduce tariffs for canola, peas and seafood products. As of March 1, 2026, China has:
o reduced anti-dumping duties on Canadian canola seed such that the combined applied tariff rate is 15% (5.9% duty + MFN 9%). This represents a major decrease from the previous combined tariff level of 85% (75.8% duty + MFN 9%);
o suspended anti-discrimination tariffs on canola meal, lobsters, peas, and crabs from March 1 to the end of 2026.
The Government of Canada continues to work and engage with China regarding the removal of tariffs on other Canadians agricultural products not covered under the preliminary joint agreement, including canola oil, pork, and certain fish and seafood products.

Further to the announcement by the Leaders, the General Administration of Customs China (GACC) notified Canada that it had reinstated market access for Canadian beef (suspended since December 2021), as well as reinstated the export eligibility for some Canadian establishments seeking to export animal genetics to China (some of which had been waiting since 2018).
The CFIA and GACC also agreed on a Protocol for Quarantine and Hygiene Requirements for Pet Food to be Exported from Canada to China, which was signed on January 15, 2026, by the Agriculture Minister and GACC Minister Sun Meijun in Beijing during the Prime Minister’s visit. Canadian exports of pet food containing poultry ingredients have been restricted by China since February 2022 due to China’s trade restrictions related to Highly Pathogenic Avian Influenza (HPAI), following confirmation of HPAI in Canada. The CFIA is currently engaging with GACC to clarify aspects of the protocol to finalize its implementation.

These achievements were published in two key documents: the Joint statement of the Canada-China Leaders' Meeting and the Canada-China Economic and Trade Cooperation Roadmap. Other agriculture and agri-food commitments within these documents included the signature of a Memorandum of Understanding between the Canadian Food Inspection Agency and the General Administration of Customs of the People's Republic of China regarding Food Safety and Animal and Plant Health Cooperation and the revitalization of the Canada-China Joint Agriculture Committee.

China’s anti-discrimination investigation
On March 8, 2025, China’s Ministry of Commerce (MOFCOM) announced the conclusion of its “anti-discrimination” investigation. Effective March 20, 2025, 100% tariffs were imposed on imports of Canadian canola oil, canola meal and peas, and a 25% tariff is being imposed on certain fish, seafood and pork products.

On February 27, 2026 China suspended anti-discriminatory 100% tariffs on Canadian canola meal and peas, and 25% tariffs on lobsters and crab effective March 1, 2026 until the end of 2026. Anti-discriminatory tariffs of 100% on canola oil, 25% on pork and pork products, and fish and seafood products (other than lobsters and crab) remain in place. This is consistent with the preliminary joint arrangement reached between PM Carney and President Xi in January.

After unsuccessful WTO consultations with China in April, Canada advanced its dispute settlement case. A WTO panel was established in June 2025. Canada and China have agreed to suspend the panel composition process for their respective WTO disputes while bilateral discussions take place.

China’s anti-dumping investigation on Canola Seed

On September 9, 2024, China’s Ministry of Commerce (MOFCOM) self-initiated an anti-dumping investigation into imports of canola seed from Canada in retaliation to tariffs announced by Canada on Chinese Electric Vehicles (EVs), steel and aluminum. The Government of Canada participated actively throughout the investigation, along with 8 Canadian exporters, 8 producers, and 2 industry associations (the Canola Council of Canada and the Canadian Canola Growers Association). Provisional anti-dumping duties of 75.8% have been in place since August 14, 2025, further to MOFCOM’s preliminary determination.

On February 28, 2026, China’s Ministry of Commerce (MOFCOM) issued an affirmative final determination regarding its anti-dumping investigation into imports of canola seed from Canada. MOFCOM found that imports of canola seed from Canada were dumped during the period of review and caused injury to China’s producers of like goods. Effective March 1, 2026, an anti-dumping duty rate of 5.9% will be applied on all canola seed imports from Canada.
China’s final anti-dumping duties will be in place for five years, i.e. until March 1, 2031, but can be renewed for five-year periods further to an expiry review. This is consistent with the Preliminary Joint Arrangement in January 2026 (under which China agreed to lower its tariffs on Canadian canola seed to a combined rate no higher than 15%, including the 9% MFN tariff).

China’s Global Safeguard Measures Affecting Beef

On December 27, 2024, MOFCOM announced a global safeguard investigation into imported beef. On December 31, 2025, MOFCOM issued its final ruling, stating that China’s domestic cattle/beef industry had suffered serious injury as a result of significantly increased imports. China has imposed a safeguard measure on imported beef for a three-year period, effective January 1, 2026, consisting of a country-specific tariff rate quota (TRQ) system, with a 55% additional tariff on out of quota imports applied on top of existing Most-Favoured Nation (MFN) tariffs of 12% for frozen beef and 25% for chilled beef.

Country-specific quotas are based on import volumes over the most recent three years, with annual quota levels increasing slightly over time, with six countries (Brazil, Argentina, Uruguay, Australia, New Zealand, and the United States) each having their own individual quotas, 143 developing countries being exempt, and the remaining countries, including Canada, sharing a collective quota of 172,000 tonnes.

• Maintaining and expanding access to key export markets, including China, is critical to the success and growth of the Canadian agricultural sector and the Canadian economy.
• The Prime Minister’s trip to Beijing in January 2026, marked a new path forward for Canada’s engagement with China.
• We welcome the suspension of anti-discrimination tariffs for canola meal, peas, lobster and crab, as well as reduced anti-dumping duties on Canadian canola seed.
• These outcomes are the result of a larger, whole-of-government approach to revitalize the relationship with China as it relates to a number of topics, including trade and agriculture trade.
• Canada has also regained market access for Canadian beef and animal genetics to China, and Canada is actively working with China to resolve other long-standing trade issues, including pet food products.
• Canada’s agriculture sector depends on predictable market access and Canada is committed to defending the market access interests of the sector.
• We are working with industry and provinces and territories to support market diversification efforts and pursue new business opportunities around the world.