Prime Minister Mark Carney announced Friday a new trade agreement with Beijing designed to ease long-running tensions and open markets on both sides. The deal allows tens of thousands of Chinese electric vehicles into Canada each year in exchange for lower duties on Canadian canola products.
Speaking at a news conference in Beijing, Carney described the pact as a “preliminary but landmark” step toward removing trade barriers under a broader strategic partnership with China. The agreement marks his first trade deal with another country since taking office last year.
Carney said Ottawa expects China to reduce canola seed duties to 15 per cent by March. He called the move enormous progress for Canadian farmers. Additional relief will follow. From March through at least the end of the year, Chinese “anti-discrimination” tariffs on Canadian canola meal, lobsters, crabs, and peas will end. Canola oil was not included.
In return, Canada will allow up to 49,000 Chinese electric vehicles into the domestic market each year under a 6.1 per cent tariff. Carney said the vehicles would account for roughly three per cent of total sales and would lower prices for some buyers.
Saskatchewan Premier Scott Moe welcomed the agreement, saying the reduction in canola tariffs shows the value of coordinated foreign trade missions involving federal and provincial governments alongside export industries.
Ontario Premier Doug Ford sharply criticized the EV component. In a post on X, Ford warned the deal hands China a foothold in Canada while placing pressure on domestic auto workers. He argued the agreement risks limiting access for Canadian automakers to the U.S. market and urged stronger federal support for Ontario’s auto sector.
The pact followed Carney’s meeting earlier Friday with Chinese President Xi Jinping and formally ends a trade dispute triggered by Canadian EV tariffs imposed in 2024. During last spring’s election campaign, Carney had described China as the country’s biggest threat. His tone shifted Friday.
“The security landscape continues to change, and in a world that’s more dangerous and divided, we face many threats,” Carney said. “You manage the threats through engagement.”
Carney also confirmed he raised human rights with Xi, describing Canada’s approach as “value-based realism.” He added Canada’s ties with China now feel more predictable than relations with the United States, citing candid dialogue and tangible results.
The agreement aligns with Ottawa’s push to double non-U.S. exports by 2030 and lift exports to China by 50 per cent over the same period.
