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Canada and China Seal Limited EV‑for‑Canola Deal in Strategic Reset

The move reflects a bid to diversify trade relationships after a year of U.S. tariffs.

Overview

  • Canada will permit up to 49,000 Chinese-made electric vehicles at the 6.1% most‑favoured‑nation tariff, rolling back a 100% duty imposed in 2024.
  • Ottawa says it expects China to cut canola seed tariffs to about 15% by March 1 and to suspend extra levies on canola meal, peas, lobster and crab through at least year‑end.
  • The EV access is structured as a tariff‑rate quota that caps Chinese models at under three percent of Canada’s annual new‑vehicle market.
  • The package is framed as a new strategic partnership with memorandums on energy, agri‑food and investment, a goal to lift Canadian exports to China by 50% by 2030, and a Chinese commitment to introduce visa‑free travel for Canadians.
  • The announcement sparked domestic criticism from Ontario’s premier and the federal opposition over auto and security risks, as Prime Minister Mark Carney emphasized human‑rights and interference red lines and noted implementation steps are still being finalized.