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Canada and China Unveil Limited EV-for-Canola Trade Exchange in Relations Reset

Ottawa casts the move as a diversification step beyond the U.S. after recent trade shocks.

Overview

  • Canada will permit up to 49,000 Chinese electric vehicles at the 6.1% most‑favoured‑nation tariff rate, reversing a blanket 100% duty set in 2024.
  • Ottawa says it expects China to cut canola seed tariffs to about 15% by March 1 and to suspend extra duties on canola meal, lobsters, crabs and peas.
  • The Beijing visit produced memorandums on sanitary oversight for animal and pet food and plans to restart or expand dialogues on trade, energy, finance and culture.
  • Canada set a target to increase exports to China by 50% by 2030, and the Prime Minister’s Office said Xi committed to introduce visa‑free travel for Canadians.
  • Domestic critics warned of risks to the auto sector as Carney stressed Canada’s security and human‑rights red lines, with several implementation details still to be confirmed.