China trade deal brings relief for Sask. canola producers

China will cut tariffs on Canadian canola and other ag products after a deal reached during a visit to China by the Prime Minister. Wayne Mantyka reports.

Saskatchewan farmers are breathing a sigh of relief Friday as political leaders return from China with a trade deal that will reopen that vital market for Canada’s canola producers.

The trade deal, struck during a visit to China by Prime Minister Mark Carney, with Saskatchewan Premier Scott Moe in attendance, sees Beijing cutting on Canadian agricultural products like canola, in return for Canada slashing tariffs on Chinese-made electric vehicles (EVs).

The deal comes after a simmering feud over Chinese-made EVs boiled over into a tariff war that threatened the bottom line for producers of canola — closing off the world’s second-largest market for the historically lucrative oilseed.

“Saskatchewan farmers are relieved to hear that China will reduce tariffs on Canadian canola seed by March 1, 2026,” SaskOilseeds said in a statement Friday morning.

The industry advocacy group says the deal, which will see China cut canola seed duties to 15 per cent from the current 84 per cent by March, is a positive development that producers “across the canola value chain” have advocated for tirelessly.

“Sask Oilseeds applauds government efforts at all levels showing leadership on this file. We support free, open trade for canola.”

“We would ideally like to see zero percent tariffs but seeing a significant reduction is very positive for our canola famers,” said Tracy Broughton, the executive director of SaskOilseeds.

For its part in the deal, Canada will allow up to 49,000 Chinese-made electric vehicles into the Canadian market at 6.1 per cent tariff rate instead of the current 100 per cent. Moe had previously called for the tariff to be removed entirely.

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A 100 per cent tariff on refined canola oil remains in place, but the province says the concessions are “a very positive signal that will restore existing trade volumes and open avenues for further opportunities for Canadians.”

Saskatchewan’s premier said the deal underscores the value of partnership between levels of government.

“Today demonstrates the importance of foreign trade missions and shows what can be achieved when the federal and provincial governments and our export industries work together to strengthen our trade relationships,” said Moe.

Manitoba Premier Wab Kinew, whose province is the third-highest producer of canola behind Alberta and Saskatchewan, told reporters that the deal was encouraging.

Alberta Premier Danielle Smith, in a statement, said she welcomes the deal but trusts that officials “will take any measures necessary to ensure all vehicles and other products sold into Canada pose no threat to our nation’s privacy laws or national security interests.”

The deal was broadly welcomed by canola farmers.

“On any given year, our operation produces about 100,000 bushels of canola, some years it’s more, some years it’s less,” said Codie Nagy. “So, any time there’s positive market reactions, obviously net good for us.”

Uwe Quedenbaum, who runs a grain operation near Barrhead, Alta., said the tariffs on canola turned the market in “a pretty dismal” direction, leaving farmers struggling to sell their products.

“I had cut back quite a bit and instead seeded more peas, and then we got hit on the pea deal. So if we got a little bit of relief on both sides, that’s awesome news,” he said.

Roger Chevraux, a fourth-generation farmer near Killam, Alta., noted canola prices have already showed signs of rebounding. “I think a lot of farmers have been not selling their canola over the last several months in some hopes that they could see better prices and some sort of deal with China,” he said.

Bill Prybylski, the president of the Agricultural Producers Association of Saskatchewan, said while the deal gives farmers peace of mind, it does not mention canola oil, which is currently subject to a 100 per cent tariff.

“This is certainly concerning that there is no relief on those tariffs on the oil, and that has an effect on the overall price that producers get for our canola seed,” said Prybylski, who farms near Yorkton, Sask.

Carney announced the pact after he met with President Xi Jinping on Friday, ending a multi-year trade dispute that began when the previous Liberal government levied EV tariffs to protect Canada’s auto sector.

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With files from the Canadian Press