China extends suspension of 100% tariff on Canadian canola meal

China has agreed to extend the suspension of its 100% import tariff on Canadian canola meal until the end of 2028. The agreement was reached during a meeting of the Canada-China Joint Economic and Trade Commission and officially announced on November 4. Previously, tariff-free access introduced under preliminary agreements between the two countries was scheduled to remain in effect from March 1 to December 31, 2026. The two-year extension is expected to provide more stable trading conditions for Canadian canola exporters and processors.

China remains Canada’s second-largest export market for canola and canola products. In January–August 2026, the value of these shipments reached $2.4 bln, up 28% compared with the same period last year. However, this figure represents approximately half the total value of exports to China for the whole of 2024, indicating that previous trade restrictions continue to affect the sector.

The Canola Council of Canada (CCC) welcomed Beijing’s decision, emphasizing that extending tariff-free access provides greater predictability in bilateral trade relations. This is particularly important for Canada’s processing industry, as China is one of the key markets for canola meal, which is widely used in animal feed production. At the same time, industry organizations expect further negotiations aimed at achieving more comprehensive tariff relief for Canadian canola and its processed products.

The Canadian Canola Growers Association (CCGA) also welcomed the agreement, noting that it reduces uncertainty for farmers following the completion of the 2026 harvest. Producers are currently making marketing decisions for this season’s crop while planning their 2027 planting programs. With production costs remaining high, stable access to one of the world’s largest markets is particularly important for farm profitability and the continued development of Canada’s canola industry.

Despite these positive developments, trade disputes between Canada and China have not been fully resolved. The extension of tariff-free access applies specifically to canola meal and does not automatically remove all restrictions on canola seed or canola oil. Further negotiations will determine the prospects for expanding Canadian exports, while continued tariff-free shipments of canola meal through the end of 2028 already provide more favorable conditions for trade between the two countries.

Tags: China, Canada, rapeseed meal