SASKATON — Premier Scott Moe said an earlier meeting with Chinese officials in September played a key role in easing China’s stance on imposing tariffs of more than 100 per cent on canola products, helping move trade relations toward a reset.
Speaking Tuesday, Jan. 20, after returning from a trip as part of Prime Minister Mark Carney’s Canadian delegation, Moe said China remains one of the top importers of canola, canola meal and peas, and trade tensions last year had a significant impact on Saskatchewan’s agriculture industry.
Saskatchewan has an over $40-billion canola industry. Pea farmers in 2024 brought in $5 billion in revenues from China, but that dropped to $3.7 billion after being shut out of the Chinese market due to the 100 per cent tariffs imposed by Canada on Chinese-made electric vehicles.
Moe said he was pleased to join Prime Minister Carney in China last week to strengthen diplomatic and economic ties and move forward on a path toward resolving tariffs. The delegation reached a preliminary agreement between the two countries that will remove all tariffs from canola meal and peas. It will also see tariffs on canola seed reduced to 15 per cent.
“The Canada-China trade deal is great news for Canada and Saskatchewan,” Moe said. “This is a very positive signal that will restore existing trade volumes and open avenues for further opportunities for Canadians.”
The changes within the agreement are expected to take effect by March 1.
Saskatchewan has long been a champion for free and fair trade, which Moe said is more important than ever as businesses continue to face uncertainty across the globe. The Government of Saskatchewan will continue to work with its federal counterparts to strengthen relations with all trading partners, including further work with China to ease market access for other sectors such as canola oil and pork.
“This progress also 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,” Moe said.
“Saskatchewan Pulse Growers is very pleased with the recent announcement of the elimination of tariffs on Canadian peas to China,” Saskatchewan Pulse Growers board chair Stuart Lawrence said. “It is reassuring to see a high level of co-operation between federal and provincial governments and industry to achieve important results for farmers. In particular, we appreciate the leadership of Premier Moe and the Government of Saskatchewan in playing an essential role to restore access to our largest market.”
“SARM recognizes that the proposed reductions in canola tariffs will improve access to the Chinese market, an announcement producers have been waiting months to hear,” Saskatchewan Association of Rural Municipalities President Bill Huber said. “We are greatly encouraged by the efforts of Premier Moe, Prime Minister Carney and other federal ministers who travelled to Beijing to meet in person with Chinese officials. SARM looks forward to building on this progress through future trade agreements with China that include beef, pork and other key commodities.”
“Reopening trade with China under Premier Moe’s leadership is a very positive step toward market stability for Saskatchewan’s producers,” Agricultural Producers Association of Saskatchewan President Bill Prybylski said. “While there is more work to be done, this renewed connection sets a strong foundation for future growth and certainty in our agricultural sector.”
“Premier Moe’s involvement brought an important additional dimension to efforts to address and resolve the trade issues we are facing,” Canola Council of Canada president and CEO Chris Davison said. “Among other things, he represents the largest canola-producing province and the province with the most canola processing capacity. His ongoing advocacy and collaboration with the federal government brought additional credibility and urgency to our collective efforts in pursuit of a resolution to these issues.”
“The reduction of Chinese tariffs on Canadian canola seed is a significant win for Saskatchewan farmers and the entire value chain,” Sask Oilseeds board chair Dean Roberts said. “It demonstrates the impact of our ongoing advocacy and government leadership to help secure stable markets and support free, open trade for canola.”
As an export-based economy, trading relationships remain crucial to Saskatchewan’s economic prosperity, the government said in a release, which is why the province continues to focus on market diversification. Prioritizing international engagement has proven invaluable, with Saskatchewan exports now reaching more than 160 countries.
“Saskatchewan’s China Office is the province’s longest-standing international office,” the government noted. “The Government of Saskatchewan has built a network of nine international trade and investment offices to strengthen existing trade relationships while exploring new markets. These offices help make the province more resilient to market risks such as tariffs and regulatory trade barriers.”
More to come
