REGINA, Sask. — The province is welcoming news Wednesday that the federal government has secured an extension of its tariff deal with China.
This is in connection with China providing tariff-free access for Canadian canola meal, peas, crab and lobster. That was initially agreed to in March, but there had been uncertainty as to whether the current deal would continue, as it was set to expire in January. Now, according to the federal government, access for those products will continue until the end of 2028.
“It's certainly a very big deal for the ag industry,” said Trade and Export Development Minister Warren Kaeding, speaking to reporters at the legislature.
“I know I talked to a number of producers on the way up. I was in Saskatoon earlier this morning. They are certainly very pleased with the idea that they at least have a two-year extension. That helps so much in them being able to plan their cropping rotations into next year. And I fully expect that it's going to support industry as well, trying to plan out for the next couple of years as well, knowing that producers are now going into the spring with a bit of confidence that they at least have a two-year extension on tariff reductions on canola and beans.”
Maintaining that access is important to canola producers, with Saskatchewan producing over half of Canada's total crop, according to the Canola Council of Canada.
While the extension is welcome, there is still the issue of 14.9 per cent tariffs being imposed on canola seed. Kaeding acknowledged the extension is only in connection with “what we had going into this year, and from what we understand is that that will now continue out for the next couple of years. Not to say we don't bring that up every time that we have that opportunity to ensure that folks on both sides of the negotiating table understand what tariffs mean to producers and to industry, really, on both sides of the equation, both producers here and consumers or purchasers in China as well.”
As for Saskatchewan's own ongoing discussions with China on trade issues, Kaeding told reporters he spoke with China's consul general earlier that day and said he had “a very thorough discussion on just the improvement, the continuing improvement in relations between China and Canada, and certainly with Saskatchewan.”
“She was certainly very, very proud of our premier (Scott Moe), as we are as well, in his role in facilitating these discussions and literally getting off the ground to where we are today.”
Kaeding said his deputy minister is “currently in China right now, just at a trade show there and having meetings and certainly being able to have those very discussions.”
As for how much responsibility Saskatchewan had in getting to a deal with China, Kaeding pointed to the work of the province's trade office.
“Yesterday, we recognized one of our managing directors out of Vietnam who was very influential in ultimately getting all the parties to the table. But I would then say your premier, our premier, was the first premier in years to actually make a physical presence in China, and that is definitely recognized and supported — as I said, having that conversation with the consul general today, just making that effort to start building that bridge again. And then we were able to bring our federal government on board, and I would say from there, we've had some really good engagement and looking forward to the opportunities that are going to come from this. And I think today we saw that.”
As for potential growth in trade with China in the coming few years, Kaeding said he saw a lot of opportunity.
“Oh, certainly there is all kinds of opportunity with Saskatchewan. Certainly on ag products, that's our strength right now. We've been able to move canola as a very big product there. One of our largest markets for canola meal is China, and I do expect we're going to have an opportunity to expand that.”
Kaeding also pointed to peas and pulses, as well as potash, as important products that China has been a customer for. He also pointed to energy security and food security.
“Energy security, food security are two things that we hear literally everywhere we go around the world, and China has certainly expressed they have needs around food and energy security, and they look at us as being one of those very responsible participants in helping them achieve those goals.”
