Canada and China Extend Trade Arrangement Through 2028, Preserving Tariff Relief for Canola and Seafood
On November 4, 2026, Canada and China agreed to extend their Preliminary Joint Arrangement on bilateral trade until the end of 2028. The deal maintains paused tariffs on Canadian canola meal, peas, lobsters, and crab, while Canada continues remission measures for certain Chinese steel and aluminum products.
Canadian Minister of International Trade Maninder Sidhu and Chinese Minister of Commerce Wang Wentao announced on November 4, 2026, that Canada and China have agreed to a two-year extension of their Preliminary Joint Arrangement on bilateral economic and trade issues, keeping the framework in place until the end of 2028. The announcement was made during a Joint Economic and Trade Commission (JETC) meeting in Beijing, marking the first time the commission has convened at the ministerial level.
Under the extended arrangement, China will continue to pause 100 per cent tariffs on Canadian canola meal and peas, as well as 25 per cent tariffs on lobster and crab. In return, Canada will extend remission measures for certain Chinese steel and aluminum products not manufactured in Canada through the end of 2028. Officials stated that the extension provides greater certainty and predictability for Canadian farmers, seafood harvesters, and exporters, supporting Canada's goal of increasing exports to China by 50 per cent by 2030.
The original Preliminary Joint Arrangement was established during Prime Minister Mark Carney’s visit to Beijing in January 2026. During that visit, China also restored market access for Canadian beef, and Carney secured a reduction in tariffs on Canadian canola seed imports from 100 per cent to approximately 15 per cent for five years. As part of the same January agreement, Canada agreed to allow up to 49,000 Chinese electric vehicles into its market annually at a tariff rate of 6.1 per cent.
Since the arrangement took effect in March, Canadian agricultural and seafood exports to China have risen sharply. Canola seed exports increased by 84 per cent compared to the same period last year, climbing from $1.04 billion to $1.91 billion. Canola meal exports more than doubled from $146 million to $390 million, while pea exports grew from $107 million to $345 million. Lobster exports rose by 57 per cent, moving from $128 million to $200 million. Additionally, between January and August, Canada shipped $363.2 million in beef exports to China, nearly double the total amount sold there throughout all of 2021.
China remains Canada’s second-largest single-country merchandise trading partner. Two-way merchandise trade between the nations reached $125.7 billion in 2025, comprising $35.0 billion in Canadian exports and $90.6 billion in imports from China. In the first half of 2026, Canadian exports to China grew by 31.4 per cent to $21.5 billion.