# China extends Canada canola tariff waivers into late 2028 *The two-year extension agreed Nov. 4 suspends 100% retaliatory duties on canola meal and peas while maintaining separate trade rules for seeds, oil and pork.* **Published:** November 5, 2026 **By:** Hao Feng **Section:** Trade & Industrial Policy — China **Format:** Policy Tracker **Confidence:** high **Source:** https://eastasiabrief.com/trade-policy/china-extends-canada-canola-tariff-waivers-late-2028-1140 **Publisher:** East Asia Brief (https://eastasiabrief.com/) --- ## What to know - China extends tariff-free access for Canadian canola meal, peas, lobster and crab through Dec. 31, 2028 - Waivers pause 100% retaliatory levies on protein meal and peas, and 25% on seafood - Formal ministerial agreement concluded in Beijing on Nov. 4; existing exemptions expire Dec. 31 ![A crane operator handles cargo at a Chinese port terminal as the country extends tariff-free access for key Canadian agricultural imports. (AI-generated image)](https://eastasiabrief.com/media/2026-11-04-527be6c84e5b.webp) *A crane operator handles cargo at a Chinese port terminal as the country extends tariff-free access for key Canadian agricultural imports. (AI-generated image)* China's Ministry of Commerce agreed Nov. 4 to extend tariff-free market access for Canadian canola meal, peas and key seafood products for two additional years through Dec. 31, 2028. The pact renews relief scheduled to expire Dec. 31 under an interim bilateral framework. It removes 100% retaliatory tariffs on canola meal and dried peas, alongside 25% levies on lobster and crab. Canada offered reciprocal terms during the ministerial session in Beijing. Ottawa will maintain import duty remissions on non-domestic Chinese steel and aluminum through 2028, according to Global Affairs Canada. Chinese Commerce Minister Wang Wentao and Canadian International Trade Minister Maninder Sidhu concluded the deal at the 29th Joint Economic and Trade Commission. It was the body's first ministerial meeting. The arrangement shields Prairie grain handlers from punitive border charges. Richardson International and Viterra handle over half of Canada's commercial canola pipeline and rely on Chinese crushers for bulk export volumes. Canadian exports of canola meal to China topped 2.2 million metric tons before recent trade frictions prompted Beijing to levy emergency duties. The waiver insulates that processing volume from immediate market closure. China is Canada's second-largest agricultural export market behind the United States. Ottawa has set a formal policy goal of expanding overall exports to China by 50% before 2030, Minister Sidhu said. The bilateral agreement selectively separates trade categories to keep key commodity flows open. Beijing has isolated high-volume livestock feed and seafood from unresolved geopolitical disputes, commercial trade specialists said. The relief does not cover raw canola seed. China closed an anti-dumping inquiry in February, imposing a 5.9% duty on Canadian seed shipments for five years, according to Ministry Announcement No. 14. That five-year anti-dumping order detached bulk seed trade from the temporary waiver list. It locked in a predictable single-digit duty for Canadian farm exporters while replacing an earlier 75.8% temporary cash deposit. Other sensitive agricultural goods remain blocked behind punitive trade barriers. Canola oil retains a 100% retaliatory tariff, while Canadian pork shipments face an ongoing 25% levy, ministry filings show. Beijing has used targeted tariff waivers to manage domestic food supply costs. China's domestic livestock operators rely heavily on imported protein meal to stabilize feed prices amid fluctuating global grain availability. The extension also protects earlier automotive agreements between the two nations. Canada previously established a 49,000-unit annual import quota for Chinese electric vehicles at a 6.1% most-favored-nation duty, avoiding 100% surcharges. Reciprocal steel remissions benefit Chinese metallurgical exporters targeting Canadian industrial projects. The waiver applies exclusively to specialized steel and aluminum grades that Canadian domestic mills do not produce, Canadian trade documents show. Western trade unity has faced growing strain from divergent tariff policies toward Beijing. Canadian trade strategists have pursued bilateral exemptions with Asian partners as Washington prepares for potential across-the-board import tariff increases. For seafood exporters in Atlantic Canada, the waiver maintains duty-free entry for cold-water lobster. Seafood processing groups had faced 25% tariffs that threatened hundreds of millions of dollars in annual shipments to Chinese wholesale hubs. The agreement marks a steady thaw following years of diplomatic friction. Relations had deteriorated after Canadian authorities detained a Huawei executive in 2018, which prompted Beijing to block major Canadian seed exporters. During Prime Minister Mark Carney's visit to Beijing in January, both nations launched the Preliminary Joint Arrangement. That pact restored market access for Canadian beef and laid the ground for commercial normalisation. The Ministry of Commerce said Nov. 4 that both governments will broaden commercial cooperation while shrinking unresolved disputes. Working groups on intellectual property and trade remedies will continue routine technical discussions. China's targeted tariff relief mirrors bilateral overtures made to other regional commodity exporters. Beijing previously rolled back punitive duties on Australian barley, coal and wine after diplomatic channels reopened in Canberra. By dividing trade actions between permanent anti-dumping rulings and rolling two-year administrative waivers, Beijing preserves strategic leverage. The mechanism allows policymakers to adjust agricultural access without dismantling broader retaliatory frameworks. The Ministry of Commerce notice does not specify individual eight-digit Harmonized System codes, and the State Council Customs Tariff Commission has not published the formal tariff decree. Canadian Prime Minister Mark Carney will travel to Shenzhen later this month for the Asia-Pacific Economic Cooperation summit. The newly extended tariff waivers will formally take effect when existing exemptions expire Jan. 1. ## Impact map | Event | Korea | China | Japan | Global impact | | --- | --- | --- | --- | --- | | China-Canada tariff waiver extension | Feed millers face stable regional protein meal prices as Canadian meal enters China without tariff distortions | Domestic livestock producers secure uninterrupted Canadian canola meal supply, buffering feed production costs | Japanese grain buyers see stabilized trans-Pacific logistics and predictable non-GM oilseed crush margins | Western trade alignment fractures as bilateral commodity exemptions decouple from U.S.-led tariff measures | ## In this story - **Companies:** Richardson International, Viterra - **Policy:** Tariffs - **Impact:** Pricing, Supply Chain ## Primary sources 1. mofcom.gov.cn 2. usda.gov 3. ckom.com 4. canada.ca 5. cbc.ca --- Cite as: East Asia Brief, "China extends Canada canola tariff waivers into late 2028," November 5, 2026. https://eastasiabrief.com/trade-policy/china-extends-canada-canola-tariff-waivers-late-2028-1140