Saskatchewan Premier Moe Celebrates Trade Deal with China, Acknowledges Federal Support
Saskatchewan Premier Scott Moe has returned from a federal delegation to Beijing with news that the province's trade relationship with China has been largely restored, thanks to collaborative efforts with the federal government. Speaking at the University of Saskatchewan's College of Agriculture atrium in Saskatoon, Moe emphasized that this development marks a significant step forward for agricultural producers.
Details of the Bilateral Agreement
Following negotiations led by Prime Minister Mark Carney, Canada and China have reached a mutual agreement to reduce tariffs on key products. China will lower tariffs on Canadian canola seed and meal, while Canada will reciprocate by reducing tariffs on Chinese electric vehicles. This deal is expected to take effect by March 1, 2025, reversing punitive measures imposed by China in March 2025 in response to Canada's 100 per cent tariff on Chinese-made EVs.
Under the new terms, up to 49,000 Chinese electric vehicles can enter the Canadian market at a reduced tariff rate of approximately six per cent, down from the previous 100 per cent. On the agricultural front, Beijing will drop canola seed duties from around 85 per cent to 15 per cent by March, and eliminate tariffs on canola meal, peas, and seafood until at least the end of the year.
Moe's Perspective on the Deal and Remaining Challenges
Premier Moe praised the federal government's involvement, calling it "a significant delegation" that demonstrated Canada's commitment to engaging with China. He noted, "When you show your face in markets like that, the Chinese are most certainly going to take note of that." However, Moe was quick to point out that more work is needed, as 100 per cent tariffs on canola oil and 25 per cent tariffs on pork remain in place.
"From an agricultural perspective, this gets us back to where we were a year ago. No more, no less, really," Moe stated, highlighting that the elimination of the canola meal tariff is a victory for domestic crushing operations. He explained, "Canola oil will move to many other markets around the world, and meal was the important piece for us to get in order to have that domestic crush capacity keep up."
Strategic Importance of the Chinese Market
China stands as the second-largest customer for Canadian canola, trailing only the United States. Together, these two markets account for nearly 90 per cent of Canadian canola exports. Moe addressed critics who argue that Saskatchewan should diversify its agricultural markets beyond China and the U.S., emphasizing that China represents a premium market. "They are the largest markets in the world, and in the case of China, it's a premium market. They pay more, and we worked hard to get into that market," he asserted.
Moe also credited his trade mission to China in September for helping to shift the tone between Saskatchewan and China, paving the way for this agreement. As the deal moves toward implementation, producers and policymakers alike will be watching closely to see how these changes impact the agricultural and automotive sectors in the coming months.
