Saskatchewan’s Moe, canola farmers say trade deal with China ‘very good news’

REGINA – Saskatchewan Premier Scott Moe and canola farmers are hailing Canada’s new trade deal with China as “very good news” that could restore exports for the major Prairie crop.

Moe accompanied Prime Minister Mark Carney to Beijing this week to strike the deal. It will see China significantly reduce tariffs on Canadian canola seed — and at least temporarily remove tariffs on canola meal — in exchange for Ottawa making concessions on Chinese electric vehicles duties.

Moe, whose province produces more than half of Canada’s canola, said in a statement that the deal should allow exports of the crop and other agricultural goods to China to return to normal.

“Today 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,” he said.

Carney said Ottawa expects Beijing to drop canola seed duties to 15 per cent by March 1 and lift “anti-discrimination” levies on canola meal, peas, lobsters and crab from the same date to at least the end of the year. In return, up to 49,000 Chinese electric vehicles will be allowed into the Canadian market each year at a 6.1 per cent tariff instead of the current 100 per cent tariff. 

It was Canada’s tariff on EVs that led China to retaliate last March with a 100 per cent tariff on Canadian canola oil, peas and other products, along with 25 per cent on pork and seafood products.

China further implemented a 76 per cent duty on canola seed in August, though the prime minister’s office said that figure was closer to 84 per cent when combined with other duties in place.

Manitoba Premier Wab Kinew, whose province is the third-highest producer of canola behind Alberta and Saskatchewan, told reporters that the deal was encouraging.

Alberta Premier Danielle Smith, in a statement, said she welcomes the deal but trusts that officials “will take any measures necessary to ensure all vehicles and other products sold into Canada pose no threat to our nation’s privacy laws or national security interests.”

The deal was welcomed by canola farmers.

Uwe Quedenbaum, who runs a grain operation near Barrhead, Alta., said the tariffs on canola turned the market in “a pretty dismal” direction, leaving farmers struggling to sell their products. 

“I had cut back quite a bit and instead seeded more peas, and then we got hit on the pea deal. So if we got a little bit of relief on both sides, that’s awesome news,” he said.

Roger Chevraux, a fourth-generation farmer near Killam, Alta., noted canola prices have already shown signs of a rebound. “I think a lot of farmers have been not selling their canola over the last several months in some hopes that they could see better prices and some sort of deal with China,” he said.

Bill Prybylski, the president of the Agricultural Producers Association of Saskatchewan, said while the deal gives farmers peace of mind, it does not mention canola oil, which is currently subject to a 100 per cent tariff.

“This is certainly concerning that there is no relief on those tariffs on the oil, and that has an effect on the overall price that producers get for our canola seed,” said Prybylski, who farms near Yorkton, Sask.

Rick White, president of the Canadian Canola Growers Association, said the success of the deal will be measured in future sales.

He said producers could have lost at least $2 billion this year if the issue wasn’t resolved, but said Friday’s deal means losses shouldn’t be anywhere near that figure.

“The economic damage will be substantially, significantly reduced,” White said.

Chevraux shared the same sentiment, but noted China is Canada’s second-largest customer for canola, behind the United States. “We’ve got to be careful about making sure that whatever we do with China doesn’t upset our No. 1 customer,” he said.

This report by The Canadian Press was first published Jan. 16, 2026.

— With files from Jack Farrell in Edmonton and Steve Lambert in Winnipeg