Canada and China have agreed to extend a market access deal for Canadian canola, peas, seafood, and Chinese steel and aluminum through the end of 2028, securing stable bilateral trade amid ongoing diplomatic engagements.
- Deal extends market access for Canadian canola, peas, lobster, and crab until 2028
- China gains continued access to Canadian steel and aluminum markets
- Increased Canadian exports include an 84% rise in canola seed and 57% rise in lobster
What happened
Canada and China have extended their trade access arrangement through the end of 2028, ensuring continued tariff relief on key Canadian agricultural exports and reciprocal access for Chinese steel and aluminum products within the Canadian market. This arrangement originated in January 2026 following negotiations between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping and was set to expire at the end of 2026.
Since its initial implementation, the deal has facilitated significant growth in Canadian exports to China. Canola seed exports have increased by 84% year over year while canola meal, peas, and lobster shipments have also seen substantial gains. Canada also resumed beef exports to China in January 2026, nearly doubling export value compared to 2021, signaling an overall positive trajectory in bilateral trade relations.
Why it matters
The extension brings much-needed certainty to Canadian agricultural producers, helping them plan their operations with confidence amid ongoing trade tensions and global market volatility. Canadian trade officials emphasize that maintaining and expanding access to China—a vital market for commodities like canola and seafood—is critical to supporting billions of dollars in export opportunities and farmers’ livelihoods.
For China, securing continued steel and aluminum market access supports its industrial exports while underscoring the delicate balancing act Canada faces in managing economic ties with both Beijing and Washington. The deal also reflects a broader strategic effort by Ottawa to increase trade with China by 50% by 2030 and promotes dialogue through the revived joint economic and trade commission established in mid-2025.
What to watch next
Chinese Vice Premier He Lifeng’s upcoming visit to Vancouver, along with planned meetings between Canadian Trade Minister Maninder Sidhu, Finance Minister François-Philippe Champagne, and financial regulators, could further enhance economic cooperation and pave the way for expanded Chinese investment in Canada. These diplomatic efforts coincide with Prime Minister Carney’s planned visit to Shenzhen for the Asia-Pacific Economic Cooperation summit, where boosting bilateral trade and investment will be prioritized.
Looking ahead, Canada’s trade policy will increasingly have to balance its economic relationships with China and the United States. Ottawa’s ability to navigate this complex dynamic will shape future negotiations and market access agreements, especially as Chinese steel and aluminum imports remain a key factor in ongoing trade discussions with Washington.