Canada and China have announced a two-year extension of their bilateral trade arrangement, prolonging it through the end of 2028. The agreement maintains preferential market access for Canadian agricultural products in China, as well as tariff relief for certain Chinese steel and aluminum products entering the Canadian market.
The arrangement, originally reached during a visit to China by Canadian Prime Minister [Justin Trudeau] in January 2016, was set to expire at the end of this year. The extension was announced by Canada’s Minister of International Trade, Maninder Sidhu, following a meeting of the Canada-China Joint Economic and Trade Commission in Beijing, which he co-chaired with China’s Minister of Commerce, Wang Wentao.
Under the agreement, China continues to provide preferential market access for Canadian canola meal, peas, lobster, and crab. In exchange, Canada maintains tariff relief for specific Chinese steel and aluminum products that are not produced domestically in Canada.
These concessions do not imply unrestricted access for all Chinese steel and aluminum products; the scope remains limited to the specific product categories defined in the original agreement.
The extension provides businesses in both countries with greater clarity for trade and investment planning. It also reflects Canada’s ongoing efforts to diversify its export markets—reducing its reliance on the United States—while simultaneously maintaining its trade relationship with the U.S.
Canadian agricultural exporters have already seen significant gains from the agreement. Minister Sidhu noted that since the arrangement took effect in March of this year, the value of Canadian canola exports to China has surged by 84% year-over-year, rising from $1.04 billion to $1.91 billion. Exports of canola meal more than doubled, climbing from $146 million to $390 million. Additionally, pea exports rose from $107 million to $345 million, while lobster exports increased by 57% year-over-year, growing from $128 million to $200 million. The extension of the agreement through the end of 2028 will allow farmers, seafood harvesting enterprises, and exporters to plan their production, sales, and logistics with greater certainty.
Furthermore, Canadian beef regained access to the Chinese market this January, following a period of exclusion that had been in place since 2021.
Between January and August of this year, the value of Canadian beef exports to China reached $363.2 million—nearly double the total for the entire year of 2021—signaling a continued recovery in bilateral agricultural trade.
The Canadian government has set a goal to increase exports to China by 50% by 2030. China is currently Canada’s second-largest single-nation trading partner, with the value of merchandise trade between the two countries reaching $125.7 billion in 2025.
This extension provides long-term policy certainty for Canadian exports of canola meal, peas, and seafood, while also allowing continued access to the Canadian market for certain Chinese steel and aluminum products. It serves as a significant arrangement for both nations to expand trade cooperation and balance their respective industrial interests.
