Canada, China establish new trade agreements on canola, beef

Following a deal to reduce tariffs between Canada and China, the latter is moving to import canola and beef from Canada.

Federal Agriculture Minister Heath MacDonald told reporters on Jan. 20 that a Chinese importer has ordered 60,000 metric tonnes of canola seed with another company expected to ship beef next week.

On Monday, China lifted its ban on Canadian beef imports after an atypical case of bovine spongiform encephalopathy (BSE) was found on an Alberta farm in 2021. And last week, Beijing reduced tariffs on Canadian canola seed and at least temporarily removed levies on canola meal, lobsters, crabs and peas. In exchange, Ottawa made concessions on Chinese electric vehicle duties.

“We are pleased to see renewed access into China, one of the largest export markets for beef. Every market matters to Canadian beef farmers and ranchers; it supports our industry’s resilience and growth,” Tyler Fulton, president of the Canadian Cattle Association, said in a statement.

The Canadian Meat Council (CMC) welcomed the reinstatement of access for Canadian beef to the Chinese market in a statement on Jan. 20.

At the same time, it emphasized the importance of continued dialogue toward the full normalization of red meat trade with China, including the removal of remaining tariffs on Canadian pork.
According to CMC, in 2021, Canada exported approximately $1.75 billion-worth of red meat to China.

“The reinstatement of beef access is a very positive development and a welcome sign of renewed cooperation,” said Russ Mallard, chair of the Canadian Meat Council. “We commend the Government of Canada for this achievement and look forward to continued collaboration to achieve full market normalization for both beef and pork.”

Meanwhile, Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, preaches caution when engaging with China.

Charlebois emphasized the Chinese market is one of the few on earth that is large enough to meaningfully impact the Canadian agri-food sector.

Noting the unique relationship Canada has with China compared to other partners, Charlebois urged Canadians to keep in mind the conditional nature of trade.

“China cannot—and should not—become a foundation market for Canada’s agri-food sector. It is best understood as an important outlet, not a dependable anchor. Used carefully, it can support incomes and diversification. Relied upon excessively, it can expose producers to abrupt and costly shocks,” he said.

He cautioned that “Canada risks trouble when trade with China is framed as a strategic pivot, a political statement, or a substitute for our relationship with the U.S. It should be none of those things. Engagement with China should be quiet, commercial, limited in scope, and firmly grounded in Canadian interests.”

With inputs from The Canadian Press.