Farmers relieved following agreement to lower or eliminate Chinese agricultural tariffs

Canada and China struck a deal to lower canola seed tariffs to 15 per cent by March and to completely eliminate 100 per cent tariffs on Canadian peas.

Those tariffs were imposed by the Chinese government in retaliation for Canadian duties on Chinese steel and electric vehicles.(EV’s)

The agreement signed in Beijing on Friday by Canadian Prime Minister Mark Carney and Chinese President Xi Xinping will see 49,000 Chinese EV’s allowed into Canada at a reduced tariff rate.

Terry Youzwa is the Chair of Pulse Canada and farms in the Nipawin area. He says the agreement will provide a much needed boost to the market.

Youzwa says China has also indicated that it will examine the possibility of buying Canadian lentils and fababean. For lentils, it would a provide a much-need secondary market when India places tariffs to protect its domestic farmers.

Canola producers will have to deal with a 15 per cent tariff, but it is much better than the alternative. Dean Roberts farms near Coleville in west-central Saskatchewan is the Chair of SaskCanola.

Canada is the top global exporter of canola and China is the industry’s second-largest market after the United States. China’s anti-dumping investigation into canola seed was set to wrap in March. Meantime, the 100 per cent duty of Canadian canola meal will go to zero in March and that will continue at least until the end of the calendar year.

Youzwa and Roberts thanked Saskatchewan Premier Scott Moe for his efforts in reaching this agreement. Moe went to China last fall with the Prime Minister’s Parliamentary Secretary to pave the way for further discussions. He was also invited by Carney to attend this week’s meetings in China.

The Agricultural Producers Association of Saskatchewan also thanked those involved in the negotiations.

“Through this agreement, the resilience and dedication in our government-led negotiations were on full display,” said Bill Prybylski, APAS President. “Producers of canola and peas have faced significant export barriers to China. We are grateful for the persistent efforts that culminated in this important breakthrough for the agricultural community.”