Grain Growers of Canada welcome renewed engagement between Canada and China

GRAIN Growers of Canada on Friday welcomed renewed engagement between Canada and China, including Prime Minister Mark Carney’s visit to Beijing and the announcement of preliminary steps to de-escalate recent trade tensions.

GGC, which represents over 100,000 producers through its 15 national, provincial and regional grower groups, said that for Canada’s grain farmers, restoring predictability and access to key export markets matters. China is Canada’s second-largest grain market, and prolonged trade disruptions have had real consequences on farm revenues, cash flow, and confidence. Any progress that lowers barriers for Canadian agricultural products, including canola and pulses, is a positive step for farmers who depend on stable, rules-based trade.

It said that it has consistently called for pragmatic engagement with both the United States and China to protect tariff-free access and prevent farmers from becoming collateral damage in broader geopolitical disputes. Over 70 percent of the grain grown in Canada is exported, and there are simply no alternatives that can replace markets of this scale.

At the same time, renewed engagement must be grounded in predictability and follow-through. Canadian farmers need assurance that market access will be durable, transparent, and insulated as much as possible from future political escalation. Ongoing issues around trade enforcement, regulatory certainty, and the treatment of Canadian exports will require continued, steady government attention, GGC added.

As discussions continue following this week’s announcements, Grain Growers of Canada urged the federal government to keep agriculture front and centre, work closely with producers and exporters, and ensure that progress translates into reliable market access at the farm gate.

It said that Canadian grain farmers are ready to supply global markets. What they need from government is consistency, certainty, and a clear commitment to keeping trade working.

 

THE Prime Minister’s Office said in a press release that agri-food and trade are foundations of the longstanding relationship between Canada and China – and China continues to be Canada’s second-largest export market. To renew and strengthen that relationship, Carney and Chinese President Xi Jinping secured a preliminary agreement-in-principle with landmark measures to remove trade barriers and reduce tariffs:

  • By March 1, 2026, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15%. China is a $4 billion canola seed market for Canadian producers, and this change represents a significant drop from current combined tariff levels of approximately 85%.
  • Canada expects that Canadian canola meal, lobsters, crabs, and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of this year.

Together, these results will help unlock nearly $3 billion in export orders for Canadian workers and businesses as they realise the full potential of the massive Chinese market of 1.4 billion people.

To build on this momentum, Canada has set an ambitious goal to increase exports to China by 50% by 2030. To achieve this outcome, Carney and Xi discussed increasing two-way investment in clean energy and technology, agri-food, wood products, and other sectors.