Sino-Canadian deals on EV, agriculture 'positive'

Canada and China have reached agreements on electric vehicles and agricultural tariffs, a move experts say signals pragmatism in bilateral relations and could bring tangible benefits to Canadian consumers, farmers and exporters.

China's decision to reduce tariffs on Canadian canola to 15 percent and suspend additional duties on lobster and crab is a welcome development for Canadian exporters, said Jiang Wenran, founding director of the China Institute at the University of Alberta.

"These measures directly benefit Western Canadian farmers and coastal fishing communities who have faced significant economic hardship due to the trade disputes," Jiang added.

Jiang said the move "paves the way for a substantial recovery in Canadian exports to China in 2026", restoring a key market for producers at a time of global trade uncertainty.

On the electric vehicle front, Canada's decision to lower tariffs on Chinese EVs — allowing up to 49,000 vehicles annually to enter the Canadian market at a 6.1 percent tariff rate — carries clear implications for Canadian households, he said.

"It provides access to more affordable and competitive EV options, accelerating the transition toward greener transportation and supporting environmental goals," Jiang said.

For China's EV industry, the agreement opens an important door into North America, he said.

"This move is strategically significant as it opens a crucial door to the North American market, breaking past high tariff barriers," Jiang said.

This policy holds the potential to attract Chinese investment into Canada's automotive sector, creating potential win-win scenarios, he said.

In addition, Canadian Prime Minister Mark Carney's visit to China saw the signing of a series of memoranda of understanding covering energy, combating crime, culture, and food safety, with energy cooperation emerging as a key focus of the trip.

Jiang said Canada and China are highly complementary in the energy sector, as Ottawa seeks to reduce its heavy reliance on the US market while China remains the world's largest energy importer.

"Projects like the Trans Mountain pipeline, which already sells most of its crude at a premium to Chinese buyers, and proposed new pipelines and LNG projects betting on Chinese demand, underscore this synergy," he said.

He said that cooperation could also expand beyond traditional energy.

"Building on a history of successful Chinese investment in Canada's energy sector between 2009 and 2014, which provided capital and sustained jobs, collaboration is now poised to extend into renewable energy and energy efficiency," Jiang said.

Strategic implications

Jiang said the policy shift also carries strategic implications for Canada's foreign policy.

A more stable and cooperative bilateral relationship is poised to generate significant trade and economic benefits for both nations, Jiang said.

Canada's negotiations with China over canola and electric vehicle tariffs reflect a broader effort to reset bilateral relations and recalibrate trade strategy amid shifting global economic conditions, said Marc Jerry, president and vice-chancellor of Renison University College at the University of Waterloo.

Jerry said that direct talks on "trade issues such as agriculture, energy, and tariffs" were particularly valuable.

He said the longer-term effects tend to favor consumers.

"In the end, there may be significant short-term transaction costs as industries and trade flows evolve.

"International trade itself is ultimately good for consumers because it improves product variety and allows manufacturers to specialize in their production and output in the most efficient way possible," he said.

Jerry said the broader push to improve economic ties with China reflects Canada's need to diversify beyond its heavy reliance on the United States.

gaoyang@chinadailyusa.com