Canada Announces New Preliminary Trade Agreement with China (Updated)
Trade Update • Jan. 20, 2026 | Updated Feb 4, 2026
Key Points
- Canada and China agree on expanded trade access, investment, and tariff reductions.
- Up to 49,000 Chinese electric vehicles allowed into Canada at a 6.1% tariff.
- Tariffs on Canadian canola seed drop to ~15%; anti-discrimination tariffs removed on canola meal, lobsters, crabs, and peas.
- Partnership includes two-way investment in energy, clean technology, manufacturing, agri-food, and wood products.
- Canada aims to increase exports to China by 50% by 2030, while enhancing cooperation on governance, security, and cultural exchange.
- Update: Canada has published a backgrounder with more details on the joint investment.
On January 16, 2026, following Prime Minister Mark Carney’s visit to Beijing, Canada announced expanded trade and investment agreements with China. The agreements include reduced tariffs on Canadian agricultural exports, allowances for up to 49,000 Chinese electric vehicles at a 6.1% tariff, and joint investment initiatives in clean energy, technology, and manufacturing. These measures are expected to unlock nearly $3 billion in exports, strengthen supply chains, create jobs, and deepen long-term economic ties between the two countries.
Update: Canada also published a backgrounder providing additional details on joint investment in clean energy, manufacturing, agri-food, and wood products, with meetings planned with Chinese business leaders.
Trade and Investment Highlights
Agri-Food Market Access
- Canola seed tariffs will fall to approximately 15% by March 1, 2026.
- Anti-discrimination tariffs lifted on canola meal, lobsters, crabs, and peas until the end of 2026.
- These changes could unlock nearly $3 billion in new export opportunities.
Electric Vehicle Imports
- Canada will allow up to 49,000 Chinese EVs at a 6.1% tariff.
- Supports domestic EV manufacturing and joint ventures with trusted partners.
- Expected that over 50% of imported EVs will be under $35,000 within five years.
Energy and Clean Technology
- Canada and China to collaborate on batteries, solar, wind, and energy storage.
- Meetings with Chinese business leaders to accelerate investment in Canadian clean technology.
Long-Term Trade Growth
- Canada targets a 50% increase in exports to China by 2030.
- Sectors include energy, clean technology, agri-food, wood products, and manufacturing.
Security and Governance
- Cooperation to combat narcotics trafficking, cybercrime, and money laundering.
- Support for multilateral engagement, including China’s 2026 APEC Presidency and Canada’s 2029 Summit bid.
Cultural and Tourism Cooperation
- Agreements to boost cultural exchanges, support digital content, and promote outbound tourism.
- Visa-free access for Canadians traveling to China is expected.
Read the full Canada-China Joint Statement to see how both countries are advancing trade, energy, finance, public security, and cultural cooperation.
Prime Minister’s Statement
“At its best, the Canada-China relationship has created massive opportunities for both our peoples. By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations.”
Quick Facts
- China is Canada’s second-largest trading partner, with $118.9B in two-way merchandise trade in 2024.
- Canadian exports to China totaled $30B in 2024; imports reached $88.9B.
- Agri-food, forest, and seafood exports to China reached $13.4B in 2024.
- New MOUs cover energy, crime prevention, cultural exchange, wood products, and food safety.
More info from this backgrounder from Global Affairs Canada.
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