China to Offer Canola Relief for Easing EV Curbs During Carney Visit

Article content

(Bloomberg) — China will propose easing some restrictions on Canadian rapeseed products during a visit to the country by Prime Minister Mark Carney, provided his government relaxes tariffs on Chinese-made electric vehicles.

Article content

The Chinese authorities plan to discuss the proposal with Carney on his official visit this week, according to people familiar with the matter, asking not to be identified as they’re not authorized to speak to the media. Reducing levies on other industrial products from China will be part of the talks, they added.

Article content

Article content

Article content

China’s commerce ministry did not immediately reply to a fax seeking comment. 

Article content

Article content

Canadian government officials, speaking during a background briefing on Monday, said they hope to make progress on easing trade frictions but played down the prospect of a quick deal on EV tariffs. 

Article content

Vehicles and auto parts are among Canada’s most valuable exports, but most of its automotive production goes to the US. President Donald Trump’s administration has put pressure on both Mexico and Canada to erect barriers to Chinese products ahead of a review of the countries’ trade accord. 

Article content

Carney’s China trip is the first by a Canadian prime minister in more than eight years and follows an escalation of trade tensions in 2024, when the government of former leader Justin Trudeau slapped a 100% tariff on Chinese EVs, along with duties on aluminum and steel. Those measures were taken to protect domestic manufacturers and align with US levies.

Article content

Beijing hit back with tariffs early last year on products of Canadian rapeseed, known locally as canola, then added more levies in August. China was Canada’s second-biggest export destination for canola and canola products — usually crushed for animal feed — but the duties effectively ended the trade, valued at C$4.9 billion ($3.5 billion) in 2024.

Article content

Article content

While China has signaled its openness to a thaw and farmers on the Canadian side want agricultural tariffs lifted, any pullback on EV curbs would meet with domestic resistance in Canada, where automakers and provincial leaders like Ontario Premier Doug Ford have voiced their opposition. 

Article content

The prospect of improved trade relations has already filtered into the rapeseed market, with meal futures in China falling more than 4% since the middle of last week, while North American canola prices have edged higher. 

Article content

Carney is expected to land in Beijing on Wednesday and meet Chinese President Xi Jinping on Friday. The Canadian leader’s office said there will be discussions on trade, energy, agriculture and international security. Officials said Carney is expected to sign a “number of documents,” though they declined to provide details due to ongoing talks with Chinese representatives.

Article content

—With assistance from Lucille Liu, Brian Platt, Derek Decloet and Laura Dhillon Kane.

Article content