Matthew Holmes, executive vice president and chief of public policy of the Canadian Chamber of Commerce, has described Canada’s efforts to improve its trade relationship with China as “a cautious first move” to address the friction and tariffs between the countries.
In a news release, Holmes welcomed Canada’s recent decision to re-engage with China, the second-largest market worldwide.
Holmes noted that extending lower tariffs on Canadian canola seed, canola meal, lobsters, crabs, and peas through 2026 would give farmers, processors, and the agri-food supply chain the certainty they need.
“It has taken a considerable amount of effort over months to get us here, and we commend the Prime Minister, Ministers, Premiers and other members of the delegation in getting us to this place,” Holmes said in the news release.
However, Holmes acknowledged that China’s market has for years excluded other segments of the agricultural sector, which will receive no relief under the trade agreements.
Holmes added that expanded access, especially relating to electric vehicles (EVs) and advanced technologies, may impact Canadian manufacturers, cybersecurity, and Canada’s other commitments under the United States-Mexico-Canada Agreement (USMCA).
In the chamber’s news release, Holmes stressed that Canada’s and China’s revitalized partnership should have clear and enforceable rules that both sides can follow.
Holmes explained that Canada’s agriculture and agri-food sector – which centres on food, fuel, and fertilizer – plays a crucial role in the Canadian economy and trade, supports one in nine jobs in the country, and makes up seven percent of its annual gross domestic product (GDP).
Grain growers’ reaction
In a news release, Grain Growers of Canada (GGC) also welcomed Canada’s and China’s renewed engagement, including Prime Minister Mark Carney’s recent visit to Beijing.
GGC emphasized the importance of predictability, follow-through, and continuing access to significant export markets for the country’s grain farmers.
“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,” GGC said.
GGC shared that it has previously sought pragmatic engagement with the US and China to gain tariff-free access and keep farmers from becoming collateral damage in geopolitical conflict.
However, GGC stressed that Canada’s government should consistently address issues involving trade enforcement, regulatory certainty, and export treatment, as well as clearly commit to keeping trade working.
“Canadian farmers need assurance that market access will be durable, transparent, and insulated as much as possible from future political escalation,” GGC said in its news release.
GGC urged the federal government to focus on agriculture, closely collaborate with producers and exporters, and protect reliable market access at the farm gate.
GGC noted that lengthy trade disruptions impact farm revenues, cash flow, and confidence. GGC added that Canada exports 70 percent of the grain it grows, with China serving as Canada’s second-largest grain market.