China said on Friday it would suspend some tariffs on Canadian agricultural products imposed during a trade spat between the two countries after Canadian Prime Minister Mark Carney struck an initial deal ⁠with Beijing during a visit in January.

China will suspend 100 percent tariffs on Canadian canola meal and pea imports and will halt 25 percent tariffs on lobster and crab imports from March 1 through the end of 2026, the Finance Ministry said in a statement.

The outcome broadly aligns with Carney's expectations. But the Chinese announcement made no mention of canola seed tariffs, which Carney had previously said would be lowered by ⁠March 1.

Ottawa expected Beijing to lower canola seed tariffs ⁠to a combined rate of ⁠about 15 percent from the current 84 percent.

A probe into Canadian canola is set to conclude on March 9, the Commerce Ministry ⁠has said.

"One thing we do ‌know is that Chinese buyers have been booking Canadian canola cargoes for March already. That gives me a pretty high ‌degree of confidence that they're going to follow through on the reduced tariff rate," ⁠said Even Rogers Pay, director at Beijing-based consultancy Trivium China.

Canola oil and pork were also not mentioned in the statement. But Beijing could still announce further adjustments by the March 1 deadline previewed ‌by Carney.

China was Canada's second largest market for canola in 2024.

The suspensions come amid a wave of visits to Beijing by Western leaders as US President Donald Trump's trade policies have strained Washington's traditional alliances. China has sought to present ⁠itself as ‌a more stable and reliable economic partner in contrast.

Carney ‌went further than his European counterparts by securing a deal with China and signalling Canada's ambition to play a ‌leading role in a new global trade order aimed at reducing dependence on the United States.

During his China trip, Carney pledged to allow into Canada up to 49,000 Chinese electric vehicles ⁠at a tariff of 6.1 percent on most-favoured-nation terms. (Reuters)



Edited by Edmond Fong