New Agreement Expected to Boost Canadian Canola Imports to China

28-Jan-2026 08:57 PM

Beijing. In mid-January of this year, China and Canada reached an agreement under which both countries agreed to reduce import duties on each other's products.

It is worth noting that since March 2025, a hefty 100 percent tariff has been imposed in China on imports of Canadian peas, canola, and its value-added products. As a result, imports of these products from Canada to China have been non-existent or negligible.

The agreement reached between the two countries on January 13-14, 2026, is scheduled to come into effect on March 1, and after that, imports of canola and its products from Canada to China are expected to increase rapidly.

This is likely to significantly impact the United States. China will meet its soybean demand and needs through imports from Brazil and Argentina, while importing canola from Canada to meet its consumption of other edible oils/oilseed meals.

This will significantly reduce China's need for American soybeans. Brazil is expected to produce such a massive amount of soybeans that it alone could meet China's needs.

The opening of the Chinese market will provide significant relief to Canadian canola producers, crushers, processors, and exporters, and the area under canola cultivation in Canada may increase somewhat.