Prime Minister Mark Carney says Canada will allow up to 49,000 Chinese electric vehicles into the Canadian market, with the most-favoured-nation tariff rate of 6.1%.
He made the announcement in Beijing, after meeting with Chinese President Xi Jinping.
Carney says it’s expected that within three years, the agreement will drive considerable new Chinese joint-venture investment in Canada with trusted partners to protect and create new auto manufacturing careers for Canadian workers, and ensure a robust build-out of Canada’s EV supply chain.
Within five years, he says it’s expected more than have of these vehicles will be affordable EVs with an import price of less than $35,000, creating new lower-cost options for Canadian consumers.
The move is part of a new strategic partnership between Canada and China with Ottawa saying collaboration in energy, clean technology, and climate competitiveness is central to the agreement.
“At its best, the Canada-China relationship has created massive opportunities for both our peoples,” says Carney. “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.”
The preliminary agreement-in-principle comes with landmark measures to remove trade barriers and reduce tariffs:
– By March 1, 2026, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15%. China is a $4 billion canola seed market for Canadian producers, and this change represents a significant drop from current combined tariff levels of approximately 85%.
– Canada expects that Canadian canola meal, lobsters, crabs, and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of this year.
The federal government says these results will help unlock nearly $3 billion in export orders for Canadian workers and businesses as they realize the full potential of the Chinese market of 1.4 billion people.
Building on this momentum, Canada has set an ambitious goal to increase exports to China by 50% by 2030.
To achieve this outcome, officials say Carney and Xi discussed increasing two-way investment in clean energy and technology, agri-food, wood products, and other sectors.
