Canada Extends Trade Deal With China Through 2028

Canada and China have extended a trade agreement that provides Chinese market access for Canadian imports in exchange for Canadian market access for Chinese steel and aluminum, as Global News Toronto first reported.

Trade Minister Maninder Sidhu announced Wednesday that the deal, which was originally set to expire at the end of this year, will now run until the end of 2028. The arrangement follows a January visit to Beijing by Prime Minister Mark Carney and the relaunch of a joint economic and trade commission. Since the deal took effect in March, Sidhu reported significant growth in exports: canola seed exports rose 84% to $1.91 billion, canola meal exports increased to $390 million, and pea exports grew to $345 million. Additionally, lobster exports rose 57% to $200 million, and Canadian beef returned to the Chinese market for the first time since 2021, totaling $363.2 million in exports from January to August.

Sidhu stated the extension provides "stable access" and supports billions in export opportunities as Ottawa aims to increase exports to China by 50% by 2030. Fisheries Minister Joanne Thompson added that the move offers "immediate certainty" for crab and lobster exporters.

Vina Nadjibulla, co-founder of the Centre for Strategic Statecraft, told Global News Toronto that clearing this "immediate trade irritant" allows Prime Minister Carney to focus on boosting Chinese investment during his upcoming visit to Shenzhen for the Asia-Pacific Economic Co-operation summit. Nadjibulla noted that locking in access for Chinese steel and aluminum will likely influence Ottawa's trade negotiations with Washington, as Canada navigates simultaneous economic relationships with both powers.

The Carney government is currently working to double non-U.S. exports over the next decade following the re-election of U.S. President Donald Trump. China remains Canada's second largest single-country merchandise trading partner, with $125.7 billion in two-way trade in 2025.