Canada and China strike trade bargain to slash tariffs
China and Canada struck a trade deal on Friday that will slash tariffs on canola and electric vehicles.
Saskatchewan Premier Scott Moe joined Prime Minister Mark Carney in Beijing this week. He said the agreement is “very good news” for Canada and Saskatchewan and expressed hopes this would mean trade volumes will return to normal.
Canada will allow in up to 49,000 EVs into Canada at a 6.1 per cent tariff rate. In return, Canada expects China to lower tariffs on canola seed to a combined rate of about 15 per cent by March first.
Canada also expects its canola meal, lobsters, crabs and peas to have anti-discrimination tariffs removed from March 1, until at least year-end. There’s no definitive word yet on the 25 per cent tariffs faced by Canadian pork.
Meanwhile, U.S. trade representative Jamieson Greer said Canada’s reduction of EV tariffs was “problematic” and suggested Canada would not like the deal “in the long run.”
CFIA says cattle traceability changed on hold
The Canadian Food Inspection Agency says it will hold off posting new cattle traceability regulations.
The statement came after public confusion over whether changes to the regulations were in force.
The regulatory changes had not been enacted, however the CFIA had expected to publish the regulations this spring. The proposed rules – which industry groups helped to develop – included premises identification numbers to buy ID tags, reporting when cattle leave home operations, and reporting the arrival of cattle within seven days.
Producers said these regulations would be costly and onerous.
The CFIA said it was aware of concerns and said the rules hadn’t been finalized. It will hold off publishing new regulations until producer concerns have been heard and there is better understanding of the proposed changes.
CUSMA review process underway
As the review process begins for the CUSMA trade deal, fears that the U.S. is moving away from free trade are beginning to fade.
Michael Harvey is executive director of the Canadian Agri-Food Trade Alliance. He said they’re a lot more confident than they were a year ago.
U.S. trade representative Jamieson Greer recently said their is broad support for CUSMA based on comments submitted by stakeholders.
Greer cited a list of concerns about the trade pact including lack of dairy market access in Canada and Canada’s exports of certain dairy products. He said a rubber stamp of the agreement isn’t in the U.S.’s national interest and it will be negotiating firmly with Canada and Mexico.
Harvey said CAFTA is advocating for a 16-year extension of the agreement, which provides tariff-free access for most of the products alliance members sell.
