Canada and China establish new strategic trade partnership

Canada and China have entered into a new trade agreement as of January 2026, a move described by Canadian Prime Minister Mark Carney as the beginning of a “new world order” and a “strategic partnership.”

The agreement includes significant tariff reductions: China has lowered tariffs on Canadian canola seed to approximately 15 percent from 75.8 percent, with eased duties on seafood and peas. In exchange, Canada has agreed to allow 49,000 Chinese electric vehicles per year at a 6.1 percent tariff, a substantial decrease from the previous 100 percent rate.

The partnership extends beyond trade to include clean energy, multilateral cooperation, and public security, featuring an agreement between the RCMP and China’s Ministry of Public Security. This shift follows a period where Carney had previously identified China as Canada’s primary security threat, following reports of foreign interference in Canadian democratic institutions.