Canada Seeks Dialogue with China to Address Pea Import Duty Dispute

05-Jun-2025 04:02 PM

Saskatoon. The President of Pulse Canada has stated that the federal government will initiate talks with China to resolve the ongoing dispute over import duties on peas. China has imposed high customs duties on several key agricultural and seafood products from Canada, including a 100 percent duty on peas. China has traditionally been the largest market for Canadian peas, and losing access to it would severely impact Canadian producers and exporters.

The Canadian government is aiming to improve its overall trade relations with China, as China imports a significant volume of peas and other agricultural products from Canada. During the bilateral talks, Canada is expected to push for broader market access for its exporters and agricultural goods, while China is likely to raise similar demands in return.

The trade dispute originated when Canada imposed unilateral duties on some Chinese products. Initially, China sought to resolve the matter through dialogue, but when those efforts failed, it retaliated by imposing a 100 percent import duty on Canadian peas, canola oil, and oil meal on 20 March 2025. This action followed Canada’s decision to levy a 100 percent import duty on electric vehicles made in China and a 25 percent surcharge on Chinese steel and aluminium imports. Canada's move was in alignment with similar steps taken by the US, while the European Union imposed a lower duty of 35.3 percent on Chinese electric vehicles.

Now, with a new Prime Minister in office, Canada appears to be making efforts to de-escalate the trade tensions and restore economic ties, especially in the crucial agriculture sector.