Canada’s Trade Minister Meets Chinese EV Makers in Guangzhou to Advance Bilateral Agreement
On April 17, 2026, Canada’s International Trade Minister Maninder Sidhu held discussions with leading Chinese electric vehicle manufacturers BYD, XPeng and Guangzhou Automobile Group (GAC) in Guangzhou. The meetings focused on market-entry pathways for Chinese EVs under Canada’s newly implemented import quota system, regulatory supply chain requirements, and long-term investment opportunities.
The visit builds on the bilateral trade agreement announced in January 2026 between Prime Minister Mark Carney and Chinese President Xi Jinping. Under the terms of the agreement, Canada allows up to 49,000 Chinese-built electric vehicles to enter its market annually at the most-favoured-nation tariff rate of 6.1%, a significant reduction from the previous effective rate of 106.1%. The quota is set to increase by approximately 6% each year, reaching about 70,000 units within five years.
In exchange for this market access, China has committed to lowering its retaliatory tariffs on Canadian agricultural exports, including canola seed, canola meal, lobster, crab, and peas. The agreement is widely referred to as the “EVs-for-canola” deal due to its reciprocal nature.
Minister Sidhu’s discussions with the automakers emphasized Canada’s regulatory requirements for EV supply chains and highlighted prospects for deeper economic collaboration. The Guangzhou meetings mark the first ministerial-level engagement with Chinese automakers on Chinese soil since Industry Minister Mélanie Joly met with BYD and Chery during Prime Minister Carney’s Beijing visit three months prior.
The trip also represents the first official visit to South China by a Canadian federal minister since 2018, signaling a thaw in bilateral trade relations following periods of tension over technology, human rights, and trade practices.
More than half of the vehicles admitted under the five-year quota are expected to be priced below C$35,000, aiming to increase affordability and adoption of electric vehicles in the Canadian market while supporting domestic emissions reduction goals.
The January 16, 2026 agreement marked the first visit by a Canadian prime minister to China since 2017 and established a framework for renewed economic cooperation between the two nations.
As global demand for electric vehicles continues to grow, the Canada-China EV trade arrangement represents a significant development in international clean energy trade policy, balancing market access with strategic economic reciprocity.