Canadian Response

Saskatchewan presses Ottawa for U.S. market access and extension of China tariff relief

Affected industries:
By ·
Source reporting: ckom.com
Editorial illustration representing: Saskatchewan presses Ottawa for U.S. market access and extension of China tariff relief
TL;DR

Saskatchewan is advocating wider U.S. and Chinese market access, while uncertainty over Keystone XL and expiring Chinese relief leaves exporters awaiting federal negotiations.

Saskatchewan Trade and Export Development Minister Warren Kaeding said the province is seeking gains from renewed Canada-U.S. and Canada-China discussions, with oil, agriculture, potash and food products among the sectors tied to its market-access agenda. His comments followed signals from Prime Minister Mark Carney and U.S. President Donald Trump that negotiators had developed a possible framework for a trade agreement, although Canadian teams were still expected to work on an agreement in the coming weeks. [1]

For Saskatchewan’s energy industry, Kaeding welcomed the renewed discussion of Keystone XL, arguing that another route to market could support oil production and provincial growth objectives. The project has not been restarted: the source says it was cancelled in 2021 and that no final agreement to revive it has been announced, despite Trump raising it as a possible part of trade negotiations. That leaves the potential benefit contingent on future bilateral decisions rather than an operating capacity expansion. [1]

The province’s immediate agricultural concern is China’s temporary tariff relief for Canadian canola meal and peas, which is due to end on Dec. 31. China suspended additional duties on those products earlier this year, while a separate arrangement lowered tariffs on Canadian canola seed from nearly 85 per cent to a combined 14.9 per cent. Kaeding said Saskatchewan wants the relief extended or tariffs eliminated, and said he had raised the issue with International Trade Minister Maninder Sidhu. [1]

Federal engagement is underway but has not produced a stated extension. Agriculture and Agri-Food Minister Heath MacDonald was in China during the week of the report, and Sidhu was scheduled to visit Beijing and Shanghai to discuss agricultural exports, investment and market-access issues. Canada was also set to participate in the China International Import Expo in Shanghai, where it was named guest country of honour. [1]

The provincial position is therefore a request for federal negotiators to reduce barriers rather than a new trade arrangement. Saskatchewan is seeking dependable access for its producers and manufacturers in both markets, but the status of U.S. tariff and market-access disputes, Keystone XL, and the Chinese relief beyond year-end remains unresolved. Canadian agriculture, agri-food, fish and seafood exports to China were valued at $6.7 billion in 2025, underscoring the commercial stakes of the talks. [1]

Trade Impact
2/5Limited

This is a limited but relevant provincial response: Saskatchewan has publicly pressed Ottawa to pursue U.S. access and preserve Chinese relief that matters to canola meal and pea exporters, while supporting renewed Keystone XL discussions for oil producers. The rating is not higher because neither a trade agreement, an extension of the Chinese relief, nor a pipeline restart has been finalized. [1]

Sources