The Canadian and Chinese governments have reached a trade agreement that will see tariffs placed by China on Canadian Canola products greatly reduced.
In exchange for Canada allowing 49,000 Chinese electric vehicles into its domestic market at a greatly reduced tariff of 6.1 per cent, China will slash its tariffs on Canadian Canola seed and meal from 76 per cent to 15 per cent.
Local Canola farmer Ernie Sirski says this is great news for Canola farmers across the country, including here in the Parkland.
"By my back of the envelope calculations, which have not been verified by anyone, Canola farmers have lost between $1 billion and $1.5 billion on canola values since the tariffs have been put in place. But that is a significant hit to Canola producers across Western Canada. And I am glad to see that it is being somewhat brought around to some reality."
Sirski says he has been pressing the issue with politicians over the past six months, and admits he was a bit surprised, but also very pleased by the announcement.
He adds commodity prices have responded favourably on Friday to the news.
