The Government of Canada has announced Natural Resources Canada has signed a Memorandum of Understanding (MOU) with China’s Ministry of Housing and Urban-Rural Development designed to increase cooperation to support modern wood construction while generating new opportunities for Canada’s forest products sector to expand further into international markets.
The news of the new MOU regarding wood products generated positive responses from industry representatives.
“Mark Carney’s visit to China is an important opportunity to reset the relationship and refocus on practical cooperation,” stated Bruce St. John, president of Canada Wood Group. “Renewing the NRCan–MOHURDMOU builds on more than a decade of proven collaboration that helped modern wood construction take root in China. With climate goals, urbanization, and industrialized construction all moving in the same direction, this is the right moment to scale up technical cooperation and expand the role of Canadian wood in China’s construction sector.”
“Concurrent to ongoing efforts to overcome our trade challenges with the United States, it is important that we build upon the successes of existing export partnerships and seek to build new ones,” Added Derek Nighbor, president and CEO of the Forest Products Association of Canada (FPAC). “Renewing this Canada-China MOU creates not only opportunity to sell more Canadian wood overseas, but it also enables the export of Canadian know-how and technical support to help shape the future of China’s wood construction industry.”
The MOU is part of a broader set of preliminary agreements in principle struck between the two countries that includes Canada allowing upwards of 49,000 Chinese electric vehicles (EV) into the Canadian market with a reduced tariff rate of 6.1 per cent; while China will lower tariffs on Canadian canola seed to a combined rate of approximately 15 per cent from 85 per cent, effective starting on March 1, 2026. The Canada of Canada stated that it expects that Canadian canola meal, lobsters, crabs, and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of this year.
“At its best, the Canada-China relationship has created massive opportunities for both our peoples. By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations,” stated Prime Minister of Canada Mark Carney.
More information regarding the recent Canada-China agreement can be found here.
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