Nova Scotia seafood sector welcomes China deal extension, but some exporters feel left out

News that China and Canada are extending an agreement to provide Chinese market access to Canadian imports, including lobster and crab, is welcome news for the seafood industry in the Maritimes.

Many in the industry were worried China would soon reinstate a 25 per cent tariff targeting lobster, Nova Scotia’s main seafood export.

“The first reaction is really one of relief,” said Kris Vascotto, executive director of the Nova Scotia Seafood Alliance.

“When the tariffs were in place for the 12 months, we saw a loss of sales into China that were nearing about a quarter of a billion dollars, just on live lobster alone.”

In March, China dropped tariffs on some Canadian lobster, crab, canola meal, and peas. In exchange, Canada agreed to allow certain Chinese steel and aluminum products into the country.

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1:25 Business Matters: Canada-China trade agreement extended to 2028

According to Trade Minister Maninder Sidhu’s office, lobster exports grew by more than 56 per cent — from $128 million to $200 million — since the arrangement was made in March, when compared to the same period last year.

The original deal was announced by Prime Minister Mark Carney and Chinese President Xi Jinping following a visit to China, and was set to expire at the end of this year.

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Sidhu announced Wednesday that the deal is being extended by two years, to the end of 2028.

“(This) agreement builds on strong momentum. In the first half of this year, our exports to China grew by 30 per cent to $21.7 billion. This is how we will increase them by 50 per cent by 2030, creating good-paying jobs and new opportunities for businesses and communities across Canada,” said Sidhu in a statement.

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“Our discussions with our Chinese partners will continue on what more we can do to unlock more opportunities and more growth for our two economies.”

In 2024, Nova Scotia exported $615 million worth of fish and seafood to China, making it the province’s second-largest market behind the United States. Lobster and crab represent the top two species exported by the province, followed by scallop, Atlantic halibut and shrimp.

In a statement, the province’s Department of Fisheries and Aquaculture said the agreement extension is “incredible news,” and that the department has been “actively promoting” Nova Scotia’s seafood products to China and globally.

“This is incredible news that creates some stability and medium-term certainty for Nova Scotia’s lobster and crab sector who were concerned about the reapplication of Chinese tariffs at the end of December,” the statement said.

“It’s also great news for the Chinese market who value Nova Scotia’s premium seafood products. In fact, Nova Scotia is the largest exporter of fish and seafood to China among all other Canadian provinces and territories.”

2:08 Nova Scotia seafood industry welcomes tariff removal on lobster and crab

Vascotto said the Nova Scotia Seafood Alliance and other industry members have been “encouraging our federal counterparts” to engage in conversations as the deadline for the agreement neared.

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“And it sounds like they did it. They were able to achieve a resolution. We still have a month and a half of planning left before the big seasons open up in southwest Nova Scotia. So it just takes away a little bit of uncertainty that we’re looking at as we move forward,” he said.

While it’s welcome news for lobster and crab fisheries, those in the industry point out other seafood products such as whelk and sea cucumber are still subject to 25 per cent tariffs.

“We, as a company, would have liked to see some other species included, to be honest with you,” said Damien Barry, CAO of Louisbourg Seafoods Group in Sydney, N.S.

“There’s a little bit of disappointment there that, unfortunately, these two species are still captured by these tariffs. So, it’s definitely going to make our lives a little more difficult in trying to export those products in the next two years.”

Barry said the tariffs on whelk and sea cucumber have made their products “less attractive to Chinese buyers” and their existing customers in China.

“We spent a long time developing these markets in China. Looking at the glass half full, I guess it has made us look (at) and pivot to other markets. So we have tried to develop new markets in other countries such as Korea and Malaysia, for example, for these specific products, but China is a big market and developing new markets is not something that’s done overnight.”

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Barry said he’s hopeful future negotiations between the two countries will include more seafood products.

“At the end of the day, tariffs, they’re only driving up prices for consumers anyway. They’re not doing anybody any good in the long term,” he said.

“So we’re pleased with the announcement this week, and hopefully by 2028, if not sooner … all tariffs will be off (on) all Canadian seafood products.”

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