Bilateral trade between Canada and China climbed to a record $36.78 billion in the third quarter of 2026, driven by a sharp increase in Canadian crude oil shipments and agricultural exports, according to figures compiled by the China Institute at the University of Alberta.
The record quarterly trade volume reflects strengthening commercial ties between the two countries following an easing of trade restrictions earlier this year. The increase comes as Prime Minister Mark Carney prepares to visit China for bilateral discussions with President Xi Jinping, with economic cooperation expected to feature prominently in the talks.
Canadian crude oil exports emerged as a major contributor to the growth, surging 159% to an average of 327,000 barrels per day. Increased export capacity through the expanded Trans Mountain pipeline has enabled Canadian producers to ship greater volumes of oil to Asian markets, particularly China, supporting efforts to diversify Canada’s energy exports.
Agricultural shipments also recorded substantial gains following Beijing’s decision to ease tariffs on selected Canadian products. Canola meal exports to China reached $360.3 million, compared with $12.9 million during the same period a year earlier. Pea exports increased to $147.6 million from $9.2 million, while Canadian beef shipments climbed to $181.4 million after registering negligible trade volumes the previous year.
Western Canada accounted for the largest share of the export expansion, with Alberta and Saskatchewan collectively contributing nearly 78% of the overall increase. The figures underscore the growing importance of energy and agricultural commodities in Canada’s trade relationship with the world’s second-largest economy.
The trade surge follows a preliminary agreement reached earlier in 2026 under which China reduced certain tariffs on Canadian agricultural and seafood products in exchange for improved access to Canada’s market for Chinese electric vehicles, steel and aluminum. The arrangement has since been extended through the end of 2028, providing a framework for continued bilateral commerce.
The latest figures highlight the economic significance of improving Canada-China relations as Ottawa seeks to expand its international trade partnerships and reduce dependence on traditional export markets. Carney’s upcoming meeting with Xi is expected to provide an opportunity to build on the recent commercial gains while addressing broader economic and diplomatic priorities.
