Earlier this month, Pakistan and Canada’s foreign ministers, Ishaq Dar and Anita Anand, issued a joint statement announcing an agreement to facilitate the export of Canadian canola to Pakistan. This diplomatic move, unusual for such an agricultural product, signals the importance of canola trade in strengthening bilateral ties.
Canada, one of the world’s largest producers of canola, traditionally relied on China as its biggest buyer. However, escalating trade tensions have led China to impose heavy tariffs on Canadian agricultural goods, following retaliatory tariffs from Canada on Chinese electric vehicles. This has forced Canada to seek alternative markets for its canola, and Pakistan has emerged as a key potential buyer.
For Pakistan, the deal is part of a broader effort to diversify its edible oil imports, which have heavily depended on palm oil. This arrangement echoes a similar pattern with the United States, where Pakistan has increased imports of American soybeans amid ongoing trade conflicts with China. By importing from North America, Pakistan gains access to new food sources while Canada opens new markets for its farmers, illustrating shifting global trade dynamics in the wake of the China-US trade war.
