In a step forward for bilateral commerce, canola trade between Canada and Pakistan has been given new momentum through a fresh agreement to facilitate the export of Canadian canola to Pakistan. The deal comes as Ottawa is actively seeking new markets for its canola commodity amid mounting pressure from other global trade disruptions.
According to the joint statement, the two countries have recognised Pakistan’s growing appetite for edible oils and other agricultural imports, and Canada’s need to redirect canola exports away from more challenging markets. Canadian officials noted that the agreement offers a “new path” for canola trade in the region.
The move also comes against the backdrop of broader trade tensions for Canada’s traditional canola export routes. For instance, China earlier imposed preliminary anti‑dumping duties on Canadian canola, prompting Canada to explore alternative destinations.
In the Pakistani context, the agreement is seen as addressing the country’s sizeable edible oil import needs and offering more supply diversity. Islamabad’s officials welcomed the prospect of filling part of that demand through Canadian canola imports.
Analysts suggest this agreement could mark a strategic turning point in the canola trade for both nations: for Canada, it opens fresh demand; for Pakistan, it secures access to a stable supplier. The two governments also flagged intentions to continue broader cooperation in areas such as investment and energy during the talks.
It is worth noting that Canada, while looking for new canola markets, has also been navigating other trade challenges, such as the trade talks and commodity disputes with other nations that have impacted its broader export strategy:
As this new chapter in bilateral commerce unfolds, observers will be watching how rapidly shipments begin, how pricing holds up in the face of global competition, and whether this model of redirection of canola trade will be replicated elsewhere. The success of this deal could set a precedent for how Canada realigns its commodity exports in a shifting global landscape.
