Core Viewpoint - The Chinese Ministry of Commerce has announced the cancellation of the anti-discrimination tariff on Canadian canola meal, effective from March 1, 2026, to December 31, 2026, following a preliminary agreement between China and Canada on trade issues [16][25]. Group 1: Tariff Adjustments - The anti-discrimination tariff on canola meal (HS codes 23064100 and 23064900) will be completely removed, which was previously set at 100% [3][16]. - The adjustment is part of a broader arrangement where Canada has also announced changes to tariffs on steel and aluminum products imported from China [16]. Group 2: Market Impact - The average export price of Canadian canola meal has rebounded to approximately $308-$310 per ton, with estimated import costs for canola meal in China ranging from 2160 to 2200 RMB per ton after accounting for customs fees [4][16]. - The cancellation of the tariff is expected to lead to the gradual release of canola meal stocks held in bonded warehouses in China, which may exert short-term pressure on the market [6][18]. Group 3: Related Developments - The final ruling on anti-dumping measures for canola seeds is still pending, with expectations that the import tariff will be kept below 15% [8][20]. - Unlike canola meal, the anti-discrimination tariff on Canadian canola oil remains in place at 100%, preventing normal exports to China [9][23]. Group 4: Future Considerations - The overall impact of the tariff cancellation is seen as bearish for canola meal trade flows, but rising external prices may offset this effect, suggesting caution against short-selling [12][25].