Trade tensions escalate as China imposes steep anti-dumping duties -- closing its market to Canadian canola
In a significant escalation of the ongoing trade dispute between Canada and China, Beijing has announced preliminary anti-dumping duties of 75.8% on Canadian canola imports, effective Thursday.
The decision, released by China’s Ministry of Commerce as reported by Reuters Beijing/Singapore office, follows a year-long investigation and could effectively shut Canada out of its largest canola market.
The Canola Council of Canada responded, stating that the steep tariff makes the Chinese market “effectively closed” to Canadian canola. In 2024, Canada exported nearly C$5 billion (US$3.64 billion) worth of the oilseed crop to China, which uses it primarily for animal feed in its aquaculture sector.
The announcement sent shockwaves through the commodity markets. ICE November canola futures plunged as much as 6.5% following the news. Farmers across Canada are already reacting to the price drop and its potential impact. (Read more: Farmers React as Canola Prices Drop Amid China’s New Tariffs.)
China is the world’s largest importer of canola and has historically sourced nearly all of its supply from Canada. Experts suggest that Australia may benefit from Canada’s loss, potentially filling the gap in Chinese demand.
This latest move follows a series of tariffs imposed by China in March, including a 100% levy on Canadian canola oil, meal, and peas, and a 25% duty on seafood and pork. China’s Ministry of Commerce claims its investigation found that Canada’s agricultural sector—particularly the canola industry—benefited from substantial government subsidies and preferential policies.
However, both the Canadian government and the canola industry have consistently denied allegations of dumping. Industry experts believe the tariffs are politically motivated, likely in retaliation for Canada’s 100% tariff on Chinese electric vehicles introduced in October 2024.
The timing of the announcement is notable, coming just weeks after a seemingly conciliatory phone call in June between Chinese Premier Li Qiang and Canadian Prime Minister Mark Carney, during which Li stated there were “no deep-seated conflicts of interest” between the two nations.
A ruling on the anti-dumping case could result in a revised tariff rate or even overturn the decision, but for now, Canadian canola exporters face a closed door in China.
Once again, the Canadian agriculture industry is a pawn in global politics – will Canada protect its agriculture industry?
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