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Agriculture This Week: War changes how markets view crop supply

You would hope trade would generally work unfettered as a supply and demand system. 

If supplies are short demand should respond with better prices, and vice versa. 

For farm production we like to think that is the way things work best, but supply and demand is too often trumped by outside forces. 

Sometimes those forces are governments interfering on trade with tariffs and taxes to bolster domestic farm incomes, or limit exports, or to put pressure on other governments. 

Then there are times war sends shudders of concern through those involved in trade and that creates a huge wild card in terms of free-flowing trade.

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Canada reaches tariff deal with China on canola, electric vehicles

Video: Canada reaches tariff deal with China on canola, electric vehicles

Canada has reached a deal with China to increase the limit of imports of Chinese electric vehicles (EVs) in exchange for Beijing dropping tariffs on agricultural products, such as canola, Prime Minister Mark Carney said on Friday.

The tariffs on canola are dropping to 15 per cent starting on March 1. In exchange for dropping duties on agricultural products, Carney is allowing 49,000 Chinese EVs to be exported to Canada.

Carney described it as a “preliminary but landmark” agreement to remove trade barriers and reduce tariffs, part of a broader strategic partnership with China.