Canada's canola industry is welcoming Friday's announcement that the federal government has made a formal request for consultations with China under the World Trade Organization (WTO) agreement.
“We’re disappointed that this action needed to be taken, but it is a necessary step to help determine the legitimacy of China’s trade measures,” says Jim Everson, president of the Canola Council of Canada (CCC). “While we’ve supported continued technical engagement, the scientific basis for China’s actions remains unclear.”
Since market access issues affecting canola seed trade started in early March, Chinese importers remain unwilling to purchase Canadian canola seed from exporters. The licenses of Richardson and Viterra to export canola seed to China remain suspended.
“China has an obligation to explain the scientific basis for its actions as part of its commitments to World Trade Organization rules,” says Everson. “We need to consider all options to support predictable, rules-based trade, a critical requirement for Canadian agriculture.”
The canola industry is hoping that this consultation can resolve the dispute so that further steps toward WTO dispute resolution will not be necessary.
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