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China has launched new anti-dumping duties on Canadian canola, in an escalation of commerce tensions between Beijing and Ottawa that has pushed down futures costs on fears of a provide glut.
China’s commerce ministry introduced on Tuesday {that a} preliminary 75.8 per cent obligation on Canadian canola seed would go into impact on Thursday, sending the crop’s futures on the Intercontinental Alternate down as a lot as 6.5 per cent.
“China has at all times exercised prudence and restraint when utilizing commerce treatments to safeguard truthful and free commerce,” mentioned a spokesperson on the Chinese language embassy in Ottawa. “China will . . . take essential measures to resolutely safeguard the reliable rights and pursuits of home industries.”
The transfer follows duties Beijing imposed on Canadian canola meal and oil in March this yr, and comes as a part of a probe launched final September.
Canada had 10 days to submit written feedback to the investigation, China’s commerce ministry mentioned.
Canada’s worldwide commerce minister Maninder Sidhu and commerce minister Heath MacDonald mentioned in a joint assertion late on Tuesday that they have been “deeply dissatisfied” with China’s choice.
“We don’t dump canola. Our hard-working farmers present world-class meals to Canadians and worldwide buying and selling companions,” they mentioned.
“Canada is dedicated to making sure truthful market entry for our canola trade and we stay prepared to interact in constructive dialogue with Chinese language officers to deal with our respective commerce issues.”
Because the world’s largest exporter of canola, which is broadly used to provide vegetable oil, the Canadian trade faces important losses as a consequence of Beijing’s levies. China is its second-largest export location, after the US.
“With this preliminary willpower of dumping for canola seed along with the prevailing 100 per cent anti-discrimination tariffs on canola meal and oil, the Chinese language market is successfully closed to the Canadian canola trade,” mentioned Chris Davison, president of the Canola Council of Canada.
Complete canola exports to China have been valued at virtually C$5bn (US$3.6bn) in 2024. Canola seed, also referred to as rapeseed, represents about three-quarters of these exports, based on the Canola Council of Canada.
Beijing has cited authorities subsidies and preferential insurance policies in Canada’s agricultural sector as justification for the tariffs, accusing Ottawa of market distortion.
Business stakeholders reject Beijing’s claims, saying the levy can be detrimental to certainly one of Canada’s most useful crop exports. They allege that the measures have been retaliation for Ottawa’s 100 per cent tariffs on Chinese language electrical automobiles and 25 per cent levy on metal and aluminium, announced in August final yr.
“It’s all a part of the commerce wars,” mentioned Jack Scoville, a dealer at Value Futures Group in Chicago. “Costs are going to get less expensive for canola . . . All people is making an attempt to get out of the market.”
Prime Minister Mark Carney introduced efforts in June to rekindle relations with China, together with resolving quite a few commerce irritants “affecting agriculture and agrifood merchandise, together with canola and seafood”.
Washington has been urging its allies to affix the US in its anti-China measures. In response, Canada has utilized tariffs on Chinese language items, restricted international funding from the nation and kicked out Chinese language-owned firms reminiscent of TikTok and Hikvision.
