The Prime Minister says a deal has been reached with China to maintain Canadian canola exports into early 2020.
“This is great news for our Canadian canola farmers. Our progress on this file goes to show how two countries willing to collaborate can solve difficult challenges together,” said Prime Minister Justin Trudeau, speaking Thursday morning at a press conference in Ottawa alongside Chinese Premier Li Keqiang.
According to an official with Agriculture and Agri-Food Canada, the deal extends into March 2020 and will see trade continue under the existing conditions.
Talks went down to the wire overnight, according to one source.
Canola futures on the ICE Futures Canada exchange jumped approximately $5/tonne immediately following the announcement.
Concerned that blackleg disease will be transmitted through dockage in Canadian shipments, the Chinese government was planning to tighten the dockage limits to one percent — a standard that’s been described as unjustified and unscientific by the Canadian canola industry. The Canadian government convinced China to temporarily delay the onset of the tighter limits in March and again at the end of August.
China also agreed to open its border to bone-in beef cuts from Canadian cattle under 30 months of age, and to begin exploratory talks on a free trade deal with Canada.
More to come…