China is launching an anti-dumping investigation into canola imports from Canada.
The move is part of a series of actions announced by the Chinese government on Tuesday in response to the Canadian government’s announcement last week of a 100 per cent tariff on Chinese electric vehicle (EV) imports and 25 per tariff on Chinese steel and aluminum.
While it’s not immediately clear what the announcement means for future canola shipments to China, nearby canola futures on the ICE Futures exchange were down by the daily limit $45 per tonne with the news Tuesday morning.
China previously banned canola imports from Richardson and Viterra — Canada’s two largest exporters — from March 2019 to May 2022. The embargo followed Canada’s arrest of Huawei executive Meng Wanzhou on a U.S. extradition request.
China’s Ministry of Commerce says it is launching the anti-dumping investigation to safeguard domestic enterprises after annual canola seed imports from Canada rose 170 per cent in 2023, the first full year after the embargo was lifted.
“We will take all necessary measures to defend the legitimate rights and interests of Chinese companies,” said a ministry spokesperson.
The Canola Council of Canada (CCC) says it is awaiting further details on the investigation and is working closely with the Canadian government on the situation.
“China is an important and valued market for Canadian canola,” says Chris Davison, CCC president and CEO. “We are confident that an investigation into Canada’s canola trade with China will demonstrate alignment with and reinforce our support for rules-based trade.”
Hear more from Davison, here:
“Canadian canola is the best in the world and our producers depend on, and play by, a rules-based global trading order that provides reliable market access. Today’s announcement is deeply concerning, and I am working with my colleagues across government and in the sector to monitor developments closely,” says Canada’s agriculture minister, Lawrence MacAulay, in a statement. “The quality of Canadian canola is well-known around the world. We will continue to defend and support the sector every step of the way.”
According to Statistics Canada, exports of canola seed to China in the 2023 calendar year totalled nearly 4.6 million tonnes, up from 2.2 million in 2022, but below the 4.8 million mark shipped in 2018, prior to the last canola trade disruption with China. 2.7 million tonnes of canola seed were shipped from Canada to China in the first six months of 2024.
In addition to the canola investigation, the Chinese government announced Tuesday that it will file a formal dispute at the World Trade Organization over Canada’s proposed tariffs on Chinese EVs, and launch an anti-discriminatory investigation into Canada’s new tariffs under China’s Foreign Trade Law. The Chinese commerce ministry spokesperson said they would also begin an anti-dumping investigation into certain chemical imports from Canada.
There is recent precedent for the response, as China also announced investigations into dairy, pork, and brandy exports from the European Union after the EU rolled out its EV tariffs this summer.
More coverage to come. This story has been updated with new information and quotes.
