Canadian farmers, agricultural associations and the department of agriculture were “Concerned” after the Ministry of Commerce of the People’s Republic of China launched anti-dumping investigations into imports of canola and related chemicals from Canada. Ottawa is “Deeply concerned” about China’s actions, Agriculture and Agri-Food Canada Minister Laurence Mccawley said Tuesday.
Following in the footsteps of the United States and the European Union, Canada announced last week that it would impose a 100 percent tariff on imports of electric cars from China and a 25 percent tariff on imports of steel and aluminum from China, the report said. Subsequently, China announced the Canadian restrictions on the launch of“Anti-discrimination investigation” and the anti-dumping investigation. Canada’s Globe and mail newspaper said China had“Taken preliminary measures to block imports of Canadian rapeseed”.
“Ottawa is concerned,” Reuters reported, noting that Canada is the world’s largest exporter of canola and China is the world’s largest buyer of canola, with more than half of Canada’s exports going to China. Canada exported about US $3.5 billion worth of rapeseed to China last year, the national post reported, citing a statement from the Canola Council of Canada, china is an important and valuable market for Canadian rapeseed.
The canola industry is recovering from the drought and was hit by the Chinese announcement, the financial post of Canada reported. “In 2021, drought affected the whole of western Canada and we had to slash exports,” said Zubinville, senior market analyst at MarketsFarm, a farmers’ advisory service in Western Canada. “The industry has only just recovered, with subsoil moisture near normal levels and the rapeseed crop catching up,” he said, it is the middle of the harvest season, which means growers and traders face an immediate decision to sell because of uncertainty about whether China will continue to open up markets for their goods. According to zubinville, rapeseed prices fell sharply after the announcement.
If Canadian rapeseed imports into China are eventually restricted, some exports could be diverted to the European market, according to a“Trick”. Caijing post, on the other hand, analyzed that this brings logistics challenges, because most of Canada’s rapeseed is exported from the west coast and needs to be shipped to the east before it can be shipped to Europe, “It is not easy to adjust in a short time”.
Futures of Zhengzhou Commodity Exchange rapeseed meal rose 6 percent to their highest level since Aug. 6 after China announced an anti-dumping investigation into Canadian imports, Reuters reported. “At present, domestic consumption is not strong and domestic stocks are sufficient,” Reuters quoted Ma Wenfeng, a senior analyst with beijing-based oriental agri-consultancy, as saying, china could then turn to Australia and Ukraine for alternative supplies.
Canadian media said that this is not the first time China has restricted Canadian rapeseed imports. In March 2019, China banned the import of canola from Canada’s two largest exporters until May 2022.
The canola for the Chinese investigation, Canadian media blamed the Canadian government to follow suit to impose tariffs on Chinese electric vehicles. Citing an analysis by Royal Bank of Canada economist Chazana, the National Post said, canada’s plan to impose tariffs“Will raise the price of electric cars in the short term and raise costs for industries that use aluminium and steel. More importantly, Canada’s move increases the risk of retaliation from China, which could put Canadian commodity exports at risk, as did the recently announced investigation into Canadian rapeseed exports.
Business consulting firm Strategy Corp. . The Canadian government’s imposition of tariffs on chinese-made electric cars was so confrontational that it is now being “Mimicked” by the Chinese, according to director Jeff Ma Hong. Lily, a Carleton University professor and former trade negotiator for the federal government, said: “So far, I think it’s a fairly modest response and frankly, it’s a rules-based approach,” she said, adding that it was a“Signal” from China to Canada.