China to probe Canadian canola and chemical imports amid escalating trade disputes

04 Sep 2024 --- China has announced anti-dumping investigations into Canadian canola oil imports and chemical products a week after Ottawa said it would impose tariffs on Chinese electric vehicles (EVs), steel and aluminum.

The Chinese Commerce Ministry notes that while Canadian oil imports have increased by 170% since 2023, prices have continued to fall. It suspects Canadian exporters of dumping products into the Chinese market, which has led to losses in the country’s domestic canola oil and related industries.

“China strongly deplores and firmly opposes the discriminatory unilateral restrictive measures taken by Canada against its imports from China despite the opposition and dissuasion of many parties,” a ministry spokesperson states.

Lawrence MacAulay, Canadian minister of Agriculture and Agri-Food, said the development was “deeply concerning” on X.

He further noted that Canadian canola, or rapeseed, is “the best in the world,” and Canadian producers depend on and comply with “a rules-based global trading order that provides reliable market access.”

Industry reacts

The Canola Council of Canada (CCC), an industry association representing growers, life science companies, grain handling companies, exporters and processors and food and feed manufacturers, said in a media statement that it will “work closely” with the federal government on the development.

“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.”

Canada exports over 90% of its canola, a major agricultural crop. Canola is sold as oil, seeds and meals or used as an ingredient in food and other forms of energy.

“Working to maintain open and predictable trade for canola is a top priority of the CCC,” continues Davison. “We will continue to engage on this issue to support market access and competitiveness for Canadian canola in this key market.”

China-West trade tensions

The latest investigation comes amid increasing trade tribulations between China and the West.

The Chinese ministry revealed yesterday that it will not impose provisional duties on European brandy imports for now despite alleging that EU liquor players are selling alcohol at below-market prices.

The probe was first announced in January amid mounting trade tensions between Brussels and Beijing.

Last month, the Chinese government launched a probe into certain imported European dairy products a day after the European Commission raised tariffs on Chinese EVs to protect domestic motor industries.

According to reports online, Beijing has said it would register a complaint with the World Trade Organization over the EV tariffs, which it deemed “discriminatory” and “unilateral.”