China opens Australian canola imports to private crushers

China plans to allow private oilseed crushing companies to import canola from Australia as part of broader efforts by the two countries to normalize trade relations, which have been significantly strained since the beginning of the decade.

According to Bloomberg, citing sources familiar with the matter, several private crushers were informed this week that they could apply for import permits for the new crop. The companies are participating in a pilot program designed to serve as a transitional step before the two governments reach a formal agreement on the full resumption of canola trade.

China suspended imports of Australian canola in 2020, citing phytosanitary concerns related to plant health. A first sign of easing came last year when state-owned COFCO International Ltd. resumed booking Australian canola cargoes on a trial basis, raising market expectations that imports would gradually resume.

The move coincides with deteriorating trade relations between China and Canada, the country’s largest canola supplier. The dispute began after Canada imposed tariffs on Chinese electric vehicles, steel, and aluminum. At the same time, relations between Beijing and Canberra have improved in recent months. China has also resumed purchases of U.S. soybeans, securing additional supplies for its food industry, vegetable oil production, and animal feed sector.

Last month, traders reported growing interest among Chinese private crushers in Australian canola for fourth-quarter delivery, reflecting expectations that a broader trade agreement would soon be reached.

Further evidence that both countries are preparing to restore trade came with Australia’s updated phytosanitary requirements for canola exports to China. The Australian Department of Agriculture has published revised import conditions, including a detailed list of pests and diseases that must be absent from exported canola shipments—such as bacterial leaf blight and other quarantine organisms—as well as additional quality requirements for exported products.

Tags: Australia, China, rapeseed, imports