China to impose tariffs on Canadian canola, agricultural products

On Thursday, China’s State Council Tariff Commission is set to impose a 100 per cent tariff on Canadian canola oil and canola meal, along with several other Canadian agricultural commodities following an announcement from China’s Ministry of Commerce earlier this month.

According to the ministry the tariffs are an outcome of results from its anti-discrimination investigation initiated against Canada last September in response to tariffs announced by Ottawa on Chinese electric vehicles, steel and aluminum.

China is the second largest market for Canadian canola exports, behind the U.S. The Canola Council of Canada says last year total exports of Canadian canola and canola products were valued at almost $5 billion. This included two million tonnes of canola meal worth $921 million.

“New tariffs from China on Canadian canola oil and meal will have a devastating impact on canola farmers,” said Chris Davison, president and CEO of the Canola Council of Canada. “And the broader value chain at a time of increased trade and geopolitical uncertainty.”

“With this announcement Canadian canola farmers are facing an unprecedented situation of trade uncertainty from our two largest export markets only weeks before planting begins,” said Rick White, president and CEO of the Canadian Canola Growers Association. “The impact of the federal government’s trade policy decisions is now playing out at the farm gate, making it imperative that the government respond with a plan for financial compensation commensurate with the losses incurred.”

The new tariffs set to be imposed March 20 are separate and distinct from China’s anti-dumping investigation into imports of Canadian canola seeds, which remains ongoing.

Canada’s canola industry supports approximately 40,000 farmers, and last year generated more than $43.7 billion.

Tags: Canada, canola oil, U.S., tariff, canola meal, China, exports