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China Imposes 75.8% Tariff on Canadian Canola Seed Ahead of Harvest
China's 75.8% tariff follows a year-long anti-dumping probe and adds to existing 100% tariffs, effectively closing a $5 billion Canadian canola market to China, industry officials said.
- On Tuesday, China's Ministry of Commerce announced a provisional 75.8 duty on Canadian canola seed, effective Thursday, amid trade tensions.
- Last September, Chinese authorities began probing Canadian canola shipments, and the commerce ministry said it found Ottawa’s imports caused “substantial damage” in an anti-dumping investigation launched last year.
- Alongside, Australian canola cash prices slipped $10 to $740/t as ICE November canola futures dropped 6.5% to a four-month low recently, due to tariffs.
- Industry representatives cautioned farmers would face new pressure, and Rick White warned “if a solution is not found swiftly, the impact will be quickly felt on our farms and in our rural communities,” noting a $1 per bushel drop.
- With the Chinese market closed, Chris Davison noted the absence of China’s demand signal, which could impact the over $40 billion Canadian canola industry and support alternatives like Australia this year.
135 Articles
135 Articles
SIEMENS SAYS: China’s 75.8% canola tariff deals devastating blow to prairie farmers
China’s new tariffs have slammed the door on one of Canada’s biggest agricultural export markets, canola. For decades, canola has been the “Cinderella crop” of Western Canada, delivering unmatched returns and supporting rural economies from field to processing plant. Now, a ruling out of Beijing threatens to ripple from farmers’ fields to small-town businesses. Industry leaders like Gunter Jochum warn that without a policy shift, the damage will…
How a shift to canola-based biofuel could help make up for lost Chinese market
Long before China imposed its anti-dumping duty on Canadian canola seed and 100 per cent tariffs on canola oil and meal, industry leaders had been looking to diversify away from the unpredictable market.
While Chinese canola tariffs have come into effect, the first impacts are felt by Saskatchewan producers.
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