China released more details of its anti-dumping probe into Canadian canola, but a farm leader believes it’s all politics and wants to see the Chinese and Canada come to a resolution before it escalates.
The anti-dumping investigation will be year-long process, according to the Chinese government, looking into canola imports from January 1st to December 31st, 2023. China claims preliminary evidence of dumping exists. They also announced an anti-discrimination investigation into tariffs Canada said it will impose on Chinese electric vehicles, steel, and aluminium.
“This is a political thing,” says Ian Boxall, President of the Agricultural Producers Association of Saskatchewan (APAS), “This is why trade needs to be rules-based, not these one-offs where they’re mad and can do what they’re doing here – threatening an investigation and all that.
“I think it’s important to remember that for the best thing for any country that’s doing trade it’s to ensure that it’s rules based.”
Boxall says it’s no coincidence that China retaliated by launching these investigations as Prairie farmers are starting to harvest canola.
The 100 per cent tariff on Chinese EVs is set to take effect October 1st, while the 25 per cent tariff on steel and aluminium from China will take effect October 15th. Deputy Prime Minister Chrystia Freeland had criticized the Chinese EV industry as being built on “abysmal” labour and environmental standards.
Boxall says the tariffs are meant to maintain jobs related to Canadian electric vehicle production and steel and aluminium mining, but believes consumers will be “double-hit” by the tariffs.
“Now with tariffs, if you choose to buy (Chinese EVs), you’re going to have to pay the tariff. Canola prices have gone down but I’ll guarantee you we don’t see any reduction in those canola products at the grocery store,” Boxall said. “At the end of the day those are going to be paid for on the backs of Western Canadian canola growers.”
The Canadian government has faced some criticism for not doing enough to resolve the dispute with China. Former federal agriculture minister Gerry Ritz felt current Agriculture Minister Lawrence MacAulay was prioritizing birthdays and anniversaries over working to end the trade spat with China. However, MacAulay in a statement late Monday afternoon said he is “deeply concerned” about the anti-dumping investigation, adding the federal government “will always support the agriculture sector as they pursue market access for their world-class products.”
“We remain committed to ensuring fair market access for our exporters, farmers, and producers. I am monitoring these developments closely and I will continue to engage with provincial and territorial partners and industry stakeholders moving forward.” MacAulay added.
Agriculture and Agri-Food Canada notes “China is Canada’s largest canola seed destination with over 4.5 million tonnes worth $3.8 billion exported in 2023, followed by Japan (with over 1 million tonnes worth over $868 million) and Mexico (with over 0.8 million tonnes worth $749.0 million).”
In the end, Boxall says it comes down to having the two countries sit down and come to a resolution.
“I don’t think anyone wants trade done the way its been done right now,” the APAS President said. “Let’s get the countries in a room and let’s come to a resolve. China clearly wants our canola – they’ve historically been buying 40 per cent like I mentioned, so they want our canola…I think this is a tactic they’re using for us to give up on what we feel are issues that we see with products coming in from China.
“At the end of the day, Canadians are the ones that are going to have to pay the bill.”
