China Launches Anti-Dumping Probe on Canadian Canola Imports Amid Trade Tensions
Beijing, September 3, 2024 — China has announced an anti-dumping investigation into Canadian canola imports, escalating trade tensions between the two nations. This move comes just a week after Canada imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum imports from China.
China’s Ministry of Commerce stated that the investigation is a response to the significant increase in Canadian canola exports, which allegedly undercut prices in the Chinese market, causing losses to domestic industries. The ministry highlighted that Canada’s canola exports to China surged by 170% in 2023, reaching $3.47 billion, with prices continuously declining.
The announcement has already impacted markets, with Chinese rapeseed meal futures rising to a one-month high, while the ICE canola contract for November delivery dropped significantly.
China, which relies heavily on canola imports for various products including cooking oil and renewable fuels, may seek alternative suppliers like Australia and Ukraine if tensions with Canada persist. The situation also threatens to further strain the already fraught trade relations between China and Canada, as Beijing considers additional investigations into other Canadian exports.