Cooking oil made from Canadian canola oil and soybeans is sold at a grocery store in Chicago, Illinois, on April 26, 2022.
Scott Olson | Getty Images
Just weeks before Ottawa imposed 100 per cent tariffs on Chinese-made electric vehicles and other products, China on Monday announced the launch of a year-long anti-dumping investigation into canola imports from Canada.
Trade tensions between Beijing and the West have grown in recent weeks after Canada, the United States and the European Union chose to impose tariffs on electric vehicle imports from China.
The investigation will look into imports between January 1 and December 31, 2023, China’s Ministry of Commerce said in a statement, adding that preliminary evidence and information showed that oilseeds, also known as rapeseed, had Dumping occurs.
Canadian Agriculture Minister Lawrence Macaulay pointed out that Canada adheres to “rules-based trade” and said that the country’s products meet the highest standards and the inspection system is also very sound.
“I am deeply concerned by this announcement and want to make clear that our government will always support the agricultural sector in its pursuit of market access for world-class products,” he said.
Chinese President Xi Jinping met with Spanish Prime Minister Pedro Sánchez on Monday in a bid to avert a widespread trade war.
China has launched a countervailing investigation into dairy products imported from the EU and launched an anti-dumping investigation into EU pork imports.
“A trade war will not benefit anyone,” Sanchez said, adding that he was seeking to work with Chinese companies to create a level playing field.
China’s Ministry of Commerce stated that there is a causal relationship between the dumping of imported Canadian canola and the actual damage caused to the domestic industry by a substantial increase in imports and falling prices.
More than half of Canada’s canola exports go to China. The world’s largest oilseed importer purchased 5.5 million tons of rapeseed in 2023, worth $3.72 billion. Imports from Canada accounted for 94% of the total.
A Commerce Department spokesman said during a question-and-answer session on Monday that the investigation is “fundamentally different” from discriminatory measures taken by Canada in violation of WTO rules.
Following the example of the United States and the European Union, Canada will impose a 100% tariff on electric vehicles imported from China on October 1 and a 25% tariff on steel and aluminum imported from China.
Last week Beijing announced plans for an anti-dumping investigation, sending Chinese rapeseed oil futures prices to a one-month high.
The Ministry of Commerce stated that the investigation is effective immediately and should be completed before September 9, 2025, but can be extended for another six months under special circumstances.
The investigation will also examine industrial harm caused by these Canadian imports between January 1, 2021, and December 31, 2023.
Macaulay has previously said China’s actions are “deeply concerning.” China has also stated that it will launch an anti-dumping investigation into some Canadian chemical products.
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