canadian media: china's countermeasures may cause huge losses to canada's canola industry
2024-09-07
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canadian global news network article on september 5, original title: report says canadian canola industry may "lose billions of dollars" due to china investigationas canadian canola growers prepare for the potential impact of a new round of chinese anti-dumping investigations on canadian canola, a new report from an international credit rating agency suggests the move could deal a "multi-billion dollar hit" to canada and its supply chain.
a report released thursday by morningstar dbrs said china's investigation into canola imports could lead to tariffs on the seed, which would have "significant implications" for the "global canola trade" and canada's grains players.
before beijing announced its investigation this week, ottawa followed the united states and the european union in imposing tariffs on chinese electric vehicles. the federal government said the tariffs were aimed at protecting canadian jobs, but canada's agricultural sector said it could come at a cost. ian boxall, president of the saskatchewan agricultural producers association, said farmers were the hardest hit. "farmers have always made the most money from canola, which is in great demand around the world," he said. "even if canola prices fall, grocery store consumers won't see a drop in margarine prices... only farmers will feel the impact... this is the third or fourth time china has targeted canola because they know it hits home."
the report said canada will export nearly $5 billion worth of canola products to china in 2023. more than 90% of china's canola imports last year came from canada. the credit rating agency said in the report that it is not yet clear whether tariffs will be imposed or how long they will last, but the impact on the economy may be similar to the trade actions taken by china in 2019. the canadian canola council estimates that the dispute caused reduced sales and lower prices (of canadian canola) between march 2019 and august 2020, causing losses to the industry of $1.54 billion to $2.35 billion.
china's current investigation into canadian canola imports is similar to its recent investigation into eu brandy. china launched the investigation after the eu imposed tariffs on chinese electric vehicles. (author sean plewell)
canada global news network article on september 4, original title: rapeseed farmers say china’s counter-investigation is “one more thing to worry about”china is launching a new anti-dumping investigation into canola imports from canada. farmers are bracing for the potential impact of the investigation in a year already marked by severe economic and environmental challenges. the chinese announcement comes in response to canada's plans to impose more tariffs on chinese-made electric vehicles, steel and aluminum.
john mackey, who owns his canola and wheat farm in sterling, alberta, said this "will directly affect our income. we have one more thing to worry about. it's really frustrating." canadian farmers are already struggling with rising land costs and inflationary pressures. mackey said that after china announced the news, the market price of canola in alberta fell by nearly $1. this will reduce his operating income by $100,000. "without this income, we have to reconsider what we do in the future."
beijing accuses canada of suppressing canola export prices to gain an unfair market advantage. china is canada's largest export market for canola, oil and canola meal. the canadian canola council said economic activity with china reached $5 billion in 2023. between january and june this year, three-quarters of canada's canola exports went to china.
experts had predicted that china would retaliate against canada's electric vehicle tariffs by targeting specific agricultural sectors, and canola has previously been a major target.
