China establishes a preliminary duty on the Canadian canola after an anti -dumping probe

China announced on Tuesday a preliminary anti -dumping right on Canadian imports from Canola – a new climbing in a one -year commercial dispute that started with the imposition of Ottawa prices on Chinese imports on electric vehicles last August.

The provisional rate will be set at 75.8%, as of Thursday, according to the press release.

China is the world’s largest importer in Canola – also known as rapeseed – and sources almost all of its product supplies from Canada.

“It’s huge. Who will pay a 75% deposit to bring Canadian canola to China?

The term contracts on the most active rapeseed meals in Zhengzhou in China have slipped three percent, the greatest daily decrease since June 26.

The Chinese Ministry of Commerce said on Tuesday that an anti -dumping survey launched in September 2024 had found that the Canada agricultural sector – in particular the Canola industry – had benefited from “substantial” public subsidies and preferential policies.

Tone offset

China has until September, when the investigation is officially ended, to make a final decision on the functions, although it has the possibility of extending this deadline for six months. A final decision could lead to a different rate or cancel Tuesday’s decision.

The policy marks a change in relation to the conciliatory tone struck in June, when Prime Minister of China Li Qiang said that there were no conflicts of deep interests between the countries during a telephone call with Canadian Prime Minister Mark Carney.

The Prime Minister’s Prime Minister’s office and agriculture ministers immediately responded to Reuters’ requests for comments. The Canada Embassy in Beijing did not immediately respond to a request for comments from Reuters.

“This decision … will exert additional pressures on the Government of Canada to sort trade friction with China,” said Rogers paying the agriculture analyst of Trivium China.

An opportunity for Australia

The replacement of millions of tonnes of Canadian canola is probably difficult in the short term, according to analysts.

China mainly uses canola imported to make animal food for its aquaculture sector. A separate obligation on imports of Canadian meals in March has already put these supplies in danger.

This decision offers the opportunity for Australia, Pay Added, which seems to settle access to the Chinese market with a few test cargoes this year after a freezing of a year in trade.

Australia, the second largest exporter in Canola, has been excluded from the Chinese market since 2020 mainly due to Chinese rules to stop the spread of fungal plant disease.

However, even if Australian imports are increasing, “replacing the Canadian canola will be very difficult unless the importation demand is decreasing sharply,” said Donatas Jankauskas, analyst with the CM Navigator’s database.

Canadian canola exports to China totaled $ 5 billion in 2023, the last full year before the investigation start.

Last fall, China announced that it would apply a 100% rate rate from March on what the National Farmers Union said to affect “the part of the total produced canola which is crushed for export to China”, not imports of canola seeds.

The Union, whose union, said in March, in March, it was disappointed by the move

Watch L China announces a Canadian survey on Canola (August 2024):

China retaliated against Canadian prices with investigation into canola import

Canadian farmers could end up taking in the middle of a political dispute, after China said it opened an anti -dumping survey on canola imports in response to Canada imposing a 100% price on Chinese manufacturing vehicles.

China, the United States has put on tariff hikes on a break

In addition, China has also launched an anti-dumping investigation into pea starch imported from Canada, which will last a year and could be extended for six months, he said in a statement.

Canada is a superior exporter of pea in full or divided, with Saskatchewan and Alberta as the largest producers; China, the United States, India and Bangladesh are among the best buyers.

Last year, Canada was overwhelmed by Russia as the first pea exporter in China. Russia’s market share during the agricultural season of 2023-24 increased to 49.1%, because that of Canada fell to 44.6% of imports of Chinese peas, of a dominant position of around 95% in previous years.

In addition, Canada and the United States have accused China of pouring and subsidizing protein exports from pea to North America in recent years.

Meanwhile, China and the United States late Tuesday, everyone has published statements indicating that the two countries would continue to negotiate a new trade agreement before a deadline in which new tearing prices have started for both.

The break prevents American prices on Chinese products from drawing up to 145%, while Chinese prices on American products had to reach 125% – rates that would have caused a virtual commercial embargo between the two countries.

It locks in place, at least for the moment, a price of 30% on Chinese imports, with Chinese rights on American imports at 10%.