China begins anti-dumping probe into Canadian canola

The investigation will look into Chinese imports of Canadian canola from 2023

The Chinese government has started looking into whether Canada engaged in dumping practices with respect to canola exports.

“Evidence has shown that Canada dumps (canola) seeds in China and has caused material harms to China’s domestic industry,” a Chinese commerce ministry spokesperson said on Monday, Global Times, a Chinese state newspaper, reported. “In line with relevant Chinese laws and regulations as well as WTO rules, related Chinese investigative agencies decided to launch an anti-dumping investigation into (canola) seeds imported from Canada.”

China’s commerce ministry announced it will investigate imports of Canadian canola from Jan. 1 to Dec. 31, 2023. And that preliminary evidence suggests dumping (selling a product at a lower price than its normal value), occurred, Reuters reported.

The investigation is expected to last until Sept. 2025 but could be extended.

Canada exported about $5 billion of canola to China in 2023.

China’s commerce ministry alleges Canada is dumping canola which is sending domestic canola prices down.

The probe will also include examining how imports of Canadian canola affected the Chinese industry between Jan. 1, 2021, and Dec. 21, 2023.

And China insists the anti-dumping investigation isn’t related to Canada’s decision to implement a 100 per cent tariff on imports of Chinese electric vehicles and a 25 per cent tariff on Chinese steel and aluminum.

Tariffs that come into effect next month.

The investigation is “fundamentally different” than the measures the Canadians took, a Chinese spokesperson said, Reuters reported.

The Canadian canola industry is concerned about the situation but confident any investigation will show Canada abides by international trade rules.

“China is an important and valued market for Canadian canola,” Chris Davison, Canola Council of Canada President & CEO, said in a Sept. 3 statement. “We are confident that an investigation into Canada’s canola trade with China will demonstrate alignment with and reinforce our support for rules-based trade.”

Lawrence MacAulay, Canada’s minister of agriculture and agri-food, said he’s working with his colleagues across government “to monitor developments closely.”