Carney pledges $370M in incentives for canola sector

Ottawa has announced $370 million in new support for Canadian canola producers facing massive tariffs from China.

The federal government said Friday that a new biofuel production incentive is meant to address “immediate competitiveness challenges” after China hit Canadian canola with a 75.8 per cent tariff last month.

The measure was widely seen as a response to Canada’s 100 per cent tariff on Chinese electric vehicles.

The funds are meant to “assist domestic producers and restructure their value chains,” Prime Minister Mark Carney said in prepared remarks as he announced a suite of supports for tariff-affected sectors in Mississauga, Ont.

Carney also said the government will amend its Clean Fuel Regulations to “spur the development of a vibrant biofuels industry in Canada.”

And he said the government will temporarily increase the amount producers can receive in interest-free advances to $500,000, and boost funding to support diversification to new markets.

A day earlier, Carney’s office said Nova Scotia MP Kody Blois plans to join Saskatchewan Premier Scott Moe for a three-day trade mission to China starting Saturday to “engage constructively with Chinese officials.” Officials hope to also address other “trade irritants” on the trip, the statement said.

Moe’s office said in an emailed statement Friday that the Saskatchewan government is pleased with the financial support for canola producers.

“However our focus remains on the removal of Chinese tariffs on canola. This is why Premier Scott Moe is travelling to China with the parliamentary secretary to the prime minister to engage with government and industry leaders.”