Trade tensions with West escalate as China launches anti-dumping probe into Canadian canola imports

12 Sep 2024 --- Canadian canola (or rapeseed) imports are China’s latest target. The country started a one-year anti-dumping probe as Canada follows the US and the European Union in imposing a 100% tariff on imports of Chinese electric vehicles starting next month. Steel and aluminum imported from China will also face a 25% tariff. 

Canola is widely used in the food industry and in the cosmetics sector as a humectant for skin care products, conditioning agent in hair care and compostable personal care packaging.

China’s commerce ministry says it will investigate imports from last year, claiming Canadian canola exports “increased significantly” in 2023 while prices dropped and damaged its industry. It adds that the probe is expected to be completed before September 2025 but may be extended under “special circumstances.”

Canada’s Minister of Agriculture, Lawrence MacAulay, issued a statement indicating he is deeply concerned:

Canada is deeply concerned with China’s anti-dumping probe into canola imports and will monitor developments closely.“Our canola producers work tirelessly to deliver top-quality products to Canadians and the world. Their products meet the highest standards, our inspection systems are robust, and we adhere to rules-based trade…We remain committed to ensuring fair market access for our exporters, farmers and producers. I am monitoring these developments closely, and I will continue to engage with provincial and territorial partners and industry stakeholders moving forward.”

China is the world’s largest oilseed importer and the top destination for Canadian canola. Canada’s Ministry of Agriculture said over 4.5 million metric tons worth CAD$3.8 billion (US$2.8 billion) were exported to China last year. 

Ongoing trade battles

China recently started an anti-subsidy investigation into dairy imports from the European Union and an anti-dumping investigation into EU pork imports.

Last June, the EU also implemented provisional anti-dumping duties on titanium dioxide (TiO2) imports from China to protect the European market from what it claims are unjust trade practices. The EU believes China is selling its products at unfairly low prices in Europe.

French investment management company Océinde recently told Personal Care Insights the TiO2 tariffs could undermine EU efforts to help the domestic industry and warned of higher costs for the sector and consumers.

By Anita Sharma