A canola plant in full bloom is pictured near Cremona, Alta., on July 15, 2024.--CP FILE PHOTO
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Canadian canola producers are feeling the effects of a new set of tariffs imposed at 100 per cent, not by the U.S., but by China on Canadian canola products.
The tariffs went into effect Thursday on Canadian canola oil and canola meal and is in response, according to China’s Ministry of Commerce, to tariffs announced by the federal government on Chinese electric vehicles, steel and aluminum.
During a press conference held in Calgary earlier this week the province’s Minister of Agriculture RJ Siguardon says the new tariffs are having a large effect on the price of canola and urges Ottawa to get back to the table to address the dispute.
“This is a federal trade issue, our federal government needs to step up to the table,” said Siguardon. “The Canola Council, our Alberta canola producers, are expecting the federal government to re-engage with China right now and find an immediate resolution to this issue, understanding that this is incredibly impactful for one of our largest value commodities in Canada.”
China is the second largest market for Canadian canola exports, behind the U.S. In 2024 the Canola Council of Canada says total Canadian canola exported to China valued at close to $5 billion.
Canada imported close to two million tonnes of canola meal last year, worth more than $921 million, and canola meal will now face a 100 per cent tariff.
“When it comes to international trade, those are federal issues,” explains Sigardson who wants to see Ottawa foster its relationships with important trading partners to prevent future tariffs. “We have been having active conversations with the federal government to push them to find ways they can assist our canola growers across Canada.
“As well, to move forward in conversations to try to find resolution and an end to these trade disputes that are happening right now.”
The new set of tariffs are separate and distinct from China’s ongoing anti-dumping investigation into imports of Canadian canola seeds.
Ottawa has said it plans to support farmers but has not yet announced concrete measures.
“We are focused on making sure there are supports to make sure that we have mechanisms in place to support those impacted producers,” Kody Blois, federal agriculture minister, told reporters in Ottawa on Wednesday.
Canada’s canola industry supports approximately 40,000 farmers, and last year generated more than $43.7 billion.
