In March, MOFCOM announced a 100 per cent tariff rate on Canadian canola oil and meal, along with several other Canadian agricultural commodities, as a result of its anti-discrimination investigation against Canada. China’s investigation is in response to Canada placing 100 per cent tariffs on Chinese electric vehicles, steel, and aluminum.
In return, the Canadian government has initiated a World Trade Organization (WTO) dispute filing against China’s imposed tariffs, and the WTO Dispute Settlement Body agreed to prepare an expert panel to review the case. CCGA is in contact with the Canadian government to stay informed about the developments in these cases. More details are available on the WTO website.
While China is our largest seed market, it is also the second most important canola meal market, with 2.0 MMT valued at $918 million in 2024. China has also become an important market for canola oil exports in recent years. In 2024, canola oil exports were relatively low at 15,351 MT, but they reached as high as 1.1 MMT in 2020.
With MOFCOM announcing preliminary duties of 75.6 per cent on canola seed as part of its ongoing anti-dumping investigation, in addition to the 100 per cent tariffs on canola oil and meal, the Chinese market is now effectively closed to the Canadian canola industry.
CCGA and CCC are engaged with government officials and are working in collaboration with provincial canola grower commissions and industry stakeholders to find a resolution to reopen the market to smooth and predictable trade.