China's Stiff Anti-Dumping Duties Rock Canadian Canola Market
China imposes preliminary anti-dumping duties on Canadian canola imports, setting a provisional rate of 75.8%. This escalation in the trade dispute effectively blocks Canadian exports to China, its second-largest market. The move comes amid accusations of government subsidies and ongoing trade tensions.
In a significant development on Tuesday, China announced preliminary anti-dumping duties on Canadian canola imports, raising the stakes in the ongoing trade dispute between the two nations. The Ministry of Commerce stated that a provisional rate of 75.8% will come into effect from Thursday, potentially barring Canadian canola, which accounted for almost C$5 billion in exports last year.
The announcement sent shockwaves through the markets, with ICE November canola futures plummeting by 6.5% to a four-month low. This decision further intensifies the trade conflict that initially erupted following Ottawa's tariffs on Chinese electric vehicle imports.
Analysts suggest that replacing Canadian canola will be challenging for China, which imports the crop for animal feed and cooking oil. Meanwhile, Australia's potential re-entry into the Chinese market could provide a temporary alternative, but full replacement would require a significant drop in import demand.
(With inputs from agencies.)
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