China's Anti-Dumping Duty Rocks Canadian Canola Exports
China has announced a 75.8% preliminary anti-dumping duty on Canadian canola imports, escalating an ongoing trade dispute. This move effectively closes the Chinese market to Canadian canola, which had its price significantly drop. The decision adds strain to Canada's trade relations with the world's largest economies.
China has intensified its trade dispute with Canada by introducing preliminary anti-dumping duties of 75.8% on Canadian canola imports, according to a statement released Tuesday by the Ministry of Commerce. The measure, set to take effect Thursday, follows tariffs implemented by Canada on Chinese electric vehicles last year.
The Canola Council of Canada expressed concerns over the new duties, with President Chris Davison stating that the steep rate effectively blocks access to the Chinese market, jeopardizing nearly C$5 billion worth of exports for the oilseed crop in 2024. Traders and analysts voiced their surprise at the sudden announcement, which sent ICE November canola futures plummeting to a four-month low.
The Chinese government alleges that Canadian canola has benefited from unfair subsidies, a claim disputed by Canada, which sees the duties as part of broader geopolitical tensions. The final outcome of the anti-dumping investigation could lead to changes in the duty rate, thereby affecting the future of Canadian canola exports significantly.
(With inputs from agencies.)
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