China's Aggressive Move: Anti-Dumping Duties on Canadian Canola

In a fresh escalation of the trade dispute between China and Canada, China declared on Tuesday a provisional anti-dumping duty of 75.8% on Canadian canola imports. This measure is part of a year-long conflict that originated when Canada imposed tariffs on Chinese electric vehicle imports in August of last year.

Canola, also known as rapeseed, is predominantly imported by China from Canada. Analysts are predicting significant ramifications for Canadian exporters, with one Singapore-based oilseed trader remarking that the high deposit is effectively barring Canadian canola imports. Meanwhile, China's Zhengzhou rapeseed meal futures witnessed a 3% drop, marking their steepest decline since June.

While the move strains diplomatic ties, it also presents opportunities for other nations, particularly Australia, which may regain access to China's market. Alongside this, China has begun an anti-dumping investigation into Canadian pea starch imports, signaling further tensions in the bilateral trade relationship.

(With inputs from agencies.)