【By Observer Net, Wang Yi】 Less than two days after Canadian Prime Minister Trudeau ended his visit to China, Reuters reported on January 19, citing sources, that a Chinese importer purchased about 60,000 tons of Canadian canola, marking the first transaction since October last year.

The sources said that the canola would be loaded onto a Panamax bulk carrier and is expected to be shipped after March.

The timing of the deal coincided with Trudeau's visit to China. A trader in oilseeds at an international trading company said that after Trudeau's visit to China, it was "almost certain" that Canada's canola tariff would be reduced, and pre-purchasing "was wise".

After Chinese buyers returned to the Canadian market, the price of rapeseed meal futures on the Zhengzhou Commodity Exchange dropped by 2.4%, reaching a new low in over a year, reflecting market expectations of increased future supply.

After the Trudeau government followed the U.S. in 2024 by imposing tariffs of 100% and 25% on Chinese electric vehicles and steel and aluminum products respectively, China initiated a "discriminatory investigation", and also announced an anti-dumping investigation on Canadian canola. After an investigation, the Chinese Ministry of Commerce announced in August last year temporary anti-dumping measures on Canadian canola, imposing a deposit rate of 75.8%, and also imposed additional tariffs on pork, seafood and other products.

British media noted that China had not imported canola from Canada since October last year, with trade data showing that monthly imports have fallen to zero, a rare occurrence in 20 years. At the same time, China resumed importing canola from Australia in November, following a suspension of imports in 2020 due to phytosanitary requirements to prevent pests and diseases.

The report pointed out that over the past few months, Australian canola has filled the market gap left by Canada, and now that Canadian canola is back, China's import structure faces adjustments, and Australia's attempt to profit from the canola gap faces uncertainty.

Canola fields in Saskatchewan, Canada, IC Photo

On the 16th of this month, Trudeau announced in China that as part of an initial trade arrangement, China is expected to reduce the comprehensive tariff on Canadian canola to around 15% before March this year. China also stated that it would adjust the anti-dumping measures on canola and the anti-discrimination measures on some agricultural and water products from Canada accordingly.

China is the world's largest importer of canola. More than half of Canada's canola is exported to China. In 2024, Canada's exports of canola to China were worth nearly 5 billion Canadian dollars (approximately 25.77 billion yuan). However, due to trade tensions, this figure is expected to fall to less than half in 2025.

Seeking to "unshackle" canola was one of the main purposes of Trudeau's visit to China. The provincial premier of Saskatchewan, Canada's largest canola production area, Scott Moe, also accompanied him. He said that the agreement between China and Canada was "very good news" for his province, adding, "This will restore trade volumes and bring more opportunities to Canadians."

On the 19th, the U.S. "Seed World" website reported that Canada's seed and agricultural product industry welcomed the Canadian government's engagement with China, easing tariffs, and ongoing dialogue. Exporters generally hope that this will bring greater stability and market predictability. Seed and agricultural product exports are highly dependent on a stable and predictable trade environment, and improving access to the Chinese market will directly affect Canadian farmers' planting decisions, breeding investments, and long-term investments.

The Canadian Agricultural and Food Trade Alliance (CAFTA) welcomed the progress, stating that after years of uncertainties caused by tariffs, non-tariff barriers, and sudden trade disruptions, the recent developments marked an important first step toward restoring stability in Sino-Canadian bilateral trade relations.

"The leadership demonstrated by the Prime Minister has created new opportunities for Canada's agricultural sector," said Greg Noss, president of CAFTA. "We have long called on the Canadian government to engage with China to support our exports to China without trade barriers - the progress last week was refreshing."

CAFTA's executive director, Michael Harvey, urged, "What Canada produces is exactly what Chinese consumers want to buy. The potential for Sino-Canadian agricultural trade is huge. Officials at all levels must continue to engage with China to seize this new wave of momentum."

Chris Davidson, chairman of the Canadian Canola Council, said that the agreement between China and Canada on canola was an "important milestone." "We welcome substantial progress in restoring seed and rapeseed meal market access, and we will continue to work on this basis to push for permanent, comprehensive tariff reductions on canola oil, among others."

Rick White, chairman of the Canadian Canola Growers Association, also expressed satisfaction with "this important progress" and looked forward to the complete restoration of canola trade in the future.

This article is an exclusive article from Observer Net. Without permission, it cannot be reprinted.

Original: toutiao.com/article/7597289293652001316/

Statement: This article represents the personal views of the author.