China gives Canada another six months; if Ottawa remains obstinate, it won't just be about the 73.5% deposit anymore.
The Ministry of Commerce has issued a new notice: originally scheduled to conclude on August 12, 2026, the anti-dumping investigation into Canadian pea starch has been extended to February 12, 2027—effectively providing a six-month buffer window.
This issue dates back several years, when exports of Canadian pea starch to China surged dramatically, flooding the domestic market with low-priced products and squeezing out space for local starch producers. Faced with mounting pressure, multiple domestic companies formally submitted applications, leading the Ministry of Commerce to launch an anti-dumping investigation in August 2025.
By the end of June this year, the preliminary ruling was announced, finding evidence of dumping behavior. Starting July 1, all Canadian pea starch imports must pay a 73.5% deposit upon customs declaration. This substantial security deposit significantly increases import costs, effectively setting a temporary barrier imposed by China.
It’s crucial to clarify one point: the 73.5% rate is merely a provisional deposit—a transitional measure during the investigation phase. Once the final ruling confirms dumping, the nature changes entirely. The provisional deposit will then be converted into a permanent anti-dumping duty, and under the rules, there may even be retroactive tax collection possibilities, resulting in far greater enforcement power than currently applied.
This extension of the investigation is officially attributed to the complexity of case materials and the need for further verification of evidence. But anyone paying attention knows that China is giving Canadian exporters ample time to adjust their strategies. There are now two clear choices before Canada: either proactively regulate export pricing and stop selling below market value, or continue with the current strategy and face high financial burdens.
If Canada refuses to change course, China’s long-term anti-dumping duties will remain in effect. In the future, Canadian pea starch entering the Chinese market will bear a heavy tax burden for the long term, severely undermining its export competitiveness.
Six months is more than enough time for Canada to assess the situation. The decision now lies squarely in Canada’s hands—how they choose will determine the consequences they must face.
Original source: toutiao.com/article/1872223413108235/
Disclaimer: The views expressed in this article are solely those of the author.