【By Observer Net, Qi Qian】

On tariff trade issues, Canada is not only fighting on both sides of the US and China, but also facing pressure from India.

This March, China imposed a 100% tariff on Canadian peas and other products. Last week, India announced a 30% tariff on all imported green peas.

"China and India are imposing taxes on Canadian green peas," wrote The Globe and Mail on November 5th, stating that India and China are the world's two largest markets for green peas, and Canadian farmers are urging the government to take action as soon as possible. The report analyzed that Canada may find it difficult to change India's protectionist stance, but has some room to maneuver with China - by canceling tariffs on electric vehicles, steel, and aluminum products exported to China.

Data shows that Canada is the second-largest producer and the largest exporter of peas in the world, growing about 3.7 million acres of peas in Saskatchewan, Alberta, and Manitoba. Due to their large populations and dietary habits, India and China are important markets for green peas, accounting for 80% of Canada's green pea exports. Canada is the largest supplier of green peas to India, with exports to India amounting to about $500 million last year.

Last week, India announced a new 30% tariff on all imported green peas, effective from November 1st.

Subsequently, the Minister of Agriculture of Saskatchewan, Darryl Harrison, called on the government to immediately negotiate with India. He said that the trade uncertainty with the United States, as well as the tariffs from China and India, are "destroying" Canada's agricultural industry.

However, The Globe and Mail noted that the Canadian government lacks negotiation leverage. A trade lawyer pointed out that India has always been against free trade in the agricultural sector. In 2017, due to rising domestic food prices, India imposed a 50% tariff on pea imports, which was only lifted in 2023.

"However, Ottawa still has choices regarding China," the report stated, adding that if Canada cancels its tariffs on Chinese goods, China may reciprocate by removing tariffs on Canadian green peas and other agricultural products.

Canadian farmers call on the government to take action quickly, Canadian media

Last year, the Canadian government followed the U.S., imposing a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum. China has taken countermeasures, including imposing a 100% tariff on Canadian canola oil, meal, and peas in March, a 25% tariff on seafood such as lobster and frozen crabs, and various pork products, as well as a 75.8% countervailing duty on Canadian canola seeds in August.

The Canadian media mentioned that recently, Chinese Ambassador Wang Di to Canada posted on social media stating that if Canada removes the tariff on electric vehicles, it will "welcome the spring of improved bilateral relations." He told the Canadian television station that this move would prompt China to lower its tariffs on Canada.

Terry Yuzwa, president of the Pulse Association, a Canadian bean association, said: "This situation has lasted for eight months, and producers and traders have suffered directly, beyond our control." He pointed out that high-protein legumes like green peas are crucial for 30% to 40% of India's vegetarian population; in China, green pea starch is used to make vermicelli, a household staple in many regions.

Jeff English, vice president of communications of the association, said that Canada began entering the Chinese market around 20 years ago, and over the past decade, China's import demand for peas has grown by 137%, compensating for the decline in Indian demand between 2017 and 2023.

The report said that market diversification can alleviate the impact of trade barriers. The Pulse Association is pushing for expansion into Southeast Asian markets and investing in new uses, such as pet food and plant-based burgers.

But the scale of the Indian and Chinese markets is irreplaceable. Yuzwa said that it would take 10 countries to replace one of the two major markets of China and India, and it would take 10 to 20 years to establish relationships. "You can develop elsewhere while maintaining the Chinese and Indian markets, but the scale cannot be replaced," he said.

In addition, Canada's domestic processing capacity is limited. Industry insiders pointed out that Canada typically exports unprocessed raw peas to China and India, whereas other markets such as the U.S. require processed peas for livestock feed, which are cheaper.

According to the report, the export blockage to China and India has caused a backlog. Data shows that bulk pea exports so far this year are 18% lower than last year. At the Vancouver export port, up to 59,000 tons of bulk peas are waiting to be loaded onto ships.

Carney spoke at the APEC Summit, Carney X account

Since the Trudeau government got involved in the Sino-US dispute in 2018, Sino-Canadian relations have remained tense. Last year, the Canadian government followed the U.S. closely, imposing a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum products.

Canadians have realized that the country is caught in a "two-front trade war" with its two largest trading partners, the U.S. and China.

According to the report, the Trump administration imposed a 35% tariff on all Canadian goods not covered by existing free trade agreements, a 50% tariff on steel and aluminum, and a 25% tariff on cars. Last week, Trump was angry at an anti-tariff ad投放 by the Premier of Ontario, and announced the suspension of all trade negotiations, threatening to increase tariffs on Canada by another 10%. It is currently unclear whether or when this will take effect.

U.S. protectionism has made Canada urgently need to promote trade relationship diversification. Prime Minister Carney earlier stated that Canada would shift to strengthen ties with other major economies. He said he hopes to double Canada's non-U.S. exports within the next decade.

On October 31, Canadian Prime Minister Carney met with Chinese leaders during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

"This marks a turning point in Sino-Canadian bilateral relations," Carney said after the meeting on his social media platform X, stating that China and Canada "are committed to reshaping bilateral relations in a pragmatic and constructive manner," and will take action to resolve outstanding trade issues and friction points. "We look forward to making progress on these trade issues while strengthening the bilateral relationship."

According to the official website of the Ministry of Foreign Affairs, the leaders of China and Canada agreed to resume and restart exchanges and cooperation in all fields, advance the resolution of specific economic and trade issues of mutual concern, consolidate the momentum of improvement, and jointly promote the development of the strategic partnership between China and Canada.

Carney later said that he would not predict the timetable for resolving controversial issues such as tariffs. He explained that immediately lowering tariffs on Canadian commodities like canola seeds by China was never a realistic goal he could achieve after meeting with Chinese officials. "The meeting has achieved its set goals: establishing the highest-level bilateral relationship for the first time in eight years, and achieving some breakthrough progress."

This article is an exclusive article by Observer Net. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7569054460287255091/

Statement: The article represents the views of the author. Please express your opinion by clicking on the [top/foot] button below.