【Text by Observer Net, Wang Yi】Regarding the Chinese Ministry of Commerce's determination that imported canola from Canada is being dumped and its decision to impose a deposit on it, Canadian International Trade Minister Maryam Monsef and Agriculture Minister Heath Mac Donald have even felt wronged.

On the evening of August 12 local time, they issued a joint statement expressing "deep disappointment" with this decision, but stated their willingness to engage in dialogue with China on trade disputes. The statement still insisted that Canada "does not dump canola", its products "meet the highest standards" and "are committed to ensuring fair market access for the canola industry", "we are always ready to have constructive dialogue with Chinese officials to address our respective trade concerns".

Evidently, the Canadian government is well aware that their actions of imposing tariffs on Chinese electric vehicles, steel and aluminum products are unscrupulous, which has undermined Sino-Canadian economic and trade relations. After Canada announced the tariff increase in September last year, China launched a "discrimination investigation" while announcing an anti-dumping investigation into Canadian canola. After a year of investigation, the Chinese Ministry of Commerce announced on August 12 this year that Canadian canola was being dumped, and decided to implement temporary anti-dumping measures in the form of deposits starting from the 14th.

But over the past year, Canada ignored China's concerns and delayed taking action to resolve the issue. On the social media post where Minister Monsef released the joint statement, Canadian netizens criticized the Liberal government for "not solving this problem for a year" and now complaining. One netizen wrote: "When you don't take action, the result is usually disappointment."

On the 13th, Monsef and Mac Donald met with the Canadian canola industry group. The ministers said they would take measures to support the canola industry and said they would "commit to its trade diversification". However, canola trade experts told Reuters that China is Canada's largest canola market, and it is not easy for Canada to find buyers to replace China.

Heath Mac Donald, Canadian Minister of Agriculture, Canadian Press

According to Canadian Press on the 13th, the opposition Conservative Party also criticized the government for inadequate response. Conservative MP Michelle Rempel Garner said that China's anti-dumping measures could "easily have been avoided," and the Liberal government must respond immediately. "As a Western Canadian, I cannot emphasize how severe the impact is on our economy and agricultural producers."

Manitoba provincial premier Wab Kinew called on the federal government to use the revenue from the tax on Chinese electric vehicles to support Western farmers, "just like other industries receive support." However, he estimated that the amount was about CAD 100 million (about CNY 520 million), while the Chinese anti-dumping measures against Canadian canola may cause a hit of about CAD 1 billion.

Kinew pointed out that this issue has sparked many discussions in the West, some people are stubbornly insisting that the tariffs on Chinese electric vehicles cannot be removed, "because it might anger President Trump of the United States," "but (I think) this is an assumption, the real issue we are discussing here is the problem faced by oilseed farmers."

China is the world's largest importer of canola, more than half of Canada's canola is exported to China, and the value of Canada's canola exports to China in 2024 was nearly CAD 5 billion.

Reuters reported on the 13th that China did not specify how long the temporary anti-dumping measures will last, and it is expected that a decision will be made in September. If it continues, it almost means that China will stop importing. This unexpected move has scared the market. Rapeseed futures prices fell as much as 6.5% on August 12, hitting a four-month low. Some traders said that if the Chinese tariffs continue, prices may fall further.

"This is a very heavy financial blow," said Bill Prybylski, president of the Saskatchewan Agricultural Producers Association. On the day when China announced the anti-dumping measures, rapeseed prices dropped by CAD 1 per bushel, causing his farm to lose about CAD 200,000. "Most canola growers will face the same situation."

It is reported that the planting area of Canadian canola exceeds 12 million acres, providing employment for more than 200,000 Canadians, contributing more than CAD 4.3 billion to the economy. Its scale "is far greater than the total of the steel, aluminum and automobile manufacturing industries." Canadian Press also pointed out that canola cultivation is costly and is an important source of income for Canadian farms. Many farmers are currently in the harvesting season and may be forced to sell at lower prices than a few days ago. Farmers without pre-signed sales contracts will face more direct impacts.

Saskatchewan farmer Dean Roberts also complained, saying that a quarter of his farm is planted with canola, which is a very important crop. But now, "our second-largest customer has effectively closed their market to us," which is expected to have a significant impact on "our livelihood, the way we support our families, and the operation of our farm."

Prybylski hopes the Canadian government will negotiate with China to reach a settlement. He said, "The consensus among everyone is that these deposits are retaliation by China against Canada's tariffs on electric vehicles. We need the federal government to sit at the negotiating table."

"We are price takers in the market," said Roberts, expressing the same wish. "I am far away from Ottawa and even farther from Beijing. Therefore, for me, it is difficult to understand what the correct decision is, but I clearly know that the impact at the gate of my farm is real."

Bloomberg News pointed out that Canadian Prime Minister Trudeau's call with China in June seemed to open the door to thawing relations between the two countries, with both sides agreeing to strengthen cooperation in areas such as trade and economy. China emphasized that there are no fundamental interest conflicts between China and Canada and hopes that Canada will move towards China.

However, the Trudeau government did not correct the erroneous China-related measures from the previous period, and after failing to negotiate with the US Trump administration on trade, turned its attention to China, increasing tariffs on imports of steel and its products.

China has already expressed its position. In June, Chinese Ambassador to Canada Wang Di accepted an interview with Canadian mainstream media and pointed out that the essence of Sino-Canadian relations is mutually beneficial and win-win, with strong internal driving forces and practical needs. If Canada cancels the unreasonable discriminatory tariffs imposed on Chinese products, China's countermeasures can naturally be adjusted.

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