Chinese ban on Canadian canola has come to an end
Bottles of Canola Harvest brand canola oil, manufactured by Canadian agribusiness firm Richardson International, are seen on the shelf of a grocery store in Beijing, Wednesday, March 6, 2019. (AP Photo/Mark Schiefelbein)
A three-year Chinese ban on Canadian canola has come to an end, according to the federal government.
In a joint statement released Wednesday afternoon, Trade Minister Mary Ng and Agriculture Minister Marie-Claude Bibeau said China has reinstated market access for two Canadian grain trading companies that have been prevented from exporting canola seed to China since March 2019.
“We welcome this decision to remove the restrictions and immediately reinstate the two companies to allow them to export Canadian canola seeds,” the statement said.
“Canada will always firmly uphold the international rules-based trade system and related dispute settlement mechanisms, as well as a science-based approach to resolving such issues.”
In March 2019, the Chinese government blocked canola shipments from Canadian companies Richardson International Ltd. and Viterra Inc. by suspending their licences, alleging the detection of pests in canola shipments.
The move followed the arrest of Chinese tech giant Huawei's chief financial officer Meng Wanzhou in Vancouver a few months earlier.
In September of 2019, Canada took the canola dispute to the World Trade Organization. A WTO dispute resolution panel was composed in November 2021.
Before the trade tensions, the Chinese market made up 40 per cent of Canada's canola exports.
According to the Canola Council of Canada, seed exports to China have fallen from $2.8 billion in 2018 before the restrictions, to $800 million in 2019, $1.4 billion in 2020 and $1.8 billion in 2021.
The industry organization estimates the dispute cost the industry between $1.54 billion and $2.35 billion from lost sales and lower prices between March 2019 and August 2020 alone.
“This is a positive step forward, restoring full trade in canola with China and ensuring that all Canadian exporters are treated equally by the Chinese administration,” said Jim Everson, Canola Council of Canada president, in a news release.
“We will continue efforts to nurture and maintain a predictable, rules-based trade environment.”
Canada is the world's largest producer of canola. It is one of the most widely grown crops in Canada, and is currently trading at all-time record highs as the war in Ukraine drives up prices for agricultural commodities.
Canola is primarily used to make cooking oil, but can also be used as livestock feed and to make biodiesel.
This report by The Canadian Press was first published May 18, 2022.
YOUR FINANCES
Almost half of Canadians are doing worse financially than the previous year: survey
As inflation rates soar to the highest they've been in Canada in nearly forty years, nearly half of Canadians say that right now, they're doing worse financially than they were at this time last year.
Here's how to save on your next grocery order, according to Canadian couponers
As Canada’s inflation soars, two ‘extreme couponers’ offer their advice on how to save at the grocery store.
4 things Canadians can do to save money on their groceries during inflation
With Statistics Canada reporting a 9.7 per cent increase in food costs over the last year, Canadians are being pushed to find ways to pinch pennies at the grocery stores. Here are some ways to save.
Is it time for a 'gas tax holiday' in Canada?
As fuel prices reach record highs and drive inflation, there have been growing calls for governments to temporarily suspend or reduce gas taxes. CTVNews.ca spoke with experts on whether a gas tax holiday makes sense in Canada.
Canada's inflation nears 40-year high as gas prices soar
Soaring gas prices helped the annual inflation rate in May soar to its highest level in nearly 40 years, as the rising cost of living for Canadians squeezed household budgets and bolstered expectations the Bank of Canada will opt for a supersized interest rate hike next month.
'Retirement crisis' is in the works amid inflation: survey
More Canadians are facing challenges to save for retirement security as inflation continues to soar and markets decline, a new survey has found.
Ontario student warns about losing debit card after $14,000 lands on RBC account
An Ontario student is warning people of the risk that comes with failing to report a lost debit card after $14,000 in fraudulent deposits landed in her RBC account.
OPINION | How much money do you need to live as a digital nomad?
With the world opening up, there’s been a renewed interest in travelling and working in different countries as a digital nomad. So how much money do you need to make it work abroad? Contributor Christopher Liew breaks it down in an exclusive column for CTVNews.ca.