21/08/2025 (Oils & Fats International) - The Chinese government has announced preliminary anti-dumping duties on Canadian canola seed imports, World Grain wrote.

China’s move effectively closes the market for Canada’s top trading partner for the oilseed, according to the 13 August report.

Announcing the duties on 12 August, China’s Ministry of Commerce said the provisional 75.8% rate duty would take effect from 14 August.

The duty added to a trade dispute between the two countries that began with Canada’s imposition of tariffs on Chinese electric vehicle imports in August 2024, the report said.

The Canadian government disputed the preliminary anti-dumping ruling by China and said it was “deeply disappointed” in a joint statement issued by International Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald.

“Canadian canola products meet the highest standards and our inspection systems are robust,” the statement said.

“Canada is committed to ensuring fair market access for our canola industry, and we remain ready to engage in constructive dialogue with Chinese officials to address our respective trade concerns.”

According to the government, canola is Canada’s second-largest crop by planted area, with production covering 8.5M ha (21M acres)/year.

China is the largest export market for Canadian canola seed, representing 67% of total canola seed exports and totalling 5.9M tonnes in 2024, worth approximately US$4bn, according to the report.

With US$12.9bn in farm cash receipts in 2024, canola seed production was the country’s highest value field crop.

Although China was Canada’s largest export market for canola after the USA, Canadian exports to other markets – including the European Union, the United Arab Emirates, Japan and Mexico – had increased in 2025, World Grain wrote.

On 8 March, the Chinese government had announced new tariffs on several Canadian agricultural products, with canola oil and canola meal targeted with tariffs of 100%, while tariffs for canola seed remained unchanged, the report said.

Meanwhile, Canada also imposed tariffs on Chinese steel and aluminium.

China’s Ministry of Commerce said its anti-dumping probe launched in September 2024 had found that Canada’s agricultural sector, particularly the canola industry, had benefited from substantial government subsidies and preferential policies, World Grain wrote.

The Canola Council of Canada (CCC) and Canadian Canola Growers Association (CCGA) also jointly registered their disappointment with China’s anti-dumping finding, saying the Canadian canola industry had been “consistent in its position that Canada’s canola trade with China is aligned with and supports rules-based trade, fair market access and competitiveness of Canadian canola in the Chinese market.”

“With this preliminary determination of dumping for canola seed together with the existing 100% anti-discrimination tariffs on canola meal and oil, the Chinese market is effectively closed to the Canadian canola industry,” CCC president and CEO Chris Davison was quoted as saying.

The organisations said the preliminary ruling would create uncertainty and volatility in the global marketplace.

“This tariff will have an immediate and substantive impact on farmers’ marketing opportunities for the 2025 canola crop,” CCGA president and CEO Rick White was quoted as saying.

https://www.ofimagazine.com/news/china-puts-duties-on-canadian-canola