China has taken the first step in its planned anti-dumping investigation into canola imports from Canada.
The Canola Council of Canada confirmed in a statement Monday that China’s Ministry of Commerce (MOFCOM) formally announced its Notice of Initiation of an anti-dumping investigation into imports of Canadian canola seed. This is the first step of the investigation which, the notice indicates, will cover a dumping investigation period from Jan. 1, 2023, to Dec. 31, 2023, and an industry injury investigation period from Jan. 1, 2021, to Dec. 31, 2023.
MOFCOM has also indicated the investigation is self-initiated by the ministry and is not at the request of domestic industry. Additionally, MOFCOM has identified a number of exporters which are in-scope for the investigation, the statement said.
“We are engaged and in close communication with government officials regarding the implications of the investigation and Canada’s participation and response to it, including the need for a coordinated approach and support for the Canadian canola industry,” said Chris Davison, Canola Council of Canada (CCC) president and CEO.
Davison added that an ongoing assessment will be required to determine the various impacts on Canadian canola.
The anti-dumping probe reportedly has a one-year deadline, expected to wrap up no later than Sep. 9, 2025.
The CCC reiterated its stance 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 important Chinese market.
China’s anti-dumping probe, which was initially announced early last week, follows on the heels of the Canadian government slapping a 100% tariff on imports of Chinese electric vehicles, as well as tariffs of imported steel and aluminum from China. Retaliation from China was widely expected, and canola has been a target of Beijing before.
In early 2019, China banned canola imports originating from a pair of Canadian grain companies, Richardson and Viterra, alleging that shipments were contaminated. However, it was believed the real reason for the ban was pay back for Canada’s arrest of Huawei executive Meng Wanzhou at the behest of the American government.
The ban on shipments from Richardson and Viterra was eventually lifted in May 2022, and according to a statement from MOFCOM, imports of Canadian canola increased significantly in the first full year afterward, jumping 170% year-on-year in 2023 – sparking the anti-dumping probe.
"Affected by the unfair competition of the Canadian side, China's domestic rapeseed-related industries continued to suffer losses," MOFCOM said in a statement.
