The federal government needs to do more to support Canadian agri-businesses amid new Chinese tariffs that have taken a backseat to Ottawa’s trade dealings with the US, the Canadian Federation of Independent Business (CFIB) says.
In a release Wednesday, the CFIB said new data shows China’s retaliatory tariffs on Canadian agricultural and seafood products are affecting about a third (36%) of Canadian agricultural businesses, with nearly one in four (23%) taking a direct hit.
The Chinese government last month imposed 100% tariffs on imports of Canadian peas, as well as canola oil and meal, along with 25% levies on pork and some seafood products. Beijing’s move came after the Canadian government earlier slapped tariffs on Canadian imports of EVs, steel and aluminum from China.
“While the focus has been on the US tariff battle, Canadian agri-businesses have been even more deeply harmed by China’s tariffs on canola oil, canola meal and peas, as well as certain pork, fish and seafood products. These producers need greater attention and support,” said Juliette Nicolaÿ, policy analyst at CFIB.
“While about one in four agri-businesses have taken steps to mitigate tariff impacts, only 10% of agri-businesses say that governments have done enough to support affected firms.”
The CFIB is calling on Ottawa to “push back against this unfair treatment” and has sent a letter to the government, urging it to reduce the tax and regulatory burden on agri-business, ensure support programs properly address the scope of the current challenges and assist agri-businesses in navigating new markets.
The new Chinese tariffs may leave many farmers struggling to find buyers, forcing them to absorb financial losses or shift to less profitable crops, the CFIB said.
“In fact, we are already hearing from canola farmers that have lost contracts from foreign buyers. Many face the risk of having unsold products, while dealing with a lack of viable market alternatives.”
In the letter, the CFIB also suggested the government re-evaluate its EV subsidy strategy, given the harm it is doing to trade with China, one of this country’s biggest buyers of agricultural products.
“Given the importance of agro-industries to Canada’s economy, we recommend government conduct a reassessment of its EV subsidies and tariff policies to mitigate unintended consequences for SMEs (small- and medium-sized enterprises),” the letter said.
According to the CFIB, the federal and provincial governments in Ontario, Quebec, and British Columbia have committed billions of dollars in subsidies to large projects aimed at developing a domestic EV battery industry. In fact, over $62 billion has been pledged to several major automakers.
“However, some of these companies are now pausing their plans, raising questions about the need for such a policy, as well as the timing and long-term benefit of this subsidy strategy,” the letter said.
