BEIJING –
China stated on Tuesday it plans to start out an anti-dumping investigation into canola imports from Canada, after Ottawa moved to impose tariffs on Chinese language electrical autos, lifting costs of home rapeseed oil futures to a one-month peak.
Canada has adopted the lead of the US and European Union, and introduced final week a 100 per cent tariff on imports of Chinese language electrical autos and a 25 per cent tariff on imported metal and aluminum from China.
“China strongly deplores and firmly opposes the discriminatory unilateral restrictive measures taken by Canada towards its imports from China regardless of the opposition and dissuasion of many events,” a commerce ministry spokesperson stated in an announcement.
The ministry stated China will even provoke an anti-dumping investigation into some Canadian chemical merchandise.
Greater than half of canola produced in Canada makes its method to China, the world’s greatest oilseed importer. Canola, additionally known as rapeseed for sure variants, is used as a cooking oil and in a variety of merchandise together with renewable fuels.
China’s rapeseed meal futures on the Zhengzhou Commodity Trade jumped six per cent to 2,375 yuan ($333.56) per metric ton following the announcement, hitting its highest since Aug. 6.
The ICE canola contract for November supply dropped to its day by day restrict of $45, or seven per cent, to $569.7 per metric ton.
“Canada’s canola exports to China have elevated considerably and are suspected of dumping, reaching US$3.47 billion in 2023, with a 170 per cent year-on-year improve in quantity and a steady decline in costs,” the ministry stated.
“Affected by the unfair competitors of the Canadian facet, China’s home rapeseed-related industries continued to undergo losses,” it stated.
China’s rapeseed meal costs have plunged 22 per cent thus far this yr amid plentiful oilseed provide and rising home manufacturing.
“The present (edible oil) home consumption shouldn’t be sturdy, and there may be an plentiful provide of home shares,” stated Ma Wenfeng, senior analyst at Beijing-based agriculture consultancy Beijing Orient Agribusiness Consultancy.
China imports its canola predominantly from Canada, adopted by Russia and Mongolia.
“Arrivals from Canada have been rising at a quick charge,” Ma stated.
The world’s second largest economic system imported 5.5 million tons of canola in 2023, valued at $3.72 billion. Imports from Canada accounted for 94 per cent of the whole.
Comparatively, the majority of China’s electrical car exports to Canada is from Tesla’s Shanghai manufacturing unit and native Chinese language corporations don’t have any massive publicity to that export market but.
Canadian imports of cars from China to its largest port, Vancouver, jumped 460 per cent yr over yr to 44,356 in 2023, when Tesla began transport Shanghai-made EVs to Canada.
The Chinese language spokesperson stated it intends to resort to the World Commerce Group dispute settlement mechanism for Canada’s related practices.
The Canadian embassy in Beijing didn’t instantly reply to a request for remark.
China has additionally initiated commerce investigations on imports of pork, brandy and dairy from the European Union in response to curbs on its electrical car exports.
Different provides
China had focused Canadian canola in earlier commerce tensions. In 2019, it suspended two Canadian canola exporters earlier than eradicating the restrictions three years later.
Analysts stated China may flip to Australia and Ukraine for various provides, particularly as Australia’s canola manufacturing is ample.
Canola manufacturing in Europe has been hit by poor climate whereas China’s agriculture commerce with Ukraine is proscribed.
“We count on China to purchase bigger volumes from Australia if restrictions on Australian canola are eased,” stated Ole Houe, director of advisory companies at IKON Commodities in Sydney.
“As of now Australia’s canola exports to China are negligible, nearly 500 tons because the starting of 2024,” Houe stated.
China’s imports of Australian canola have been restricted as a result of issues about blackleg illness.
(Reporting by Mei Mei Chu, Naveen Thukral and the Beijing newsroom; Writing by Bernard Orr; Modifying by Muralikumar Anantharaman, Kim Coghill and Sharon Singleton)
