China yesterday said that it would launch an anti-dumping probe into Canadian canola and chemical products, in apparent retaliation for Ottawa’s new restrictions on imports of Chinese electric vehicles (EVs).
Canadian Prime Minister Justin Trudeau last month announced tariffs of 100 percent on Chinese EVs, accusing Beijing of “not playing by the same rules as other countries” in areas such as environmental and labor standards.
The Chinese Ministry of Commerce said in an online statement that it “will initiate an anti-dumping investigation into canola imported from Canada, in accordance with the law.”
Photo: EPA-EFE
The ministry said domestic industries had recently reported that Canadian canola exports to China “have increased significantly,” reaching US$3.47 billion last year while prices “have continued to fall.”
Canadian exporters were “suspected of dumping” products into the Chinese market and that “China’s domestic canola-related industries have continued to incur losses under the influence of unfair competition by the Canadian side,” it said.
Beijing was “strongly dissatisfied and resolutely opposed” to the Canadian tariffs and planned to raise the issue with the WTO’s dispute resolution mechanism, it added.
China would also launch a similar probe into “relevant Canadian chemical products, based on applications by domestic industries,” the ministry said.
“China ... will take all necessary measures to defend the legitimate rights and interests of its enterprises,” it said.
Ottawa’s EV surtax, on top of existing import duties of 6.1 percent, is to be imposed from Oct. 1. A separate surtax on imports of steel and aluminum products from China is to take effect from Oct. 15.
Canada is among the world’s top producers of canola — an oilseed crop that is used to make cooking oil, animal feed and biodiesel fuel — and China has historically been one of its largest customers.
However, bilateral ties plunged into a deep freeze for several years from 2018, when Canada detained Huawei Technologies Co (華為) executive Meng Wanzhou (孟晚舟), while Beijing later arrested two Canadian nationals.
In 2019, Beijing banned imports from two Canadian canola providers — Richardson International Ltd and Viterra Inc — citing the detection of harmful organisms in the shipments.
Relations took a positive turn in September 2021, when Meng and the two Canadian nationals being held by China were all released after Meng reached a deal with US prosecutors.
In May 2022, China lifted its ban on canola imports from the Canadian firms.
Despite the relative detente, the two countries have in the past few years continued to have disagreements over a range of issues from trade and technology to human rights.
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