The Canadian government has announced a $370mn package to support canola producers facing 75.8% tariffs from China. The measure comes amid escalating trade tensions between Canada and China, following the Canadian government’s imposition of a 100% tariff on Chinese electric vehicles.
Financial support and regulatory adjustments
Prime Minister Mark Carney stated that the funds will “assist domestic producers and restructure their value chains” in a context of trade disruption. He also announced an amendment to the Clean Fuel Regulations to accelerate the development of Canada’s biofuels industry.
Among the new measures are a temporary increase in interest-free advances to $500,000 per producer and additional funding to support market diversification. These initiatives aim to alleviate immediate financial pressure on farms while redirecting the sector toward alternative markets.
Trade mission to China and provincial reactions
The province of Saskatchewan welcomed the financial support but emphasised that removing the Chinese tariffs remains a priority. Premier Scott Moe is set to travel to China alongside federal MP Kody Blois for a three-day trade mission. Officials plan to address ongoing trade frictions during the visit.
China is Canada’s second-largest export market for canola, after the United States. According to the Canola Council of Canada, Canada exported $14.5bn worth of canola products last year, including $4.9bn to China.
Antidumping investigation and industry expectations
The 75.8% tariff on canola seeds follows an antidumping investigation launched by China’s Ministry of Commerce, which accused Canadian companies of dumping product into the Chinese market. Canadian authorities and producers have denied the allegations, stating that exports comply with international trade rules.
Two major industry groups, the Canola Council of Canada and the Canadian Canola Growers Association, said that China has extended the investigation until next March. The review was initially set to conclude this month, with a possible six-month extension.
Bill Prybylski, president of the Agricultural Producers Association of Saskatchewan, welcomed the federal support but noted that other crops like pulses are also being impacted by trade disruptions. He expressed doubt that the trade mission would result in immediate relief, adding that a resolution likely requires direct engagement between national leaders.
