A trade disagreement is brewing between Canada and China which has put downward pressure on Canola prices.
Reuters reports that china plans to start an anti-dumping investigation into canola imports from Canada after the Canadian government moved to impose tariffs on Chinese electric vehicles.
More than half of canola exported from Canada goes to China, the world’s biggest buyer of oilseeds, for a value of 3.7 billion us dollars. In 2023 China bought about 2 billion more dollars worth of Canadian canola than previous years. China has also started trade investigations on imports of pork and dairy from the European Union in response to restrictions on its electric vehicles.
US Canola Association First Vice President and Gallatin Valley Farmer Dale Flikkema hopes for a swift end to the dispute. “Anytime we a see a trade disruption in markets it’s always very concerning. We’re watching it closely and hopefully this doesn’t last real long and we’ll see what happens going down the road.”
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Reuters
