Canada's PM Carney: I will be involved in talks with China in effort to resolve canola dispute

Canada's PM Carney: I will be involved in talks with China in effort to resolve canola dispute

Prime Minister Justin Carney has announced his intention to be actively involved in talks with China to resolve the ongoing canola tariff dispute. This move comes amidst significant financial strain on Canadian farmers, who have been grappling with Chinese tariffs on their canola products [1].

Market analyst Chuck Penner with LeftField Commodity Research has highlighted the severe impact of these tariffs on farmers. The cash price of canola has dropped significantly, with farmers losing at least $140 million in the last two weeks alone [1]. Compared to March, when China imposed a 100% tariff on canola oil and meal, the total losses amount to $800 million [1].

Penner underscores that farmers are not happy with the situation and feel they are being sacrificed to support other industries. He notes that the current tariffs are not just a supply and demand issue but a result of political decisions [1].

The canola industry is a significant contributor to Canada's economy, generating $43 billion and employing approximately 200,000 people. China is Canada's second-largest importer of canola products, behind only the United States [1]. The current bountiful crop could exacerbate the situation if China's tariffs persist [1].

Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have called for Ottawa to drop its 100% tariff on Chinese electric vehicles as a potential solution. The Canola Council of Canada's Chris Davison agrees that addressing the political issues is crucial and that a resolution should be part of discussions between China and Canada [1].

The tariffs came into force nearly a year after China launched an anti-dumping probe into canola. Ottawa and farmers have denied dumping claims, stating that exporters are following rules-based trade. China has until September to make a final decision on the duty, with a possible six-month extension [1].

Penner emphasizes that farmers and the industry are at the mercy of politics, and there is little they can do to influence the situation [1]. Prime Minister Carney's involvement in these talks aims to find a resolution that supports both Canadian farmers and the broader economy.

References:
[1] https://okotoksonline.com/articles/mercy-of-politics-canadian-farmers-weigh-plans-as-chinese-tariff-hits-canola-price