Canola has overtaken wheat as Canada’s top crop as 22.8 million acres were seeded in 2017. (Jeff McIntosh/The Canadian Press)

China stops importing Canadian canola

Chinese importers are “unwilling to purchase” Canadian canola seed, reports the industry group, Canola Council of Canada. China first suspended imports of the seed from one company, Richard International Ltd. in early March when one Chinese official claimed hazardous organisms had been detected in the product.

Import ban seen as retaliation

Canada has strict quality control over the seed and this was rather seen as retaliation for Canada’s arrest of Huawei executive Meng Wanzhou last December under an extradition request from the United States. Meng has been released on bail and is living in one of her two mansions in Vancouver pending a court hearing at which she can fight extradition.

Huawei chief financial Meng Wanzhou is out on bail awaiting a court hearing on her extradition to the U.S. (Darryl Dyck/The Canadian Press/March 6, 2019)

China was a major market

Until now, China was a major market for Canadian canola. The council says it accounted for about 40 per cent of all canola seed, oil and meal exports. The export of seed to China alone was worth $2.7 billion in 2018.

The council noted that Canadian government officials “responded quickly to Chinese concerns, however, technical discussions are unlikely to lead to an immediate resolution.” It urged the government to redouble its efforts.

The president of the council told Canadian Press Canadian canola seed exporters who usually ship to China will have no choice but to supply customers in other countries.

Canola is said to have overtaken wheat as Canada’s top crop. A study released in 2017 suggests it contributes $26.7 billion to the Canadian economy yearly, including more than 250,000 jobs and $11.2 billion in wages.

Categories: Economy, International
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