It has been approximately a year since China began blocking canola imports from Canada, when it suspended export licenses for two of Canada’s top canola companies. The official reasoning was for non-compliance with plant health requirements, however, there has been no evidence of this.
Due to these trade disruptions, Canadian canola shipments to China fell by about 70 percent in 2019, leading to lost revenue totaling C$1 billion (US$750 million). Before these trade disputes took root, China accounted for 40 percent of Canada’s canola seed, oil, and meal exports.
In response, the Canola Council of Canada (CCC) is requesting three actions: to continue to focus on reinstating open access to the Chinese market; to increase overseas diversification and access to Asian markets; and to increase diversification at home by increasing the use of biofuels to grow the economy and reduce CO2 emissions.
Despite dozens of meetings held between industry and government representatives, diversification has not materialized. The CCC and exporters are urging the government to commit additional resources to growing markets in Asia, and to coordinate with all involved parties to support market access. Furthermore, the CCC contends that the Canadian government has not taken steps to increase the biofuel content in the country’s diesel fuel supply.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.