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Yahoo
13-08-2025
- Business
- Yahoo
'Uncertainty is the only thing that is certain': Sask. farmers react to Chinese duty on canola
Canola producers say they're not surprised about China's latest move in its ongoing trade war with Canada. "Everybody was kind of expecting this day to come. It was just a matter of when and what level the tariffs were going to be applied at," said Bill Prybylski, president of the Agricultural Producers Association of Saskatchewan. On Tuesday, China's Ministry of Commerce announced a 75.8 per cent preliminary duty on Canadian canola seed after an anti-dumping investigation it began last year. China claims the "dumping" of Canadian canola into the Chinese market is hurting its domestic canola oil market. The investigation — and the 100 per cent tariff levied on Canadian canola oil and meal in March — were launched in response to Canada's 100 per cent tariff on Chinese electric vehicles. Ottawa has said China has until September, when its investigation formally ends, to make a final decision on the duties, but it could extend the deadline by six months. 'Caught in the middle' While the latest round of canola tariffs were expected, that doesn't make the process any less frustrating for producers like Prybylski. "We feel like we're caught in the middle of a trade war that we neither wanted, or started, or have any influence on," he said, speaking with CBC News from his farm near Yorkton, Sask., about 175 kilometres northeast of Regina. Multiple agricultural and canola associations say China's move effectively shuts Canadian canola out of the Chinese market. According to the Canola Council of Canada, China is the largest market for canola seed and the second largest market for Canadian canola. The latest data provided by the council shows Canada's canola exports to China totalled $4.9 billion in 2024. For now, producers are cautiously watching the price of canola. Rick White, president and CEO of the Canada Canola Growers Association, said it is too early to tell what those prices might look like. But with the harvest of this season's crop set to get underway in the coming weeks, there's no doubt this is going to be "economically painful," he said. "The price is likely to sag, the opportunity to deliver will likely be slowed and it could be a rough road here for the next year," White said. Prybylski agreed, saying he believes many producers will likely have to sell their products at a loss. Saskatchewan Premier Scott Moe lamented the new duty's effects on producers in the province. Speaking in Saskatoon on Tuesday, Moe said he has reached out to Prime Minister Mark Carney to speak with him on the issue and get it "dealt with immediately." Moe said the Canadian canola sector is larger than the steel, aluminum and electric vehicle industries combined. "Our federal government cannot sacrifice a $43-billion canola industry, 200,000 jobs in that industry that is largely based, in fairness, in Western Canada, to protect the fledging electric vehicle industry, largely based in Eastern Canada," Moe said. WATCH| Canola farmers feel forgotten amid trade war, ongoing Chinese tariffs: In early June, Canadian and Chinese trade ministers committed to meet to address trade issues. In a post on social media Tuesday, the Chinese Ministry of Commerce said officials from both countries met four days ago and discussed trade and ways to deepen co-operation. The Prime Minister's Office deferred comment on China's latest canola tariff to the minister of international trade, who did not immediately respond to a request for comment. Saskatchewan Opposition NDP Leader Carla Beck urged Moe to visit China immediately. "Given the level of threat we see right now, it doesn't make any sense to me that we are not using that office today to deal with this," she said in Regina. Moe said he's open to going on a trade mission to China with Carney. Saskatchewan has a trade office in Shanghai and Moe went there in 2018. China remains a top importer of Canadian canola, but it exports few electric vehicles to Canada. Canada has justified its levies on Chinese electric vehicles by arguing they protect planned investments at home. Canada also matched a similar move by then-U.S. president Joe Biden, who hit Chinese EVs with American tariffs. Chinese EVs are significantly cheaper than North American-made EVs, in part because of lower labour and environmental standards, and state subsidies. WATCH| From April: 'That's a big hit': China slaps 100% tariff on Canadian canola products: Cathy Holtslander, director of research and policy at the National Farmers Union, said that although the latest canola announcement is not ideal, Canadians shouldn't panic. Speaking in Saskatoon, Holtslander said the sale of canola to export markets doesn't really begin until October. That means the effect may not be immediate. Holtslander said she believes the latest announcement is a negotiation tactic and could be resolved politically. "The politics are extremely complex and unpredictable. I think uncertainty is the only thing that is certain now."
CBC
13-08-2025
- Business
- CBC
'Uncertainty is the only thing that is certain': Sask. farmers react to Chinese duty on canola
Social Sharing Canola producers say they're not surprised about China's latest move in its ongoing trade war with Canada. "Everybody was kind of expecting this day to come. It was just a matter of when and what level the tariffs were going to be applied at," said Bill Prybylski, president of the Agricultural Producers Association of Saskatchewan. On Tuesday, China's Ministry of Commerce announced a 75.8 per cent preliminary duty on Canadian canola seed after an anti-dumping investigation it began last year. China claims the "dumping" of Canadian canola into the Chinese market is hurting its domestic canola oil market. The investigation — and the 100 per cent tariff levied on Canadian canola oil and meal in March — were launched in response to Canada's 100 per cent tariff on Chinese electric vehicles. Ottawa has said China has until September, when its investigation formally ends, to make a final decision on the duties, but it could extend the deadline by six months. 'Caught in the middle' While the latest round of canola tariffs were expected, that doesn't make the process any less frustrating for producers like Prybylski. "We feel like we're caught in the middle of a trade war that we neither wanted, or started, or have any influence on," he said, speaking with CBC News from his farm near Yorkton, Sask., about 175 kilometres northeast of Regina. Multiple agricultural and canola associations say China's move effectively shuts Canadian canola out of the Chinese market. According to the Canola Council of Canada, China is the largest market for canola seed and the second largest market for Canadian canola. The latest data provided by the council shows Canada's canola exports to China totalled $4.9 billion in 2024. For now, producers are cautiously watching the price of canola. Rick White, president and CEO of the Canada Canola Growers Association, said it is too early to tell what those prices might look like. But with the harvest of this season's crop set to get underway in the coming weeks, there's no doubt this is going to be "economically painful," he said. "The price is likely to sag, the opportunity to deliver will likely be slowed and it could be a rough road here for the next year," White said. Prybylski agreed, saying he believes many producers will likely have to sell their products at a loss. Saskatchewan Premier Scott Moe lamented the new duty's effects on producers in the province. Speaking in Saskatoon on Tuesday, Moe said he has reached out to Prime Minister Mark Carney to speak with him on the issue and get it "dealt with immediately." Moe said the Canadian canola sector is larger than the steel, aluminum and electric vehicle industries combined. "Our federal government cannot sacrifice a $43-billion canola industry, 200,000 jobs in that industry that is largely based, in fairness, in Western Canada, to protect the fledging electric vehicle industry, largely based in Eastern Canada," Moe said. WATCH| Canola farmers feel forgotten amid trade war, ongoing Chinese tariffs: Canola farmers feel forgotten amid trade war, ongoing Chinese tariffs 4 months ago China imposed 100 per cent tariffs on Canadian canola oil and meal last month, creating uncertainty for roughly 40,000 farmers as well as workers in supporting industries. In early June, Canadian and Chinese trade ministers committed to meet to address trade issues. In a post on social media Tuesday, the Chinese Ministry of Commerce said officials from both countries met four days ago and discussed trade and ways to deepen co-operation. The Prime Minister's Office deferred comment on China's latest canola tariff to the minister of international trade, who did not immediately respond to a request for comment. Saskatchewan Opposition NDP Leader Carla Beck urged Moe to visit China immediately. "Given the level of threat we see right now, it doesn't make any sense to me that we are not using that office today to deal with this," she said in Regina. Moe said he's open to going on a trade mission to China with Carney. Saskatchewan has a trade office in Shanghai and Moe went there in 2018. China remains a top importer of Canadian canola, but it exports few electric vehicles to Canada. Canada has justified its levies on Chinese electric vehicles by arguing they protect planned investments at home. Canada also matched a similar move by then-U.S. president Joe Biden, who hit Chinese EVs with American tariffs. Chinese EVs are significantly cheaper than North American-made EVs, in part because of lower labour and environmental standards, and state subsidies. WATCH| From April: 'That's a big hit': China slaps 100% tariff on Canadian canola products: 'That's a big hit': China slaps 100% tariff on Canadian canola products 5 months ago China has hit Canadian canola products with 100 per cent tariffs, just a day after imposing 25 per cent levies on all Canadian seafood exports. The moves are in retaliation for Canada's 100 per cent tariffs on all Chinese electric vehicles, aluminum and steel products. Cathy Holtslander, director of research and policy at the National Farmers Union, said that although the latest canola announcement is not ideal, Canadians shouldn't panic. Speaking in Saskatoon, Holtslander said the sale of canola to export markets doesn't really begin until October. That means the effect may not be immediate. Holtslander said she believes the latest announcement is a negotiation tactic and could be resolved politically. "The politics are extremely complex and unpredictable. I think uncertainty is the only thing that is certain now."
CTV News
03-06-2025
- Business
- CTV News
Sask. industry leaders join first ministers in calls for pipeline, railway investment to boost trade
Saskatchewan Premier Scott Moe says pipelines are paramount to diversifying trade, along with investments in rail and ports. Allison Bamford has more. SASKATOON, SASK. — As Canadian politicians gathered in Saskatoon for the first ministers' meeting, some industry leaders are calling for infrastructure investment to help get product to market. New pipelines and improvements to railways and ports would help producers increase cash flow, according to Bill Prybylski, farmer and president of the Agricultural Producers Association of Saskatchewan. 'Grain movement has been slow,' Prybylski told CTV News. If grain isn't delivered, farmers don't get paid, which can cause cash flow issues at a very critical time in seeding. 'There's a lot of cash going into the ground and producers need inputs now,' Prybylski said. Like other industry leaders, Prybylski believes overcapacity demands on railways could be partly resolved if oil was transported through pipelines, rather than freight. Potash companies have been advocating for similar investments. 'Our entire infrastructure system is congested,' said Marnel Jones, director of Government and Public Affairs for The Mosaic Company in Canada. 'Right now, we just need to be thinking in a bigger way about how we use our entire supply chain more efficiently, and that includes getting oil into pipelines and potash and wheat into railcars so we can get it to market.' Michael Bourque, president and CEO of Fertilizer Canada, says he's in Saskatoon this week paying close attention to the first ministers' meeting. Bourque says 75 per cent of Canada's fertilizer is transported by rail, and millions of dollars can be lost when it isn't shipped. 'Rail doesn't have capacity, or there are bottlenecks along the way,' he said. 'So we need to build it out, make it more reliable, make it more efficient and that would go a long way toward helping us expand and serve global markets.' Like other industries, Fertilizer Canada supports new pipelines. But Bourque says that isn't the only solution. 'In the long run, that will help the capacity. But in the short term, what we'd rather see is much more investment in the hard infrastructure, especially rails (and) ports,' Bourque said. Simon Enoch, senior researcher with the Canadian Centre for Policy Alternatives, says transportational costs tend to be the biggest trade barrier. Rather than new pipelines, Enoch believes upgrades to infrastructure could better facilitate trade. 'The private sector, the oil industry itself, has shown very little interest, which makes me think that they view it as not a good investment,' Enoch said. 'Something like this to be built I think it's going to require huge government subsidies.'
