Latest news with #ChrisDavison
Edmonton Journal
3 days ago
- Business
- Edmonton Journal
'Very stressful': Southern Alberta farmers say China's tariff on Canadian canola seed creates price uncertainty
Article content In a Tuesday statement, Chris Davison, president and CEO of the Canola Council of Canada, said the Chinese market is effectively closed to the Canadian canola industry due to China's preliminary determination of dumping for canola seed, along with the 100-per-cent anti-discrimination tariffs on canola meal and oil already in place. Article content The Chinese market is Canada's second largest for canola and canola products — in 2024, Canada's canola exports to China were valued at $4.9 billion. Article content 'This tariff will have an immediate and substantive impact on farmers' marketing opportunities for the 2025 canola crop,' said Canadian Canola Growers Association president and CEO Rick White. Article content Alberta Agriculture and Irrigation Minister RJ Sigurdson called the decision by China — Alberta's second largest agricultural export market — 'another devastating blow' for the province's agriculture industry. Almost 70 per cent of Alberta's canola seed exports head to China. Article content Article content 'Alberta is once again calling on Ottawa to act swiftly, engage in constructive dialogue with China and restore access to one of our most critical markets before more livelihoods are lost,' Sigurdson said Tuesday. Article content Two federal cabinet ministers said Tuesday that Canada stands 'shoulder to shoulder' in support of Canada's canola producers, workers and exporters. International Trade Minister Maninder Sidhu and Agriculture and Agri-Food Minister Heath MacDonald also denied that Canada dumps canola on the Chinese market.
Calgary Herald
3 days ago
- Business
- Calgary Herald
'Very stressful': Southern Alberta farmers say China's tariff on Canadian canola seed creates price uncertainty
Article content While farmers will likely keep their canola longer once it's been harvested, they have bills to pay in the fall, said Hubbard. Article content 'You end up holding it longer, which increases your storage risk. It increases the risk all around.' Article content In a Tuesday statement, Chris Davison, president and CEO of the Canola Council of Canada, said the Chinese market is effectively closed to the Canadian canola industry due to China's preliminary determination of dumping for canola seed, along with the 100-per-cent anti-discrimination tariffs on canola meal and oil already in place. Article content The Chinese market is Canada's second largest for canola and canola products, and in 2024, Canada's canola exports to China were valued at $4.9 billion. Article content 'This tariff will have an immediate and substantive impact on farmers' marketing opportunities for the 2025 canola crop,' said Canadian Canola Growers Association president and CEO Rick White. Article content Article content Alberta Agriculture and Irrigation Minister RJ Sigurdson called the decision by China — Alberta's second largest agricultural export market — to impose the new tariff on more Canadian canola products 'another devastating blow' for the province's agriculture industry. Almost 70 per cent of Alberta's canola seed exports head to China. Article content 'Alberta is once again calling on Ottawa to act swiftly, engage in constructive dialogue with China, and restore access to one of our most critical markets before more livelihoods are lost,' said Sigurdson on Tuesday. Article content Two federal cabinet ministers said Tuesday that Canada stands 'shoulder to shoulder' in support of Canada's canola producers, workers and exporters. International Trade Minister Maninder Sidhu and Agriculture and Agri-Food Minister Heath MacDonald also denied that Canada dumps canola on the Chinese market.
The Sun
4 days ago
- Business
- The Sun
China imposes 75.8% anti-dumping duty on Canadian canola
BEIJING/SINGAPORE: China on Tuesday announced preliminary anti-dumping duties on Canadian canola imports, a new escalation in the year-long trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August. The provisional rate will be set at 75.8%, effective from Thursday, the Ministry of Commerce said in a statement. Canola Council of Canada President Chris Davison said that rate makes the Chinese market effectively closed for Canadian canola, to which Canada exported almost C$5 billion ($3.64 billion) of the oilseed crop in 2024. ICE November canola futures fell as much as 6.5% to a four-month low after the announcement. 'This really came as a surprise and a shock,' said trader Tony Tryhuk of RBC Dominion Securities. China, the world's largest importer of canola, also known as rapeseed, sources nearly all its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained. 'This is huge. Who will pay a 75% deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much,' said one Singapore-based oilseed trader. China imposed tariffs on canola oil and meal in March. Canada is now in a trade conflict with the world's two largest economies, as its exports also face tariffs imposed by the United States. Canada's number one canola market is the U.S., followed by China. China's Ministry of Commerce said an anti-dumping probe launched in September 2024 had found that Canada's agricultural sector - particularly the canola industry - had benefited from substantial government subsidies and preferential policies. The Canadian government and canola industry have previously rejected allegations of dumping. The industry believes China's complaint is based on other ongoing trade and political disputes, Davison said. A final ruling could result in a different rate, or overturn Tuesday's decision. The decision marks a shift from the conciliatory tone struck in June when China Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney. 'This move ... will put additional pressure on Canada's government to sort through trade frictions with China,' said Trivium China agriculture analyst Even Rogers Pay. Canada's trade, agriculture and prime minister's office did not immediately respond to request for comment. Canada has imposed tariffs on Chinese electric vehicles, steel and aluminum. Separately, China also launched an anti-dumping investigation into Canadian pea starch and imposed provisional duties on imports of halogenated butyl rubber, according to ministry statements. NO EASY REPLACEMENT Replacing millions of tons of Canadian canola is likely to be difficult at short notice, say analysts. China uses imported canola to make animal feed for its aquaculture sector, as well as for cooking oil. The move provides an opportunity for Australia, which looks set to regain access to the Chinese market with test cargoes this year after a years-long freeze in the trade, Pay said. Australia, the second-largest canola exporter, has been shut out of the Chinese market since 2020 due mainly to Chinese rules to stop the spread of fungal plant disease. However, even if Australian imports increase, 'fully replacing Canadian canola will be very difficult unless import demand drops sharply', said Donatas Jankauskas, an analyst with commodity data firm CM Navigator. Davison said his industry believes China will need Canada's canola to meet the sort of demand it has experienced in recent years. 'I think the expectation would be that they could not meet those needs with a quality of a product and the volume that we provide,' Davison said. Canadian farmers are about to begin harvesting canola and will not be happy to see prices plunge, said Canadian Canola Growers Association President Rick White. As long as the prohibitive duty is there farmers face suppressed prices. 'It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that,' White said. Commodity funds have a substantial long position in ICE canola futures, traders said, which should add fuel to the selloff fire. 'This will help accelerate their exit of that long and could really extend the losses,' said Tryhuk. Another trader said there was already downward pressure coming into canola prices as Canada's crop is widely believed to be bigger than many previously forecast due to good weather. Ventum Financial broker David Derwin said traders were unsure about how to take the Chinese move yet, since it is not a final rule. 'Is it a negotiating tactic? Or does China put it in and that's that?,' Derwin asked. ($1 = 1.3754 Canadian dollars) - Reuters
Business Times
4 days ago
- Business
- Business Times
China escalates Canada trade spat with more canola levies
[BEIJING] China will implement more levies on Canadian rapeseed after an anti-dumping probe, escalating a trade spat that's disrupted crop flows. The 75.8 per cent duty on rapeseed, known in Canada as canola, will be imposed by the Asian nation from Aug 14 after a preliminary ruling that Canadian imports constitute dumping, according to a statement from China's commerce ministry. Benchmark futures in New York tumbled as much as 6.6 per cent following the announcement, reaching the lowest level since April. Earlier this year, Beijing imposed a 100 per cent tariff on rapeseed oil and meal from the North American nation, in response to Canadian levies on Chinese-made electric vehicles, steel and aluminium. The latest measures leave Ottawa battling trade wars on two fronts, following the implementation of duties from US President Donald Trump. With farmers set to harvest their canola in a few weeks, 'this announcement introduces a significant element of uncertainty about the market for this year's crop', said Chris Davison, chief executive officer of the Canola Council of Canada. China is the largest importer of Canadian canola seed, taking in C$4 billion (S$3.7 billion) worth in 2024, and demand from the country is often a telling signal for farmers, he said. The 75.8 per cent deposit requirement, combined with the 100 per cent tariffs on oil and meal, 'would suggest to us that the Chinese market will be effectively closed to the Canadian industry', Davison said. China has targeted Canada's supply before, halting shipments of canola in 2019. This time, it comes as Beijing is also locked in a trade dispute with the US, another of its top oilseed suppliers. The country has not yet booked any US soybeans for the upcoming marketing year, according to data as at late July, and Trump this week urged China to boost its purchases. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'It is unusual for the top importer of oilseeds to court trade friction with a second of the largest exporters,' Mike Verdin, a consultant at CRM AgriCommodities, said. China's probe found Canada's rapeseed sector received significant government subsidies, and supply and demand was distorted, a separate statement from the commerce ministry shows. Beijing will continue the investigation and make a final decision based on its findings. The move could throttle trade flows and threaten supplies of rapeseed meal, a key animal feed ingredient considered essential for China's massive aquaculture sector. Beijing has been making efforts to diversify its supply, tapping producers from Australia to India. The Asian nation imported 6.4 million tonnes of rapeseed last year, with almost of all of the shipments coming from Canada, according to Chinese customs data. The trade was worth more than US$3 billion. For Canadian canola, demand from other markets, such as Japan, Europe and Mexico, could temper some of the price shock, Verdin said. Still, discounts are likely and the country will be more reliant on domestic crushing, he said. BLOOMBERG
Toronto Star
4 days ago
- Business
- Toronto Star
China to impose 75.8 per cent tariffs on Canadian canola, industry braces for impacts
Canada's canola industry is urging Ottawa to act as farmers brace for steep losses over a planned 75.8 per cent preliminary tariff from China on canola seed. 'The Chinese market is effectively closed to the Canadian canola industry, and this is a market that was valued at just under $5 billion,' Chris Davison, president of the Canola Council of Canada, said after the tariff announcement Tuesday.
