Edmonton·New
An international credit rating agency says Canada’s canola industry could take a $1-billion hit in the wake of new Chinese trade actions.
Impact could be similar to 2019, last time China targeted Canadian canola exports
An international credit rating agency says Canada’s canola industry could take a $1-billion hit in the wake of new Chinese trade actions.
In a report published Thursday, Morningstar DBRS says China’s plan to launch an anti-dumping investigation into canola seed imports from Canada could result in China levying tariffs on the crop.
The agency says such an outcome could have a “meaningful” impact on canola trade flows and Canadian grain handlers.
It says if tariffs are levied, the economic impact could be similar to the last time China took a canola-related trade action against Canada.
At that time, China blocked shipments of canola seed from two major Canadian companies.
Industry estimates pegged the cost to the Canadian canola sector of that action at $1.54 billion to $2.35 billion between 2019 and 2020.
Producers in Saskatchewan are reacting to the news of a Chinese anti-dumping investigation on Canadian canola imports.