China Imposes High Tariffs on Canadian Canola Following Anti-Dumping Survey
China announced on Tuesday the imposition of preliminary customs duties of 75.8% on Canadian canola, following an anti-dumping survey launched last year in response to Canadian customs duties on Chinese electric vehicles.
The Chinese Commerce ministry stated that the dumping of Canadian canola on the Chinese market is harming its domestic canola oil market.
According to the Canadian Canola Council (CCC), anti-dumping surveys are initiated when a country suspects a product is being imported at a price lower than its selling price in the country of origin.
The CCC previously expressed confidence that canola trade between Canada and China complies with international trade rules, as stated on the organization’s website prior to China’s proclamation. The Council has not yet issued a comment regarding Tuesday’s customs decision.The Chinese Ministry of Commerce also revealed that representatives from both countries met four days ago to discuss trade,with both sides engaging in “in-depth and frank exchanges on bilateral economic and commercial relations and on their main economic and commercial concerns,” and exchanging views on deepening bilateral and regional cooperation.
A Canola farm outside of Moose Jaw, in Saskatchewan. (Canadian press / chris Young)
Canada Weighs Adjusting EV Tariffs Amidst Sales Slump and Calls for Increased Competition
Recent reports indicate Canada is considering a review of its tariffs on Chinese electric vehicles (EVs) following a significant drop in domestic EV sales and pressure from environmental groups. The initial tariffs, implemented to counter what the Canadian government termed “unfair advantages” gained by China in the global market, are now being re-evaluated considering changing market dynamics.
Background: Initial Tariffs and concerns
In a statement made previously, Prime Minister Justin Trudeau explained the rationale behind the initial tariffs, stating, “Actors like China have chosen to give itself an unfair advantage in the global market, compromising the security of our essential industries and moving the dedicated Canadian workers of the automobile and metallurgy. We therefore take measures to remedy this.” https://www.reuters.com/business/autos-transportation/canada-launches-review-electric-vehicle-tariffs-2024-04-18/ These tariffs mirrored similar actions taken by the United States under President Joe Biden.
Sales Decline and Calls for review
However, the tariffs coincided with the end of Canada’s popular incentive programme for zero-emission vehicles, which previously offered up to $5,000 in rebates for new EV purchases. This combination led to a noticeable decline in EV sales across the country.
Environmental groups, such as Clean Energy Canada, have argued that reinstating competition is crucial. In July, Clean Energy Canada proposed allowing “a limited quota of these affordable vehicles while recognizing the vehicles approved by the european Union]… would open the Canadian automotive market to fill crucial gaps, stimulate innovation and, make our automotive sector more competitive.”[https://wwwcbcca/news/politics/canada-china-ev-tariffs-review-17201999[https://wwwcbcca/news/politics/canada-china-ev-tariffs-review-17201999
Current Status and Future Plans
Currently, Canada is committed to reintroducing a discount program for EV purchases, but a firm implementation date has not yet been announced. The government initiated a formal review of the EV tariffs in April 2024, seeking input from stakeholders.https://www.reuters.com/business/autos-transportation/canada-launches-review-electric-vehicle-tariffs-2024-04-18/
The review process aims to balance the need to protect domestic industries and workers with the goal of increasing EV adoption and affordability for Canadian consumers. The outcome of this review will likely have a significant impact on the future of the EV market in Canada.
Image Caption: Employees work on a vehicle assembly line in a Byd factory in Huai’an, China. (Archives photo) Photo : afp via getty images / STR.