China has announced an anti-dumping investigation into canola imports from Canada, following Canada’s recent imposition of tariffs on Chinese electric vehicles. This move has contributed to a rise in domestic rapeseed oil futures, hitting a one-month peak.
Canada’s actions mirror those of the United States and the European Union, which recently implemented a 100% tariff on Chinese electric vehicle imports and a 25% tariff on steel and aluminum. In response, a spokesperson from China’s commerce ministry expressed strong disapproval of Canada’s “discriminatory unilateral restrictive measures.”
The ministry has also indicated plans to investigate certain Canadian chemical products for dumping. Notably, over half of Canada’s canola production is exported to China, which is the largest importer of oilseeds globally. The ministry noted that canola exports to China reached $3.47 billion in 2023, marking a 170% year-on-year increase in volume, despite a continuous decline in prices.
Following the announcement, China’s rapeseed meal futures surged by 6% to 2,375 yuan ($333.56) per metric ton, while the ICE canola contract for November delivery dropped to its daily limit of $45, or 7%, settling at $569.7 per metric ton.