China’s Anti-Dumping Investigation
On September 9, 2024, China’s Ministry of Commerce (MOFCOM) formally announced its Notice of Initiation of an anti-dumping investigation into imports of Canadian canola seed. This formal notice follows the September 3 announcement by MOFCOM of measures against Canada in response to the Canadian federal government’s planned tariffs on Chinese EVs, steel and aluminum.
Since the announcement, the CCC has been in close contact with federal and various provincial officials and is working in close collaboration with the Canadian Canola Growers Association, provincial canola grower commissions and other industry stakeholders to share information and advance industry interests which are focused on fair and competitive access to this important market.
Read our statements:
- September 9, 2024: CCC statement regarding China’s Notice of Initiation of anti-dumping investigation into Canadian canola seed
- September 3, 2024: CCC statement on China’s anti-dumping investigation on canola seed imports
Frequently asked questions
What is the current status of China’s anti-dumping investigation?
On September 9, China’s Ministry of Commerce (MOFCOM) formally communicated its Notice of Initiation of an anti-dumping investigation into imports of Canadian canola seed. This is the first step of the investigation which, the notice indicates, will cover a dumping investigation period from January 1, 2023, to December 31, 2023, and an industry injury investigation period from January 1, 2021, to December 31, 2023.
MOFCOM has indicated that the investigation is self-initiated by the Ministry and is not at the request of domestic industry.
What is an anti-dumping investigation?
Anti-dumping investigations are initiated when a country suspects a product is being imported at a lower price than it is sold for in the domestic country in which it is produced. According to the WTO, anti-dumping measures can only be applied if the dumping is hurting the industry in the importing country. An anti-dumping tariff can be applied to foreign imported products as determined by an investigation.
The CCC believes strongly that Canada’s canola trade with China is aligned with and supports rules-based trade, fair market access and competitiveness of Canadian canola in this important market.
Is China an important market for Canadian canola?
China is the second largest market for Canadian canola with exports of canola seed, oil and meal valued at $5 billion in 2023. Seed represents approximately three-quarters of those exports. Learn more about this top market.
How is the Canola Council responding?
Maintaining open and predictable market access for canola is a top priority of the Canola Council. We are engaged and in close communication with government officials regarding the implications of the investigation and Canada’s participation and response to it, including the need for a coordinated approach and support for the Canadian canola industry. The Canola Council is registering as a stakeholder in the investigation.
We are also working in close collaboration with the Canadian Canola Growers Association, provincial canola grower commissions and other industry stakeholders to share information and advance industry interests which are focused on fair and competitive access to this important market.
What impact does the investigation have on Canada’s canola sector?
China has taken the first step, which is to announce the initiation of the investigation, and ongoing assessment will be required to determine the various impacts on the Canadian canola industry. This type of action does create uncertainty and unpredictability in markets, affecting access to and the price farmers receive for their canola, among other impacts.
What is the background on the previous market disruption with China?
Market access restrictions for canola seed to China were previously implemented on March 6, 2019, when the seed export licenses of two companies, Richardson and Viterra, were suspended. Other exporters saw some purchases of canola seed, with exports down between 50 and 70 per cent compared to pre-blockage levels.
On May 18, 2022, Canada was advised that China had reinstated access for Richardson and Viterra to export canola seed to China. For more information, read the statements from the CCC and Global Affairs Canada.
Seed exports to China returned to more normal levels in 2023.
What was the economic impact of the previous market disruption with China?
Seed exports to China fell from $2.8 billion in 2018 before the restrictions, to $800 million in 2019, $1.4 billion in 2020 and $1.8 billion in 2021. Expert analysis estimates this cost the industry between $1.54 and $2.35 billion from lost sales and lower prices between March 2019 and August 2020.
What were the license suspensions from 2019 based on?
China indicated a quality concern with Canadian canola seed related to specified quarantine pests that include weed seeds and plant diseases. These were identified in the public notices of non-compliance issued to Richardson and Viterra by China’s customs agency. The Canadian Food Inspection disagreed with the assessment of China’s customs agency.
Technical discussions about these pests of concern did not lead to an immediate resolution. The CCC is confident in the quality of Canadian canola. Our canola consistently meets the requirements of countries around the world.
Background
Canola Council news releases and updates
May 18, 2022: Canola Council statement on China’s removal of restrictions for canola exporters
March 4, 2021: Canola Council launches revitalized market access strategy
April 28, 2020: Recording of grower update call on trade with China and COVID-19
March 31, 2020: Canola Council statement on state of market access to China
February 27, 2020: Action needed as anniversary of China canola trade dispute approaches
November 29, 2019: Video update on trade with China
September 6, 2019: Canola Council supports Government of Canada’s request for WTO consultations with China
September 4, 2019: Canola Council statement on the appointment of an Ambassador to China
August 29, 2019: Canola Watch podcast update on trade with China with Jim Everson, CCC president, and Rick White, CCGA CEO
May 1, 2019: Helpful support for canola producers
April 17, 2019: Canola Council urges stronger measures to support rules-based trade
April 8, 2019: Government of Canada working group on canola collaborating to restore market access for Canada’s canola seed to China
April 1, 2019: Canola Council president and CCGA CEO speaking to MPs at the House of Commons Standing Committee on Agriculture
March 28, 2019: Canola Council meets with Trade Diversification Minister Jim Carr
March 21, 2019: Challenges persist for canola seed exports to China
March 7, 2019: Canola Council expresses confidence in quality of Canadian canola
March 6, 2019: Canola Council of Canada statement on trade with China
Government of Canada updates
May 18, 2022: Statement by Minister Ng and Minister Bibeau on China’s removal of restrictions on Canadian canola exports
June 21, 2021: Global Affairs Canada statement on market access for Canada’s canola seed exports to China
September 6, 2019: Statement by Minister Carr on Canada taking WTO action for canola industry
September 4, 2019: Prime Minister announces appointment of Dominic Barton as ambassador to China
June 13, 2019: Canada backs Canadian canola farmers and exporters with $150 million in insurance support
June 3, 2019: Government of Canada implements new regulations to enhance Advance Payments Program
May 1, 2019: Government of Canada taking action for Canada’s canola sector
April 8, 2019: Government of Canada working group on canola collaborating to restore market access for Canada’s canola seed to China
April 1, 2019: Speech by Minister Carr
April 1, 2019: Speech by Minister Bibeau
April 1, 2019: Government of Canada canola working group
March 29, 2019: Ministers Bibeau and Carr visit Saskatchewan in support of Canada’s canola and grain producers