Trade with China

On August 12, 2025, China’s Ministry of Commerce (MOFCOM) announced its preliminary ruling as part of its anti-dumping investigation into Canadian canola seed imports. In its ruling, MOFCOM announced the imposition of a 75.8 per cent duty, collected in the form of a deposit, on all Canadian canola seed shipments as of August 14, 2025. 

This announcement comes 11 months after MOFCOM formally communicated its Notice of Initiation of an anti-dumping investigation into imports of Canadian canola seed on September 9, 2024. This covered 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. To participate in the investigation, interested parties were required to register with MOFCOM. 

Anti-dumping investigations are typically completed in 12 months, with the possibility of extension for up to 18 months.

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 international rules-based trade.

China is the second largest market for Canadian canola with exports of canola seed, oil and meal valued at $4.9 billion in 2024. Seed represents approximately three-quarters of those exports. Learn more about this top market.

Maintaining open and predictable market access for canola is a top priority of the Canola Council. We are engaged and in regular communication with government officials regarding the significant and widespread impacts of these provisional duties and support for the Canadian canola industry.

The Canola Council is registered as a stakeholder in the investigation and is one of 20 registered Canadian parties participating in this anti-dumping investigation.

We are working in 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.

The preliminary determination and its associated duties create significant additional uncertainty and volatility in the global marketplace. Exports to China of canola and canola products provide an important demand signal for the Canadian canola industry. The absence of this signal will have significant and widespread impacts across the canola value chain, affecting the price received for canola, among other impacts. Canola is a significant contributor to Canada’s economy and the livelihood of approximately 40,000 Canadian farmers, as part of an industry generating $43.7 billion of economic activity annually. 

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.

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.

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.