China Launches Anti-Dumping Probe into Canadian Canola Amid Trade Tensions

China announced plans to start an anti-dumping investigation into Canadian canola imports following Canada's imposition of tariffs on Chinese electric vehicles. This move has resulted in fluctuations in rapeseed oil futures in China. Canadian officials have expressed concerns while committing to defend their agricultural sector.

Amid escalating trade tensions, China revealed plans on Tuesday to initiate an anti-dumping investigation into Canadian canola imports. This comes in response to Canada's recent imposition of tariffs on Chinese electric vehicles, a move that has spiked prices of domestic rapeseed oil futures to a one-month high.

Canadian Farm Minister Lawrence MacAulay expressed deep concern over China's decision, stating Ottawa is closely monitoring the situation while standing firm in support of its farm sector. This reaction follows Canada's alignment with the United States and European Union to impose significant tariffs on Chinese products, including a 100% tariff on electric vehicles and a 25% tariff on steel and aluminum imports.

The Canola Council of Canada remains optimistic that the investigation will confirm their compliance with trade regulations. The Council highlighted that Canadian canola exports to China amounted to C$5.0 billion last year. However, China's commerce ministry argued that increased Canadian exports have led to price declines and losses for Chinese domestic industries, prompting the probe.

(With inputs from agencies.)