Beijing, September 3 (financeflashnews.com) – China announced on Tuesday that it will launch an anti-dumping investigation into imports of Canadian canola and chemical products. This move is widely seen as retaliation against tariffs imposed by Ottawa on Chinese electric vehicles, steel, and aluminum, according to reports from AFP and Bloomberg.
Background of the Dispute
Last month, Canada announced that starting in October, it will impose tariffs of up to 100% on Chinese electric vehicles (EVs) and 25% on steel and aluminum imports. Canada’s decision aligns it with the United States and the European Union (EU) in protecting domestic manufacturers from cheap, subsidized Chinese imports.
Canola seeds are primarily used for cooking oil production and industrial purposes, with China being the world’s second-largest importer of this commodity. More than 90% of China’s canola imports last year came from Canada, according to Chinese customs data.
Previous Trade Tensions
China has targeted Canadian trade in the past. In 2019, it halted canola imports from Canada following the 2018 arrest of Huawei Technologies’ CFO in Vancouver at the request of the United States. Beijing has consistently criticized the imposition of tariffs on its exports and has initiated several retaliatory investigations, including probes into dairy imports from the EU.
China’s Response
In an online statement on Tuesday, China’s Ministry of Commerce expressed suspicion that Canada is engaging in dumping practices with its canola exports, leading to local market losses. The ministry stated that China will “launch an anti-dumping investigation into Canadian canola imports in accordance with the law.”
The statement further noted that exports of Canadian canola to China have “increased significantly, while prices have continued to decline.” Additionally, China is “deeply dissatisfied with the Canadian tariffs and plans to bring the issue to the World Trade Organization (WTO) dispute resolution mechanism.”
Broader Implications
China also plans to initiate a similar investigation into imports of Canadian chemical products. The Ministry of Commerce emphasized that “China will take all necessary measures to defend the legitimate rights and interests of its enterprises.”
Canada’s 100% tariffs on Chinese EVs are set to take effect on October 1. These tariffs will apply to Chinese electric and certain hybrid passenger vehicles, trucks, buses, and vans. Starting from October 15, a surcharge on imports of Chinese steel and aluminum products will also come into force.
Key Takeaways
- China’s Anti-Dumping Investigation: Focused on Canadian canola and chemical imports.
- Canadian Tariffs: Up to 100% on Chinese EVs and 25% on steel and aluminum.
- Retaliation Expected: China to challenge Canadian tariffs at the WTO.
- Historical Context: Previous trade tensions between China and Canada over canola.
Keywords: China, Canada, canola, anti-dumping investigation, tariffs, electric vehicles, steel, aluminum, WTO, trade dispute
