China-Canada Canola Trade Resumes Amid Tariff Changes

China has resumed importing Canadian canola with a recent purchase of 60,000 metric tons, following Canadian Prime Minister Mark Carney's visit to Beijing. China's tariff adjustments, expected by March, mark a positive turn after significant import restrictions due to a trade dispute between the two countries.

The Chinese market is once again open for Canadian canola as an importer has purchased a Panamax cargo of approximately 60,000 metric tons shortly after Canadian Prime Minister Mark Carney's diplomatic visit to Beijing last week. According to two traders with close knowledge of the transaction, this purchase marks the first since China suspended canola imports in October.

Prime Minister Carney announced on Friday that Canada anticipates China to reduce tariffs on Canadian canola seeds to around 15% by March 1. This tariff reduction is part of a preliminary trade agreement, which also includes lowered tariffs on Chinese electric vehicles. Later, China's commerce ministry indicated plans to revise its anti-dumping measures on Canadian rapeseed, but offered no specific details.

An oilseed trader noted that the lowered duties are nearly finalized after Carney's visit, making the timing opportune for buying. China's anti-dumping investigation led to preliminary duties of 75.8%, effectively ceasing imports amid diplomatic tensions. The halt in Canadian shipments resulted in zero canola imports for the first time in at least two decades, severely affecting China's canola crushing industry.

(With inputs from agencies.)