China Initiates Anti-Dumping Probe on Canadian Rapeseed Imports Amid Tariff Tensions

China has commenced a one-year anti-dumping investigation into Canadian rapeseed imports, following Ottawa's upcoming tariffs on Chinese electric vehicles. The inquiry, covering 2023 imports, aims to assess the impact on domestic industry, with preliminary findings suggesting significant damage. The probe parallels rising trade tensions between the two countries.

China announced the start of a one-year anti-dumping investigation into imports of rapeseed from Canada on Monday, just weeks before Ottawa's 100% tariffs on Chinese-made electric vehicles and other products come into force.

The inquiry, examining imports from Jan. 1 to Dec. 31, 2023, is based on preliminary evidence indicating that dumping occurred. The commerce ministry stated there is a causal relationship between the dumping of Canadian imports and significant damage to the domestic industry due to increased imports and falling prices.

More than half of Canada's rapeseed, also known as canola, exports go to China, the world's biggest oilseed importer, which bought 5.5 million metric tons in 2023. These imports, comprising 94% of Canada's total export, were valued at $3.72 billion. The investigation marks a significant escalation in trade tensions as Canada plans to impose a 100% tariff on Chinese electric vehicles, following similar actions by the US and EU.