REGINA – The province has made known it is pleased to see China reduce tariffs on canola as of March 1, as was agreed to between Canada and China earlier this year.
According to the news release from the Canola Council of Canada, the final determination from China’s Ministry of Commerce in the anti-dumping investigation on Canadian canola seed imports establishes a 5.9 per cent anti-dumping duty that will apply to imports of canola seed into China for a period of five years, which will be added to the pre-existing nine per cent most favoured nation duty, resulting in total duties of 14.9 per cent on imports of canola seed into China.
They also report the Ministry of Commerce and the Chinese Ministry of Finance adjusted the 100 per cent tariff on canola meal down to zero for the period of March 1 to Dec. 31, 2026, meaning canola can trade into China tariff free at least for the remainder of the calendar year — in line with January’s agreement. The tariff on canola oil, though, remains at 100 per cent.
Speaking to reporters last week, Minister of Trade and Export Development Warren Kaeding was happy to see the reductions in tariffs take effect.
“So we feel very, very pleased that China certainly lived up to what they said they were going to do, and that's reduce canola tariffs to a very reasonable amount,” said Kaeding on March 5.
“I think what we've seen in the past —and from what we understand now it didn't take long for industry to respond — prices are up, and what we understand is that shipments are on their way. So I think that's very positive news for our canola producers, for both inventory, and for new crop planning now, too.”
Kaeding was also asked about the Statistics Canada numbers indicating an increase in farmers' seeding plans for canola in Saskatchewan, of 0.5 per cent.
“Well, canola is certainly probably one of our biggest farm gate revenue streams, and I expect producers are always trying to maximize their returns, and I fully expect they're going to seed as much canola as they can," Kaeding said.
"From what I understand, talking to my producer friends, is that canola still looks reasonable on the profit side of crop production, so I expect they're going to try and be able to maximize as many canola acres as they can, to certainly take advantage of the changes in the marketplace.”
The jury is still out on the situation with India’s tariffs on peas and lentils, with Premier Scott Moe in India during the past week hoping to at least prevent those tariffs from being increased, if not removed entirely.
Kaeding said from what they understand, “that's a work in progress.” But he pointed to Premier Moe “certainly talking to the highest level of government officials in India, certainly stating our case as to how detrimental that would be to our pulse industry here in Saskatchewan, and certainly across the country. I can't comment as to how, if there is any progress in reducing those tariffs, but I certainly expect everyone there heard from our Premier and certainly from our trade offices as to how important reducing these tariffs, or certainly getting to a tariff-free environment would be to support our pulse industry here at home.”
Premier Moe continued his trade mission to India late last week. His most recent activity there included meetings in New Delhi with Indian government ministers on such issues including the critical minerals sector, and on collaboration in research and technology in agriculture.
Prior to his trip to India, Premier Moe spoke at a news conference of the importance of the trade missions Saskatchewan has gone on, pointing to the importance of “engagement with other countries around the world, like on the mission that we're heading on now.“
“If we're truly serious about, and I would say not even so much diversifying the existing products that we export, and I'll speak from a Saskatchewan's perspective, but it's true across Canada, but diversifying the exports that we have today — that's a difficult challenge. However, if we're truly serious about diversifying the exports of additional products that we're going to produce in the years ahead, away from the US, therein lies an opportunity and therein lies some of the long-term fruits of the labour that Saskatchewan has been involved in for a number of years, which is engagement with these other international countries around the world that are looking for energy security, looking for food security, looking for a long-term, trusted, sustainable, ethical provider of those goods of which Saskatchewan checks virtually all of those boxes, I would say, and checks them stronger and darker than any other jurisdiction in the world.”
