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Canadian canola exports blocked to China, other imports cancelled

Before the recent trade dispute between the two countries grain forecasters claimed that China could import more than two million tonnes of peas from this year’s crop up from a previous high of 1.3 million tonnes. Gao Huazhi chief executive of Jiangsu Tongliang that imports Canadian agricultural products into China said “purchase plans for wheat, peas, flax seed, and rapeseed meal have all been cancelled”. Rapeseed meal is canola meal.

All Richardson International canola shipments to China blocked

According to a recent blog article: “Amid heightened political tensions China blocked all canola exports from Canadian agri-exporter Richardson International Ltd. The move comes amid heightened tensions between the two countries in a dispute over trade and telecom related technology that has ensnared the chief financial officer of the world’s largest telecommunications equipment maker, Huawei Technologies Ltd. who faces criminal charges in the U.S. ” At the request of the US the CFO of Huawei was arrested last December at Vancouver International airport. This has created tense relations between the two countries. Canada is being sued by the CFO Meng Wanzhou for her arrest. Some analysts see the ban on canola exports and possible restriction of others as a response to Canada’s treatment of the Huawei executive Wanzhou.

It is not clear why Richardson’s exports to China have been halted. Officials at China’s General Administration of Customs had no comments on the situation. If there is an extended ban on canola exports this will not only hurt Richardson, Canada’s biggest grain handler but has ramifications for Canada’s agricultural economy. China is the world’s top importer of canola. China’s purchases of canola from the US are also negatively effected by US duties and China’s response.

Oilseeds, led by canola represent a leading component of China export category and made up 17 percent of all exports in 2017. Just yesterday, the Canada Council of Canada president Jim Everson claimed that China had expanded its restriction on buying canola to all Canadian exporters, not just James Richardson International.

The issue is also examined by an Alberta paper: On Thursday, March 21, the Canola Council of Canada said in a statement Chinese importers are unwilling to buy Canadian canola. To add to tensions, the Western Producer quoted the Globe and Mail Friday saying China plans to restrict or stop imports of Canadian agricultural commodities beyond canola. They say purchase plans for wheat, peas, flax seed and rapeseed meal have been canceled.The Council says discussions have not indicated the issue will soon be resolved.

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