China retaliates over EV tariffs with anti-dumping probe into Canadian canola imports

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OTTAWA — China has announced an anti-dumping investigation into Canadian canola imports in response to Canada planning to impose tariffs on Chinese-made electric vehicles, steel and aluminum.

In a news release on Tuesday, China’s Ministry of Commerce says it is launching an anti-discrimination investigation into the tariffs and an anti-dumping probe into Canadian canola imports as well as certain chemical products.

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Prime Minister Justin Trudeau announced Aug. 26 that Canada will impose a 100 per cent tariff on Chinese EVs and a 25 per cent tariff on steel and aluminum.

The tariff on Chinese EVs will take effect on Oct. 1, while steel and aluminum tariffs will come into place Oct. 15.

Finance Minister Chrystia Freeland cited unfair trading practices but also “abysmal” environmental and labour standards that she said allow China to unfairly price and dump products into the market at a huge cost to the environment and workers. The tariffs were announced following a month-long consultation process, which is required under Canadian law.

The move by the Liberal government follows similar tariffs announced by the U.S. in the spring, though those have yet to take effect. Canada was under immense pressure to match the U.S. tariffs, pushed by industry groups including automakers, and steel and aluminum plants.

China says it is extremely dissatisfied with the Canadian tariffs and promises to take the case to the World Trade Organization.

“China’s attitude is very clear and we will take all necessary measures to defend the legitimate rights and interests of Chinese companies,” the ministry’s release said in Mandarin.

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The Canola Council of Canada released a statement calling China “an important and valued market for Canadian canola.”

“We are confident that an investigation into Canada’s canola trade with China will demonstrate alignment with and reinforce our support for rules-based trade,” said Chris Davison, president and CEO of the council.

Statistics published by the council show China accounted for 75 per cent of canola seed exports from Canada between January and June.

China has targeted Canadian canola before. In 2019, it barred canola seed imports from two major Canadian companies, alleging it had detected pests in their shipments. The canola ban took place amid heightened tensions between the two countries following the Canadian detention of Huawei executive Meng Wanzhou at the request of the United States, and China’s subsequent detention of two Canadian men.

Canada launched a WTO challenge in 2020, but the review panel was suspended in August 2022, three months after China reinstated shipments of Canadian canola.

This report by The Canadian Press was first published Sept. 3, 2024.

— With a file from Nono Shen in Vancouver

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