Beijing: China has escalated its trade war with Canada by launching an anti-dumping investigation into Canadian canola imports. The latest move comes after Canada declared that it will slap a 100 percent tariff on imports of China-made electric vehicles (EV) after similar announcements by the US and European Union.
Canada also announced a plan to impose 25 percent duty on Chinese steel and aluminium. Canada and its Western allies accuse China of subsidising its EV industry, giving its car makers an unfair advantage.
Beijing also said that it would file a complaint on the EV “discriminatory” and “unilateral”. Canada’s minister of agriculture said plans for the canola investigation were “deeply concerning” and the government was closely monitoring the situation.
In July, the European Commission imposed provisional countervailing duties on imports of battery electric vehicles (BEVs) from China. EU’s investigation concluded that the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of economic injury to EU BEV producers. The investigation has also examined the likely consequences and impact of these measures on importers, users and consumers of BEVs in the EU.
Canola, also known as rapeseed, is a sustainable source of healthy cooking oil and high-protein meal and a major agricultural product in Canada, accounting for roughly one-quarter of all farm crop receipts, according to the Canola Council of Canada, an industry group.
“China is 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, Canola Council of Canada’s President & CEO.
China has also started looking into European pork and dairy products. It recently declined to impose tariffs on French cognac, despite alleged dumping.
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