The dispute over the new shipping standard, which industry groups in the world’s biggest canola exporter warn would cripple C$2 billion ($1.55 billion) in trade, threatens to mar Canadian Prime Minister Justin Trudeau’s visit to China next week.
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Canola farmers are now facing the possibility of losing more business with their biggest export market, where they sold $2 billion worth of the oilseed previous year.
China Rights Network, a Toronto-based coalition, has written a letter to Trudeau urging him to “make it a major goal of your visit to bring these two men back to Canada”.
Mr Trudeau will also seek cooperation with China on climate change and other global issues, press for increased tourism from China, and urge Chinese business leaders to boost their investments in Canada.
The 6½-year spat centres on a disease known as blackleg that can affect canola, and the amount of dockage – the stems, pods, weeds and other plants – that winds up in shipments.
After Trudeau’s Liberals took power last November, the prime minister instructed Freeland to expand trade with China to help boost a struggling export sector that is still largely dependent on the United States.
“Canada´s future prosperity is increasingly tied to China”, the official said. I think this is understandable, ” Luo said.
Through 10 years of working with the Conservative government, he said Canada-China relations made some progress, but noted that sometimes the “pace and priorities” were “quite different”.
“The quarantine of canola is merely a technical issue that should be solved properly through consultations by relevant competent departments”, said the embassy.
China imports 3 million to 4 million tonnes of Canadian canola seed annually.
“You say you’re concerned about human rights issues?”
Freeland’s spokesman, Alex Lawrence, said the two ministers had what he called a lengthy and productive conversation.
An industry source said the sales, which may intend to test China’s new approach, weaken Canada’s position, comparing their impact to striking workers crossing a picket line.
Mike Jubinville, president of market advisory service Pro Farmer Canada, described the country’s canola exports as “enormously important”.
Canada’s biggest canola exporters, Richardson International and Glencore Plc-owned Viterra Inc, however, are balking at China’s new standard.
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“They’re our largest single export market for Canadian canola, so anything that has an influence on trade there is obviously going to be influential and potentially market moving”, said Jubinville, adding that canola trade with China is “grinding to a halt” until the issue is resolved, but is unlikely to seize up completely.
