China has started an investigation into Canadian canola imports, ramping up trade tensions with Canada. This move follows Canada’s decision to impose new taxes on Chinese-made electric vehicles and other goods. China plans to challenge these tariffs at the World Trade Organization, calling them “discriminatory.”
Canada’s Agriculture Minister expressed concern over China’s probe and said the government is keeping a close eye on the situation. The dispute comes as other countries, like the US and EU, are also setting up barriers against Chinese electric vehicles. Canada’s Prime Minister Justin Trudeau had criticized China’s practices, claiming they give Chinese firms an unfair edge by allowing them to sell products below cost.
China’s investigation into Canadian canola, which has seen a huge increase in imports and falling prices, is part of its response to the EV tariffs. Canola is a major crop for Canada, with China being a key buyer. Last year, Canadian canola exports to China were worth about $3.7 billion, making it a significant market.
This is not the first trade issue between the two countries. Earlier, China restricted Canadian grain exports in response to political tensions. Canada’s agriculture minister, Lawrence MacAulay, has stressed that Canadian farmers rely on fair trade practices and will defend their interests.
BBC reports that the situation is being watched closely, and the Canadian government is ready to support its agriculture sector.
https://www.bbc.com/news/articles/c93p2yev3w2o