Two Saskatchewan ministers are urging the federal government to intervene in a growing trade dispute with China. Jeremy Harrison, Minister of Trade and Export Development, and David Marit, Minister of Agriculture, sent a letter to their federal counterparts expressing concern about China's recent announcement of an anti-dumping investigation into Canadian canola..This move comes just days after Canada announced 100% tariffs on electric vehicles from China.The ministers highlighted that Saskatchewan producers have often been the most affected by Chinese trade retaliation in the past. During a trade dispute in 2018 and 2019, canola seed sales from Saskatchewan to China dropped by $1 billion and across Canada by $2 billion.Harrison and Marit emphasized that Canada's top exports to China are goods produced in Saskatchewan. In 2023, the province's total merchandise exports to China were $5.5 billion, with canola seeds, potash, and peas leading the way. The ministers expressed disappointment that Saskatchewan would once again be negatively impacted by Chinese retaliation and encouraged the federal government to resolve the issue promptly.China's announcement of an anti-dumping investigation into Canadian canola imports is seen as a direct retaliation for Canada's planned tariffs on Chinese-made electric vehicles, steel, and aluminum. The Chinese Ministry of Commerce stated in a news release that it is launching an anti-discrimination investigation into the tariffs and an anti-dumping probe into Canadian canola imports and certain chemical products.Prime Minister Justin Trudeau announced in late August that Canada would impose a 100% tariff on Chinese EVs and a 25% tariff on steel and aluminum. The tariff on Chinese EVs will take effect on October 1, while steel and aluminum tariffs will take effect on October 15.The Canadian government's decision to impose tariffs follows similar actions by the United States (U.S.) earlier this year. Canada was significantly pressured by industry groups, including automakers and steel and aluminum plants, to match the U.S. tariffs.The Canola Council of Canada (CCC) expressed concern about the impact of China's investigation on Canadian canola exports. Chris Davison, President and CEO of the CCC, stated that China is an important market for Canadian canola and that the council is confident that an investigation will demonstrate alignment with and support for rules-based trade. Statistics show that China accounted for 75% of canola seed exports from Canada between January and June.The escalating trade tensions between Canada and China have raised concerns about the potential economic consequences for both countries. Saskatchewan, a major producer of canola and other agricultural products, stands to be significantly impacted by China's retaliation.
