A Heated Trade Dispute: Canada vs China over Agricultural Tariffs
Canada expresses discontent over China's imposed tariffs on agricultural and aquatic products.
Welcome to the latest round of trade tension, but this time it's not just the U.S. making headlines. Canada is locking horns with China over additional tariffs on agricultural and fishery products.
The World Trade Organization (WTO) has been drawn into the fray, as Canada has filed a complaint against China over the new duties. These tariffs, effective last week, impose a 100% surcharge on oilseed products like rapeseed and peas, and an extra 25% on pork, fish, and seafood.
Canada, a major player in the rapeseed market, finds itself in a precarious position. Rapeseed is used for edible oils, biofuels, and animal feed, with China being a significant consumer. Industry representatives anticipate these new import duties will have dire consequences for farmers.
The feud can be traced back to last August when Canada, along with the U.S., imposed a 100% duty on Chinese electric vehicles. This move was part of a coordinated action under the North American Free Trade Agreement to protect the automotive industry from state-subsidized Chinese manufacturers.
However, since the inauguration of President Donald Trump in January 2017, U.S. trade policy has largely targeted Canada and Mexico, its free trade partners. Trump's threats of tariffs on all imports and their subsequent implementation have hit the Canadian economy hard. With the complaint now filed, the Canadian government has initiated the dispute settlement procedure of the WTO, based in Geneva.
The dispute is currently in the consultation stage within the WTO, with the aim of resolving trade disputes between nations. If no resolution is reached within 60 days, the complaining country can request a report from an expert panel on the dispute.
Sources: ntv.de, als/AFP
- Canada
- China
- WTO
- Tariffs
- Proceedings
- USA
- Donald Trump
- Trade Conflicts
Some Interesting Facts:
- The ongoing trade dispute between Canada and China began due to China's retaliatory tariffs on Canadian agricultural and fishery products, in response to Canadian tariffs on Chinese electric vehicles, steel, and aluminum products introduced in October 2024.
- Canada requested WTO dispute consultations with China over these tariffs, citing that they are inconsistent with China’s WTO obligations.
- The dispute is currently in the consultation stage within the WTO, with Canada requesting consultations to be held within 10 days due to the perishable nature of the goods involved.
- The dispute adds to rising global trade tensions and could significantly impact Canada's agricultural and agri-food sectors, considering China's historical importance as a market for Canadian exports like canola.
- Canada, in response to China's additional tariffs on agricultural and fishery products, has announced the initiation of a dispute settlement procedure with the World Trade Organization (WTO), citing concerns over China's adherence to its WTO obligations.
- Amidst the escalating trade conflict, Canada's tariff on Chinese electric vehicles, as well as duties on steel and aluminum products, were implemented as part of a coordinated action under the North American Free Trade Agreement.
- The ongoing dispute over tariffs could have dire consequences for Canadian farmers, particularly those specializing in oilseed products like rapeseed and peas, as well as pork, fish, and seafood, which are significant in terms of both edible oils and biofuels production.
