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China retaliates against Canadian tariffs with anti-dumping probe on canola

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China retaliates against Canadian tariffs with anti-dumping probe on canola

Chinese President Xi Jinping (Photo: PTI)

3 min read Last Updated : Sep 03 2024 | 4:56 PM IST


China announced it would begin an anti-dumping investigation into Canadian canola and chemical products. This move appears to be in response to Ottawa’s recent restrictions on imports of Chinese electric vehicles (EVs), according to a report by news agency AFP.


Last month, Canadian Prime Minister Justin Trudeau imposed a 100 per cent tariff on Chinese EVs, criticising Beijing for failing to adhere to global environmental and labour standards.


Similarly, the United States and the European Union have introduced their own tariffs on Chinese EVs, with the US imposing a 100 per cent levy and the EU implementing a 36 per cent tariff. These actions were taken under the claim that China is unfairly subsidising its domestic EV producers, which allows them to flood international markets and challenge local businesses.


China has consistently denounced these tariffs and has responded by initiating various investigations.


China’s anti-dumping probe on Canadian canola imports


In a statement released online on Tuesday, China’s commerce ministry declared that it would “launch an anti-dumping investigation into Canadian canola imports, following legal procedures.”


The ministry noted that Canadian canola exports to China had “increased significantly,” totalling $ 3.47 billion in 2023, while prices had steadily decreased, the report claimed.


The statement suggested that Canadian exporters were “potentially dumping” products in the Chinese market, leading to “ongoing financial losses for China’s domestic canola industries” due to “unfair competition.”


China condemns Canada’s EV tariff


China expressed its strong disapproval of the Canadian tariffs, indicating plans to address the issue through the World Trade Organization’s (WTO) dispute resolution system.


The commerce ministry also announced that an investigation into Canadian chemical products would be conducted, based on complaints from domestic industries.


The statement said that China will take all necessary steps to protect the legitimate rights and interests of its industries.


Canada’s tariffs on Chinese imports


Ottawa’s EV tariff, which will come into effect on October 1, will add to the existing 6.1 per cent duty on imports. This will apply to various Chinese vehicles, including electric and certain hybrid passenger cars, trucks, buses, and delivery vans.


In addition, Canada will restrict eligibility for EV incentives to those produced in countries with free trade agreements with Canada, effectively excluding China.


A separate tariff on Chinese steel and aluminium products is scheduled to take effect on October 15.


In recent years, Canada and China have clashed over several issues, including trade, technology, and human rights. Diplomatic relations between the two nations deteriorated significantly after Canada arrested a high-ranking executive from Chinese tech firm Huawei in 2018, which led to China detaining two Canadian citizens in retaliation.

First Published: Sep 03 2024 | 4:56 PM IST

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