The Chinese have ramped up their trade penalties on Canadian canola and, in the process, fueled the east-west divide in this country.
China plans to expand its tariff regime targeting Western Canadian canola tomorrow with a new 76-percent tariff on canola seed. This is in addition to a 100-percent tariff on canola oil and meal, effectively shutting off the Chinese market to Canadian canola farmers, the largest buyer of our oilseed and its components.
This trade war started when Ottawa imposed a 100-percent tariff on Chinese electric vehicles coming to Canada. That move was designed to shutout cheaper Chinese models to protect Canadian electric car producers who have had little luck convincing consumers to buy locally-made EVs.
China responded with the canola tariffs, effectively taking our biggest customer out of the game, and freeing up a fresh market for our competition.
Needless to say, Saskatchewan – as the biggest canola producer in the game – is upset and wants Ottawa to respond on our behalf but the underlying story line here is: trading western interests for Central Canadian ones.
