Current Issues

On September 9, MOFCOM formally announced the initiation of an anti-dumping investigation regarding Canadian canola seed as part of China’s response to Canada’s decision to impose tariffs on Chinese electric vehicles, steel, and aluminum. The investigation covers a dumping investigation period from January 1, 2023, to December 31, 2023, and an injury investigation period from January 1, 2021, to December 31, 2023.  

MOFCOM indicated that the investigation was self-initiated and was not initiated at the request of its domestic industry. Interested parties were required to register by the end of September 2024. 

Registered parties, including several exporters identified by MOFCOM, received a questionnaire that was due to MOFCOM in November. CCGA completed and submitted a questionnaire response on behalf of all Canadian canola farmers and coordinated with several canola farmers who submitted their own responses. In addition, CCGA and the canola farmers coordinated with other stakeholders, including trading companies, to cooperate as fully as possible with MOFCOM’s instructions. This involved submitting independent questionnaire responses that, collectively, provided answers to each of the questions.

At this time, it is difficult to determine the timing of next steps in the investigation. A procedural calendar has not yet been published. We continue to closely monitor the situation, including any procedural steps announced by MOFCOM.

CCGA registered as an interested party in the investigation and is actively participating to represent Canada’s canola farmers. Further to the registration, CCGA received and completed a questionnaire that was due to MOFCOM in November. With leadership and support from CCGA, a number of canola farmers also submitted their own questionnaire responses.  CCGA and the canola farmers are among the 26 registered parties participating in this anti-dumping investigation. Extensive work and resources were invested by the parties to organize the requested information and prepare their responses. There was also significant coordination between parties in the value chain to complete the questionnaire in accordance with MOFCOM’s instructions.  

CCGA has taken the opportunity to meet with government to discuss the importance of Canada’s canola trade on farm profitability and the impact that restrained trade flows could have at the farm gate. 

CCGA believes strongly that Canada’s canola trade aligns with international rules-based trade.  

The canola industry is in close contact to ensure a timely and appropriate exchange of information amongst provincial and national groups and with various levels of government.

Anti-dumping investigations are initiated when a country has evidence indicating that a product is being imported at a lower price than its selling price in the country where it is produced. According to the WTO, anti-dumping measures can only be applied if the dumping is hurting the industry in the importing country. If an investigation determines that (i) the product is being imported at dumped prices, and (ii) this dumping is causing material injury to producers in the importing country, then an anti-dumping tariff can be applied.   

CCGA believes strongly that Canada’s canola trade aligns with rules-based international trade.

Canola is the single largest contributor to farm cash receipts and is a vital economic contributor to Canadian grain farms. Any time there is an anticipated or actual market disruption, the prices that farmers receive for their canola are affected. We are still in the early stages of the investigation. It is unclear what the degree or the duration of the impact will be on farmers’ returns for the canola they harvest this fall or the crop they will be looking to plant in the spring. We are closely monitoring all impacts on farmers.