Canola producers need protection from an ongoing trade war with China that’s costing their industry billions of dollars, the Alberta legislature heard recently.
Heather Sweet, the NDP agriculture critic, said an antidumping investigation announced in September escalates an already expensive situation for canola producers. China’s “sham allegations” about dumping could cost the canola industry a further $1-billion, the shadow minister said.
The new costs are on top of major losses since the trade war erupted in 2018 over diplomatic tensions stemming from Canada’s arrest of a tech executive.
Statistics from the Canola Council of Canada show that canola seed exports to China fell from $2.8 billion in 2018 — before restrictions — to $800 million in 2019, $1.4 billion in 2020 and $1.8 billion in 2021.
The dispute cost the industry between $1.54 billion and $2.35 billion in lost sales and lower prices between March 2019 and August 2020, reported the council, which represents canola growers and others in the industry.
“With our province already facing a significant affordability crisis as it is, Alberta producers cannot be expected to shoulder this new financial burden,” said Sweet, the member for Edmonton-Manning.
Agriculture Minister R.J. Sigurdson blamed the federal Liberals for the problem. He said they knew tariffs would lead to retaliation targeting agricultural exports to China.
Sigurdson said he’s been communicating with his federal counterpart, Lawrence MacAulay, about possible support for the canola industry. His ministry has also met with canola stakeholders in Alberta and across Canada.
“There is a deep concern,” said Sigurdson, the member for Highwood. “We understand how challenging this can be. That’s why this side of the house is going to be there for our farmers and ranchers. We’re going to continue to support them, and I will continue to put pressure on the federal government to come up with an immediate resolution.”
China is Canada’s largest canola seed destination, with more than 4.5 million tonnes worth $3.8 billion exported in 2023, the federal government published in a September statement. That recovery comes after China lifted restrictions in 2022 affecting the export numbers.
But the trade war caught fire again this year, when Canada announced tariffs on imports from China of electric vehicles, steel and aluminum. Almost immediately, in September, China announced its antidumping investigation.
Sweet said farmers are being “hung out to dry on this issue,” with legal costs she said will reach $1 million or more. “What is the minister doing to help them with the ridiculous costs of the lawsuits?”
Responded Sigurdson: “I do believe those who are responsible for making the mistake should pay for it. That’s why I do believe the federal government should step up and support our canola producers, our farmers and ranchers right here in Alberta, to be able to push back against this antidumping investigation that has no merit or value.”
He added that UCP government will continue supporting farmers and ranchers to diversify trade “so we’re not so heavily dependent on China.”