Canada's rapeseed industry receives millions in support

Canadian Prime Minister Mark Carney has announced a raft of measures to strengthen Canadian industry. The introduction of import tariffs in the United States has made Canadians feel uneasy, and to alleviate some of these concerns, the government has decided on a whole range of measures.

Besides funding, the prime minister also pledged to ease regulations for the domestic biofuels industry. Additional support for rapeseed growers will also come in the form of a temporary increase in the interest-free limit for advances from the Advance Payments Program to approximately €300.000.

The measures are intended to help the sector in the face of stiffer competition from the US. In addition, the Canadian canola sector is being severely impacted by a trade dispute with China. The US and China are the main buyers of canola and rapeseed meal from Canada.

Import duty of 75,8 percent
In mid-August, China imposed a 75,8% import tariff on Canadian rapeseed. This week, the Chinese Ministry of Commerce officially announced that an investigation into dumping of Canadian rapeseed on the Chinese market will begin in 2024. This investigation will last a year, with a possible extension of another six months.

Experts say the Chinese Ministry of Commerce's move is remarkable, as no signals have been received from the Chinese rapeseed sector. However, the ministry claims it has sufficient evidence to launch an investigation. It points to a decline in the market share of local producers, which fell from 82% in 2021 to 71% last year. Moreover, domestic producers reportedly suffered significant losses on sales of their product.

On the other hand, this step cannot be viewed in isolation from the measures Canada itself has implemented. As of October 1st, Canada is imposing a 100% import duty on electric cars from China and a 25% import duty on steel and aluminum.