Saskatchewan Premier Scott Moe is asking why Ottawa has not yet outlined a response to China’s latest tariffs on Canada, saying Beijing’s actions disproportionately impact western provinces and arguing the federal government has responded more quickly to U.S. trade actions.
“Whether or not you agree with the federal govt’s response to US trade actions, there is no doubt they have taken action and reacted quickly, as they should,” Moe said in a March 11 social media
post.
“But when it’s an exclusively western Canadian industry like canola under attack from Chinese tariffs… crickets.”
China on March 8
announced 100 percent tariffs on Canadian canola oil, oil cakes, and pea imports, as well as 25 percent levies on Canadian seafood and pork, set to take effect on March 20.
This came after Canada last October
imposed 100 percent import duties on Chinese-made electric vehicles (EVs) and 25 percent tariffs on aluminum and steel products. Ottawa has previously
said Beijing is engaging in an “intentional, state-directed policy” of overcapacity, flooding the global market with inexpensive EVs to undermine Western competitors.
Moe said thousands of jobs depend on the canola industry, especially in the prairie provinces. Saskatchewan
produces 55 percent of Canada’s canola, followed by Alberta at 29 percent and Manitoba at 16 percent. Canola is grown by nearly 40,000 farmers across the country,
according to the Canola Council of Canada.
China is the second largest market for Canadian canola oil, seed, and meal,
after the United States. Total exports of canola products to China last year were valued at
nearly $5 billion.
Canadian canola and canola products are currently not subject to 25 percent U.S. tariffs as President Donald Trump on March 6
gave a one-month exemption for goods covered by the U.S.-Mexico-Canada Agreement (USMCA) free trade deal. Those tariffs may come on April 2.
China’s tariffs add pressure on Canadian canola farmers, who now face unprecedented trade uncertainty from their two largest export markets just weeks before planting begins, said Chris Davison, president of the Canadian Canola Growers Association, in a March 8 joint
statement with the Canola Council of Canada.
Both organizations said Beijing’s tariffs will be “prohibitive” to the export of canola oil and meal to China, and are asking the federal government to take action on Beijing’s tariffs.
Ottawa has
called China’s levies “unjustified,” and has vowed to “stand shoulder-to-shoulder” in its support for the farmers and fishers affected by the measures.
Global Affairs Canada said in an email to The Epoch Times that the government is committed to defending Canadian workers, but did not provide details on the specific measures that will be implemented.
The ministries of international trade, agriculture, and fisheries did not respond to a request for comment by publication time.
Ottawa’s Response to US Tariffs
Ottawa has responded to U.S. tariffs with counter-tariffs while also considering non-tariff measures.As Trump’s blanket tariffs kicked in on March 4, Canada’s first round of 25 percent retaliatory tariffs came into force, targeting $30 billion of American products. Trump’s first round of tariffs, which he says is linked to border security and the fentanyl crisis, levied a 25 percent surtax on all Mexican and Canadian goods, with a reduced 10 percent levy on Canadian energy products.
Later that week, the U.S. administration
announced a one-month tariff exemption for automakers and later
extended the tariff delay to goods under the U.S.-Mexico-Canada Agreement (USMCA). Canada
delayed its second phase of tariffs on $125 billion of U.S. exports, originally scheduled for March 25, until April 2. The first round of tariffs remains in place.
In its
latest response to U.S. trade actions, Canada has announced additional retaliatory measures against broad U.S. tariffs on all aluminum and steel imports, which took effect on March 12. Canada’s new counter-measures include 25 percent tariffs on $29.8 billion worth of American goods, such as aluminum, steel, and other products, set to kick in on March 13.
Ottawa on March 7 announced a $6.5 billion aid plan for businesses affected by the uncertainty caused by U.S. tariffs. This includes $5 billion over two years to help exporters find new markets and deal with economic strains, $1 billion in new financing to address liquidity challenges in the agriculture and food industry, and $500 million made available in the form of loans.
Ottawa has also floated the possibility of non-tariff measures, such as restricting energy exports or implementing export tariffs, both of which the premiers of Alberta and Saskatchewan have strongly opposed.
China’s Retaliation
Beijing said its latest tariffs on Canadian agriculture and food products stem from an “anti-discrimination” investigation it launched last September.This investigation is different from an anti-dumping probe into Canadian canola imports that the Chinese regime announced just days after Ottawa last year announced plans to impose tariffs on Chinese EVs, aluminum, and steel products.
Ottawa has rejected the basis for China’s “anti-discrimination” investigation, as well as its findings.
Canada ensures “a level playing field” for Canadian businesses and supports “fair, rules-based trade,” said International Trade Minister Mary Ng in a March 8
joint statement with Agriculture Minister Lawrence MacAulay and Fisheries Minister Diane Lebouthillier.
“This includes addressing China’s non-market policies and practices that artificially lower production costs and distort markets,” said the ministers, adding that Canada remains open to talks with Beijing to address trade concerns.
China has previously targeted the Canadian canola industry in an apparent retaliatory move. In 2019, Beijing imposed a three-year ban on Canadian canola, alleging the detection of pests in canola shipments. This followed the arrest of Chinese tech company Huawei’s senior executive Meng Wanzhou in Vancouver a few months earlier.
The Canadian Press contributed to this report.
