Ottawa has unveiled a $370 million aid package for Canadian canola farmers impacted by substantial tariffs imposed by China. The federal government introduced a new biofuel production incentive to address the immediate competitiveness challenges following China’s imposition of a 75.8% tariff on Canadian canola last month, seen as a retaliatory measure against Canada’s 100% tariff on Chinese electric vehicles.
Prime Minister Mark Carney, while announcing the support measures in Mississauga, Ont., emphasized that the funds aim to assist domestic producers in restructuring their value chains. Additionally, the government plans to amend the Clean Fuel Regulations to foster the growth of a robust biofuels industry in Canada.
The government will also temporarily raise the interest-free advances available to producers to $500,000 and increase funding to facilitate diversification into new markets. In a bid to address trade challenges, Nova Scotia MP Kody Blois is set to join Saskatchewan Premier Scott Moe on a three-day trade mission to China starting Saturday to engage with Chinese officials constructively and tackle other trade issues.
While welcoming the financial aid for canola producers, Premier Scott Moe’s office reiterated the primary focus on eliminating Chinese tariffs on canola. The significance of China as the second-largest importer of Canadian canola products, after the United States, underscores the importance of resolving the tariff issue promptly.
Last year, Canada exported approximately $14.5 billion worth of canola products, with around $4.9 billion directed to China. The president of the Agricultural Producers Association of Saskatchewan, Bill Prybylski, expressed appreciation for the federal support, emphasizing the urgency of removing the Chinese tariffs to alleviate financial strain on farms.
Prybylski emphasized the necessity for negotiations at the highest levels to resolve the tariff issue permanently. The extension of China’s anti-dumping investigation until March next year signals a potential avenue for resolving the trade dispute between the two nations, according to industry insiders.