China extends canola deadline

1 Sep 2016

Lethbridge Herald

THE CANADIAN PRESS — BEIJING

China says it will lift a fastapproaching deadline to introduce rule changes on Canadian canola shipments that threatened to inflict damage on the multibillion-dollar sector.

Starting today, the Chinese government had planned to enforce tighter regulations on the amount of foreign materials — such as weeds, other crops and detritus — permitted in canola exports from Canada.

But after a meeting Wednesday in Beijing between Prime Minister Justin Trudeau and Chinese Premier Li Keqiang, the two countries announced the existing rules would stay in place as they continued to negotiate a long-term solution.

The two sides disagree on the level of foreign material, known as dockage, that should be considered acceptable in Canada’s canola exports to China. The Chinese government wants the contamination cut by more than half.

The canola dispute was expected to dominate the trade agenda during Trudeau’s high-level meetings during his first official visit to China.

“We’re happy to reassure Canadian farmers that (at) the Sept. 1 deadline we will be able to continue with the current regime of canola and we (will) work together very closely towards a longterm solution in the coming days and weeks ahead,” Trudeau said.

Speaking through a translator, Li said both sides have “shown flexibility” on the issue.

He noted that while China itself is a large canola producer, it has no intention to keep its door closed to other exporters. But he said Chinese producers and consumers have concerns that disease could be imported.

“We believe that both sides will be able to make some mutual adjustments with the larger picture of China-Canadian trade and ties in mind,” he said.