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China Delays Proposed Tighter Regulations for Canadian Canola

China has decided to delay enacting tougher regulations on Canadian canola shipments one day before they were planned to go into effect.

As the two countries continue to negotiate an agreement on the matter, Canada will be allowed to continue to export canola to China, its largest export market, under the current regulatory framework.

China has originally stated that it would reduce the amount of allowable foreign matter per Canadian canola shipment to a maximum of 1 percent from 2.5 percent as a means of preventing the spread of blackleg disease – a measure that Canada hotly disputed, stating it would raise costs for exporters.

Although good news for Canada’s canola industry, and a triumph for Canadian Prime Minister Justin Trudeau and Canada’s Trade Minister Chrystia Freeland, the delay is a short term fix, and Canadian exporters remain wary of a possible reversal by Beijing.

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