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China Seals Canola Trade with Canada Through 2020

After ongoing sabre rattling, a deal has been reached between China and Canada, guaranteeing that Canadian canola exports to China will continue through 2020.

The two countries have been involved in a recent trade dispute after China threatened to reduce the amount of allowable foreign matter per Canadian canola shipment to a maximum of one percent, down from 2.5 percent, as a means of curbing the possible spread of blackleg disease. This change would have seriously cut a trade worth approximately $2.6 billion to Canadian canola producers.

However, during a four-day official visit by Chinese Premier Li Keqiang to Canada, the two countries compromised – agreeing to conduct additional scientific studies to find a “science-based and stable solution” resolving the question of blackleg contamination to the level of dockage in a grain shipment.

Meanwhile, at least until 2020, Canada will continue to be able to ship canola to China under currently established terms.

"This is great news," said Canadian Prime Minister, Justin Trudeau. "Our progress on this file goes to show how two countries can collaborate, can solve difficult challenges together.”

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