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China Agrees to Resume Canola Imports From Canada - GRDC Launches New Company Grains Australia - Mor

China has agreed to lift a ban on canola imports from Canada, which had been in place since March 2019 causing a loss in trade valued at $2 billion. At the time the ban was enacted, China stated that it was due to issues with quality, however, it was widely believed to be a political move in retaliation to Canada’s detention of an executive with Huawei Technologies Co. Ltd. In 2018 Canadian canola exports to China accounted for approximately 40 percent of the country’s total exports, and were valued at US$2.1 billion. In 2019, during the ban, Canada’s canola stockpiles surged to a record high.

The agreement to resume shipments was reached on a call on March 30 between China’s custom administration and Canada’s farm ministry, who also agreed that foreign material percentages on shipments must be less than 1 percent. The move to resume trade also comes as China’s oilseed processing sector is struggling due to the lowest soybean stocks since 2010 and the disruption caused by the global COVID-19 pandemic.

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