Farmers from coast-to-coast in Canada are bracing for catastrophic economic damage. This follows the government of China’s recent decision to apply a 100% tariff on Canadian canola meal and oil. The announcement follows an anti-dumping investigation initiated almost a year ago. US agricultural producers are just now beginning to panic, and they’re doing so because they know how much they depend on exports to the Chinese market. China, which accounts for approximately 67% of Canada’s canola seed shipments, has effectively closed its doors to one of Canada’s most vital crops.
The tariff will go into effect this Thursday, October 17. This is a historic time for Canadian farmers who have been through extreme economic stress these past years. China’s Ministry of Commerce said their decision was based on allegations by Canadian canola firms of “dumping” their products onto the Chinese market. This practice is decimating independent local producers. As many of their actions have done, this latest move has wiped out an estimated $1 billion in canola values. Consequently, farmers who depend on these exports for their livelihoods are under extreme stress right now.
In retaliation for Canada’s own 100% tariff on Chinese electric vehicles, China’s move against canola products has sparked outrage and disbelief among Canadian farmers and government officials alike. For its part, Ottawa has absolutely denied the “dumping” allegations. In their rebuttal, they claim that Canadian canola is grown to high quality standards and provided at competitive prices.
“It’s a very important crop and our second largest customer just effectively closed their market to us,” said Dean Roberts, a farmer near Coleville in west-central Saskatchewan. So serious was he about the impact of the tariff, that he resigned the post. He tentatively calculated it would set his farm back about $200,000.
Along those lines, Andre Harpe, another Grande Prairie, Alta., farmer found the tariff announcement an “absolute shock.” He indicated that such drastic measures could influence future planting decisions, stating, “After the harvest, then decisions will start being made on how many acres of canola are we going to grow next year.”
Bill Prybylski, a farmer from Regina warned that the impact on canola producers varies. Furthermore, the impact will not be uniform for each producer based on their specific acreage and yields. He noted the broader context of the situation: “The consensus is that these tariffs are in retaliation for the electric vehicle tariffs Canada implemented against China. But we can’t do it without the federal government being at the table.”
Unexpectedly, it’s farmers who are taking the biggest hits from these changes. To this end, Manitoba Premier Wab Kinew is calling on the federal government to intervene and provide support themselves. He emphasized the need for immediate action, urging that “Let’s get some of that money out the door to help our industry here in the West, the same way we’ve seen other industries supported.”
Kinew continued to elaborate on the challenges these farmers have in trying to understand and operate in the ever-changing international trade landscape. “I’m a long way from Ottawa. I’m even further from Beijing. So for me to understand what the right decisions are is very tough. I do know the implications of my farm gate are very, very real,” he stated.
Canada’s Agriculture Minister Heath MacDonald and International Trade Minister Maninder Sidhu will consult with canola stakeholders. Our goal with these is to begin addressing some of the concerns surrounding the tariff nightmare, and to begin examining possible paths to relief and support. An excerpt of the meeting, showing her response to the urgent situation. Farmers importantly continue to look for ways to lessen the economic impact of China’s announcement.
