China, Canada resolve canola-shipping dispute

OTTAWA, Sept 22 (Reuters) – Canada and China have agreed on a solution to a trade dispute over C$2 billion worth of annual canola sales, lasting to 2020, leaders of the two countries said on Thursday.

The solution is “predictable, science-based and stable,” ensuring access for Canadian shipments to China, Canadian Prime Minister Justin Trudeau said in Ottawa at a joint press conference with Chinese Premier Li Keqiang. He gave no details but it appears the acceptable threshold for dockage will stay at the industry standard of 2.5 percent.

China has twice this year backed down on plans to toughen its standard on foreign material, called dockage, in Canadian canola shipments. The dispute was an irritant as the two countries seek to broaden trade ties.

China, which has said it was concerned about the foreign material spreading a crop disease called blackleg, had intended to make the change on Sept. 1 before agreeing to continue negotiations with Canada leading up to meetings in Ottawa.

The maximum level of dockage China accepts will continue to be 2.5 percent of a shipment during the time of the agreement. China had intended to lower the maximum to one percent.


Canadian exporters, which include Richardson International, Glencore PLC unit Viterra Inc, and Cargill Ltd, had raised concerns that the tougher standard would result in fewer sales to China as it raises their costs. Industry analysts have said China’s stance was likely linked to high domestic stockpiles.

The news should support canola futures and the contract is trading higher today.

Li said until 2020, China would apply its previous inspection standard on Canadian canola shipments. In the meantime, the countries will study the risk dockage may pose, he said.

“For China, we have pretty sufficient amount of time to increase the quality of exports to China,” Li said through an interpreter. “That agreement is in the larger picture of Canada-China relations.”


  • bufford54

    What this story doesn’t mention is the number of concessions “Little Potato Head” gave China in return? If anyone thinks that China gives a rats ass about what is good for Canada, they are sorely mistaken. Getting into bed with these conniving Communist cockroaches will be Canada’s undoing. If you don’t believe that move to Vancouver, if you can afford it.

    • Harold

      Seriously? Under what Canadian Law compels us to give a damn about what is good for China? Can we give a damn under law, that China might create a
      “Canada -Town” governed by China’s Laws? Are China’s Laws relevant in Vancouver? Can we give a damn about what China gives up in exchange for our Commodities, be it property or otherwise?
      Do you view conniving democratic cockroaches as being one step above?
      Your rant is ill founded, and your view of China’s peoples offensive.

    • Kissing optional

      You mean like this piece of scum tried to hide from Canadians?

      • Harold

        May I add:
        For what used to be called incompetent, it’s now called politics.
        What used to be called lies, is also called politics.
        Secrecy used to be called abhorrent, but now called politics.
        what used to be called peace, is now called enforcement.
        What used to be found in jail, is now called leadership.