WINNIPEG — Agriculture ministers from across Canada said they heard canola producers’ concerns about tariffs but it seems unlikely they can do much about them.
The ministers met with growers in Manitoba and informally with leaders of the canola organizations ahead of their annual federal-provincial-territorial meeting earlier this month. Both of Canada’s main canola organizations are unhappy with recently announced support they say falls short in the face of the closed Chinese market. The entire sector wants Canada to negotiate an end to the tariffs.
“As we sat around the table and had a heart-to-heart discussion, they realized the challenges we’re facing,” said Manitoba agriculture minister Ron Kostyshyn.
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It’s widely believed China imposed the tariffs in response to Canada’s 100-per cent tariff on electric vehicles from that country. Canada’s decision was made to fall in line with the United States.
Federal ag minister Heath MacDonald said the government responded with support to alleviate pressure in the sector. It includes an increase in the interest-free portion of cash advances to $500,000 for canola growers. However, some say more debt is not support.
“We fully understand that this is not going to resolve any of the issues, but we feel that it’s important because some farmers will take advantage of that,” he said during the closing news conference.
MacDonald said farmers need to know the government has their backs and will continue to do so.
“Farmers supported this to some extent but also what they want is … the markets open,” he said. “We got that message.”
The ministers were not briefed on the recent trade mission to China by Saskatchewan premier Scott Moe and Kody Blois, the prime minister’s parliamentary secretary.
MacDonald said the federal government would take the situation day-by-day.
“It’s a very fragile situation that we find ourselves in with the Chinese, but having Premier Moe in China and officials engaging at the highest level is important to get this resolved as quickly as possible,” he said.
He said the support offered for biofuels is one step in a process that will take some time. Amendments to the Clean Fuel regulations will also be done alongside canola producers, he added.
“We need to know what those amendments need to be relevant to and ensure that we’re doing everything possible that’s going to expedite those,” MacDonald said.
Asked if dropping the tariffs on Chinese electric vehicles would help the canola sector, the federal ag minister said the government is reviewing that policy.
He also didn’t rule out more funding for canola growers.
MacDonald described the situation as volatile and said government has to make sure each decision it makes doesn’t jeopardize another situation.
He was also asked about requests to ban used cooking oil from China for use in biofuels. MacDonald said it is on the government’s radar but the time might not be right to raise it with China.
