Talks to open Chinese market to Canadian canola ongoing

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Published: October 13, 2010

Negotiations continue as the Canadian government attempts to open up the Chinese market to canola exports.Canadian canola is only accepted at coastal ports in Chinese areas that don’t produce domestic rapeseed. When China introduced the new rules Nov. 15, 2009, it said it was to protect the country’s rapeseed crop against blackleg, a disease common in Canadian canola.Canada was able to secure a yearlong extension of the restrictions this summer, which means at least some Canadian canola seed can reach Chinese crushers. China was the largest foreign market for Canadian canola seed in 2008-09, importing 2.8 billion tonnes. It had bought one million tonnes in 2009 before the Nov. 15 restrictions were introduced, Imports have slowed to a trickle, with only a few hundred thousand more tonnes expected to reach the country this year.Chinese officials toured Canadian production areas and grain handling facilities in August. Potential measures to deal with the blackleg issue were discussed, but no agreement was reached.”Canada will continue to use all opportunities to re-affirm with China the importance of this issue to the Government of Canada,” foreign affairs and international trade department spokesperson Patrick Girard said in an email. He said the Chinese appear to view Canadian attempts to limit blackleg in Western Canada as a positive step, but they still consider them insufficient.Canola Council of Canada president JoAnne Buth said there are also other potential irritants in Canada’s canola trade with China.”The issue with China is the uncertainty,” she said.”Partly because of how they control their rapeseed producers’ price … partly because we really don’t know how much they are storing in terms of oil.”

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Bryn Levy

University Of Minnesota Extension

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