Canada has officially filed a World Trade Organization (WTO) dispute against China over new import duties imposed on key Canadian agricultural and fishery products. The move follows Beijing’s recent decision to impose hefty tariffs on Canadian exports, escalating trade tensions between the two nations.
The tariffs, which were announced earlier this month, place a 100 percent surcharge on Canadian rapeseed oil, oil cakes (a crucial component of animal feed), and peas. Additionally, aquatic products and pork exports from Canada will face a 25 percent levy. These measures are expected to have a significant impact on Canadian agricultural producers, given China’s historical role as a major market for these goods.
Canada is one of the world’s leading producers of canola, a rapeseed crop used in cooking oil, animal feed, and biodiesel production. With China previously serving as a key buyer, the sudden imposition of tariffs could disrupt trade and severely affect Canadian farmers and industry stakeholders.
The tariffs appear to be in response to Ottawa’s decision last year to implement its own import duties on Chinese goods. In August, Canada matched the United States in imposing 100 percent tariffs on Chinese electric vehicles, aiming to curb what both nations view as an influx of state-subsidized cars from China. Canada also introduced additional surcharges on Chinese steel and aluminum imports.
Beijing has defended its tariffs, with its commerce ministry stating that an investigation into Canadian policies found they “disrupted the normal trade order and harmed the legitimate rights and interests of Chinese enterprises.”
Under WTO regulations, Canada and China will first engage in consultations to try and resolve the dispute. If no agreement is reached, Canada can request the formation of a dispute resolution panel consisting of three to five trade experts. Such a panel could ultimately rule on the legality of China’s tariffs under international trade laws.
The case marks yet another flashpoint in a growing trade dispute between Canada and China, further complicated by wider geopolitical tensions, including both countries’ strained relationships with the United States. The outcome of this dispute could have far-reaching implications for global trade and economic relations in the coming months.
