Saturday, August 13, 2016

Deal on canola exports eludes negotiators

Chinese and Canadian negotiators failed to reach a deal on canola exports that will now face tougher Chinese import standards effective Sept. 1.

Canadian exporters have not signed new orders beyond Sept. 1, waiting for the outcome of negotiations.

The Chinese served notice some time ago that they are concerned about blackleg disease entering with trash in Canadian shipments, so they are lowering the tolerance from 2.5 to 1.5 per cent.

That will be an added expense for exporters who will have to more thoroughly clean shipments destined for China.

Canada has been selling the Chinese about $2 billion of canola a year.

Discussions will continue between the two governments, and resolving the issue is a priority for Ottawa, Guy Gallant, spokesman for Canada’s Agriculture Minister Lawrence MacAulay, said Friday.

Prime Minister Justin Trudeau is expected to visit China before September Group of 20 meetings there. Trudeau, elected last year, pledged to expand trade with China, although relations between the countries have been testy at times.

China’s quarantine authority AQSIQ told Ottawa in February that it would impose a stricter inspection standard for canola shipments starting April 1, then postponed the deadline to Sept. 1.