Monday, April 29, 2019

Chinese throw more sand in the gears

China has thrown more sand into the gears of trade, this time delaying paperwork reviews for imports of Canadian soybeans.

Instead of a few days, they now take three weeks, prompting Chinese buyers to avoid Canadian soybeans, according to Dwight Gerling, president of DG Global.

"They're basically sending out the signal, 'You buy from Canada, we're going to make your life difficult,'" Gerling said.

Last year Canada sold $1.7 billion worth of soybeans to China.

The soybean difficulties coincide with Chinese bans on canola from Viterra and Richardson, enough to prompt Prairie farmers to reduce the acreage they intend to plant to canola this spring.

Canadian pea exporters fear they could be next. China imported $718 million worth of Canadian peas in 2018, according to industry group Pulse Canada, but the pace has slowed.

Chinese authorities have begun scrutinizing import documents and product samples more closely, said Taimy Cruz, director of logistics for BroadGrain Commodities.

China Inspection and Quarantine Authorities now tests samples of each pea shipment before authorizing it for import. 

There are also worries about pork shipments because the Chinese have raised objections to the Canadian Food Inspection Agency forms that some exporters have used.

The CFIA has said new forms will be supplied to exporters.