China’s tariff of 78.5 per cent on Canadian canola and its ban on canola from Australia because of blackleg disease may backfire as its domestic production comes up short.
The United States Department of Agriculture said China’s rapeseed crop might be vastly smaller than official estimates.
“Private sector contacts continue to maintain that China’s actual rapeseed production may be considerably lower than Beijing’s official number based on their estimates of the operational pace and capacity of crushing plants in their respective regions,” the U.S. Department of Agriculture’s Foreign Agricultural Service said..
One leading industry source estimates that China’s rapeseed production is 12.4 million tonnes, far short of the Chinese government’s estimate of 17.1 million tonnes, the U.S. report said.
China’s anti-dumping duty on Canadian canola is under extended review. It was imposed after Canada hit Chinese-made electric vehicles with a 100 per cent anti-dumping tariff.
