Beijing, 10 September 2024 (TDI): China’s Ministry of Commerce (MOFCOM) has launched an anti-dumping investigation into Canadian rapeseed imports, citing preliminary evidence that suggests Canada’s practices have caused substantial harm to the Chinese domestic market.
This probe, launched on Monday, is seen as an unusual move, as it was initiated without a formal application from the domestic industry, a step allowed under Chinese laws and World Trade Organization (WTO) rules.
MOFCOM stated that its decision was based on substantial evidence indicating that Canada has been dumping rapeseed in the Chinese market at declining prices, leading to significant damage to local producers.
According to the ministry, rapeseed imports from Canada surged by 170 percent in 2023, reaching $3.47 billion, while unit prices continued to fall.
“This anti-dumping investigation is a legitimate measure in compliance with WTO rules, aimed at protecting domestic industries,” a MOFCOM official remarked in a statement.
The official emphasized that China’s action differs fundamentally from what it sees as discriminatory measures by Canada, which recently announced plans to impose tariffs of up to 100 percent on Chinese products, including electric vehicles (EVs), steel, and aluminum.
Consultations with Canada
MOFCOM also revealed it has formally requested consultations with Canada at the WTO concerning these planned tariffs.
Additionally, China plans to launch an anti-discrimination investigation into Canada’s decision, the first of its kind.
Experts noted that while China’s probe follows Canada’s recent trade actions, the two are markedly different.
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“China’s move is evidence-based and in line with WTO rules, while Canada’s actions represent trade protectionism that could negatively impact bilateral trade relations,” said Sang Baichuan, Dean of the Institute of International Economy at the University of International Business and Economics.
Canada’s recent moves come amid already strained relations, which soured significantly following the 2018 arrest of Huawei executive Meng Wanzhou at the request of the United States.
Sang added that Canada’s trade protectionist measures could further harm economic cooperation between the two countries.
