Major Canadian canola exporter to China says finding new markets not easy

A third Canadian canola exporter has received a non-compliance notice from China

Surrounded by colleagues, International Development Minister Marie-Claude Bibeau and International Trade Diversification Minister James Carr respond to questions from the media about canola during a news conference in the Foyer of the House of Commons Monday April 1, 2019 in Ottawa. (THE CANADIAN PRESS/Adrian Wyld)

A third Canadian canola exporter has received a non-compliance notice from China over quality concerns, the federal agriculture minister said Tuesday, the latest development in an escalating feud with the Asian country.

Marie-Claude Bibeau confirmed the Chinese government’s move during her appearance before a parliamentary committee studying a trade dispute that has seen China suspend the canola-seed sale permits of two other Canadian firms.

READ MORE: Chinese importers have stopped buying Canadian canola seed: Industry group

“We’ve been informed that there’s a third company that received a non-compliance notification,” Bibeau said, though she wouldn’t name it. “It doesn’t mean that they’re suspended, either, at this time. So, we will obviously keep working with them and see how it goes.”

In recent weeks, citing concerns about pests, China has sent non-compliance notifications to Richardson International Ltd. and Viterra Inc., two major Canadian exporters of canola seed. Chinese officials also suspended their licences.

China’s moves to choke off Canadian canola-seed imports have been widely viewed as the superpower applying economic pressure on Canada following the December arrest of senior Huawei executive Meng Wanzhou in Vancouver at the behest of the United States.

Curt Vossen, the CEO of Richardson, told another House of Commons committee Tuesday that canola products alone were just over 15 per cent of all of Canada’s exports to China and, last year, were worth more than $4 billion.

China imported $2.7 billion worth of Canadian canola seed last year, which ensures any prolonged feud would be felt by farmers, the industry and the broader economy. The seeds are the raw material for canola oil, which is widely used for cooking and in some industries.

Vossen, whose Winnipeg-based company has been doing business in China for more than a century, said he cannot emphasize enough the importance of finding a solution to the feud — and quickly.

As the federal government searches for that solution, it’s been trying to find new markets and cabinet ministers have been touting Canada’s recently ratified trade deals with the Asia-Pacific region and the European Union.

“If the current disruption continues over the longer term, we will have no choice but to find other markets for Canadian canola seed, however doing so will be no easy task,” said Vossen. “While we are confident that we can eventually find other markets, it will not be a painless exercise.”

He urged the federal government to be ”more aggressive” in defending the interests of Canada’s agriculture exporters in China and around the world, where they’re facing trade barriers in several jurisdictions.

“To say that canola is important to Canada’s trading relationship with China would be a gross understatement — canola and, indeed, the entire grains and oilseeds complex is the foundation of Canada’s trading relationship with China,” he said, noting the disruption comes at a critical time right before seeding season, when farmers are deciding how much to grow.

The Liberal government has insisted it wants to find a scientific solution to the dispute and Bibeau has said she sent a letter to her Chinese counterpart with a request to send a delegation of experts to China to examine the issue. Officials are examining options to support farmers through the possible expansion of existing programs, Bibeau said.

The federal Liberals have also established a working group that includes officials from Richardson and Viterra and representatives from the governments of Alberta, Manitoba and Saskatchewan.

On March 1, the same day China suspended Richardson’s licence, Canada’s Justice Department gave the go-ahead for the extradition case against Meng.

It marked the formal start of the high-profile process that has thrust Canada into a highly uncomfortable position between China and the United States.

In the days following Meng’s arrest, China arrested Canadian citizens Michael Kovrig, a Canadian diplomat on leave, and Michael Spavor, an entrepreneur, on allegations of engaging in activities that have endangered Chinese national security.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Snow could be seen Oct. 12 on Highway 5, near the Coquihalla summit. (Contributed)
It looks like an interesting winter folks

Winter will be colder than normal, with above-normal precipitation and below-normal snowfall

Paramedics transported a cyclist to hospital after he collided with a vehicle outside the Wendy’s at Penticton Plaza Tuesday, Oct. 20, 2020 (Jesse Day - Western News)
Truck collides with cyclist outside Penticton Wendy’s

Police are investigating the collision

Riders of all ages participated in 2019’s Axel Mercx Granfondo in Penticton, with over 1600 registering for 2020 before COVID-19 forced its cancellation. (Western News File)
Granfondo ‘Penticton’s best opportunity for an event in 2021’

The long-distance cycling event was cancelled this year after 1600 riders had already registered

FILE – People wait in line at a COVID-19 testing facility in Burnaby, B.C., on Thursday, August 13, 2020. THE CANADIAN PRESS/Darryl Dyck
167 new COVID-19 cases, 1 death recorded as B.C. enters 2nd wave

Three new healthcare outbreaks also announced

Surrey RCMP cruisers outside a Newton townhouse Tuesday night. (Photo: Shane MacKichan)
Toddler in hospital, woman dead following stabbings at Surrey townhouse

Police say two-year-old was among victims found at townhouse complex in the 12700-block of 66 Avenue

View of Larsson Hill from DriveBC camera at 7:25 a.m. on Oct. 21. (Contributed)
Vehicle incident at Larson Hill causing delays up to one hour on Coquihalla

The incident has blocked traffic in both directions

A Tim Hortons employee hands out coffee from a drive-through window to a customer in Mississauga, Ont., on March 17, 2020. Tim Hortons is ending the practice of double cupping hot drinks, a move the fast food restaurant says will eliminate hundreds of millions of cups from landfills each year. THE CANADIAN PRESS/Nathan Denette
The end of double cupping: Tim Hortons ditches two cups in favour of one with sleeve

Most recycling facilities in Canada don’t recycle single use paper coffee cups because of a plastic lining

Canada’s Chief Public Health Officer doctor Theresa Tam responds to a question during a news conference Tuesday October 20, 2020 in Ottawa. Canada’s chief public health doctor says in the age of social media, fake news about the COVID-19 pandemic has been spreading faster than the virus itself. THE CANADIAN PRESS/Adrian Wyld
VIDEO: Fake news creates serious issues for battling pandemic, chief public health doc says

Both Tam and Prime Minister Justin Trudeau urged Canadians to be responsible about the information they share

A 20-year-old man was pronounced dead following a three vehicle collision on Highway 1 west of Revelstoke Tuesday, Oct. 20, 2020. (File photo)
One dead after Highway 1 crash near Revelstoke

20-year-old man pronounced dead at the scene of a three vehicle collision west of Revelstoke

Steven Stuart Gardner has been charged with possession of a firearm contrary to an order and possession of a firearm without a licence. He has also been charged, under the Motor Vehicle Act, with driving while prohibited. (Crime Stoppers photo)
Car connected to shooting, dumped in Chase leads to unrelated arrest

Investigation of Kamloops shooting leads police to a rural Chase property

Volunteer registered nurse Stephanie Hamilton recieves a swab from a driver as she works at a Covid-19 testing site in the parking lot at Everett Memorial Stadium on Tuesday, Oct. 20, 2020 in Everett, Washington. (Andy Bronson / The Herald)
13 more COVID-19 cases in Interior Health region

There are 624 cases in the region since the start of the pandemic

The body of Natsumi Kogawa, 30, was found in the Gabriola Mansion on Davie Street, Vancouver, in September 2016. Vernon man William Schneider, who was found guilty of second-degree murder, now awaits the decision of his appeal hearing Monday, Oct. 19, 2020. (Vancouver Police Department photo)
No decision yet for Vernon man appealing murder sentence

William Victor Schneider was convicted in relation to Natsumi Kogawa’s death in 2016

Most Read