Source: AFP
China announced on Tuesday that it will launch an anti-dumping investigation into Canadian canola products and chemicals, in apparent retaliation for Ottawa’s new restrictions on Chinese electric vehicle (EV) imports.
Canadian Prime Minister Justin Trudeau last month announced 100 percent tariffs on Chinese EVs, accusing Beijing of “not playing by the same rules as other countries” in areas such as environmental and labor standards.
The United States and the European Union have also imposed tariffs of 100 percent and 36 percent respectively on Chinese electric vehicles, arguing that Beijing unfairly subsidizes domestic producers whose products then flood foreign markets and undercut local competitors.
China has repeatedly criticized the imposition of levies and launched a series of its own investigations in response.
The Commerce Department said in an online statement Tuesday that it “will initiate an anti-dumping investigation into canola imported from Canada, in accordance with the law.”
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The ministry said domestic industries recently reported that Canadian canola exports to China “have increased significantly,” reaching US$3.47 billion in 2023, while prices “continued to decline.”
It said Canadian exporters were “suspected of dumping” products on the Chinese market, adding that “China’s domestic canola-related industries continued to suffer losses under the influence of unfair competition from the Canadian side.”
The statement also said Beijing is “strongly dissatisfied and resolutely opposed” to the Canadian tariffs and plans to raise the issue with the World Trade Organization’s dispute settlement mechanism.
China will also launch a similar investigation into “relevant Canadian chemical products, based on the applications of domestic industries,” according to the ministry.
“China … will take all necessary measures to defend the legitimate rights and interests of its enterprises,” it said.
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Ottawa’s electric vehicle surcharge, on top of existing import duties of 6.1 per cent, will be imposed on October 1.
It will target Chinese electric and some hybrid passenger cars, trucks, buses and delivery vans.
Canada would also limit eligibility for EV incentives to those made in countries with which Canada has free trade agreements, which would exclude China.
A separate surcharge on imports of steel and aluminum products from China will come into effect from October 15.
In recent years the two countries have butted heads on a range of issues, from trade and technology to human rights.
Bilateral ties have been frozen for several years since 2018, when Canada arrested a top executive from Chinese tech giant Huawei, prompting Beijing to arrest two Canadian nationals in retaliation.
Source: AFP
