One year ago, Canadians couldn’t grow enough canola to meet Chinese demand. Between canola seed, canola oil and canola meal, the Chinese imported roughly $4 billion worth of the oilseed crop from Canada, according to an analysis from the Canada West Foundation. Couple that with an escalating trade spat between the U.S. and China, and market analysts were predicting record canola shipments from Canada to China in 2019.
Then, in March, China suddenly reversed course—blocking shipments from two of our biggest exporters because they were supposedly contaminated with pests. It mattered not that Canada said otherwise. Prairie farmers were left wondering what do with no access to their primary market.
It didn’t stop there—which is why most observers believe the action had more to do with Beijing’s anger over the arrest of Meng Wanzhou than with defective Canadian crops. Canadian exporters then reported roadblocks as they tried to send peas, pork and soybeans to China. The delays ranged from unusually long inspections to newfound paperwork problems. There’s no reason to think other products won’t soon be targeted.
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