Detail

Canada

Oilseeds, oils and meals

Rapeseed

01/04/2020

Trade

Bilateral, sector-specific trade negotiations

While bilateral talks with China - aimed at restoring full access for Canadian rapeseed to China - continued, China’s import licences for Canada’s two largest rapeseed exporters remained suspended. Meanwhile, and despite the expiry of a phytosanitary agreement regulating shipments of Canadian rapeseed to China, imports of rapeseed from other Canadian exporters would continue to be accepted, provided they respected a reduced dockage limit of 1 percent of foreign material.

CHINA / CANADA – rapeseed trade: The two countries allowed a phytosanitary agreement regulating the shipment of Canadian rapeseed to China to expire on 31 March (see also MPPU Nov.’16). Notwithstanding, China would continue to accept imports of Canadian rapeseed, provided that a reduced dockage limit of 1% of foreign material is respected – a requirement allegedly linked to concerns about the transmission of blackleg disease through dockage. Since the required dockage limit is lower than the 2.5% standard set out Canada’s Grain Commission, processing costs for Canadian rapeseed shippers are expected to rise. At the same time, China’s import licenses for Canada’s two largest rapeseed suppliers would remain suspended (see MPPU May’19), according to trade officials. Market observers expect bilateral talks aimed at restoring full access for all Canadian exporters to continue – in line with Chinese efforts to diversify its oilseed imports amid the ongoing COVID-19 pandemic.