China is expanding its ban on Canadian canola seed imports.
On Tuesday, the world’s most populous country announced that it is banning all shipments from Canadian canola producer Viterra Inc. (TSX:VT) – the latest development in an escalating trade dispute between Canada and China.
Viterra is the second Canadian canola exporter to have its registration canceled by China. Beijing halted shipments from top exporter Richardson International earlier this month. An industry group representing Canadian canola producers said last week that Chinese importers have stopped buying any oilseed from Canada, though Chinese imports of Canadian canola oil and meal have not been impacted.
Prime Minister Justin Trudeau told reporters on Tuesday that his government was trying to resolve the issue and considering sending a high-level delegation to China to address the country’s stated safety concerns about products from Canada.
Canada and China have been locked in a political dispute since the chief financial officer of Chinese telecom giant Huawei Technologies Co Ltd was arrested in Vancouver late last year on a U.S. extradition request.
The ban on Viterra and its related companies was announced by China’s General Administration of Customs on its website and was effective immediately. Viterra is owned by Glencore Plc’s agricultural arm.
Chinese customs said in a statement that the ports of Dalian and Nanning had once again detected several pests in samples taken from cargoes shipped by Viterra. To prevent the introduction of harmful organisms, it canceled the firm’s export registration, it said, adding that it will continue to strengthen inspections on all Canadian canola imports.
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