China blocks Canadian move to set up WTO probe into ‘serious, negative’ canola seed restrictions

China suspended imports of canola seeds from two firms in March 2019, while also making shipments from other Canadian firms subject to enhanced inspections

But at Monday’s meeting of the World Trade Organization (WTO) Dispute Settlement Body, China blocked Canada’s first request to establish a panel to investigate the restrictions

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According to the Canola Council of Canada, exports from other Canadian firms are down between 50 and 70 per cent compared with levels seen before both the ban and the enhanced inspections were put into place. Photo: Reuters

Published: 9:32am, 29 Jun 2021Updated: 9:53am, 29 Jun 2021

China as expected blocked Canada’s first request to establish a World Trade Organization (WTO) panel to investigate Beijing’s restrictions placed on imports of Canadian canola seeds.

China suspended imports of canola seeds from Richardson International and Viterra in March 2019, while also making shipments from other Canadian firms subject to enhanced inspections, claiming that pests were detected.

Canada claims discussions with China in October 2019 “failed to settle the dispute” and confirmed it planned to escalate its complaint to the Geneva-based trade body last week.

But at Monday’s meeting of the Dispute Settlement Body at the WTO, China said that it was a “premature” move to establish a panel and that it was willing to “continue engagement”, according to a Geneva-based trade official.

Neither Richardson International or Viterra responded to requests for comment.

The move from China was expected, although it is only set to delay the process, with a panel almost certain to be established at the next meeting of the WTO’s dispute-settlement body in July.

It is common for recipients of complaints to reject panel-formation requests at the WTO in the first instance, when such requests must be passed by a consensus, with defendants effectively holding veto power.