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World Trade Organization (WTO)
EconomyGlobal Economy

Canada escalates WTO case against China’s blocks on its canola seed exports

  • China suspended imports from Richardson International and Viterra in March 2019, while making shipments from other firms subject to enhanced inspections
  • China remains Canada’s largest canola seed export market with 2.6 million tonnes in 2020, just ahead of the European Union and Japan

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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, due to the detection of pests. Photo: AP
Andrew Mullen

Canada has succeeded at the second time of asking to establish a World Trade Organization (WTO) panel to look into China’s restrictions placed on its canola seed exports, which have been in effect for over two years.

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, due to the detection of pests.

The first attempt by Canada to establish a panel was blocked by China at the end of June, but at a meeting of the WTO Dispute Settlement Body on Monday in Geneva, it was not able to gain the consensus against the panel’s formation required to block it on this occasion.
In the absence of progress, this is the next step to resolve the dispute and preserve rules-based, predictable trade with China
Canola Council of Canada

“The Canola Council of Canada supports the government of Canada’s action to take the next step in the WTO process by establishing a dispute settlement panel at the WTO,” said a statement from the Canola Council of Canada.

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“The canola industry had hoped that the bilateral consultations between Canada and China would lead to a resolution, restoring full trade in canola seed and ensuring all Canadian exporters are treated equally by the Chinese administration.

“In the absence of progress, this is the next step to resolve the dispute and preserve rules-based, predictable trade with China.”

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Canada claims discussions with China in October 2019 “failed to settle the dispute” and confirmed it plans to escalate its complaint to the Geneva-based trade body at the end of June.
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