‘No doubt, they are retaliating’: Canadian canola hits Chinese delays after arrest of Huawei’s Meng Wanzhou
- Shipments of the Canadian oil-seed crop are being slowed through Chinese ports, traders say
- Importers say they are avoiding Canadian purchases as they pre-empt additional hurdles to trade
A political dispute between China and Canada over the arrest of a top Huawei executive is slowing canola shipments through Chinese ports and causing some importers to hesitate to buy from their biggest supplier, according to interviews with a dozen traders.
Since Canadian authorities arrested Huawei chief financial officer Sabrina Meng Wanzhou in Vancouver on December 1 at the request of the United States, China has detained two Canadians and escalated a drug-smuggling sentence against a third Canadian to death, moves Ottawa has described as deeply concerning.
In the same period, cargoes of Canadian canola had taken longer to clear Chinese customs and GMO permits needed to import genetically modified crops, including canola, became more difficult to obtain, traders said. Back in Canada, canola stocks piled up to a record-high level at the end of 2018, Statistics Canada said on Tuesday.
China buys some C$2.5 billion (US$1.90 billion) of Canadian canola per year, and a slower sales pace would be another hit to exporters, which include Richardson International, Viterra and Cargill, in a year when Prime Minister Justin Trudeau faces a tough race for re-election.
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Representatives for Richardson and Viterra did not respond to requests for comment, and Cargill declined to comment.