China Initiates Anti - dumping Investigation into Canadian Rapeseed

On September 9, the Ministry of Commerce of China issued an announcement, stating that it would initiate an anti - dumping investigation into imported rapeseed originating in Canada as of that day. This decision was a response to the Canadian governments previous restrictive measures such as imposing tariffs on electric vehicles, steel and aluminum products imported from China. As early as September 3, the Ministry of Commerce of China had announced a number of counter - measures, including carrying out an anti - discrimination investigation against Canada, launching an anti - dumping investigation into imported rapeseed and related chemical products from Canada, and planning to resort to the WTO dispute settlement mechanism regarding Canadas relevant practices.

1. Reasons for initiating the anti - dumping investigation

According to the announcement of the Ministry of Commerce, preliminary evidence and information show that the price of rapeseed exported from Canada to China is lower than the normal value, indicating dumping behavior. At the same time, the import volume of this product in the Chinese market has increased significantly, the price has continued to decline, cutting and suppressing the price of similar products of the domestic industry, resulting in material damage to the domestic industry. In addition, the Ministry of Commerce also pointed out that there is a causal relationship between this dumping and the material damage to the domestic industry. This anti - dumping investigation started on September 9, 2024, and should usually end before September 9, 2025. In special circumstances, it can be extended by six months.

The spokesperson of the Ministry of Commerce emphasized that anti - dumping investigations are legitimate trade measures that comply with WTO rules and protect domestic industries. There is an essential difference between Chinas anti - dumping investigation into imported Canadian canola and the discriminatory measures taken by Canada that violate WTO rules. According to Chinese laws and WTO rules, there are two ways to initiate an anti - dumping investigation: one is upon the application of the relevant industry, and the other is initiated independently by the investigating authority ex officio. Given the low concentration of the canola industry and the large number of growers involved, it is somewhat difficult to file an application. Therefore, based on sufficient evidence, Chinas investigating authority initiated the investigation on its own initiative.

2. Reasons for choosing rapeseed as the object of the anti - dumping investigation

China is the largest export market for Canadian canola, canola oil, and rapeseed meal. According to foreign media reports, the Canola Council of Canada stated that the total economic activity between Canada and China in 2023 reached $5 billion. Between January and June this year, three - quarters of the canola exported by Canada was sold to China. Official data shows that from 2021 to 2023, the quantities of canola imported by China from Canada were 2.4376 million tons, 1.8679 million tons, and 5.0502 million tons respectively. In 2023, it increased by 107.18% compared with 2021. In 2023, the canola exported by Canada accounted for 26.72% of the Chinese market share.

As a bulk primary agricultural product, canola is highly sensitive to price. Its price and returns directly affect the healthy development of Chinas domestic industry. The Ministry of Commerce stated that during the investigation period, the import price of Canadian canola was consistently lower than the selling price of similar domestic products in China, seriously weakening and suppressing the price of domestic products and causing the domestic industry to be in a state of continuous loss. In 2023, compared with 2022, against the backdrop of further growth in market demand, due to the market - squeezing effect of imported Canadian canola, the market share of Chinas domestic industry decreased by 16.52 percentage points, the sales volume decreased by 2.02%, the sales revenue decreased by 1.70%, and the loss amount increased to 10.163 billion yuan, an increase of 995.08%.

3. Follow - up progress

The spokesperson of the Ministry of Commerce said that the investigation work has just started and is being carried out in accordance with legal procedures. China will conduct the investigation in an open and transparent manner in accordance with WTO rules, fully safeguard the rights of all interested parties, and make a fair and just ruling based on the investigation results. The Ministry of Commerce also revealed that in the future, it may initiate anti - dumping investigations into relevant Canadian chemical products upon the application of the domestic industry.

Recently, the Ministry of Commerce of China announced a series of measures to safeguard the legitimate rights and interests of Chinese enterprises. On September 6, China filed a lawsuit against Canadas tax measures on electric vehicles and steel and aluminum products at the WTO. It is believed that Canadas proposed additional taxes of 100% and 25% on Chinese electric vehicles and steel and aluminum products respectively are acts of unilateralism and trade protectionism, seriously undermining the rules - based multilateral trading system. China will continue to take all necessary measures to resolutely defend the legitimate rights and interests of the domestic industry.