China, the world's largest importer of canola, has announced preliminary anti-dumping duties on Canadian imports of canola, also known as rapeseed. According to AlJazeera, the move indicates a new escalation in the year-long trade dispute that began with Ottawa’s imposition of tariffs on Chinese electric vehicle imports in August 2024. According to the Canola Council of Canada, China is the largest market for canola seed and the second largest market for Canadian canola.

The provisional rate will be set at 75.8%, effective from August 14, China’s Ministry of Commerce said in a statement on August 12. China has until September, when the investigation formally ends, to make a final decision on the duties

Intercontinetal Exchange (ICE) November canola futures RSX5, the global benchmark for canola trading, fell 6.5% to a four-month low after the announcement.

China’s Ministry of Commerce said on August 12 that an anti-dumping probe launched in September 2024 had found that Canada’s agricultural sector — particularly the canola industry — had benefited from “substantial” government subsidies and preferential policies.