Canada tightened the tone in the dispute over its canola exports to China.
The bilateral relations may not improve as long as China contributes its part to resolve this issue, so the Trade Minister Chrystina Freeland two days before Canadian Prime Minister Justin Trudeau takes his talks in Beijing to deepen economic relations.
China has announced that the quality testing be increased canola imports from September 1 to mitigate the spread of plant diseases. Canada exported canola so far worth $ 1.6 billion in the year after China.
So this is an important issue for Canada and China must look up. The Liberal Government of Canada wants to expand the economic relations with China, but the controversy surrounding safe canola deliveries must be resolved before discussions on closer economic cooperation will be continued.
Canada is the largest exporter of canola (rapeseed) in the world. Thus, high-quality cooking oil is made first and foremost. The large trading houses such as Viterra and Cargill would lose a big business from September 1, if there is an agreement until then. The Minister does not know whether the dispute is settled by that date.
This topic overshadowed the visit by Trudeau, who has promised to improve relations with China, which were very bumpy at times of the previous Conservative Government.
China has expressed his fears about the spread of blackleg with rape seed for years. However, traders believe that China would raise the barriers to imports, because the oilseed stocks are high in the country.