Saskatchewan’s premier is calling on Ottawa to take “immediate action” to protect the canola industry in the face of massive Chinese tariffs.
Speaking to reporters in Saskatoon, Scott Moe said the 75.8 per cent preliminary tariff on canola announced by China on Tuesday could have a “devastating impact on the price points for Saskatchewan’s canola industry.”
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Moe noted that canola is a $43 billion industry in Canada, employing more than 200,000 people across the country. In Saskatchewan alone, Moe said the provincial government estimated that more than 12 million acres of canola were seeded this year.
“That is significantly larger than the steel industry, the aluminum industry and the car manufacturing industry combined,” Moe said.
But while the steel, aluminum and automotive sectors have received quite a bit of help from the federal government after taking hits due to tariffs from the United States, Moe said the canola industry has essentially been left out of the conversation despite dealing with daunting tariffs from China.
“Canola producers hit with these Chinese tariffs, I would say they deserve the same attention,” the premier said.
“We are asking that this be dealt with immediately.”
While China’s commerce ministry said the “dumping” of Canadian canola into the Chinese market is hurting its domestic canola oil market, Moe said he believes this most recent round of tariffs is largely a continued response to Canada’s 100 per cent tariffs on Chinese-made electric vehicles. The premier said it’s unfair for the federal government to pick one sector over the other.
“Our federal government cannot sacrifice a $43 billion canola industry… to protect a fledgling electric vehicle industry largely based in eastern Canada,” Moe told reporters.
The premier said he’s reached out to Prime Minister Mark Carney to discuss the tariffs from China, and expects to speak with him later on Tuesday. While he credited Ottawa for already beginning talks with China, Moe said Carney should speak about the tariffs on canola with Chinese President Xi Jinping at his earliest opportunity.
Moe noted that as the country works to diversify its trade interests in the wake of hard-hitting tariffs from the United States, it’s important to maintain a good trade relationship with China, which imports about $5 billion in canola each year.
The premier added that the timing of China’s announcement is “particularly hard” on producers in Saskatchewan, who are just beginning to prepare for harvest.
– With files from The Canadian Press