China Imposes New Agricultural Tariffs on Canada Amid Trade Tensions
China has imposed new tariffs on Canadian agricultural products worth over $2.6 billion, effective March 20, in retaliation for Canada’s trade measures. The tariffs reflect continued trade tensions, influenced by U.S. policies, but exclude canola, indicating potential for negotiations. Analysts suggest that upcoming Canadian elections may further affect relations between the two nations.
China has recently unveiled new tariffs on more than $2.6 billion worth of Canadian agricultural and food products, effective March 20, in retaliation for trade measures imposed by Canada in October. This escalation represents a continuation of ongoing trade tensions, which have been largely influenced by U.S. policies. Notably, China has excluded canola from the tariffs, indicating potential for future negotiations.
The tariffs mirror Canada’s decision to impose significant import duties on Chinese electric vehicles, steel, and aluminum, with tariffs set at 100% and 25%. The Chinese Ministry of Commerce criticized Canada’s actions, asserting they violate World Trade Organization rules and constitute protectionism, while significantly harming China’s rights and interests.
Under the new tariff regime, China plans to impose a 100% duty on over $1 billion worth of Canadian rapeseed oil, oil cakes, and pea imports. Furthermore, a 25% tariff will apply to $1.6 billion worth of Canadian pork and seafood. Analysts believe China’s timing is strategic, with officials aiming to remind Canada of the consequences of aligning closely with U.S. trade policies.
Prime Minister Justin Trudeau defended Canada’s tariffs as a response to what he described as China’s over-capacity policies. In September 2023, China initiated an anti-dumping investigation into Canadian canola, a crucial export, with its exclusion from tariffs suggesting an avenue for negotiation.
With Canada’s federal election approaching by October 20, some analysts anticipate that changes in government could present an opportunity to improve relations with China. Historically, Beijing has reset relations after governmental changes, as observed in Australia following similar tensions regarding COVID-19 investigations. The Canadian embassy in Beijing has not yet commented on this situation.
China’s recent tariffs on Canadian agricultural products mark a significant escalation in trade tensions, largely influenced by U.S. policy. The strategic exclusion of canola suggests possibilities for negotiation, while analysts predict that upcoming Canadian elections may influence future diplomatic relations. Therefore, both countries must navigate this complex trade environment carefully.
Original Source: indianexpress.com
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