Following the decision to impose a 100% tariff on canola oil from Canada, the number of canola and crude oil contracts in China increased sharply.
Illustration of the Chinese flag and the Canadian flag - Photo: REUTERS
According to Reuters, on March 10, the number of canola oil contracts in Zhengzhou skyrocketed after China decided to impose a 100% tariff on imports of canola oil products from Canada.
In China, rapeseed oil prices are trading extremely active, up 5.2% to 9,213 yuan ($1,270) a tonne.
Notably, on the trading floor in Zhengzhou, oil prices rose 6% to 2,611 yuan ($360) a ton - the biggest increase since September 2022.
Earlier, on March 8, China announced its latest trade retaliation against Canada. According to the Chinese Ministry of Finance, the new tariffs, which will take effect from March 20, include a 100% import tax on canola oil, soybean meal, and peas, and a 25% tax on seafood and pork products.
Beijing's move is in response to Canada's tariff policy, which includes imposing a 100% tariff on electric vehicles made in China and a 25% tariff on steel and aluminum imported from the country.
“China has alternative supplies for canola in Russia and Europe, and China’s increased import duties have also put pressure on Canadian canola prices, leading to a sharp decline in prices,” said Anilkumar Bagani, research director at Mumbai-based vegetable oil company Sunvin Group.
“It is also worth noting that China currently has very large rapeseed oil reserves and quite high production and crushing capacity,” Mr Bagani added.
The move from China "could create new negotiating opportunities in the two countries' trade talks," Reuters quoted traders and analysts as saying.
Canada's second largest trading partner
According to AFP, Canada is one of the world's leading producers of canola - a crop used to produce cooking oil, animal feed and biofuel. China used to be one of Canada's biggest customers in this industry.
However, relations between the two countries have become severely strained since 2018, when Canada arrested Meng Wanzhou, a senior executive of Chinese technology giant Huawei. In response, Beijing detained two Canadian citizens.
China is by far Canada's second-largest trading partner, but behind the United States by a large margin.
Source: https://tuoitre.vn/hop-dong-dau-hat-cai-va-dau-tho-tai-trung-quoc-tang-vot-sau-khi-ap-thue-100-voi-canada-20250310145632858.htm
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