China announced tariffs for Canadian agricultural and food products on Saturday and reciprocated against taxes that Ottawa was introduced in October for Chinese electric vehicles, steel and aluminum products.
The tariffs announced by the Ministry of Commerce to come into force on March 20 are added to a new trade war, which was largely driven by the announcement of the tariffs of US President Donald Trump in Canada, Mexico and China, and the threats by protectionist measures for other nations.
China will apply a tariff of 100 percent on Canadian rapeseed oil, oil cake and pea imports as well as a stay of 25 percent to Canadian water products and pork, the ministry said in a statement.
Canada’s 100 percent tariff on Chinese electric vehicles and 25 percent tax for its aluminum and steel products “seriously violate the rules for the world trade organization, represents a typical act of protectionism and are discriminatory measures that seriously harm China’s legitimate rights and interests,” said the Ministry.
Prime Minister Justin Trudeau said in August that Ottawa imposed taxes on what he called China’s intentional state -oriented policy of overcapacity after the United States’ lead and the European Union, both of which also imported EVS in Chinese.
China is Canada’s second largest trading partner who looks back far behind the USA
“Widespread and negative effects”
Chris Davison, President and CEO of the Canola Council of Canada, said on Saturday that China’s announcement “would have a widespread and negative impact in the Canadian rapeseed industry”.
“To say that people are anxious would be an understatement,” said Davison. He added that American and Chinese markets “usually make up over 75 percent of Canadian global rapeseed trade”.
On Friday, the federal government announced some tariff aid measures for Canadian companies and employees, including 1 billion US dollars in new funding from Farm Credit Canada to reduce financial obstacles to Canadian agriculture and food industry.
Davison said in the “immediate short -term short -term
He also said that there must be a “sensible commitment” between Ottawa and all important trading partners of Canada.
“All markets have risks with them and we have to effectively manage these risks,” said Davison. “And in this case this requires a good, strong commitment between two governments.”
