MLA calling on feds to support canola producers

By Lethbridge Herald on October 18, 2024.

A combine unloads a hopper full of canola into a grain cart in a field west of Lethbridge during a past year’s harvest. Herald file photo by Ian Martens

Al Beeber – LETHBRIDGE HERALD – abeeber@lethbridgeherald.com

The NDP’s shadow minister for agriculture is calling on the federal government to support canola producers facing an anti-dumping investigation by China.

China announced the investigation on Sept. 3 after Ottawa announced a plan to introduce a 100 per cent tariff on Chinese-made electric vehicles as well as another tax on steel and aluminum.

In the first six months of 2024 Canadian producers have shipped 2.7 million tonnes of canola seed to China while total exports in 2023 amounted to nearly 4.6 million tonnes.

China’s investigation covers the period from Jan. 1 to Dec. 31 of 2023. The federal government says canola is grown by 43,000 Canadian farmers, primarily in the prairie provinces. It’s Canada’s second largest acreage crop with more than 21 million acres produced every year, says Ottawa. The crop generated $13.6 billion in farm cash receipts last year while the canola value chain generates $29.9 billion in economic activity and supports 207,000 Canadian jobs.

China is Canada’s largest canola market.

Heather Sweet, MLA for Edmonton-Manning, sent a letter on Wednesday to federal Minister of Agriculture and Agri-Food Lawrence MacAulay supporting a request by Alberta canola producers for a financial assistance program to be developed to address the impacts of the Chinese investigation.

Sweet says that the investigation will cost organizations $1 million and eight farmers have registered to provide evidence at court proceedings. Sweet says the investigation could result in a $1 billion hit to the country’s canola industry.

“Previous retaliation measures by the Chinese government have hurt Alberta farmers before and the costs to our thriving agriculture sector are immense. Our farmers cannot continue to bear the brunt of international politics and trade negotiations gone awry,” wrote Sweet.

“Nevertheless, there is precedent for governmental support to affected agriculture producers hurt during trade negotiations. During negotiations with the United States for CUSMA (Canada-United States-Mexico Agreement), dairy farmers had three per cent of the domestic market traded to US producers. At that time, a compensation model was developed by the federal government to offset the loss of revenue for producers,” Sweet wrote. And the Alberta NDP wants a similar compensation model developed for canola producers.

On Thursday afternoon after meeting with sugar beet and potato growers in the Taber area, Sweet told The Herald it’s not known how long the investigation will take but the longer Chinese courts take to listen to the case “the longer and more impact it’s going to have on our export markets.”

The Canadian representatives will show evidence and demonstrate there hasn’t been any canola dumping in China, Sweet said.

The impact to the Canadian producers and export economy is a big issue, Sweet said, adding Ottawa needs to step up to help canola farmers.

Failure to help canola farmers will “once again raise questions about the federal government’s commitment to western producers,” the MLA added.

The anti-dumping process hasn’t yet started and in the meantime producers are getting prepared with their research and evidence to defend their case.

In early September, MacAulay said about the investigation that “I am deeply concerned by this announcement, and I want to be clear that our government will always support the agriculture sector as they pursue market access for their world-class products.

“We remain committed to ensuring fair market access for our exporters, farmers, and producers. I am monitoring these developments closely and I will continue to engage with provincial and territorial partners and industry stakeholders moving forward.”