China blocking shipments of Canadians’ canola has hit a second month, and Saskatchewan Premier Scott Moe said that now is the time to consider “reciprocal” trade tactics.
China has been blocking shipments of Canadian canola over reports of pests being found in the crop. However, critics believe the trade issues are linked to Canada’s role in the arrest of Huawei CFO Meng Wanzhou in an extradition request by the United States.
While speaking to the media Monday, Moe floated the idea ahead of a phone conversation with Prime Minister Justin Trudeau Tuesday.
“What is our federal government doing now that is accomplishing that much on this file? We need to engage, we’re not able to land a scientific delegation supported by officials within the government of Saskatchewan on the ground in China to engage on this file,” Moe said.
“It’s time for all of us to have a very serious discussion about how we are able to capture a very valuable trading partner’s attention.”
Moe would not name specific Chinese products that he believes should be subject to “reciprocal” action. He said he is not advocating for tariffs on Chinese products, and said canola is currently faced with “unfair scrutiny,” which could be reciprocal.
“The previous premier of this province said ‘walk softly and carry a big list.’ The fact of the matter is we are a month now with no identifiable movement and with respect to this trade relationship, we need to engage and we need to ensure we can get our trading partners attention so we can engage.”
This talk comes amid reports that other Canadian commodities, like peas, soybeans and pork, are facing similar issues at the Chinese border. Moe said Saskatchewan is still working to confirm these reports are legitimate.
According to Moe, Saskatchewan’s agri-food exports usually total $14 to $15 billion annually. He said, in recent years, about 50 per cent of the cash receipts come from canola.
“If you start to add other products into the nation of China, the challenge starts to become very, very, very concerning,” Moe said.
He added this is beyond a Saskatchewan issue, as the rest of the country is affected by other trade challenges including pulses in Indian and the ongoing issues with American steel and aluminum tariffs.
The premier said it may be time for the federal government to take a hard look at how it is engaging in international trade.
Moe added he will be meeting with South Korean officials soon to discuss canola imports and other trade with the Asian nation.
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