CBC News: Link to Source
SummaryChina has introduced higher screening for Canadian Canola in response to what it has claimed were organisms within canola products. It is viewed in western countries that this is a diplomatic trade move as China has a history of tying foreign diplomacy to trade leverage, where Canada does not have the size of economy to leverage it's own demands to keep the flow of canola products steady. Last December Vancouver officials arrested the chief financial officer of the company, Miss Meng, on behalf of the American government which began the trade war between China and the United States. | |
My Opinion
I think that this is China's way of pressuring Canada into leaving the economic war between them and America. Because of the history of their use of trade leverage in foreign diplomacy it is likely this is true. In an effort to limit the damage to Canadian farmers this solution should be solved as soon as possible or new markets opened up to mitigate losses and the pressure on the government. Diversifying cash crops to soybeans or others through subsidies provided by diversified exports to Chinese markets.
Canadian Government and Canola Producers
The blockage of canola is being seen as a direct result of Canada's involvement in the Huawei arrest during December 2018. In contemporary times China has been using its ability as a large importer of raw goods to influence foreign diplomacy such as the trade war that is currently being fought between China and America. Because Canada acted as a supporter of America, China has pressed Canada to be less present in foreign affairs regarding it's spreading economic influence as an economic powerhouse. Canola producers in Canada have taken the largest hit as Canola prices have collapsed, falling ten dollars since China has announced its new screening processes.
China
China has claimed that the more intensive screening is because of organisms found within products that made them unfit for production. It is quite likely that this is a diplomatic move given China's history with economic relations and current events that have lead to escalated tensions between the two economic superpowers of the world. Earlier this year China revoked a trade agreement with Norway over salmon after Norway awarded the Nobel Peace Prize to a Chinese political prisoner. In 2017