China Accuses Canada of "Seriously Damaging" Interests Over Tariffs
China Defends Tariffs on Canadian Goods
China has accused Canada of "seriously damaging" its interests, defending its tariffs on Canadian goods, including rapeseed oil, oil cakes, and peas, after Ottawa launched a dispute against Beijing at the World Trade Organization.
China’s Response to Canada’s Tariffs
China imposed a 100% surcharge on the Canadian goods in response to Ottawa’s decision last year to place 100% tariffs on Chinese electric vehicle imports, matching US measures to fend off a flood of Chinese state-subsidized cars into North America. Chinese Foreign Ministry Spokesman Guo Jiakun stated, "China’s taking of necessary countermeasures are completely reasonable and in accordance with the law. We urge Canada to take concrete actions to correct its wrong practices and provide normal trade and cooperation for the two countries’ enterprises."
Canada’s Dispute at the World Trade Organization
The World Trade Organization announced on Monday that Canada had launched a dispute against China over the additional duties. According to the organization, Canada has requested WTO dispute consultations with China concerning Chinese measures that impose additional import duties on certain agricultural and fishery products from Canada.
The Dispute Process
After complaints are brought before the WTO, consultations are initiated between the members at odds with each other. If no agreement is reached, the complainant can request the establishment of a special panel, made up of three to five experts.
Impact on Canadian Industry
Canada is among the world’s top producers of canola, a rapeseed crop that is used to make cooking oil, animal feed, and biodiesel fuel, and China has historically been one of its largest customers. Aquatic products and pork will also face a 25% levy. Canadian industry leaders have said they would be hit hard by the new tariffs.
Tensions Between Canada and China
The tariffs come as both Canada and China face increasing trade tensions with the United States after new tariffs imposed by President Donald Trump. Ottawa also last year announced a surcharge on imports of steel and aluminum products from China. Beijing’s commerce ministry said a probe into these measures found that Canadian policies "disrupted the normal trade order and harmed the legitimate rights and interests of Chinese enterprises."
Recent Tensions
Relations between Beijing and Ottawa have been tense in recent years. This month, Canadian Foreign Minister Melanie Joly told reporters in Ottawa that China had executed four Canadian citizens in recent weeks, defying pleas from Ottawa for leniency. China insisted it had acted "in accordance with the law" in carrying out the executions.
Conclusion
The dispute between China and Canada over tariffs highlights the increasing tensions in global trade relations. Both countries face challenges in their trade relationships with the United States, and the dispute may have far-reaching consequences for the global economy.
Frequently Asked Questions
Q: What are the tariffs imposed by China on Canadian goods?
A: China has imposed a 100% surcharge on rapeseed oil, oil cakes, and peas imported from Canada.
Q: Why did China impose these tariffs?
A: China imposed the tariffs in response to Ottawa’s decision last year to place 100% tariffs on Chinese electric vehicle imports, matching US measures to fend off a flood of Chinese state-subsidized cars into North America.
Q: What is the impact on the Canadian industry?
A: Canadian industry leaders have said they would be hit hard by the new tariffs, with the country’s canola producers being particularly affected.
Q: What is the next step in the dispute?
A: The World Trade Organization has initiated consultations between China and Canada over the additional duties, with the possibility of establishing a special panel to resolve the dispute.