Canada Secures Extension for Canola Exports to China

June 14, 2010

Ottawa, Ontario – Canada has secured an extension of transitional measures so canola producers will be able to export their 2010 canola crops to China. Agriculture Minister Gerry Ritz announced that, starting today, Canadian canola exporters will be able to sign contracts to export the 2010 crop to China.

"This is good news for Canadian canola producers who depend on the Chinese market, but we realize there’s still a lot of work left to do before canola trade with China is fully normalized," said Minister Ritz. "Today’s agreement is securing the conditions to export the 2010 crop year, and we will continue to find a long-term solution to this issue."

In the fall of 2009, exports of Canadian canola seed were impacted by import restrictions related to blackleg. At that time, Canada negotiated transitional measures for the 2009 crop year. Today’s announcement is an extension of that temporary import agreement for the 2010 crop.

"I raised the canola issue with my Chinese counterparts during the recent Asia Pacific Economic Cooperation (APEC) ministerial meetings in Japan," added Peter Van Loan, Minister of International Trade. "While we are pleased with the progress on this issue, it will be raised again at every opportunity to ensure our canola producers gain long term access to the Chinese market."

The Government of Canada is committed to fully restoring Canada’s canola exports to China and is raising the issue at every available opportunity. The extension of the agreement will allow the Canadian canola industry to pursue the signing of contracts with their Chinese importers for the 2010 crop year, which begins in August. This extension will have a significant economic impact for the Canadian canola producers as China is one of Canada’s major canola seed export markets. During the first nine months of the 2009 crop year Canada exported 1.6 million tonnes, valued at $684 million.

Canola is one of Canada’s most valuable exports to China. For the 2008 crop, exports to China were worth $1.3 billion.