China lifts bans on Canadian canola

Restrictions on two companies were put in place following 2018 arrest of Huawei executive

Canola-seed exports to China were worth about $2.8 billion prior to the bans in 2018. They fell to $800 million after the bans in 2019 before rising to $1.4 billion in 2020

China has lifted restrictions that it slapped on two Canadian canola companies three years ago, in what observers said was retaliation for the arrest of Huawei CFO Meng Wanzhou.

On Wednesday, Beijing updated a list on its customs website, which now shows two producers — whose licences had previously been suspended after Chinese officials alleged they had infested product — are now allowed to export to China.

Canola-seed exports to China were worth about $2.8 billion prior to the bans in 2018, according to the

Canola Council of Canada. They fell to $800 million after the bans in 2019 before increasing back to $1.4 billion in 2020.

Canada’s Federal Trade Minister Mary Ng and Agriculture Minister Marie-Claude Bibeau issued a joint statement about the now-full access to the Chinese market for Canada’s canola industry.

“We welcome this decision to remove the restrictions and immediately reinstate the two companies to allow them to export Canadian canola seeds,” it said.

“Canada will always firmly uphold the international rules-based trade system and related dispute settlement mechanisms, as well as a science-based approach to resolving such issues.”

The bans on Richardson Milling and Viterra Canada were put in place following Meng’s detention by Canada at the request of authorities in the United States in December 2018 on fraud charges.

Meng was arrested trying to transit through Vancouver’s airport and was released last year after a lengthy extradition fight ended with her signing a deferred-prosecution agreement in which she admitted to wrongdoing and was allowed to return to China.

In early 2019, Beijing placed sanctions on the Canadian companies alleging their canola seed was infested with insects. The Canadian government asked for proof of the infestation in front of the World Trade Organization at the time; it was not provided by Beijing.

Last year Canada requested a panel at the WTO arbitrate between the two nations and, after the first attempt was blocked by China, upon a second request a panel was granted.

According to the WTO website the panel was composed in November last year.

The body’s last update on the dispute was listed as being current as of late January.