China slaps temporary duties on Canadian canola

BEIJING/SINGAPORE, Aug 12 (Reuters): China on Tuesday announced preliminary anti-dumping duties on Canadian canola imports, a fresh escalation in the year-long trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August.

The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement.

ICE November canola futures fell 4 per cent to a three-month low after the announcement.

China, the world's largest importer of canola - also known as rapeseed - sources nearly all of its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained.

"This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much," said one Singapore-based oilseed trader.