Sask. chamber pens letter to Prime Minister on canola tariffs

REGINA — The Saskatchewan Chamber of Commerce is pushing the federal government to do something to address the latest canola tariffs from China.

The Saskatchewan chamber says it has written a letter to Prime Minister Mark Carney on the issue. According to correspondence dated Aug. 14 from chamber CEO Prabha Ramaswamy, they are urging the federal government to meet with the President of China, Xi Jinping, to push for the removal of the tariffs and full restoration of market access.

"This new policy represents a serious escalation in trade tensions and an immediate threat to Western Canada’s agricultural economy," Ramaswamy wrote. "We at the Saskatchewan Chamber of Commerce are deeply concerned about the long-term consequences for producers, exporters and the communities that rely on them, and we urge your government to respond decisively."

Her correspondence also noted the importance of the canola industry to Saskatchewan, highlighting the urgency of the situation.

"Saskatchewan is the centre of Canada’s canola industry. This year, over 12.1 million acres of canola were planted in our province, representing 55 per cent of national production. Canola contributes $43.8 billion annually to the Canadian economy and supports 55,000 jobs in Saskatchewan alone. With 90 per cent of production exported and China ranking as our second-largest market after the United States, the potential impact of these tariffs is profound. The market has already reacted sharply. On Aug. 12, canola futures dropped $30.50 per tonne, erasing an estimated $610 million in value for Western Canadian farmers in a single trading day. Exporters now face unfulfilled contracts, costly cancellations, and the challenge of redirecting millions of tonnes to alternative markets at higher freight costs. If similar measures are applied to other commodities such as wheat or barley, the damage to our economy would deepen considerably."

In a news release, the Saskatchewan chamber said that "China’s decision to impose a 75.8 per cent provisional tariff on Canadian canola seed – effective Aug. 14 – marks the most significant disruption to this export market since 2019, when China denied market access to Canada’s largest canola processors. For farmers and exporters, especially in Saskatchewan, the impact could be immediate and substantial."

The chamber also noted this was not the first time China restricted Canadian canola, pointing to the suspension of major exporters’ licences in 2019. They also pointed to China having launched its current anti-dumping probe in 2024.

As for what is next, the chamber release indicates they believe Canada may try to redirect trade to areas currently served by Australia, but note freight costs to those destinations could be $15 to $20 per tonne higher. They also pointed to China having flagged hundreds of Canadian shipments of other commodities such as wheat and barley for phytosanitary issues, which they say raises concerns more crops could be targeted.

"For now, the message is clear: keep an eye on the markets, talk to your buyers, and be ready for more price swings in the weeks ahead," the chamber states in its release. "The chamber encourages affected businesses to contact us to share how these tariffs are impacting their operations and to stay connected for ongoing updates and advocacy efforts."