Skip to main content

Report on Business Canada to boost aid for canola exporters as China dispute drags on: sources

The Canadian government will boost an insurance program for canola exporters looking to find new buyers in light of trade tensions between Canada and China, sources with direct knowledge of the situation said on Wednesday.

China, locked in a deepening dispute with Canada, has blocked imports of Canadian canola seed, depriving producers of their largest export market.

Senior officials will announce on Thursday that Ottawa is providing additional credit insurance for grain companies selling canola abroad, said the sources, who requested anonymity because they were not authorized to speak to the media.

Story continues below advertisement

The additional insurance would be provided by Export Development Canada.

A working group set up to aid the canola industry has been asking Ottawa for additional insurance to help alleviate risks such as non-payment that exporters looking for alternative markets might face, the sources said.

Trade Minister Jim Carr and Agriculture Minister Marie Claude Bibeau are due to announce additional support for canola producers on Thursday, a spokeswoman for Carr said. She declined to give more details.

Ottawa has already bolstered a federally-backed loan program for canola farmers.

Last week, a Canadian trade delegation, led by Carr, travelled to Japan and South Korea to encourage more canola seed purchases. The trip coincided with the G20 trade ministers meeting in Japan.

China has also temporarily suspended export permits from two Canadian pork plants and boosted inspections of pork shipments. Beijing is demanding Ottawa return a Chinese tech executive who is facing extradition to the United States.

Traditionally, Export Development Canada has not operated in the canola business because Canadian grain companies typically have strong and stable relations with their buyers, sources said. Canada is the world’s biggest canola producer.

Story continues below advertisement

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Discussion loading ...

Cannabis pro newsletter