China begins anti-dumping investigation into Canadian rapeseed

China has announced the start of a one-year anti-dumping investigation into imports of rapeseed from Canada, a move widely seen as retaliation against Ottawa's tariffs on Chinese-made electric vehicles and other products.

The investigation will examine imports from January 1 to December 31, 2023, the commerce ministry said in a statement on Monday, adding that preliminary evidence and information show dumping had taken place.

There is causal relationship between the dumping of Canadian imports and actual damage to domestic industry following significant rises in the imports and falling prices, the ministry said.

The world's biggest oilseed importer purchased 5.5 million metric tons of canola in 2023, valued at $3.72 billion. Imports from Canada accounted for 94% of the total.

The investigation is "fundamentally different" from the discriminatory measures taken by Canada in violation of WTO rules, a spokesperson from the commerce ministry said in a Q&A session on Monday.

The announcement of Beijing's plan on an anti-dumping probe last week sent prices of domestic rapeseed oil futures to a one-month peak.

The investigation will start effectively immediately, and should usually be completed before September 9, 2025, although it may be extended for another six months under special circumstances, the ministry said.

The probe will also examine the industrial damage from these Canadian imports covering the period from January 1, 2021 to December 31, 2023, it said.

More than half of rapeseed, also known as canola, exported by Canada makes its way to China.