(Yicai) Sept. 10 -- China's commerce ministry has started an anti-dumping investigation into rapeseed imports from Canada.

The probe will examine imports of the oilseed, also known as canola, covering the period of Jan. 1 to Dec. 31 of last year, following evidence of dumping practices that have caused substantial harm to Chinese industries, the ministry said yesterday. The investigation will take a year, with a possible six-month extension under certain circumstances.

Canada said last month that it would impose a 100 percent import tariff on Chinese electric vehicles and a 25 percent levy on Chinese steel and aluminum products from Oct. 15, while, China, one of the biggest importers of Canadian rapeseed, has initiated anti-dumping probes into Canadian goods such as canola seeds and chemical products, and also plans to refer Canada's actions to the World Trade Organization’s dispute resolution mechanism.

The canola probe was launched independently and legally, based on sufficient evidence, a Chinese commerce ministry spokesperson said, adding that it is a legitimate trade measure aimed at protecting domestic industries and compliant with WTO rules.

The investigation differs fundamentally from Canada's discriminatory measures that violate WTO rules to levy high tariffs on EVs and steel imported from China, the person pointed out.

Initial evidence compiled by the ministry suggests that Canadian rapeseed was exported to China at prices below the "normal" market value, with import volumes surging and prices continuously falling. This suppressed and undercut prices of similar domestic products, causing substantial damage to domestic industries.

The export price of Canadian rapeseed to China was USD686.22 per ton during the investigation period, according to customs data. The market share of Chinese rapeseed fell to 71 percent last year from 82.4 percent in 2021, with domestic producers selling at an average loss of about 75 Chinese cents per kilogram.

"The anti-dumping investigations into Canadian rapeseed and chemical products are trade remedy investigations initiated in accordance with WTO rules and Chinese law, primarily targeting unfair trade practices," Zhou Xiaoyan, vice chairman of the China Council for International Investment Promotion, told Yicai. 

Editor: Martin Kadiev