OTTAWA — Canada is taking the first formal step at the World Trade Organization to challenge China’s decision to block Canadian canola exports, Trade Minister Jim Carr said on Friday.
Carr said in a statement that Ottawa was seeking bilateral consultations with China at the WTO. If these talks fail, Canada can request adjudication by a WTO panel. Canadian farmers expect to harvest 9 per cent less canola due to reduced plantings, according to a government report released last month amid a diplomatic dispute between Canada and China, the top importer of the crop.
The dispute, centered on the arrest of a Chinese executive in Canada and China’s decision to detain two Canadians, has curbed canola export sales since early this year and weakened prices just as farmers were deciding what to plant this spring.
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