China has slashed significant tariff duties on Canadian canola in the final ruling of a 17-month anti-dumping investigation.
The announcement came a day after China suspended some tariffs on Canadian agricultural products during a trade dispute with Canada.
As reported by Reuters, Beijing lowered the anti-dumping tariff to 5.9 percent from a preliminary 75.8 percent, according to the commerce ministry. The levy will take place from March 1 and will last for five years.
China has also added a new tax to Canadian canola. On top of the usual 9 percent tax, there is now an extra “anti-dumping” fee, making the total tax 14.9 percent.
The recent rate aligned with Canada’s Prime Minister Mark Carney’s expectations who had expected Beijing to reduce Canola seed tariffs to a combined rate of 15 percent from the current 84 percent.
On Friday, China announced that the country is set to completely remove the 100 percent tariffs on Canadian canola meal and pea imports. The government will suspend 25 percent tariffs on crab and lobster imports.
According to China’s Ministry of Commerce, Beijing launched an anti-dumping investigation into Canada oil that will be concluded on March 9.
As per findings from the investigation, imported rapeseed from Canada involved dumping and harmed China’s domestic rapeseed industry.
The new levies "can alleviate pressure on the domestic sector and help maintain healthy and stable development of the industry,” the statement read.
The recent reduction in tariffs highlight a thaw in trade spate between Ottawa and Beijing in which both countries imposed tariffs on each other.