Carney’s $370M canola incentives are missing the mark, says industry group president

The Canola Council of Canada president, Chris Davison, believes that the new funding announced by Prime Minister Mark Carney falls short of addressing the challenges faced by the canola industry in light of the steep Chinese tariff. In an interview on Rosemary Barton Live, Davison expressed concerns about the lack of recognition for the broader impacts on the canola value chain, including exporters and processors who are facing significant challenges with their assets and infrastructure.

Carney’s announcement included plans to introduce new biofuel production incentives and provide over $370 million to support domestic canola producers. Additionally, the prime minister pledged to amend Canada’s Clean Fuel Regulations, increase loan limits for canola producers, and invest in trade diversification measures to support the agriculture sector.

However, Davison emphasized that the canola industry is not seeking subsidies but rather a resolution to the ongoing trade dispute with China. Saskatchewan-based canola farmer, Rob Stone, highlighted the potential financial losses farmers could face due to the trade war, emphasizing the importance of Canada’s relationship with China as a major market for canola.

While Stone acknowledged the importance of Canada’s biofuel investments, he stressed that they cannot replace the need for access to the Chinese market. Despite the challenges, he expressed confidence in the federal government’s ability to address the trade war and find a resolution.

In response to China’s decision to extend its probe into Canadian canola imports, negotiations between the two countries have been extended for another six months. Saskatchewan Premier Scott Moe and Carney’s parliamentary secretary, Kody Blois, traveled to China to discuss trade issues in an effort to find a resolution.

The issue of Canadian tariffs on Chinese electric vehicles has also been a point of contention, with differing views on the potential security risks posed by Chinese EVs. While there are disagreements on how to approach the issue, there is a growing engagement between Canada and China, which Davison views as a positive step towards resolving the trade dispute.

As discussions continue, Davison emphasized the importance of understanding the factors at play and finding a balanced approach to resolving the trade war. While dropping tariffs on Chinese EVs may not be a solution in itself, it is a consideration as Canada navigates its relationship with China and works towards a resolution in the canola industry.