On Tuesday, China announced a preliminary anti-dumping duty of almost 76% on Canadian canola imports as part of an ongoing trade dispute following Canada’s decision to impose tariffs on Chinese-made electric vehicles. Back in March, China also imposed a 100% levy on Canadian canola oil and meal, along with other levies on other sectors.

Price dropped by about 7% overnight following the announcement, Harpe says, adding that farmers are heading into harvest with limited storage options and bills to pay. “That’s not good for anybody to find out that, all of a sudden, 7% of your check is no longer there. We have no idea where we’re going to go from here,” he adds.

Harpe believes the dispute is driven more by politics than genuine trade concerns. “Most tariffs are driven by politics, and these are no different,” he says. “Unfortunately, we tend to see agriculture, and especially canola, on the front line in trade and tariff wars.”

This latest dispute marks the second time in six years that China has targeted Canadian canola. It underscores the importance of diversification so that the sector isn’t reliant on a single export market, says Harpe. “We have to start looking at different ways of doing things,” he says. “One of the things we have to look at is what can we do with canola in Canada? I think we need to look at the renewable fuel market a little bit more seriously.”

He notes that increasing Alberta’s renewable fuel mandate from three to five per cent could significantly boost demand at home. “Not only would it be good for the Canadian canola farmer, but it would also be really good for the industry.”

China is the world’s largest importer of canola. The majority of its canola imports come from Canada. Harpe says it’s going to take time for Canada to diversify into other international markets, but expanding into biofuel production could be implemented more quickly. “The more we can do in Canada, the better off we all are, so it gets back to we have to do more domestically.”

The federal government says it wants certainty from China before making any concessions, but in the meantime, canola producers are calling on Ottawa to act quickly and work closely with producers.

In a statement, Alberta’s agriculture minister, RJ Sigurdson, calls China’s actions “another devastating blow to Alberta’s agriculture industry.” Sigurdson is calling on Ottawa to act quickly to resolve the trade dispute.

“These tariffs by China are in response to the federal government’s decision to impose 100 per cent tariffs on Chinese electric vehicles and 25 per cent tariffs on steel and aluminum,” says Sigurdson. “Alberta’s farmers, ranchers and processors did not create this situation, yet they are paying the price. While we acknowledge Canada’s request for World Trade Organization dispute consultations over the March 20 tariffs, more urgent and active federal intervention is needed to resolve this dispute – an issue they created.”

As the dispute lingers on, Harpe says canola farmers are struggling. “We have bills to pay, and those didn’t shrink, either.  We need to do something.”

Harpe’s calling on policy makers to partner with canola farmers to help the industry recover from these ongoing geopolitical uncertainties. “We have a wonderful product, a high-quality product. We have a great story. We can hold our own with anybody, as long as it’s fair.”