The CEO of Regina’s Chamber of Commerce said he was “very concerned” about China’s decision to block canola shipments from two Canadian companies.
“Canola is very, very important to the producers of the province, the people of the province. It is a very important crop for Saskatchewan,” said John Hopkins.
Earlier this month, China suspended imports of canola from Richardson International. Then this week, it blocked shipments from Regina-based Viterra. In both cases, pests were cited as reasons why.
However, Hopkins acknowledges other factors might be at play.
“The reality is, when you look at what’s going on between Canada and China, I think there’s a number of different things going on and hopefully we can get them resolved,” he said.
Many believe China’s actions are retaliation for Canada’s detention of Huawei executive Meng Wanzhou in December. Meng was wanted by U.S. authorities to face fraud charges.
After speaking at a chamber luncheon on Tuesday, federal Public Safety Minister Ralph Goodale said his government’s conversations with China will be focused on matters of science and product quality.
“The Chinese say that it is a technical, scientific issue. If that’s the basis for the action, we will win it. It’s the right strategy to keep it focused on the technical and scientific issues. Those are the issues where we are absolutely squeaky clean,” he said.
The government said while the dispute is ongoing, it will seek other markets which would help raise commodity prices.
That won’t be easy, Hopkins said, adding the federal government needs to support organizations like the Saskatchewan Trade and Export Partnership (STEP) to gain market access.
This whole situation, he said, has put farmers in a tough spot because many have already bought their seeds.
“Do I plant the crop as we watch the market prices go down? Or do I diversify and go into something else? It’s a real conundrum for a lot of producers out there,” he said.
“These are very challenging times. We need to get this sorted out.”