Photo by Curtis Galbraith

By Curtis Galbraith

Agriculture

Canola exports to China will continue, key licenses still blocked

Apr 1, 2020 | 2:07 PM

Canola trade will continue with China, but a pair of key export licenses remain blocked.

There had been reports Tuesday that an agreement to resume full trade had been reached.

Valhalla farmer and Alberta Canola Director Andre Harpe explains the confusion started with some communication from the Chinese government.

“Canada and China had a memorandum of understanding going back several years to buy canola. The Chinese government had put out a news release saying that they were going to continue to keep on buying canola. “

Harpe says that memorandum of understanding was due to expire today, and that trade will continue at the same level it has been at since last year.

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“The licenses that had been cancelled by China, the Viterra licensing and the Richardson (license), haven’t been renewed yet, so they will continue buying canola as they have been for the past year. It doesn’t mean they are going to buy more or less canola; they’re just going to continue to keep on buying canola.”

He adds there is no sign at this time that full trade will resume.

“The news release, all it said was basically that they’re going to continue to buy canola. Right now, I don’t think we’re any further ahead than we were and I don’t think we’re less behind, but it’s just something to watch out for, I guess.”

Harpe says the two countries are having ongoing talks and that people from the canola industry talk with government officials every two weeks.

Both Alberta Canola and the Canola Council of Canada say officials from China and Canada talked about canola seed trade during a phone call Monday.