An expanding list of Canadian farm exports is hitting obstacles at Chinese ports...
WINNIPEG, Manitoba/BEIJING - An expanding list of Canadian farm exports is hitting obstacles at Chinese ports, leaving sellers of soybeans, peas and pork scrambling amid a bitter diplomatic dispute.
Canadian politicians have said the concerns are baseless, and noted that China detained two Canadians after Canada arrested an executive of Chinese telecom company Huawei Technologies Co Ltd in December at the United States’ request. China has used nontariff barriers before during diplomatic tensions, most recently against Australian coal.
To be sure, the spread of African swine fever through China’s pig herd has reduced China’s need for canola and soybeans to process into feed ingredients.But since January, port soybean inspections that routinely take a few days now require three weeks, causing Chinese buyers to avoid Canadian products, said Dwight Gerling, president of Canadian exporter DG Global.
In a statement, the Canadian agriculture department said it could not confirm that China had imposed stricter measures against farm goods other than canola. Ottawa said this month it hoped to send a delegation to China to discuss the issue.An official at a state-owned crusher in Southern China confirmed that port inspections have tightened on Canadian soybean cargoes.
Canada shipped C$1.7 billion worth of soybeans to China in 2018, up sharply year over year, according to the Soy Canada industry group, as China and the United States fought a trade war. But sales have now slowed to a trickle.Chinese buyers have canceled at least 10 cargoes of Canadian canola in the last few weeks, said a Singapore-based trader at a company that runs crushing facilities in China.
China Inspection and Quarantine Authorities now tests samples of each pea shipment before authorizing it for import. They also restrict in some cases the number of soybean shipments allowed under one license, slowing the flow, Cruz said.
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