(Bloomberg) – The resolution of U.S. criminal charges against the chief financial officer of Huawei Technologies Co. reinforces optimism that China and Canada can resolve a canola trade dispute.
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Canada is the world’s largest producer of canola, an oilseed used in everything from salads to frying, but the product is stuck in the crosshairs of a dispute between the nation, China and the United States. China suspended the licenses of two major Canadian shippers, Viterra and Richardson International, in 2019 in a move that has been interpreted as retaliation following the arrest of Huawei chief financial officer Meng Wanzhou in Vancouver.
Now that Meng has been released and two Canadians detained in China have been allowed to return home, “I hope that will bring temperatures down between the two countries,” said Jim Everson, chairman of the Canola Council of Canada, based. in Winnipeg.
China is the largest importer of oilseeds and “our goal is to have predictable open trade,” Everson said.
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Canada’s canola crop in 2021 has been scorched by drought, so it may take time to determine whether China is considering changing its policy towards the country’s large shippers, said Neil Townsend, chief market analyst. at FarmLink. Canola production is set to drop 24% to 14.7 million metric tonnes this year as dry conditions have pushed yields to the lowest in a decade, according to Statistics Canada.
“I think we’re going to find out more about what China thinks of us on the canola front when we grow some more,” Townsend said by phone.
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